Announcement Of Joint Drilling Agreement; Karnes County Eagle Ford Horizontal Well Lucas Will Receive Cash Payment and Carried Working Interest

HOUSTON, March 26, 2014 /PRNewswire/ -- Lucas Energy, Inc. (NYSE MKT: LEI) ("Lucas" or the "Company"), an independent oil and gas company with its operations in Texas, today announced a Letter of Intent ("LOI") for a Participation Agreement with a private independent operator to farm out approximately 400 acres on its Karnes County Eagle Ford leasehold.  Under the LOI, Lucas will receive a payment of $1 million, payable in four monthly installments of $250,000, and the operator will drill an initial horizontal well in exchange for a 75% working interest.  Also, Lucas will retain a 25% carried working interest, under which the operator will bear 100% of the drilling costs, estimated at $2 million.  In the remaining acreage, Lucas will retain a 75% working interest and the operator will have a 25% working interest.

"This agreement demonstrates our previously-announced strategy to develop our Eagle Ford reserves in South Texas," said Anthony C. Schnur, Chief Executive Officer of Lucas Energy.  "The final terms and conditions are currently being negotiated and are subject to the final signed Joint Operating Agreement.  Once finalized, we hope to commence drilling by the end of the calendar 2014 second quarter.  Also, in anticipation of increased drilling activity in the Eagle Ford, the Company sold out of the recently-announced 8% participation proposal in Madison County, and received $156,000 for our interests."

About Lucas Energy, Inc.

Lucas Energy (NYSE MKT: LEI) is engaged in the acquisition and development of crude oil and natural gas from various known productive geological formations, including the Austin Chalk, Eagle Ford and Buda / Glen Rose.  Based in Houston, Lucas Energy's management team is committed to building a platform for growth and the development of its five million barrels of proved Eagle Ford and other oil reserves while continuing its focus on operating efficiencies and cost control.

For more information, please visit the updated Lucas Energy web site at www.lucasenergy.com.  Lucas Energy has updated its website to reflect the most recent Fact Sheet and a new offset operator map of its South Texas acreage.

Safe Harbor Statement and Disclaimer

This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward looking statements give our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Lucas believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks inherent in natural gas and oil drilling and production activities, including risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks with respect to natural gas and oil prices, a material decline which could cause Lucas to delay or suspend planned drilling operations or reduce production levels; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in natural gas and oil prices; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or fourth party consents; and other risks described in Lucas's Annual Report on Form 10-K and other filings with the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. The Company's SEC filings are available at http://www.sec.gov.

Contacts: 

Carol Coale / Ken Dennard


Dennard - Lascar Associates, LLC


(713) 529-6600

SOURCE Lucas Energy, Inc.



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http://www.lucasenergy.com

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