Lucas Energy Presentation

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Lucas Energy Presentation

• June 1, 2007

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Lucas Energy Overview

• In 2004, Lucas Energy was founded by industry
  experts with extensive regional field experience
  who wanted to build a different type of oil and
  gas company.
• Our corporate philosophy is to operate an
  efficient, agile and risk averse oil company.
• We avoid most of the typical exploration and
  production risk by acquiring proven assets in
  areas where management has had prior experience.
• To date our team has proven its ability to grow
  reserves while maintaining a profitable company.

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Company History
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Volume (000s)
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Jan-05
Apr-07
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May-06

• Acquired 9 Producing Wells in Gonzales and Karnes
  Counties Financed with 2.2 Million Debt and
  Restricted Shares
• Acquired 2 leases and 2 shut in wells in Gonzales
  County
• Acquired 6 Oil Wells in Gonzales County Financed
  with Restricted Shares
• Acquired 1 Well in Gonzales County
• Acquired 1 Producing Well in Austin Chalk Region
• Acquired 2 Shut-In Wells in Gonzales County
• Acquires 498 acre, 5 well property in Austin
  Chalk
• Acquires Team Bank lease
• Announces Reserve Report of 1.5m BBLS

• Lucas Energy Resources Founded
• Acquired 2 Unit Wells in Gonzales County
• Acquired 2 Producing Wells in Baylor County
• Acquired 5 Wells in Zavala County
• Acquired, Improved 1 Well in Gonzales County
• Sold Interest in Zavala County for Profit
• Reverse Merger Completed Began Trading OTC
• Acquired 7 leases, 3 Wells in Fort Bend County
• Announced 1.0 Million Equity Private Placement
• Acquired, Revitalized 1 Well in Gonzales County
• Acquired, Revitalized 1 Well in Gonzales County

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Lucas Hyper-growth Strategy

• First phase of operations was completed by
  acquiring forty-three leases totaling 10,000
  acres with proven reserves.
• Lucas has over twenty prioritized lateral
  drilling locations with proven reserves.
• Engineering and geology work has been completed
  on a ten well lateral program.

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Increasing Reserves

• Our leases are sourced directly through local
  landowners and small operators.
• This intimate knowledge of the area and contacts
  gives us the advantage.
• We employ a field-tested process to revitalize
  underperforming assets and add reserves.
• New equipment is used in order to avoid costly
  downtime and maintenance.
• Our test and production improvement process has
  proven effective with nineteen wells revitalized
  to date.
• We generate new lateral prospects through
  revitalizing vertical wells.
• We have a target of 300-350m in reserves in
  three years.

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Reserve Overview

• Lucas Energy has approximately 1 .6 million
  barrels, 35 million (PV10), in proven reserves.
• We have a finding cost of less than 5/bbl.
• We anticipate 52.5 million in additional
  reserves in Fiscal 2008.

Reserve Risk Spectrum
High
Low
Confidence
100
0
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Industry Risks vs. Lucas Energy
Lucas Energy No No No No No Yes
Typical Emerging Oil Company Yes Yes Yes Yes
Yes Yes

• 1. Exploration Failure Risk
• 2. Lease Acquisition Risk
•  
• 3. Political Risk Geopolitical/Legislative
•  
• 4. Environmental Risk Permitting
• 5. High Finding and Operating costs
• 6. Execution Risk

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Summary

• Investors are buying immediate cash flow.
• We have an ability to find and acquire attractive
  reserves that are overlooked by larger companies.
• We have already acquired significant proven
  reserves twenty PUD locations, twenty-seven
  wells in production and eight wells awaiting
  revitalization.
• We employ a proven test and clean-up/production
  improvement process to hold leases.
• Typical payback timeline per well is less than
  twelve months.
• Our gross margins run in the 80 range.
• Lucas Energy has been cash flow positive since
  its first operating quarter.
• We are poised for a Hyper-growth stage with
  current financing. 90 of capital raised will be
  invested in the drilling program and additional
  reserve acquisitions.

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Appendix

• Table of Contents
• Slide
• Current Portfolio 11
• Typical Revitalization Process 12
• Production Example 13
• Management and Directors 14
• Ownership Summary 15
• Safe Harbor Statement 16

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Acquired Rights to Thirty-four Properties

• Lucas owns 100 working interest in all
  properties.
• 10,000 acres/41 leases.

Lucas Energy acquires leases with large reserve
potential.
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Typical Lucas Energy Revitalization Process
Griffin Oil Unit No.2Post Lucas Energy
Revitalization
Typical Shut-In Well atTime of Purchase
New Modern Equipment Added Chinese pumping unit
assembled and delivered available for approx. 60k
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Griffin Oil Unit No.2 Well Production
Lucas Acquired
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Management and Directors

• James J. Cerna, Jr. Chief Executive Officer
• Twelve years of experience in buy side research
  (primarily at GT Global/AIM).
• Chief Oil Gas Analyst and CFO, Petroleum
  Partners Inc.
• William A. Sawyer Chief Operations Officer
• Thirty years of experience in oil and gas
  operations.
• Highly experienced field operator, petroleum
  engineer.
• Previous firms ARCO, Houston Oil Minerals,
  ERCO.
• Malek A. Bohsali Chief Financial Officer
• Fifteen years experience in energy industry.
• MBA, University of Houston.
• Rick Schmid Board Member
• Certified Geophysicist in the State of Texas.
• Previous firms Texas Independent Exploration,
  DDD Energy.
• Peter Grunebaum Board Member
• Forty years of experience as an independent
  energy investment banker.

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Current Ownership Summary
Fully diluted shares, no warrants or options
outstanding
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Safe Harbor

• Certain statements made during this presentation
  are forward-looking and are subject to risks and
  uncertainties. The forward-looking statements
  made are based on our beliefs, assumptions and
  expectations of future performance, taking into
  account all information currently available to
  us.
• Actual results could differ materially from the
  forward-looking statements made during this
  presentation.
• When we use the words "believe," "expect,"
  "anticipate," "plan," "will," "intend" or other
  similar expressions, we are identifying
  forward-looking statements.
• The forward-looking statements made during this
  presentation are subject to the safe harbor of
  the Private Securities Litigation Reform Act of
  1995.
• We refer you to our filings with the Securities
  and Exchange Commission for a more detailed
  discussion of the risks that may have a direct
  bearing on our operating results, performance and
  financial condition.

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