HOUSTON, January 5, 2010 - Lucas Energy, Inc. (NYSE Amex: LEI) an independent oil and gas company (the "Company") based in Houston, Texas, today announced that it signed a Memorandum of Understanding (MOU) with Terra Energy & Resource Technologies, Inc. (OTCBB: TEGR), a natural resource exploration services technology company for a joint venture for development of oil and gas properties in Texas with application of Terra's innovative technologies.
       The Companies stated their intention, via the non-binding MOU, to create a framework for a joint venture, combining oil and gas properties, new age technologies, and networking capabilities for the purpose of a more effective and efficient development of some of Lucas Energy's oil and gas leases.
       William A. Sawyer, President and CEO of Lucas Energy, said, "Lucas Energy's strategy is aimed at risk reduction, and we are excited that we can further reduce such risks in developing some of our properties utilizing the cutting edge technologies of Terra Energy & Resource Technologies." For more information on this and other activities of the Company, see the Lucas Energy web site www.lucasenergy.com.
       "This framework embodies our vision for partnering, because we plan to use our innovative technologies' risk reduction, higher efficiency and effectiveness as investment capital, receiving back-end interests and non-promoted participation rights in exchange for our significantly discounted services," said Dmitry Vilbaum, Terra Energy & Resource Technologies' Chief Executive Officer. "We are pleased with the prospect of using our STeP analysis on two of Lucas Energy's projects in the near future and appreciate our partner's vision and appreciation for the value of innovative oil and gas technologies."

About Lucas Energy, Inc.

       Lucas Energy, Inc. is an independent oil and gas company based in Houston, Texas with approximately 15,000 gross (12,000 net) acres of oil and gas leases in South Texas, primarily in the Gonzales County, Texas area. The Company's strategy is to acquire underperforming oil and gas properties in which Lucas believes it can restore or increase production.
       Lucas indentifies, evaluates and acquires oil and gas property interests, primarily in the Austin Chalk formation of South Texas, that are underperforming or have been shut-in or plugged and abandoned. These properties are revitalized by undertaking re- entry and work-over procedures, including clean-up, repairs and treatments of the existing well bores and lateral extensions, as well as extending or drilling new laterals into previously non-producing areas of the formation.
       As of November 2009, Lucas operated 32 producing wells that produce in the aggregate approximately 80 to 135 barrels of oil per day, gross. It controlled another 16 shut-in or plugged wellbores. The Company owns 100% working interests in all but seven of its operated wells.
       The Company's average daily production, net to its interest, from its oil and gas properties totaled approximately 72 barrels of oil equivalent (boe) per day for the three months ended September 30, 2009. During that same period, oil production was 6,382 barrels and natural gas production was approximately 1.29 million cubic feet, for a total of 6,596 boe. Production totaled 42,560 boe in FY 09 (Mar.).
       For more information on this and other activities of Lucas Energy, Inc. contact William Sawyer, President and CEO, Phone: 713-528-1881, Fax: 713-337-1510, Email: info@lucasenergy.com, or Michael Brette at mikebrette@gmail.com or visit the website www.lucasenergy.com.