Volume 2, Issue 3 December 21, 2010 Princeton Research, Inc.

Lucas Energy, Inc.

Stock Symbol: LEI

Corporate Website: www.LucasEnergy.com

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

Lucas Value Of Potential Reserves Has Significantly Improved

INVESTORS SUMMARY
Stock Symbol: LEI: AMEX
Share price: $2.69
Market Capitalization:
$36.78 Million (USD)
Shares Outstanding: 13.7 million
Book Value (NBV): $1.39/share
Avg. Volume: 316,000
Industry: Independent Oil & Gas
Upstream
Sector: Basic Materials
Lucas Energy, Inc. (NYSE Amex: LEI) is an evolving Independent
oil & gas company with 17,000 acres of oil properties engulfed
by the Austin Chalk (ACT) and Eagle Ford Shale Trend (EFT), the
top oil plays in Texas during 2010. Lucas controls 75 wellbores
and has 49 wells, producing about 144 BOPD.
An internal survey updated in September revealed that Lucas Energy has
more value than previously realized. Evaluations were based from data of
151 EFT wells, that each produce 394,000 BOE. LEI has about 4.3 million
BOE of recoverable reserves with a net value of $83.6 million at a 10%
discount rate (PV10%). After the revisions, the net asset value is
approximately $6 per share for Lucas Energy, seriously undervalued.

Over the last 6 months of 2010, Oil production has become increasingly successful. In July, Lucas acquired a
number of producing wells along the EFT and 3 wells were completed (Wall, Gescheidle and Stoeltje #1).
During September Lucas closed Part 3 of the EFT joint venture with HILCORP ENERGY, receiving $1.3 million
for 1814 gross acres. October began with the first well being drilled in the EFT (Hagen EF #1), which has a
significant production potential. In November, the drilling of Hagen was completed and plans are in place for a
lateral extension and another horizontal well. In addition, HALL PHOENIX ENERGY LLC acquired 50-80% of
Lucas’s “deep rights”. During December, Kainer Well #1 was completed, as well as the Milton Hines #1.
Gross production is 340 BOPD. In addition, Wiatrek Well #1 was re-entered, bringing in 80 gross BOPD.

Eagle Ford Trend: Rich in Oil Resources

The Eagle Ford Trend (EFT) is an area that spans from the Mexico to SE
Louisiana and it lies underneath the entire Lucas property. The EFT is
making history and is gaining popularity as the hottest American oil play.

The EFT currently has 99 active rigs in the fields and the quantity shot-up
from 49-84 in just 4 months. The EFT is anticipated to have over 200 rigs by
the end of 2011. The original value of EFT was $300-400/acre and presently
each acre is valued to be around $10,000. Major oil companies are cashing
in and acquiring serious amounts of EFT acreage. Each EFT well is expected
to produce 500-1000 BOPD. Since today's oil prices are $87/barrel, each
well could generate $87,000 per day or $2.6 million per month -- with these
numbers, the revenue possibilities are astronomical. Lucas Energy Wiatrek #1 Well
in Wilson County Texas
 Princeton Research, Inc. Lucas Energy, Inc.
December 21, 2010 Stock Symbol: LEI
Volume 2, Issue 3 - Page 2 Website: www.LucasEnergy.com

Lucas Energy Continues To Increase Oil & Gas Production

To increase production levels, Lucas partnered with HILCORP ENERGY and created a growth
strategy to begin development, work-overs and lateral projects. Hilcorp purchased 85% of
Lucas’s “Deep Rights” in Gonzales County. The $9,000,000 in proceeds were re-invested to fund
acquisitions of new oil & gas properties and to pay back the Amegy Credit Facility.

Gonzales County wells are within Buda, EFT, and ACT having a reserve potential of $14 million. Corporate Offices:
Lucas plans to add acreage and deepen existing wells (Kifer, H.O.P.E., Mills and Wright). 3555 Timmons Lane
The Hagen Ranch well is 9,000 feet deep and is anticipated to produce 500 BOPD gross. Suite 1550
Houston, Texas 77027
Wilson County wells are within the Buda and ACT and have a reserve potential of $8.7 million.
The focus will be on the Buda’s re-entries, re-completions, work-overs and new laterals. Phone: (713) 528-1881

Lucas Energy Operations Website:

LucasEnergy.com
Daily: 144 Net BOPD
Working Interest: 20-30% on Joint Ventures with “Deep Rights” Chairman: Fred Hofheinz
and 100% on own leases
President/CEO:
Wells in Production William Sawyer
Bates #2R Media and Investor Relations
Perkins Oil Unit #1 Stoltje #2
Valcher #1
Hagen Ranch # 3 Gescheidle #1
Kifer #1 Princeton Research, Inc.
Griffen Oil Unit #2 Wall Unit #1 3887 Pacific St,
H.O.P.E.
Cone-Dubose #1 Ebron #1 Las Vegas, Nevada 89121
Pfeil #1
Eschenburg #4H Mills #1
Norris #1
Kainer #1 (Testing) Ervin #1 Phone: (702) 650-3000
Snoga #1 e-mail:
mike@princetonresearch.com
U.S. Oil Production Breaking Records
President/CEO: Mike King
For the first time in 20 years, there has been an intense peak in Technical Writer: Gina La Cavera
onshore oil exploration. There has been a 42% increase in the
use of oil rigs -- The largest since 1997 - tripling since 6/2009. Mike King is the President and
Total active rigs in the United States were 1683 in 2010. Chief economist of Princeton
In Texas alone, 300 rigs were added since 2009 -- an enormous Research, Inc. of Nevada. He has
over 45 years of cumulative
increase of 73%. Annual U.S. field production was near the experience beginning as a broker
$2 Billion mark in 2009. Increasing in 4 consecutive months, and trader to consulting
production rates climbed in October to 5.5 million BOPD – corporations on financial matters.
The Highest Level Since October 2003.
Mike later evolved into investment
banking and corporate finance for
Lucas Energy Financial Overview private and public companies. His
propensity over the years has
Lucas Energy has continuously increased revenues and assets over the last 6 months. Total been specializing in economic
current assets have increased from $2 million in March to $2.5 million in September. In addition analysis of public companies,
the net value of their oil & gas properties stands at $19 million. Sales of oil increased from about equities, derivatives and physicals
or cash market trends throughout
6400 barrels in 2009 to 13,000 in 2010. This rise in sales elevated revenues from $855,682 in the world. Mike’s experience,
2009 to $1,516,130 in 2010, due to production rising from 78 to 114 BOPD. A $660,448 increase reputation and experience is
in oil & gas revenues during the 6 months ending 9/2009 was largely due to a 45% increase in behind all of us here at Princeton
oil production, adding 6528 BOE, partly from a $13.80 increase in the price of oil. Research. It is our policy and our
promise to you to do our best to
provide services of excellence
Projected revenues from proven reserves are estimated to be $30 million by 2011 and over and dedication so that your
$70 million by 2015. With additional cash flow, Lucas plans to acquire new acreage and business will succeed and
re-introduce formerly producing wells. Asset values are increasing while liabilities have prosper.
diminished from $ 6.9 million to $3.7 million in the last quarter.
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Prepared by Princeton Research Inc. (http://www.princetonresearch.com) 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.