Lucas Energy Spuds Mills Oil Unit No. 1 at Austin Chalk Play

Lucas Energy has reported the commencement of drilling the Mills Oil Unit No.1 well, Gonzales County, Texas, a re-entry of an Austin Chalk well completed in a horizontal leg.

The well was spudded on August 4, 2009 and is expected to be drilled down to the bottom of the casing (top of the Austin Chalk formation) within the next few days. After drilling out the cement plugs in the casing, the lateral (horizontal leg) will be cleaned out and acidized to restore production. This well is a part of a joint venture program involving Lucas Energy, Inc., as operator, and two other non-operator working interest owners, one of which purchased an eighty percent BPO (before payout) working interest in the subject well.

Lucas operates twenty-two wells in Gonzales County, Texas. Of these, fifteen are horizontal wells in the Austin Chalk formation with proved undeveloped reserves associated with the drilling of additional laterals into the Austin Chalk formation. Further, the Company's wells are in the new Eagleford Shale trend now being explored to the Northeast and Southwest of Gonzales County, Texas.

William A. Sawyer, President and CEO of Lucas Energy, said, "We are moving forward to complete Phase I of our business plan with the drilling and completion of the six wells left in this part of the plan. We will continue into Phase II this fall with the clean out of some of our lateral wells."