U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                Quarterly Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                     For the Period ended December 31, 2006

                         Commission File Number 0-51414


                               LUCAS ENERGY, INC.
                 (Name of small business issuer in its charter)


           Nevada                                               98-0417780
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                           Identification Number)


                         3000 Richmond Avenue, Suite 400
                                Houston, TX 77040
                    (Address of principal executive offices)

                                 (713) 528-1881
                     (Telephone number, including area code)


                               James J. Cerna, Jr.
                         3000 Richmond Avenue, Suite 400
                                Houston, TX 77040
                              Phone: (713) 528-1881
            (Name, address and telephone number of agent for service)

Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [X] No [ ]

There  were  29,451,394  shares of Common  Stock  issued and  outstanding  as of
December 31, 2006.
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying  balance sheets of Lucas Energy,  Inc. at December 31, 2006 and
March 31, 2006, and the related statements of operations,  stockholders'  equity
and cash flows for the three and nine months ending  December 31, 2006 and 2005,
have been prepared by our management in conformity with United States  generally
accepted accounting  principles.  In the opinion of management,  all adjustments
considered  necessary for a fair  presentation  of the results of operations and
financial  position have been included and all such  adjustments are of a normal
recurring nature. Operating results for the three and nine months ended December
31, 2006, are not necessarily indicative of the results that can be expected for
the fiscal year ending March 31, 2007.

                                       1
<PAGE>
                               LUCAS ENERGY, INC.
                                 Balance Sheet

<TABLE>
<CAPTION>
                                                                           December 31,         March 31,
                                                                              2006                2006
                                                                           ----------          ----------
                                                                           (Unaudited)
<S>                                                                        <C>                 <C>
                                     ASSETS

CURRENT ASSETS
  Cash                                                                     $1,010,969          $   59,232
  Oil and gas receivable                                                      158,783              30,222
  Other current assets                                                         21,490               8,614
                                                                           ----------          ----------

      Total Current Assets                                                  1,191,242              98,068
                                                                           ----------          ----------
OIL AND GAS PROPERTIES, full cost method
  Costs  subject to amortization                                              494,134              61,255
  Costs not subject to amortization                                         8,179,354             531,197
                                                                           ----------          ----------

      Oil and Gas Properties, net                                           8,673,488             592,452
                                                                           ----------          ----------
OTHER ASSETS
  Long-term deposits and bonds                                                 58,071              30,266
                                                                           ----------          ----------

      Total Other Assets                                                       58,071              30,266
                                                                           ----------          ----------

TOTAL ASSETS                                                               $9,922,801          $  720,786
                                                                           ==========          ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable and accrued expenses                                    $  434,904          $   42,045
  Income taxes payable                                                        127,204               4,845
                                                                           ----------          ----------

      Total Current Liabilities                                               562,108              46,890
                                                                           ----------          ----------
NON-CURRENT LIABILITIES
  Note payable                                                              2,300,000             125,000
                                                                           ----------          ----------

      Total Liabilities                                                     2,862,108             171,890
                                                                           ----------          ----------
STOCKHOLDERS' EQUITY
  Preferred stock- March 31, 2006, series A; 1,666,667 shares authorized
   of $0.01 par value, 344,250 shares issued and outstanding;                     344
   September 30, 2006, 10,000,000 shares authorized of $0.001 par
   value, no shares outstanding                                                    --
  Common stock- March 31, 2006,10,000,000 shares authorized of
   $0.001 par value,8,000,000 shares issued and outstanding;                    8,000
   December 31, 2006, 100,000,000 shares authorized of $0.001 par
   value, 29,451,394 shares issued and outstanding                             29,451
  Additional paid-in capital                                                6,618,987             478,236
  Retained earnings                                                           412,254              62,316
                                                                           ----------          ----------

      Total Stockholders' Equity                                            7,060,692             548,896
                                                                           ----------          ----------

TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY                                $9,922,800          $  720,786
                                                                           ==========          ==========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       2
<PAGE>
                               LUCAS ENERGY, INC.
                                Income Statements
                                   (Unaudited)

<TABLE>
<CAPTION>
                                   For the Three     For the Three    For the Nine      From Inception on
                                   Months Ended      Months Ended     Months Ended        April 6, 2005
                                   December 31,      December 31,     December 31,     Through December 31,
                                       2006              2005             2006                2005
                                   ------------      ------------     ------------        ------------
<S>                                <C>               <C>              <C>                 <C>
REVENUES
  Oil and gas revenues             $    396,367      $     96,725     $    910,788        $    205,126
  Consulting services                        --                --           34,000                  --
                                   ------------      ------------     ------------        ------------

      Total Revenues                    396,367            96,725          944,788             205,126

  Lease operating expenses               16,465            18,615          185,926              58,670
  Depreciation and depletion             48,663             6,096          111,820              27,795
                                   ------------      ------------     ------------        ------------

      Gross Profit                      331,239            72,014          647,042             118,661
                                   ------------      ------------     ------------        ------------
EXPENSES
  Professional fees                      20,968            14,462           35,276              15,247
  General and administrative             22,758             6,903           90,114              24,481
                                   ------------      ------------     ------------        ------------

      Total Expenses                     43,726            21,365          125,390              39,728
                                   ------------      ------------     ------------        ------------

INCOME FROM OPERATIONS                  287,513            50,649          521,652              78,933
                                   ------------      ------------     ------------        ------------
OTHER EXPENSES
  Sale of assets                             --                --           81,534                  --
  Interest income                         4,187                --            8,347                  11
  Interest expense                      (84,060)               --         (139,236)             (1,547)
                                   ------------      ------------     ------------        ------------

      Total Other Expenses              (79,873)               --          (49,355)             (1,536)
                                   ------------      ------------     ------------        ------------

NET INCOME BEFORE INCOME TAXES          207,640            50,649          472,297              77,397

INCOME TAX EXPENSE                       41,173               744          122,359               4,097
                                   ------------      ------------     ------------        ------------

NET INCOME                         $    166,467      $     49,905     $    349,938        $     73,300
                                   ============      ============     ============        ============

BASIC INCOME PER SHARE             $       0.01      $       0.01     $       0.01        $       0.01
                                   ============      ============     ============        ============

FULLY DILUTED INCOME PER SHARE     $       0.01      $       0.01     $       0.01        $       0.01
                                   ============      ============     ============        ============
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING               27,543,398         8,000,000       27,437,681           8,000,000
                                   ============      ============     ============        ============
FULLY DILUTED AVERAGE NUMBER
 OF SHARES OUTSTANDING               27,543,398         8,344,250       27,437,681           8,344,250
                                   ============      ============     ============        ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>
                               LUCAS ENERGY, INC.
                       Statements of Stockholders' Equity
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                   Preferred Stock            Common Stock          Additional
                                                --------------------      ---------------------      Paid-In       Retained
                                                Shares        Amount      Shares         Amount      Capital       Earnings
                                                ------        ------      ------         ------      -------       --------
<S>                                            <C>          <C>          <C>            <C>         <C>           <C>
Balance at inception on April 6, 2005               --       $     --           --      $     --    $       --    $      --

Common shares issued for cash at
 $0.01 per share                                    --             --    5,200,000         5,200        49,800           --

Common shares issued for cash
 paid for  oil leases at $0.08 per share            --             --    2,800,000         2,800       222,230           --

Preferred shares issued for cash at
 $0.60 per share                               325,000            325           --            --       194,675           --

Preferred shares issued for services
 rendered at $0.60 per share                    19,250             19           --            --        11,531           --

Net income for the period from
 inception on April 6, 2005 through
 March 31, 2006                                     --             --           --            --            --       62,316
                                              --------       --------   ----------      --------    ----------    ---------

Balance, March 31, 2006                        344,250            344    8,000,000         8,000       478,236       62,316

Recapitalization                              (344,250)          (344)  17,340,013        17,340       (16,996)          --

Common shares issued for cash at
 $0.50 per share                                    --             --    1,980,000         1,980       988,020           --

Stock issuance costs                                --             --           --            --       (61,482)          --

Common shares issued for wells at
 $2.50 per share                                    --             --      220,000           220       549,780           --

Common shares issued for cash at
 $1.45 per share                                    --             --      311,381           311       451,189           --

Stock issuance costs                                --             --           --            --        (8,160)          --

Common shares issued for wells at
 $2.65 per share                                    --             --    1,600,000         1,600     4,238,400           --

Net income for the nine months ended
 December 31, 2006                                  --             --           --            --            --      349,938
                                              --------       --------   ----------      --------    ----------    ---------

Balance, December 31, 2006                          --       $     --   29,451,394      $ 29,451    $6,618,987    $ 412,254
                                              ========       ========   ==========      ========    ==========    =========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>
                               LUCAS ENERGY, INC.
                            Statements of Cash Flows
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                For the Nine       From Inception on
                                                                Months Ended         April 6, 2005
                                                                December 31,      Through December 31,
                                                                   2006                  2005
                                                                -----------           -----------
<S>                                                             <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                    $   349,938           $    73,300
  Adjustments to reconcile net loss to net cash
   used by operating activities:
     Preferred stock issued for services                                 --                11,550
     Depreciation and depletion                                     111,820                27,795
     Gain on sale of assets                                         (81,534)                   --
  Changes in operating assets and liabilities
     Increase in accounts receivable                               (128,561)              (19,007)
     Increase in other current assets                               (12,876)               (8,614)
     Increase in other assets                                       (27,805)                 (255)
     Increase in accounts payable and accrued expenses              515,219                15,531
                                                                -----------           -----------

        Net Cash Provided by Operating Activities                   726,201               100,300
                                                                -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Sale of operating interest                                        302,975                    --
  Purchase of property and equipment                             (3,624,297)             (531,485)
                                                                -----------           -----------

        Net Cash Used by Investing Activities                    (3,321,322)             (531,485)
                                                                -----------           -----------
CASH FLOWS FROM FINIANCING ACTIVITIES
  Proceeds from the sale of common stock                          1,441,500               280,030
  Proceeds from the sale of preferred stock                              --               165,000
  Proceeds from notes payable                                     2,300,000               285,000
  Repayment of note payable                                        (125,000)             (160,000)
  Payment of stock offering costs                                   (69,642)                   --
                                                                -----------           -----------

        Net Cash Provided by Financing Activities                 3,546,858               570,030
                                                                -----------           -----------

NET INCREASE IN CASH                                                951,737               138,845

CASH AT BEGINNING OF PERIOD                                          59,232                    --
                                                                -----------           -----------

CASH AT END OF PERIOD                                           $ 1,010,969           $   138,845
                                                                ===========           ===========

SUPPLIMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:
  Interest                                                      $        --           $        --
  Income Taxes                                                  $        --           $        --

NON-CASH FINANCING ACTIVITIES
  Preferred stock issued for services                           $        --           $    11,550
  Common stock issued for wells                                 $ 4,790,000           $        --
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
                                LUCAS ENERGY INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2006


1. BASIS OF PRESENTATION

The unaudited financial  information  furnished herein reflects all adjustments,
which in the opinion of  management  are necessary to fairly state the Company's
financial  position and the results of its operations for the periods presented.
This  report on Form 10-QSB  should be read in  conjunction  with the  Company's
financial statements and notes thereto included in the Company's Form 10-KSB for
the fiscal year ended March 31, 2006. The Company  assumes that the users of the
interim  financial  information  herein  have read or have access to the audited
financial  statements  for the  preceding  fiscal year and that the  adequacy of
additional  disclosure  needed for a fair presentation may be determined in that
context.  Accordingly,  footnote disclosure, which would substantially duplicate
the disclosure  contained in the Company's Form 10-KSB for the fiscal year ended
March 31, 2006,  has been omitted.  The results of operations  for the three and
nine month periods  ended  December 31, 2006 are not  necessarily  indicative of
results for the entire year ending March 31, 2007.

2. NATURE OF OPERATIONS

a) Organization

The Company was  incorporated  in the State of Nevada,  U.S.A.,  on December 16,
2003. The Company's principal offices are in Houston,  Texas. Lucas Energy, Inc.
("the  Subsidiary") was originally  incorporated in the State of Nevada on April
6, 2005 for the purpose of acquiring and operating certain oil and gas leases in
the state of Texas. Currently, the Company operates fifteen separate oil and gas
leases.  In  conjunction  with the  acquisition of the  Subsidiary,  the Company
changed  its fiscal  year end to March 31. The  shareholders  of the  Subsidiary
became the controlling shareholders of the Company,  accordingly the acquisition
of the  Subsidiary  was accounted for as a reverse merger whereby the historical
financial statements are presented as the financial statements of the Company.

b) Development Stage Activities

Prior to the acquisition of Lucas Energy,  Inc., the Company was classified as a
development stage enterprise.

3. SIGNIFICANT ACCOUNTING POLICIES

The financial  statements  of the Company have been prepared in accordance  with
generally accepted accounting principles in the United States. Because a precise
determination  of many assets and  liabilities  is dependent upon future events,
the preparation of financial  statements for a period  necessarily  involves the
use of estimates which have been made using careful judgment.

The financial statements have, in management's  opinion,  been properly prepared
within  reasonable  limits  of  materiality  and  within  the  framework  of the
significant accounting policies summarized below:

                                       6
<PAGE>
                                LUCAS ENERGY INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2006


3. SIGNIFICANT ACCOUNTING POLICIES (Continued)

a) Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the  reported  amounts  of assets  and  liabilities,  and  disclosure  of
contingent assets and liabilities at the date of the financial  statements,  and
the reported amounts of revenues and expenses for the reporting  period.  Actual
results could differ from these estimates.

b) Financial Instruments

The Company's  financial  instruments  consist of cash, and accounts payable and
accrued  liabilities.  Unless otherwise  noted, it is management's  opinion that
this Company is not exposed to significant interest or credit risks arising from
these  financial  instruments.  The fair  value of these  financial  instruments
approximate their carrying values, unless otherwise noted.

c) Foreign Currency Translation

The Company's  functional  currency is the U.S. dollar.  Transactions in foreign
currency are translated into U.S. dollars as follows:

     i)   monetary  items at the rate  prevailing at the balance sheet date;
     ii)  non-monetary  items at the historical  exchange rate;
     iii) revenue  and  expense  at  the  average  rate  in  effect  during  the
          applicable accounting period.

d) Basic and Diluted Loss Per Share

Basic loss per share is calculated  using the weighted  average number of shares
issued and  outstanding  during the year.  Diluted loss per share is  calculated
using the treasury stock method.

e) New Accounting Standards

Management  does not believe that any recently  issued,  but not yet  effective,
accounting standard,  if currently adopted,  could have a material effect on the
accompanying financial statements.

f) Concentration of Credit Risk

The Company maintains its cash in bank deposit accounts,  which, at December 31,
2006, exceed federally insured limits by approximately $900,000. The Company has
not  experienced  any losses in such  accounts and believes it is not exposed to
any significant credit risk on cash and cash equivalents.

                                       7
<PAGE>
                                LUCAS ENERGY INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2006


4. SIGNIFICANT EVENTS

Acquisition and Share Exchange Agreement:

On May 19, 2006,  the Company  entered into an  Acquisition  and Share  Exchange
Agreement (the "Acquisition Agreement"), pursuant to which the Company acquired,
through an exchange transaction, all of the issued and outstanding capital stock
of privately held, Lucas Energy Resources, Inc., formerly known as Lucas Energy,
Inc.  ("Lucas Energy  Resources"),  from Lucas Energy  Resources'  shareholders.
Lucas  Energy  is an  independent  oil  and  gas  company  that  is  building  a
diversified  portfolio  of  oil  and  gas  assets  in  the  United  States.  The
transaction  was  contingent  upon the  satisfaction  of certain  circumstances,
including  the issuance and transfer of certain of the  Company's  shares to the
former Lucas Energy Resources  shareholders and completion of certain  corporate
actions by both companies and their  shareholders.  The terms of the Acquisition
Agreement were satisfied and the  transaction was completed on June 16, 2006. In
conjunction  with the  transaction,  the Company  has  Amended  its  Articles of
Incorporation  to change the Company's  name, has forward split its common stock
on a 2.4 to 1 ratio, and has changed its trading symbol on the OTC-BB to "LUCE".

The terms of the  Acquisition  Agreement  required  that all of the Lucas Energy
Resources  shareholders agree to exchange their shares,  including preferred and
common classes,  for an aggregate of 21,800,011  (forward split adjusted) of the
Company's common shares in a specified  Closing  Transaction which occurred June
13, 2006. The transaction required transfer of 2,640,000  outstanding  "control"
shares to Lucas Energy Resources' private shareholders and required the issuance
of  an  additional   19,160,011  shares  to  Lucas  Energy  Resources'   private
shareholders, for a total new issuance relating to the transaction of 21,800,011
common shares.

In May 2006, the Company  completed a private  placement of 1,980,000  shares of
its common stock at $0.50 per share for gross cash proceeds of $990,000.

In August 2006,  the Company issued 220,000 shares of its common stock valued at
$2.50 per share for interests in 9 oil properties.

In December 2006, the Company completed a private placement of 311,381 shares of
its common stock at $1.45 per share for gross cash proceeds of $451,500.

In December 2006, the Company issued 1,600,000 shares of its common stock valued
at $2.65 per share for interests in several oil properties.

4. SUBSEQUENT EVENTS

In January 2007,  the Company  purchased an additional  790 acres of oil and gas
properties.

                                       8
<PAGE>
ITEM 2.  MANAGEMENT'S  DISCUSSION  AND ANALYSIS OR PLAN OF OPERATION  RESULTS OF
         OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2006

We realized revenues of $396,367 from the sale of oil and gas during the quarter
ended December 31, 2006 compared to $96,725 in the same quarter of 2005.
Similarly, we incurred lease operating expenses of $16,465 during the quarter
ended December 31, 2006 compared to $18,615 for the same quarter of 2005. In
2006, we recorded depreciation and depletion expense of $48,663 for our oil and
gas production compared to $6,096 in 2005. Our growth was the result of
purchases of additional oil and gas properties and the completion of work to
bring existing wells back into production. We had new engineering reports
prepared as of December 31, 2006 to reflect our increased proven reserves as the
result of our rework and acquisition of additional wells. The increased reserves
resulted in a new estimate of depletion expense for the preceding six months. We
reallocated this reduced depletion expense to the prior periods by revising our
computation of lease operating expenses in the current quarter.

We incurred operating expenses of $43,726 for the three month period ended
December 31, 2006 compared to $21,365 for the corresponding quarter of 2005.
These expenses consisted of general operating expenses incurred in connection
with the day to day operation of our oil production business and the preparation
and filing of our periodic reports. The increase relates to our acquisition of
additional oil properties subsequent to December 31, 2005. We expect our
revenues and well operating expenses to continue to grow as we repair and
improve the wells we have purchased.

Our net income from operations for the three months ended December 31, 2006 was
$166,467. Our income from operations for the three months ended December 31,
2005 was $49,905. The increase relates to our acquisition of additional oil
properties subsequent to December 31, 2005. Our net income was reduced by
$84,060 of interest expense on the $2,300,000 of debt we incurred to purchase
properties in 2006.

NINE MONTHS ENDED DECEMBER 31, 2006

We realized revenues of $910,788 from the sale of oil and gas during the nine
months ended December 31, 2006 compared to $205,126 in the same period of 2005.
We started operations on April 6, 2005. Similarly, we incurred lease operating
expenses of $185,926 during the nine months ended December 31, 2006 compared to
$58,670 for the same period of 2005. In 2006, we recorded depreciation and
depletion expense of $111,820 for our oil production compared to $27,795 in
2005. During the period we also realized consulting income of $34,000 while we

                                       9
<PAGE>
had no consulting income in 2005. We expect our revenues and well operating
expenses to continue to grow as we repair and improve the wells we have
purchased.

We incurred operating expenses of $125,390 for the nine month period ended
December 31, 2006 compared to $39,728 for the corresponding nine months of 2005.
These expenses consisted of general operating expenses incurred in connection
with the day to day operation of our oil production business and the preparation
and filing of our periodic reports. The increase relates to our acquisition of
additional oil properties subsequent to December 31, 2005.

Our net income from operations for the nine months ended December 31, 2006 was
$349,938. Our income from operations for the nine months ended December 31, 2005
was $73,300. The increase relates to our acquisition of additional oil
properties subsequent to December 31, 2005. Our net income was reduced by
$139,236 of interest expense on the $2,300,000 of debt we incurred to purchase
properties in 2006.

We also recorded a gain on the sale of oil properties of $81,534 during the nine
months ended December 31, 2006 as we sold a property that did not suit our
purposes. We had no such gain in the corresponding period of 2005.

LIQUIDITY AND CAPITAL RESOURCES

We realized cash from operations of $726,201 during the nine months ended
December 31, 2006 compared to cash provided of $100,300 during the nine months
ended December 31, 2005.

We used $3,624,297 of our cash to purchase oil properties during the nine months
ended December 31, 2006 compared to $531,485 for the same period in 2005. We
received cash of $302,975 from the sale of oil properties in 2006 compared to
$-0- for the same period of 2005.

We received cash of $1,441,500 from the sale of shares of our common stock
during the nine months ended December 31, 2006 compared to $280,030 in the same
period of 2005. We borrowed $2,300,000 in 2006 compared to the $285,000 borrowed
in 2005. We used $165,000 to repay notes payable during the nine months ended
December 31, 2006.

We expect our current cash balance of $1,010,969 at December 31, 2006 to satisfy
our cash requirements for the next 12 months. We expect to be able to satisfy
our cash requirements for at least the next twelve months without having to
raise additional funds or seek bank loans. However, if we identify additional
oil and gas projects that we want to purchase, we may choose to raise additional

                                       10
<PAGE>
monies through sales of our equity securities or through loans from banks or
third parties to make the acquisitions.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

MILESTONES OF BUSINESS OPERATIONS

On May 19, 2006, Lucas Energy, Inc., formerly known as, Panorama Investments,
Corp. (the "Company" or "Lucas Energy") entered into an Acquisition and Share
Exchange Agreement (the "Acquisition Agreement"), pursuant to which the Company
has acquired, through an exchange transaction, all of the issued and outstanding
capital stock of privately held, Lucas Energy Resources, Inc., formerly known as
Lucas Energy, Inc. ("Lucas Energy Resources"), from Lucas Energy Resources'
shareholders. Lucas Energy is an independent oil and gas company that is
building a diversified portfolio of oil and gas assets in the United States. The
transaction was contingent upon the satisfaction of certain circumstances,
including the issuance and transfer of certain Lucas Energy shares to the former
Lucas Energy Resources shareholders and completion of certain corporate actions
by both companies and their shareholders. The terms of the Acquisition Agreement
were satisfied and the transaction was completed on June 16, 2006. In
conjunction with the transaction, Lucas Energy, Inc., has Amended its Articles
of Incorporation to change the Company's name, has forward split its common
stock on a 2.4 to 1 ratio, and has changed its trading symbol on the OTC-BB to
"LUCE".

The terms of the Acquisition Agreement required that all of the Lucas Energy
Resources shareholders agree to exchange their shares, including preferred and
common classes, for an aggregate of 21,800,011 (forward split adjusted) Lucas
Energy common shares in a specified Closing Transaction which occurred June 13,
2006. The transaction required transfer of 2,640,000 outstanding "control"
shares to Lucas Energy Resources' private shareholders and required the issuance
of an additional 19,160,011 shares to Lucas Energy Resources' private
shareholders, for a total new issuance relating to the transaction of 21,800,011
common shares.

CRITICAL ACCOUNTING POLICIES

The unaudited financial statements as of December 31, 2006 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general

                                       11
<PAGE>
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our March 31, 2006 audited financial statements and notes
thereto, which can be found in our Form 10K-SB filing on the SEC website at
www.sec.gov under our SEC File Number 0-51414.

The financial statements of the Company have been prepared in accordance with
generally accepted accounting principles in the United States. Because a precise
determination of many assets and liabilities is dependent upon future events,
the preparation of financial statements for a period necessarily involves the
use of estimates which have been made using careful judgment.

The financial statements have, in management's opinion, been properly prepared
within reasonable limits of materiality and within the framework of the
significant accounting policies summarized below:

a) Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses for the reporting period. Actual
results could differ from these estimates.

b) Financial Instruments

The Company's financial instruments consist of cash, and accounts payable and
accrued liabilities. Unless otherwise noted, it is management's opinion that
this Company is not exposed to significant interest or credit risks arising from
these financial instruments. The fair value of these financial instruments
approximate their carrying values, unless otherwise noted.

c) Foreign Currency Translation

The Company's functional currency is the U.S. dollar. Transactions in foreign
currency are translated into U.S. dollars as follows:

     i)   monetary items at the rate prevailing at the balance sheet date;
     ii)  non-monetary items at the historical exchange rate;
     iii) revenue and expense at the average rate in effect during the
          applicable accounting period.

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d) Basic and Diluted Loss Per Share

Basic loss per share is calculated using the weighted average number of shares
issued and outstanding during the year. Diluted loss per share is calculated
using the treasury stock method.

e) New Accounting Standards

Management does not believe that any recently issued, but not yet effective,
accounting standard, if currently adopted, could have a material effect on the
accompanying financial statements.

FORWARD LOOKING STATEMENTS

Some of the statements contained in this Form 10-QSB that are not historical
facts are "forward-looking statements" which can be identified by the use of
terminology such as "estimates," "projects," "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of strategy that involve risks and uncertainties. We urge you to be cautious of
the forward-looking statements, that such statements, which are contained in
this Form 10-QSB, reflect our current beliefs with respect to future events and
involve known and unknown risks, uncertainties and other factors affecting our
operations, market growth, services, products and licenses. No assurances can be
given regarding the achievement of future results, as actual results may differ
materially as a result of the risks we face, and actual events may differ from
the assumptions underlying the statements that have been made regarding
anticipated events.

All written forward-looking statements made in connection with this Form 10-QSB
that are attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. Given the
uncertainties that surround such statements, you are cautioned not to place
undue reliance on such forward-looking statements.

The safe harbors of forward-looking statements provided by the Securities
Litigation Reform Act of 1995 are unavailable to issuers not subject to the
reporting requirements set forth under Section 13(a) or 15(D) of the Securities
Exchange Act of 1934, as amended. As we have not registered our securities
pursuant to Section 12 of the Exchange Act, such safe harbors set forth under
the Reform Act are unavailable to us.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have

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conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have no identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

                          PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES

The following unregistered securities have been issued since April 1st, 2006:

         Date        No. of Shares      Title     Valued At      Reason
         ----        -------------      -----     ---------      ------
     May 2006          1,980,000       Common       $0.50         Cash
     August 2006         220,000       Common       $2.50         Wells
     December 2006       311,381       Common       $1.45         Cash
     December 2006     1,600,000       Common       $2.65         Wells

Shares issued for cash were sold under Rule 506 to qualified accredited
investors. Shares issued for wells were issued under Rule 4(2).

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

The following exhibits are included with this quarterly statement.

Exhibit No.                               Description
-----------                               -----------
  31.1        ss. 302 Certification of Principal Executive Officer, Principal
              Accounting Officer
  32.1        ss. 906 Certification of Principal Executive Officer, Principal
              Accounting Officer

                                   SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

February 12, 2007

Lucas Energy, Inc., Registrant


By: /s/ James J. Cerna
   --------------------------------------------
   James J. Cerna,
   President and Chief Executive Officer, Principal Accounting Officer


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