Lucas Energy Signs Letter of Intent to Acquire Nordic Oil USA I, LLP Assets for $22M

Lucas Energy, Inc.

announced today the execution of a non-binding letter of intent to acquire oil and gas assets from Nordic Oil USA I, LLP ("Nordic 1") in Gonzales, Karnes and Wilson Counties, Texas, which represent all of Nordic 1's interests in the LEI 2009 II and III Capital Programs. According to the terms of the letter of intent, Lucas will purchase the assets for an aggregate purchase price of US$22 million payable in the form of a convertible senior secured promissory note. The note will have a term of 12 months, will bear an interest rate of 6% per annum, will be convertible into shares of Lucas's common stock at a price to be determined in the definitive agreement, and will be issued to Nordic 1 following all necessary approvals by Lucas's shareholders, the NYSE Amex and any other regulatory approvals. The payment of the note will be secured by a recordable first priority security interest to the assets only without any corporate guarantee of the payment. The parties plan to enter into definitive agreements to consummate the transaction prior to January 1, 2012. "We are focused on Company asset growth and are confident that the acquisition will pave the way by increasing the Company's net production and base assets," commented Mr. William Sawyer, Chief Executive Officer of Lucas Energy, Inc.