Lucas Energy Announces Execution of Joint Venture Development Agreement With Dolphin Oil Partnership, LP

Lucas Energy, Inc.

an independent oil and gas company (the "Company" or "Lucas"), today announced that the Company has entered into a Participation Agreement (commonly called a Joint Venture in the industry) with Dolphin Oil Partnership, LP ("Dolphin" or the "Participant") for the development of Austin Chalk properties located in the Gonzales, Wilson, and Karnes Counties, Texas area of the Eagle Ford/Austin Chalk Trend. The Participation Agreement calls for the Participant to contribute 100% of the acreage, drilling, and completion cost as well as an overhead contribution and project generation fees. Dolphin may contribute as much as $50 million in capital to the joint venture. Lucas will be the operator of the properties, contributing its expertise and knowledge of the area as well as making available to the Joint Venture certain acreage it has acquired in the past. Dolphin is a Delaware limited partnership formed by qualified money management personnel with experience with management of investment funds. Drilling is anticipated to begin in late October 2012.