HOUSTON, Jan. 10, 2011 (GLOBE NEWSWIRE) -- Lucas Energy, Inc. (NYSE:LEI), an independent oil and gas company, reported today that its directors have approved a record level $6 million capital expenditure budget for 2011.
"We are excited about the approval and content of our 2011 capital program, which was funded through a recent equity offering," commented William A. Sawyer, president and CEO of Lucas Energy. "It gives Lucas an excellent opportunity to meaningfully grow its production this year."
The budget is comprised of $3.3 million set aside to drill horizontal wells in the Eagle Ford formation under the Hilcorp joint venture, $2.2 million reserved for workovers and recompletions in the Buda and Austin Chalk formations, and $0.5 million dedicated to leasehold and small property acquisitions. Management believes that the programs underlying the $6 million of new investment will allow Lucas to greatly increase its existing oil production rates.
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Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Act") and Section 21E of the Securities Act of 1934, as amended (the "Exchange Act"). In particular, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements and are subject to the safe harbor created by these Acts. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration and development of oil and gas. These risks include, but are not limited to, completion risk, dry hole risk, price volatility, reserve estimation risk, regulatory risk, potential inability to secure oilfield service risk as well as general economic risks and uncertainties, as disclosed in the Company's SEC filings. 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 or those prepared by third parties that are not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.