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Volume 2, Issue 4 August 15, 2010 Princeton Research, Inc.

Lucas Energy, Inc.

Stock Symbol: LEI

Corporate Website:

Visit The LEI Yahoo Finance Page For Press Releases,
Stock Quotes And Trading Charts Click Here

Lucas Energy Is Fulfilling The Growing Demand For Domestic U.S. On-Shore Oil

Lucas Energy, Inc. (NYSE Amex: LEI), an emerging independent oil & gas company based in Houston, Texas,
continues to dramatically increase production rates of their properties in 4 Southern Texas counties. They own
100% working interest in the majority of their 17,000 acres of oil and gas leases. Lucas operates 47 wells with
gross average daily production of 300+ BOE/day.

The Company also controls an additional 28 shut-in or plugged well bores in the Austin Chalk formation. Lucas’s
acreage is located in the middle of the new Eagle Ford trend and it is currently testing both the Eagle Ford (EF) and
Buda formations as part of the LEI Business Plan. The Eagle Ford Trend is rich in American oil and is positioned
directly beneath the Austin Chalk Formation. EF spans across 11 counties in South Texas and produces oil and gas
from 4,000 to 12,000 feet. Acreage in Gonzalez County just sold for $4,500/acre. Lucas paid just $3000-$4000/acre.

Lucas Energy continues to increase their oil production levels from year to year and quarter to quarter. Production
sales increased 1,813 bbls in the April to June Quarter – A 31% increase from the Jan. to March Quarter. June
sales are 100% above January with oil prices about the same ($71-73/barrel). One of the largest privately owned
U.S. oil companies, Hillcorp Energy Co., acquired 85% interest in 10,500 acres of Lucas’s EF leases in Gonzales
County, Texas. In June 2010, LEI has acquired an additional 9 wells in the EF/Austin Chalk that are being worked
over to restore production. In July 2010 the Company acquired 2 additional producing wells along the EF and has
100% working interest in them.

Lucas Energy Growth Strategies

For Lucas Energy, growth of oil production is expected to come from acquiring abandoned or shut-in wells. Revitalizing
existing wells with work-over rigs has brought a significant source of oil and gas recovery. Also, drilling new laterals has
produced oil on leases that have been previously underdeveloped. The recently acquired wells along the EF have produced
beyond the Company’s expectations.

The Company has a mission to protect the environment from man-made disasters. Horizontal drilling is a technology that
allows oil extraction with less surface exposure. LEI has been utilizing laterals to improve economics, having the ability to
produce oil faster, safer and more efficiently. About 25% of domestic independent oil companies use horizontal drilling. Lucas
builds relationships with land owners to ensure fairness and protection of their property.

Lucas Energy has no debt. In 2010 they have greatly improved their cash position, INVESTORS SUMMARY
having $4 million in cash in addition to having repaid $2.2 million in debt. Having
spent $4.6 million in capital expenditures including the acquisition of 2,800 new Stock Symbol: LEI: AMEX
acres, they have both increased the Company’s leverage and strengthen their Share price: $ 1.70
position in Gonzales County. The first fiscal quarter, April-June 2010 showed a 60% Market Capitalization:
improvement in the adjusted EBITDA over the last quarter January2009-March2010. $23 Million (USD)
Shares Outstanding: 13.6 million
Oil production is expected to be unabated in Q3 2010 and Q4 in 2011. As of March
Book Value (NBV): $1.31/share
31, 2010 the undiscounted value of proved reserves was $81.7 million. The PV10
value was $47.5 million. Lucas also has leverage over other companies because it
PV 10/share: $7.42 at $ 50/bbl
has lower operating expenses on its leases. By the numbers, LEI has a very good Avg. Volume: 446,551
financial growth potential. The Company has low equipment, exploratory and lifting No Debt
costs. An increase in production, reserves and cash flow gives the company a strong Industry: Independent Oil & Gas
financial position and a significant financial advantage in the oil & gas market sector. Sector: Basic Materials
Lucas Energy, Inc.
Princeton Research, Inc. Stock Symbol: LEI
August 11, 2010
Corporate Website:
Volume 2, Issue 4 - Page 2

Lucas Energy Properties And Production

Properties: 17,000 acres/4 counties
(Gonzales, Wilson, Atascosa, Karnes)
Wells: Total: 75 Producing: 47 Shut-In/P&A’d: 28
Reserves: Proven: 1.97 million BOE

Average Fiscal Yearly Oil Production: Corporate Offices:

2008: 48,000 BOE 3555 Timmons Lane
2009: 52,000 BOE Suite 1550
2010: 56,000 BOE Houston, Texas 77027
Daily: 300+ BOPD
Phone: (713) 528-1881
Inception-to-date well production:
Perkins Oil Unit #1: 13,500 BBL (2006)
Hagen Ranch # 3: 13,500 BBL (2006) Chairman: Fred Hofheinz
Griffen Oil Unit #2: 31,800 BBL (2006)
Cone-Dubose Unit #1: 4300 BBL (2007) President/CEO:
Gescheidle #1: 254 BBL/day (6/2010) William Sawyer
Wall Unit #1: 91 BBL/day (6/2010)
Media and Investor Relations

Princeton Research, Inc.

The Future Of American Oil 3887 Pacific St,
Las Vegas, Nevada 89121
Over the next year, the demand for American crude oil is expected to grow with Phone: (702) 650-3000
drilling offshore becoming such high risk. Penn Virginia Corp acquired 6,800 acres e-mail:
with access to the Eagle Ford Shale paying $31.1 million. That comes to a huge
President/CEO: Mike King
$4,300 per acre. Lucas has averaged no more than $400-600 cost per acre as they Technical Writer: Gina La Cavera
were grandfathered into some properties years ago. The business of independent
oil and gas companies is increasing incrementally as technologies improve and
Mike King is the President and
value of production remains at reasonable levels. More reliance on energy will be on Chief economist of Princeton
shore and should help reduce dependence on imported oil. Research, Inc. of Nevada. He has
over 45 years of cumulative
It is inevitable that we must find new sources of oil production in the United States to experience beginning as a broker
and trader to consulting
meet Americas need for fuel in their vehicles, homes or factories, which is 2/3 of corporations on financial matters.
our energy usage. We need to focus on increasing our domestic oil supply to keep Mike later evolved into investment
consumer prices lowered, reduce reliance on foreign oil suppliers and to prevent an banking and corporate finance for
extremely high trade deficit. private and public companies. His
propensity over the years has been
specializing in economic analysis
Currently there are about 5000 independent oil & gas producers in the U.S. In of public companies, equities,
America, the independent companies drill out of 90% of the wells that produce derivatives and physicals or cash
68% of our oil and 82% of our natural gas. market trends throughout the
world. Mike’s experience,
reputation and experience is
In addition to helping relieve our reliance on foreign oil,domestic producers further behind all of us here at Princeton
strengthen America by reinvesting their profits into new energy projects and Research. It is our policy and our
technology right here at home. Lucas Energy is doing its part in this effort by
producing promise to you to do our best to
more and more domestic oil and gas from Texas land rigs, expanding operations, provide services of excellence and
dedication so that your business
creating jobs and reinvesting in more properties and wells while successfully enacting
will succeed and prosper.
their plan to building a solid corporation with an outstanding financial bottom line that
continues to improve daily.
Prepared by Princeton Research Inc. ( Rule 17B: requires disclosure of monies paid for investor relations. Princeton
Research is paid $2500 to produce this report. This report may contain certain 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, including, but not limited to, statements as to
future operating results and plans that involve risks and uncertainties. We use words such as “expects”, “anticipates”, “believes”, “estimates” the negative
of these terms and similar expressions to identify forward looking statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future
results, performance or achievements expressed or implied by those projected in the forward looking statements for any reason.