Crude Oil
The gross production from Lucas Energy’s operated wells during its third quarter of the 2008-09 fiscal year averaged 143 BOPD (Barrels of oil per day). The fourth fiscal quarter production was slightly lower at 127 BOPD due to maintenance, soapy water treatments, and the conversion of gas engine pumping units to electric motors. The new fiscal year is already starting off well with output averaging to 138 BOPD so far for April 2009. Lucas Energy holds 100% working interest in all but one of its operated wells.
Oil Prices
Lucas Energy sells to two purchasers and historically in 2009 has received slightly less than the posted price from one purchaser and about $3.00 per barrel less from the other purchaser. The posted price for March 2009 was $44.86 per bbl or $8.70 per barrel (24%) improvement over February 2009 prices. The posted price for April 2009 is about $2.50 per barrel higher than March 2009. Based on the Nymex forward price curve, anticipated prices to be realized by Lucas Energy in the next few months should be beyond the March 2009 price.
Natural Gas
Casinghead natural gas production is not a major source of revenues for the company but continues to rise. For the third quarter of the 2008-09 fiscal years, Lucas Energy sold 2,122 MCF (thousand cubic feet) of gas. For the fourth quarter of the 2008-09 fiscal years, gas sales were 2,291 MCF. Most notable was the raise in March 2009 which accounted for almost half of the production for the last quarter of the fiscal year.
