----

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| Nevada                                                                    | 98-0417780                           |
|---------------------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of  incorporation or organization) | (I.R.S. Employer Identification No.) |

| Large accelerated filer o |      Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
|---------------------------|---------------------------------------------------|-------------------------|-----------------------------|
|                      |                                              |                    |                        |

| Class                                    | Outstanding as of October 29, 2010 |
|------------------------------------------|------------------------------------|
| Common Stock, par value $0.001 per share | 13,710,462                         |

----

|                                                                                                                                   |                                                                                                                                  | Page    |
|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------|
| PART I – FINANCIAL INFORMATION                                                                                              |                                                                                                                                  |    |
| Item 1.    Financial Statements                                                                                    |                                                                                                                                  |    |
|                                                                                                                                   |  o Consolidated Balance Sheets as of September 30, 2010 and March 31, 2010 (unaudited)                                      |  3 |
|                                                                                                                                   | o Consolidated Statements of Operations for the three and six months ended September 30, 2010 and 2009, respectively (unaudited) | 4       |
|                                                                                                                                   | o Consolidated Statement of Stockholders’ Equity for the six months ended September 30, 2010  (unaudited)        | 5       |
|                                                                                                                                   | o Consolidated Statements of Cash Flows for the six months ended September 30, 2010 and 2009 (unaudited)                         | 6       |
|                                                                                                                                   | o Notes to the Consolidated Financial Statements (unaudited)                                                                     | 7       |
|  Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations |  13                                                                                                                              |
|  Item 3.     Quantitative and Qualitative Disclosures about Market Risk                                  |  21                                                                                                                              |
|  Item 4.     Controls and Procedures                                                                     |  21                                                                                                                              |
|                                                                                                                                   |                                                                                                                                  |
| PART II – OTHER INFORMATION                                                                                                      |                                                                                                                                  |
|  Item 1.     Legal Proceedings                                                                           |  21                                                                                                                              |
|  Item 1A.  Risk Factors                                                                                                 |  21                                                                                                                              |
|  Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds                                       |  23                                                                                                                              |
|  Item 3.    Defaults Upon Senior Securities                                                                   |  23                                                                                                                              |
|  Item 4.    (Removed and Reserved)                                                                            |  23                                                                                                                              |
|  Item 5.   Other Information                                                                                       |  23                                                                                                                              |
|  Item 6.   Exhibits                                                                                                |  24                                                                                                                              |
|  EXHIBITS                                                                                                                         |  26                                                                                                                              |

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| LUCAS ENERGY, INC.                                                                                                                           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets(Unaudited)                                                                                                       |   |
|                                                                                                                                         |   | September 30,2010 |   |   | March 31, 2010 |   |
| CURRENT ASSETS                                                                                                                               |   |   |   |   |   |   |
|      Cash                                                                                                                |   | $ | 1,444,707 |   |   | $ | 1,822,780 |   |
|      Marketable securities                                                                                          |   |   | - |   |   |   | 21,450 |   |
|      Accounts receivable-oil and gas sales                                                                               |   |   | 492,440 |   |   |   | 198,083 |   |
|      Accounts receivable-working interest owners                                                                         |   |   | 41,848 |   |   |   | 46,081 |   |
|      Notes receivable                                                                                                    |   |   | 30,000 |   |   |   | - |   |
|      Deferred financing costs, net of amortization of $421,751 and $170,830, respectively                                |   |   | - |   |   |   | 250,921 |   |
|      Deferred offering costs                                                                                        |   |   | - |   |   |   | 119,912 |   |
|      Other current assets                                                                                                |   |   | 78,213 |   |   |   | 43,769 |   |
|                TOTAL CURRENT ASSETS                               |   |   | 2,087,208 |   |   |   | 2,502,996 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| OIL AND GAS PROPERTIES, FULL COST METHOD                                                                                                     |   |   |   |   |   |   |   |   |
|      Properties not subject to amortization                                                                              |   |   | 621,085 |   |   |   | - |   |
|      Properties subject to amortization                                                                                  |   |   | 21,752,935 |   |   |   | 24,699,722 |   |
|      Accumulated depletion, depreciation and amortization                                                           |   |   | (3,020,138 | ) |   |   | (2,482,433 | ) |
|                OIL AND GAS PROPERTIES, NET                        |   |   | 19,353,882 |   |   |   | 22,217,289 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Property, plant and equipment, net of accumulated depreciation of $29,648 and       $15,062, respectively |   |   | 57,870 |   |   |   | 20,907 |   |
| Other assets                                                                                                                                 |   |   | 64,327 |   |   |   | 57,515 |   |
|                 TOTAL ASSETS                                      |   | $ | 21,563,287 |   |   | $ | 24,798,707 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                          |   |   |   |   |   |   |   |   |
|     Accounts payable – trade                                                                                       |   | $ | 1,799,659 |   |   | $ | 1,391,446 |   |
|     Accrued expenses                                                                                                     |   |   | 31,722 |   |   |   | 65,541 |   |
|     Advances from working interest owners                                                                                |   |   | 1,274,764 |   |   |   | 3,045,292 |   |
|     Borrowings on credit facility, current portion                                                                       |   |   | - |   |   |   | 2,150,000 |   |
|     Stock payable                                                                                                        |   |   | 256,700 |   |   |   | - |   |
|               TOTAL CURRENT LIABILITIES                                     |   |   | 3,362,845 |   |   |   | 6,652,279 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| NON-CURRENT LIABILITIES                                                                                                                      |   |   |   |   |   |   |   |   |
|      Asset retirement obligations                                                                                        |   |   | 382,582 |   |   |   | 327,412 |   |
|                TOTAL LIABILITIES                                       |   |   | 3,745,427 |   |   |   | 6,979,691 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                   |   |   |   |   |   |   |   |   |
|      Preferred stock, 10,000,000 shares authorized of $0.001 par value, no shares                                        |   |   |   |   |   |   |   |   |
|          issued and outstanding                                                                      |   |   | - |   |   |   | - |   |
|      Common stock, 100,000,000 shares authorized of $0.001 par value,                                                    |   |   |   |   |   |   |   |   |
|          13,747,362 issued and 13,710,462 outstanding shares at September 30, 2010, and         |   |   |   |   |   |   |   |   |
|          12,837,220 issued and 12,800,320 outstanding shares at March 31, 2010, respectively    |   |   | 13,747 |   |   |   | 12,837 |   |
|      Additional paid-in capital                                                                                          |   |   | 22,035,383 |   |   |   | 20,639,247 |   |
|      Treasury stock, at cost 36,900 shares                                                                          |   |   | (49,159 | ) |   |   | (49,159 | ) |
|      Accumulated deficit                                                                                            |   |   | (4,182,111 | ) |   |   | (2,783,909 | ) |
|                TOTAL STOCKHOLDERS’ EQUITY                        |   |   | 17,817,860 |   |   |   | 17,819,016 |   |
|                 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  |   | $ | 21,563,287 |   |   | $ | 24,798,707 |   |

----

| LUCAS ENERGY, INC.                                                                   |   |
|--------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Operations(Unaudited)                                     |   |
|                                                                                 |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|                                                                                 |   | September 30, |   |   | September 30, |   |
|                                                                                 |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| OIL AND GAS REVENUES                                                                 |   | $ | 938,590 |   |   | $ | 414,218 |   |   | $ | 1,516,130 |   |   | $ | 855,682 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Lease operating expenses                                    |   |   | 309,090 |   |   |   | 134,811 |   |   |   | 619,197 |   |   |   | 442,007 |   |
|      Severance and property taxes                                |   |   | 50,473 |   |   |   | 15,706 |   |   |   | 88,774 |   |   |   | 34,855 |   |
|      Depreciation, depletion, amortization and accretion         |   |   | 352,183 |   |   |   | 141,056 |   |   |   | 564,292 |   |   |   | 325,682 |   |
|      General and administrative                                  |   |   | 763,781 |   |   |   | 264,128 |   |   |   | 1,358,197 |   |   |   | 633,109 |   |
|           Total Expenses                |   |   | 1,475,527 |   |   |   | 555,701 |   |   |   | 2,630,460 |   |   |   | 1,435,653 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                                 |   |   | (536,937 | ) |   |   | (141,483 | ) |   |   | (1,114,330 | ) |   |   | (579,971 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized loss on marketable securities               |   |   | (6,600 | ) |   |   | (242,000 | ) |   |   | (21,450 | ) |   |   | (21,556 | ) |
|      Realized gain (loss) on marketable securities          |   |   | (1,210 | ) |   |   | 1,296 |   |   |   | (1,210 | ) |   |   | (28,785 | ) |
|      Interest expense                                            |   |   | - |   |   |   | (102,873 | ) |   |   | (261,212 | ) |   |   | (163,474 | ) |
|           Total Other Income (Expenses) |   |   | (7,810 | ) |   |   | (343,577 | ) |   |   | (283,872 | ) |   |   | (213,815 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS BEFORE INCOME TAXES                                                         |   |   | (544,747 | ) |   |   | (485,060 | ) |   |   | (1,398,202 | ) |   |   | (793,786 | ) |
| INCOME TAX BENEFIT                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                                                             |   | $ | (544,747 | ) |   | $ | (485,060 | ) |   | $ | (1,398,202 | ) |   | $ | (793,786 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS PER SHARE -BASIC AND DILUTED                                                    |   | $ | (0.04 | ) |   | $ | (0.05 | ) |   | $ | (0.10 | ) |   | $ | ( 0.08 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OUTSTANDING – BASIC AND DILUTED                                                |   |   | 13,696,043 |   |   |   | 10,484,861 |   |   |   | 13,524,702 |   |   |   | 10,417,213 |   |

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| LUCAS ENERGY, INC.                             |   |
|------------------------------------------------|--------|
| Consolidated Statement of Stockholders' Equity |   |
| For the Six Months Ended September 30, 2010    |   |
| (Unaudited)                                    |   |
|                                           |   | Preferred Stock |   |   | Common Stock |   |   |   |   |   | AccumulatedDeficit |   |   | Total |   |
|                                           |   |   |   |
|                                           |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   | Treasury Stock |   | AdditionalPaid- In Capital |   |
| Balance, March 31, 2010                        |   |   | - |   |   | $ | - |   |   |   | 12,837,220 |   |   | $ | 12,837 |   | $ | (49,159 | ) | $ | 20,639,247 |   | $ | (2,783,909 | ) |   | $ | 17,819,016 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued for:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash                               |   |   | - |   |   |   | - |   |   |   | 778,170 |   |   |   | 778 |   |   | - |   |   | 1,224,122 |   |   | - |   |   |   | 1,224,900 |   |
|   Warrants                           |   |   | - |   |   |   | - |   |   |   | 25,000 |   |   |   | 25 |   |   | - |   |   | 24,975 |   |   | - |   |   |   | 25,000 |   |
|   Services                           |   |   | - |   |   |   | - |   |   |   | 16,000 |   |   |   | 16 |   |   | - |   |   | 29,624 |   |   | - |   |   |   | 29,640 |   |
|   Oil and gas properties             |   |   | - |   |   |   | - |   |   |   | 90,972 |   |   |   | 91 |   |   | - |   |   | 117,415 |   |   | - |   |   |   | 117,506 |   |
| Net loss                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | - |   |   | - |   |   | (1,398,202 | ) |   |   | (1,398,202 | ) |
| Balance, September 30, 2010                    |   |   | - |   |   | $ | - |   |   |   | 13,747,362 |   |   | $ | 13,747 |   | $ | (49,159 | ) | $ | 22,035,383 |   | $ | (4,182,111 | ) |   |   | 17,817,860 |   |

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| LUCAS ENERGY, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                  (Unaudited) |   | For the Six Months Ended |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | September 30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|      Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | (1,398,202 | ) |   | $ | (793,786 | ) |
|      Adjustments to reconcile net loss to net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|           Depreciation, depletion, amortization and accretion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 564,292 |   |   |   | 325,682 |   |
|           Amortization of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 250,921 |   |   |   | 57,667 |   |
|           Unrealized loss on marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 21,450 |   |   |   | 21,556 |   |
|           Realized loss on marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 1,210 |   |   |   | 28,785 |   |
|           Share-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 29,640 |   |   |   | 40,828 |   |
|           Stock payable for services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 56,700 |   |   |   | - |   |
|      Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|           (Increase) decrease in accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (290,124 | ) |   |   | (33,965 | ) |
|           (Increase) decrease in other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (34,444 | ) |   |   | 13,542 |   |
|           (Increase) decrease in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (6,812 | ) |   |   | - |   |
|           Increase (decrease) in accounts payable and accrued expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 374,394 |   |   |   | 175,177 |   |
|                     Net Cash Used in Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (430,975 | ) |   |   | (164,514 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|           Proceeds from sale of oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 9,739,114 |   |   |   | 1,010,632 |   |
|           Purchase of oil and gas properties and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (7,052,736 | ) |   |   | (561,619 | ) |
|           Investment in marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (6,045 | ) |   |   | - |   |
|           Note receivable paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (30,000 | ) |   |   | - |   |
|           Proceeds from sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 4,835 |   |   |   | 92,495 |   |
|           Purchase office furniture and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (51,549 | ) |   |   | (4,419 | ) |
|                     Net Cash Provided by Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 2,603,619 |   |   |   | 537,089 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|           Proceeds from sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1,369,811 |   |   |   | 157,500 |   |
|           Advances from working interest owners                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (1,770,528 | ) |   |   | 728,904 |   |
|           Cash paid for deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | - |   |   |   | (50,916 | ) |
|           Principal payments on credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (2,150,000 | ) |   |   | (150,000 | ) |
|                      Net Cash Provided by (Used in) Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (2,550,717 | ) |   |   | 685,488 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|                  NET INCREASE (DECREASE) IN CASH                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (378,073 | ) |   |   | 1,058,063 |   |
|                  CASH AT BEGINNING OF PERIOD                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1,822,780 |   |   |   | 136,841 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|                  CASH AT END OF PERIOD                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | 1,444,707 |   |   | $ | 1,194,904 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|      CASH PAID FOR:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|          Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 10,291 |   |   | $ | 103,761 |   |
| Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $ | - |   |   | $ | - |   |
|      NON-CASH INVESTING AND FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|          Stock issued to acquire oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 117,506 |   |   | $ | 45,185 |   |
|          Stock payable for oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 200,000 |   |   | $ | - |   |
|          Deferred offering costs applied to sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 119,912 |   |   | $ | - |   |
|          Increase in asset retirement obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 43,170 |   |   | $ | - |   |

----

----

----

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| Acquisition costs                       |   |   | (1     | )      |   | $      | 3,921,943 |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|
| Drilling completion and equipment costs |   |   |   |   |   |   | 3,130,793 |   |
| Capital expenditure costs               |   |   |   |   |   | $      | 7,052,736 |   |

| (1)   | Total acquisition cost for lease acreage, wellbores, and associated equipment purchased. |
|-----------------|------------------------------------------------------------------------------------------|

----

----

|                              |   | Options |    |   | Weighted Average Exercise Price |   |   | Warrants |   |   | Weighted Average Exercise Price |   |
|-----------------------------------|--------|---------|---------|--------|---------------------------------|--------|--------|----------|--------|--------|---------------------------------|--------|
| Outstanding at March 31, 2010     |   |    | 200,000 |   |                            | $      | 2.60   |     |   |   | 3,360,549                       |   |   | $ | 8.00 |   |
| Options and warrants issued       |   |    | -       |   |                            |   | -      |     |   |   | -                               |   |   |   | - |   |
| Warrants exercised                |   |    | -       |   |                            |   | -      |     |   |   | (25,000)                        |   |   |   | 1.00 |   |
| Outstanding at September 30, 2010 |   |    | 200,000 |   |                            | $      | 2.60   |     |   |   | 3,335,549                       |   |   | $ | 7.32 |   |

| Exercise Price |   | Remaining Life |                  | Options Outstanding |    |    | Options Exercisable |   |    | Warrants Outstanding |   |   | Warrants Exercisable |      |
|----------------|--------|----------------|-----------------------|---------------------|---------|---------|---------------------|--------|---------|----------------------|--------|--------|----------------------|-----------|
|           |   |           |                  |                |    |    |                |   |    |                 |   |   |                 |      |
| $              | 8.00   |           | .10 Years             |                |    | -       |                |   |    | -                    |   |   |                 | 3,010,549 |   |   |   | 3,010,549 |   |
| $              | 2.60   |           | .14 Years             |                |    | 200,000 |                |   |    | 200,000              |   |   |                 | -         |   |   |   | - |   |
| $              | 1.00   |           | 2.14  Years |                |    | -       |                |   |    | -                    |   |   |                 | 325,000   |   |   |   | 325,000 |   |
| Total          |   |           |                  |                | 200,000 |    |                |   | 200,000 |                 |   |   | 3,335,549            |      |   |   | 3,335,549 |   |

----

----

| Proved Reserves                                                                               |   | Oil (Bbls) |      |   | Natural Gas (MCF) |   |   | Discounted Future Net Cash Flow (at 10% per year) |   |
|-----------------------------------------------------------------------------------------------|--------|------------|-----------|--------|-------------------|--------|--------|---------------------------------------------------|--------|
|                                                                                          |   |       |      |   |              |   |   |                                              |   |
| Developed Producing                                                                           |   |       | 73,010    |   |              |   | 11,760 |                                              |   | $ | 1,614,720 |   |
| Developed Non Producing                                                                       |   |       | 63,540    |   |              |   | 19,410 |                                              |   |   | 2,549,300 |   |
| Undeveloped                                                                                   |   |       | 1,833,680 |   |              |   | -      |                                              |   |   | 43,354,360 |   |
| Total, before income taxes                                                                    |   |       | 1,970,230 |   |              |   | 31,170 |                                              |   | $ | 47,518,380 |   |
| Less:  Estimated income taxes on future net cash flows (discounted at 10% per year) |   |       | n/a       |   |              |   | n/a    |                                              |   | $ | (8,311,887 | ) |
| Total, March 31, 2010                                                                         |   |       | 1,970,230 |   |              |   | 31,170 |                                              |   | $ | 39,206,493 |   |

| Probable Reserves              |   | Oil (Bbls) |    |   | Natural Gas (MCF) |   |   | Discounted Future Net Cash Flow (at 10% per year) |   |
|--------------------------------|--------|------------|---------|--------|-------------------|--------|--------|---------------------------------------------------|--------|
|                           |   |       |    |   |              |   |   |                                              |   |
| Undeveloped, at March 31, 2010 |   |       | 680,770 |   |              |   | -      |                                              |   | $ | 4,464,910 |   |

----

|                                                                                       |   | For the Three MonthsEnded September 30, |      |   | Amount Increase/ |   |     | % Increase/ |   |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|------------------|--------|----------|-------------|--------|
|                                                                                       |   | 2010                                    |      |   | 2009             |   |     | (Decrease)  |   |   | (Decrease) |   |
| OIL AND GAS REVENUES                                                                       |   | $                                       | 938,590   |   |             | $      | 414,218  |        |   | $ | 524,372 |   |   |   | 127 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| PRODUCTION SALES:                                                                          |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| Oil (barrels)                                                                              |   |                                    | 12,991    |   |             |   | 6,382    |        |   |   | 6,609 |   |   |   | 104 | % |
| Natural gas (thousand cubic feet)                                                          |   |                                    | 580       |   |             |   | 1,286    |        |   |   | (706 | ) |   |   | -55 | % |
| Total (barrels oil equivalent)                                                             |   |                                    | 13,088    |   |             |   | 6,596    |        |   |   | 6,492 |   |   |   | 98 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| Oil (barrels per day)                                                                      |   |                                    | 141       |   |             |   | 70       |        |   |   | 73 |   |   |   | 104 | % |
| Natural gas (thousand cubic feet per day)                                                  |   |                                    | 6         |   |             |   | 14       |        |   |   | (8 | ) |   |   | -55 | % |
| Total (barrels oil equivalent per day)                                                     |   |                                    | 142       |   |             |   | 72       |        |   |   | 71 |   |   |   | 98 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| AVERAGE SALES PRICES:                                                                      |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| Oil (per barrel)                                                                           |   | $                                       | 72.12     |   |             | $      | 64.41    |        |   | $ | 7.71 |   |   |   | 12 | % |
| Natural gas (per thousand cubic feet)                                                      |   | $                                       | 3.00      |   |             | $      | 2.49     |        |   | $ | 0.51 |   |   |   | 20 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| Lease operating expenses                                                                   |   |                                    | 309,090   |   |             |   | 134,811  |        |   |   | 174,279 |   |   |   | 129 | % |
| Severance and property taxes                                                               |   |                                    | 50,473    |   |             |   | 15,706   |        |   |   | 34,767 |   |   |   | 221 | % |
| Depreciation, depletion, and amortization                                                  |   |                                    | 352,183   |   |             |   | 141,056  |        |   |   | 211,127 |   |   |   | 150 | % |
| General and administrative                                                                 |   |                                    | 763,781   |   |             |   | 264,128  |        |   |   | 499,653 |   |   |   | 189 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
|            Total Expenses                |   |                                    | 1,475,527 |   |             |   | 555,701  |        |   |   | 919,826 |   |   |   | 166 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                                       |   |                                    | (536,937  | )      |             |   | (141,483 | )           |   |   | (395,454 | ) |   |   | 280 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                                    |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
|       Unrealized (loss) gain on investments                       |   |                                    | (6,600    | )      |             |   | (242,000 | )           |   |   | (235,400 | ) |   |   | -97 | % |
|       Realized loss on investments                                |   |                                    | (1,210    | )      |             |   | 1,296    |        |   |   | (2,506 | ) |   |   | -193 | % |
|       Interest expense                                            |   |                                    | -         |   |             |   | (102,873 | )           |   |   | 102,873 |   |   |   | -100 | % |
|            Total Other Income (Expenses) |   |                                    | (7,810    | )      |             |   | (343,577 | )           |   |   | 335,767 |   |   |   | -98 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| NET LOSS BEFORE INCOME TAXES                                                               |   |                                    | (544,747  | )      |             |   | (485,060 | )           |   |   | (59,687 | ) |   |   | 12 | % |
|                                                                                       |   |                                    |      |   |             |   |     |        |   |   |   |   |   |   |   |   |
| INCOME TAX (BENEFIT) EXPENSE                                                               |   |                                    | -         |   |             |   | -        |        |   |   | - |   |   |   | 0 | % |
|  NET LOSS                                                                             |   | $                                       | (544,747  | )      |             | $      | (485,060 | )           |   | $ | (59,687 | ) |   |   | 12 | % |

----

----

|                                                                                       |   | For the Six MonthsEnded September 30, |       |   | Amount Increase/ |   |      | % Increase/ |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|------------------|--------|-----------|-------------|--------|
|                                                                                       |   | 2010                                  |       |   | 2009             |   |      | (Decrease)  |   |   | (Decrease) |   |
| OIL AND GAS REVENUES                                                                       |   | $                                     | 1,516,130  |   |             | $      | 855,682   |        |   | $ | 660,448 |   |   |   | 77 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| PRODUCTION SALES:                                                                          |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| Oil (barrels)                                                                              |   |                                  | 20,876     |   |             |   | 14,348    |        |   |   | 6,528 |   |   |   | 45 | % |
| Natural gas (thousand cubic feet)                                                          |   |                                  | 580        |   |             |   | 4,951     |        |   |   | (4,371 | ) |   |   | -88 | % |
| Total (barrels oil equivalent)                                                             |   |                                  | 20,973     |   |             |   | 15,173    |        |   |   | 5,800 |   |   |   | 38 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| Oil (barrels per day)                                                                      |   |                                  | 114        |   |             |   | 78        |        |   |   | 36 |   |   |   | 45 | % |
| Natural gas (thousand cubic feet per day)                                                  |   |                                  | 3          |   |             |   | 27        |        |   |   | (24 | ) |   |   | -88 | % |
| Total (barrels oil equivalent per day)                                                     |   |                                  | 115        |   |             |   | 83        |        |   |   | 32 |   |   |   | 38 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| AVERAGE SALES PRICES:                                                                      |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| Oil (per barrel)                                                                           |   | $                                     | 72.54      |   |             | $      | 58.74     |        |   | $ | 13.80 |   |   |   | 23 | % |
| Natural gas (per thousand cubic feet)                                                      |   | $                                     | 3.00       |   |             | $      | 2.61      |        |   | $ | 0.39 |   |   |   | 15 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| Lease operating expenses                                                                   |   |                                  | 619,197    |   |             |   | 442,007   |        |   |   | 177,190 |   |   |   | 40 | % |
| Severance and property taxes                                                               |   |                                  | 88,774     |   |             |   | 34,855    |        |   |   | 53,919 |   |   |   | 155 | % |
| Depreciation, depletion, and amortization                                                  |   |                                  | 564,292    |   |             |   | 325,682   |        |   |   | 238,610 |   |   |   | 73 | % |
| General and administrative                                                                 |   |                                  | 1,358,197  |   |             |   | 633,109   |        |   |   | 725,088 |   |   |   | 115 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
|            Total Expenses                |   |                                  | 2,630,460  |   |             |   | 1,435,653 |        |   |   | 1,194,807 |   |   |   | 83 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                                       |   |                                  | (1,114,330 | )      |             |   | (579,971  | )           |   |   | (534,359 | ) |   |   | 92 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                                    |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
|       Unrealized (loss) gain on investments                       |   |                                  | (21,450    | )      |             |   | (21,556   | )           |   |   | 106 |   |   |   | 0 | % |
|       Realized loss on investments                                |   |                                  | (1,210     | )      |             |   | (28,785   | )           |   |   | 27,575 |   |   |   | -96 | % |
|       Interest expense                                            |   |                                  | (261,212   | )      |             |   | (163,474  | )           |   |   | (97,738 | ) |   |   | 60 | % |
|            Total Other Income (Expenses) |   |                                  | (283,872   | )      |             |   | (213,815  | )           |   |   | (70,057 | ) |   |   | 33 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| NET LOSS BEFORE INCOME TAXES                                                               |   |                                  | (1,398,202 | )      |             |   | (793,786  | )           |   |   | (604,416 | ) |   |   | 76 | % |
|                                                                                       |   |                                  |       |   |             |   |      |        |   |   |   |   |   |   |   |   |
| INCOME TAX (BENEFIT) EXPENSE                                                               |   |                                  | -          |   |             |   | -         |        |   |   | - |   |   |   | 0 | % |
|  NET LOSS                                                                             |   | $                                     | (1,398,202 | )      |             | $      | (793,786  | )           |   | $ | (604,416 | ) |   |   | 76 | % |

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| Exhibit No. | Description                                                                                                                                                                                                                                                                                          |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles of Incorporation (incorporated by reference to the Company Annual Report of Form 10-KSB for the fiscal year ended November 30, 2005 filed with the SEC on February 14, 2006 as Exhibit 3.1)                                                                                                 |
| 3.2         | Certificate of Amendment to Articles of Incorporation of Lucas Energy, Inc. (incorporated by reference to Exhibit B to the Information Statement on Schedule 14C filed with the SEC on February 16, 2007).                                                                                           |
| 3.3         | Bylaws (incorporated by reference to the Company Annual Report of Form 10-KSB for the fiscal year ended November 30, 2005 filed with the SEC on February 14, 2006 as Exhibit 3.2)                                                                                                                    |
| 10.1        | Contract with SMC (incorporated by reference to the Company Annual Report of Form 10-KSB for the fiscal year ended November 30, 2005 filed with the SEC on February 14, 2006 as Exhibit 10.1)                                                                                                        |
| 10.2        | Consignment Agreement (incorporated by reference to the Company Annual Report of Form 10-KSB for the fiscal year ended November 30, 2005 filed with the SEC on February 14, 2006 as Exhibit 10.2)                                                                                                    |
| 10.3        | Stock Purchase Agreement between Lucas Energy, Inc. and The Delphic Oil Co., LLC, dated December 20, 2006 (incorporated by reference to the Form 8-K dated December 20, 2006 filed with the SEC on December 21, 2009 as Exhibit 10.1)                                                                |
| 10.4        | Oil, Gas and Mineral Lease between Lucas Energy, Inc. and Griffin, filed of record on February 23, 2007 (incorporated by reference to the Form 8-K dated February 24, 2007 filed with the SEC on March 1, 2007 as Exhibit 10.4)                                                                      |
| 10.5        | Employment Agreement between Lucas Energy, Inc. and James J. Cerna, dated March 20, 2007 (incorporated by reference to the Company Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007 filed with the SEC on June 29, 2007, Exhibit 10.5)                                          |
| 10.6        | Employment Agreement between Lucas Energy, Inc. and William A. Sawyer, dated March 20, 2007 (incorporated by reference to the Company Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007 filed with the SEC on June29, 2007, Exhibit 10.6)                                        |
| 10.7        | Credit Agreement between Lucas Energy, Inc. and Amegy Bank National Association (Incorporated by reference to the Form 8-K dated October 8, 2008 filed with the SEC October 14, 2008)                                                                                                                |
| 10.8        | Secured Promissory Note between Lucas Energy, Inc. and Amegy Bank National Association (Incorporated by reference to the Form 8-K dated October 8, 2008 filed with the SEC October 14, 2008)                                                                                                         |
| 10.9        | Deed of Trust, Security Agreement, Financing Statement and Assignment of Production from Lucas Energy to Kenneth R. Batson, Trustee, for the benefit of Amegy Bank National Association (Incorporated by reference to the Form 8-K dated October 8, 2008 filed with the SEC October 14, 2008)   |
| 10.10       | Security Agreement by Lucas Energy, Inc. in favor of Amegy Bank National Association (Incorporated by reference to the Form 8-K dated October 8, 2008 filed with the SEC October 14, 2008)                                                                                                      |
| 10.11       | Unregistered Sale of Equity Securities and Departure of Director and Appointment of Director (Incorporated by reference to the Form 8-K dated October 8, 2009 filed with the SEC October 13, 2009)                                                                                              |
| 10.12       | Placement Agent Agreement with WR Hambrecht & Co (Incorporated by reference to the Form 8-K dated March 26, 2009 filed with the SEC March 26, 2010)                                                                                                                                              |
| 10.13       | Submission of Matters to a Vote of Security Holders, Election of Directors and Compensatory Arrangements of Certain Officers (Incorporated by reference to the Form 8-K/A dated March 30, 2010 filed with the SEC April 22, 2010).                                                                   |

----

| 10.14 | Lucas Energy, Inc. 2010 Long Term Incentive Plan (Incorporated by reference to the Form S-8 filed with the SEC on April 23, 2010)                                                                                                                                                                                                             |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15 | Purchase and Sale Agreement Between Lucas Energy, Inc. and HilCorp Energy I, L.P. dated April 1, 2010.   (Incorporated by reference to the Form 10-K Annual Report for the year ended March 31, 2010 filed with the SEC on July 14, 2010)                                                                                      |
| 10.16 | Termination of Credit Agreement with Amegy Bank and Release of all Liens and Security Interests held dated May 5, 2010 (Incorporated by reference to the Form 8-K dated May 5, 2010 filed with the SEC May 6, 2010)                                                                                                                           |
| 10.17 | Unregistered Sale of Equity Securities (Incorporated by reference to the Form 8-K dated May 25, 2010 filed with the SEC May 27, 2010)                                                                                                                                                                                                         |
| 10.18 | Report of Forrest A. Garb & Associates, Inc on the Estimated Reserves and Future Net Revenue as of April 1, 2010 Attributable to Interests Owned by Lucas Energy, Inc. dated July 1, 2010. (Incorporated by reference to the Form 10-K Annual Report, Exhibit 99.1 for the year ended March 31, 2010 filed with the SEC on July 14, 2010) |
| 14.1  | Code of Ethics (Incorporated by reference to the Company Annual Report on Form 10-K/A, Amendment No. 1, for the fiscal year ended March 31, 2009 filed with the SEC on July 29, 2009).                                                                                                                                                        |
| 14.2  | Whistleblower Protection Policy  (Incorporated by reference to the Company Annual Report on Form 10-K/A, Amendment No. 1, for the fiscal year ended March 31, 2009 filed with the SEC on July 29, 2009).                                                                                                                            |
| 14.3  | Charter of the Audit and Ethics Committee (Incorporated by reference to the Company Annual Report on Form 10-K/A, Amendment No. 1, for the fiscal year ended March 31, 2009 filed with the SEC on July 29, 2009).                                                                                                                             |
| 14.4  | Charter of the Nominating Committee (Incorporated by reference to the Company Annual Report on Form 10-K/A, Amendment No. 1, for the fiscal year ended March 31, 2009 filed with the SEC on July 29, 2009).                                                                                                                                   |
| 14.5  | Charter of the Compensation Committee (Incorporated by reference to the Company Annual Report on Form 10-K/A, Amendment No. 1, for the fiscal year ended March 31, 2009 filed with the SEC on July 29, 2009).                                                                                                                                 |
| 31.1  | Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)                                                                                                                                                                                                                                                            |
| 31.2  | Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)                                                                                                                                                                                                                                                            |
| 32.1  | Certification of CEO Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  (1)                                                                                                                                                                                                   |
| 32.2  | Certification of CFO Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  (1)                                                                                                                                                                                                   |

| (1)   | Filed herewith. |
|-----------------|-----------------|

----

| Signature                                | Title                                                                       | Date                    |
|------------------------------------------|-----------------------------------------------------------------------------|-------------------------|
|                                     |                                                                        |                    |
| /s/ William A. SawyerWilliam A. Sawyer   | President and C.E.O.(Principal Executive Officer)                           | November 15, 2010  |
|                                     |                                                                        |                    |
| /s/ John O’KeefeJohn O’Keefe | Chief Financial Officer and Accounting Officer(Principal Financial Officer) | November 15, 2010  |
|                                     |                                                                        |                    |

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