UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                For the quarterly period ended December 31, 2007

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT

            For the transition period from ___________ to ___________

                         Commission File Number: 0-51414

                            [LUCAS ENERGY, INC. LOGO]


                               LUCAS ENERGY, INC.
             (Exact name of registrant as specified in its charter)

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

                             3000 Richmond Ave. #400
                                Houston, TX 77098
               (Address of principal executive offices) (Zip Code)

                                 (713) 528-1881
              (Registrant's telephone number, including area code)

              (Former name, former address, and former fiscal year
                         if changed since last report)

Indicate by check mark 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 [ ]

Indicate by check mark whether registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act) Yes [ ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

               Class                          Outstanding as of February 4, 2008
               -----                          ----------------------------------

Common Stock, par value $.001 per share                  10,211,156

Transitional Small Business Format (check one): Yes [ ] No [X]
<PAGE>
               LUCAS ENERGY, INC. QUARTERLY REPORT ON FORM 10-QSB

                         FOR THE QUARTERLY PERIOD ENDED

                                DECEMBER 31, 2007

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----
PART I FINANCIAL INFORMATION

Item 1. Financial Statements                                                  3

     -    Consolidated Balance Sheets as of December 31, 2007 and
          March 31, 2007 (unaudited)
     -    Consolidated Statements of Operations and Comprehensive
          Income for the three and nine months ended December 31,
          2007 and 2006 (unaudited)
     -    Consolidated Statement of Shareholders' Equity for the
          nine months ended December 31, 2007 (unaudited)
     -    Consolidated Statements of Cash Flows for the nine
          months ended December 31, 2007 and 2006 (unaudited)
     -    Notes to Consolidated Financial Statements

Item 2. Management's Discussion and Analysis of Financial Condition          10
        and Results of Operations

Item 3. Quantitative and Qualitative Disclosures about Market Risk           13

Item 4. Controls and Procedures                                              13

PART II OTHER INFORMATION

Item 1. Legal Proceedings                                                    14

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds          14

Item 3. Defaults Upon Senior Securities                                      14

Item 4. Submission of Matters to a Vote of Security Holders                  14

Item 5. Other Information                                                    14

Item 6. Exhibits                                                             14

Signatures                                                                   15

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

                               Lucas Energy, Inc.
                           Consolidated Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     December 31,             March 31,
                                                                         2007                   2007
                                                                     ------------           ------------
<S>                                                                  <C>                    <C>
CURRENT ASSETS
  Cash                                                               $  2,771,990           $    710,018
  Marketable securities                                                   517,850                     --
  Oil and gas receivables                                                 296,835                131,485
  Note receivable                                                          32,000                 32,000
  Other current assets                                                    272,293                 38,823
                                                                     ------------           ------------

      TOTAL CURRENT ASSETS                                              3,890,968                912,326
                                                                     ------------           ------------
OIL AND GAS PROPERTIES, FULL COST METHOD
  Properties subject to amortization                                   16,845,902              9,623,745
  Accumulated depletion                                                  (351,723)              (166,204)
                                                                     ------------           ------------

      OIL AND GAS PROPERTIES, NET                                      16,494,179              9,457,541
                                                                     ------------           ------------
FIXED ASSETS, net of accumulated depreciation of
 $145 and $0, respectively                                                  2,473                     --

OTHER ASSETS
  Drilling deposits, bonds, and prepaid expenses                          317,025                 56,123
  Note receivable                                                         414,466                     --
                                                                     ------------           ------------

      TOTAL ASSETS                                                   $ 21,119,111           $ 10,425,990
                                                                     ============           ============
CURRENT LIABILITIES
  Accounts payable and accrued expenses                              $  1,614,101           $    386,004
  Accrued interest payable                                                     --                 52,766
                                                                     ------------           ------------

      TOTAL CURRENT LIABILITIES                                         1,614,101                438,770
                                                                     ------------           ------------
NON-CURRENT LIABILITIES
  Note payable                                                                 --              2,300,000
  Asset retirement obligation                                             133,755                111,022
  Deferred tax liabilities                                                271,591                132,185
                                                                     ------------           ------------

      TOTAL LIABILITIES                                                 2,019,447              2,981,977
                                                                     ------------           ------------
STOCKHOLDERS' EQUITY
  Preferred stock, 10,000,000 shares authorized of
   $0.001 par value, no shares issued and outstanding                          --                     --
  Common stock, 25,000,000 shares authorized of $0.001 par
   value 10,211,156 and 7,448,107 shares issued and outstanding,
   respectively                                                            10,211                  7,448
  Additional paid-in capital                                           18,413,841              7,052,121
  Retained earnings                                                       651,612                384,444
  Unrealized gain on marketable equity securities                          24,000                     --
                                                                     ------------           ------------

      TOTAL STOCKHOLDERS' EQUITY                                       19,099,664              7,444,013
                                                                     ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $ 21,119,111           $ 10,425,990
                                                                     ============           ============
</TABLE>

                 See notes to consolidated financial statements.

                                       3
<PAGE>
                               Lucas Energy, Inc.
         Consolidated Statements of Operations and Comprehensive Income
         For the Three and Nine Months Ended December 31, 2007 and 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                    For the Three     For the Three      For the Nine      For the Nine
                                                     Months Ended      Months Ended      Months Ended      Months Ended
                                                     December 31,      December 31,      December 31,      December 31,
                                                         2007              2006              2007              2006
                                                     -----------       -----------       -----------       -----------
<S>                                                  <C>               <C>               <C>               <C>
REVENUES
  Oil and gas revenues                               $   811,023       $   396,367       $ 1,737,510       $   910,788
  Other revenues                                              --                --            10,000            34,000
                                                     -----------       -----------       -----------       -----------
      TOTAL REVENUES                                     811,023           396,367         1,747,510           944,788

EXPENSES
  Lease operating expenses                               245,179            16,465           552,320           185,926
  Depreciation, depletion and accretion                   90,960            48,663           198,034           111,820
  General and administrative                             253,740            43,726           606,749           125,390
                                                     -----------       -----------       -----------       -----------
      TOTAL EXPENSES                                     589,879           108,854         1,357,103           423,136
                                                     -----------       -----------       -----------       -----------

INCOME FROM OPERATIONS                                   221,144           287,513           390,406           521,652
                                                     -----------       -----------       -----------       -----------
OTHER INCOME (EXPENSES)
  Gain on sale of assets                                      --                --                --            81,534
  Interest income                                         51,919             4,187           118,045             8,347
  Interest expense                                            --           (84,060)         (101,877)         (139,236)
                                                     -----------       -----------       -----------       -----------
      TOTAL OTHER INCOME (EXPENSES)                       51,919           (79,873)           16,168           (49,355)
                                                     -----------       -----------       -----------       -----------

NET INCOME BEFORE INCOME TAXES                           273,063           207,640           406,574           472,297

INCOME TAX EXPENSE                                        93,157            41,173           139,406           122,359
                                                     -----------       -----------       -----------       -----------

NET INCOME                                           $   179,906       $   166,467       $   267,168       $   349,938
                                                     ===========       ===========       ===========       ===========

OTHER COMPREHENSIVE INCOME (LOSS)                        (49,000)               --            24,000                --
                                                     -----------       -----------       -----------       -----------

COMPREHENSIVE INCOME                                 $   130,906       $   166,467       $   291,157       $   349,938
                                                     ===========       ===========       ===========       ===========

INCOME PER SHARE - BASIC AND DILUTED                 $      0.01       $      0.02       $      0.03       $      0.05
                                                     ===========       ===========       ===========       ===========

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING -
BASIC AND DILUTED                                     10,211,156         6,885,850         9,007,615         6,859,420
                                                     ===========       ===========       ===========       ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       4
<PAGE>
                               Lucas Energy, Inc.
                 Consolidated Statements of Stockholders' Equity
                For the Nine Month Period Ended December 31, 2007
                                   (Unaudited)

<TABLE>
<CAPTION>
                                Preferred Stock            Common Stock        Additional                   Other
                               ------------------      ------------------       Paid-In      Retained   Comprehensive
                               Shares      Amount      Shares       Amount      Capital      Earnings       Income       Total
                               ------      ------      ------       ------      -------      --------       ------       -----
<S>                           <C>       <C>           <C>        <C>            <C>           <C>        <C>          <C>
Balance, March 31, 2007              -     $   --     7,448,107     $ 7,448   $ 7,052,121    $384,444     $     --    $ 7,444,013
                                ======     ======    ==========     =======   ===========    ========     ========    ===========
Unrealized gain on available
for sale securities                  -         --            --          --            --          --       30,000         30,000

Net income for the three
months ended June 30, 2007           -         --            --          --            --      25,666           --         25,666
                                ------     ------    ----------     -------   -----------    --------     --------    -----------
Balance, June 30, 2007               -     $   --     7,448,107     $ 7,448   $ 7,052,121    $410,110     $ 30,000    $ 7,499,679
                                ======     ======    ==========     =======   ===========    ========     ========    ===========

Common Stock issued for cash
(net of issuance cost)               -         --     2,763,049       2,763    11,366,220          --           --     11,368,983

Unrealized gain on available
for sale securities                  -         --            --          --            --          --       43,000         43,000

Net income for the three
months ended September 30, 2007      -         --            --          --            --      61,596           --         61,596
                                ------     ------    ----------     -------   -----------    --------     --------    -----------
Balance, September 30, 2007          -     $   --    10,211,156     $10,211   $18,418,341    $471,706     $ 73,000    $18,973,258
                                ======     ======    ==========     =======   ===========    ========     ========    ===========

Stock issuance costs                 -         --            --          --        (4,500)         --           --         (4,500)

Unrealized (loss) on available
for sale securities                  -         --            --          --            --          --      (49,000)       (49,000)

Net income for the three
months ended December 31, 2007       -         --            --          --            --     179,906           --        179,906
                                ------     ------    ----------     -------   -----------    --------     --------    -----------
Balance, December 31, 2007           -     $   --    10,211,156     $10,211   $18,413,841    $651,612     $ 24,000    $19,099,664
                                ======     ======    ==========     =======   ===========    ========     ========    ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       5
<PAGE>
                               Lucas Energy, Inc.
                      Consolidated Statements of Cash Flows
              For the Nine Months Ended December 31, 2007 and 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        For the Nine         For the Nine
                                                                        Months Ended         Months Ended
                                                                        December 31,         December 31,
                                                                            2007                 2006
                                                                        ------------         ------------
<S>                                                                     <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                            $    267,168         $    349,938
                                                                        ------------         ------------
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation, depletion and accretion                                   198,034              111,820
     Deferred taxes                                                          139,406                   --
     Gain on sale of assets                                                       --              (81,534)
  Changes in operating assets and liabilities:
     Increase in accounts receivable                                        (165,350)            (128,561)
     Increase in other current assets                                       (247,936)             (12,876)
     Increase in other assets                                               (260,902)             (27,805)
     Increase in accounts payable and accrued expenses                     1,175,332              515,219
                                                                        ------------         ------------

          NET CASH PROVIDED BY OPERATING ACTIVITIES                        1,105,752              726,201
                                                                        ------------         ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of oil and gas property and equipment                          (8,063,263)          (3,624,297)
  Investments in marketable securities                                       (10,000)                  --
  Issuance of notes receivable                                              (400,000)                  --
  Cash received for sale of marketable securities                            365,000                   --
  Proceeds from sale of operating interest                                        --              302,975
                                                                        ------------         ------------

          NET CASH USED IN INVESTING ACTIVITIES                           (8,108,263)          (3,321,322)
                                                                        ------------         ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net proceeds from the sale of common stock                              11,364,483            1,371,858
  Proceeds of note payable                                                        --            2,300,000
  Repayment of note payable                                               (2,300,000)            (125,000)
                                                                        ------------         ------------

          NET CASH PROVIDED BY FINANCING ACTIVITIES                        9,064,483            3,546,858
                                                                        ------------         ------------

NET INCREASE IN CASH                                                       2,061,972              951,737

CASH AT BEGINNING OF PERIOD                                                  710,018               59,232
                                                                        ------------         ------------

CASH AT END OF PERIOD                                                   $  2,771,990         $  1,010,969
                                                                        ============         ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:
  Interest                                                              $    154,643         $         --
                                                                        ============         ============
  Income taxes                                                          $         --         $         --
                                                                        ============         ============
NON-CASH INVESTING AND FINANCING ACTIVITIES
  Common stock issued for oil and gas properties                        $         --         $  4,790,000
  Unrealized holding gain on available for sale of securities           $     24,000         $         --
  Increase in asset retirement obligation liability                     $     10,363         $         --
  Marketable securities received in sale of oil and gas property        $    848,850         $         --
</TABLE>

                 See notes to consolidated financial statements.

                                       6
<PAGE>
                               LUCAS ENERGY, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

NOTE 1. BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Lucas
Energy, Inc. ("Lucas") have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of
the Securities and Exchange Commission, and should be read in conjunction with
the audited financial statements and notes thereto contained in Lucas's annual
report filed with the SEC on Form 10-KSB for the year ended March 31, 2007. In
the opinion of management, all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of financial position and the
results of operations for the interim periods presented have been reflected
herein. The results of operations for interim periods are not necessarily
indicative of the results to be expected for the full year. Notes to the
financial statements which would substantially duplicate the disclosure
contained in the audited financial statements for the most recent fiscal year
2007 as reported in Form 10-KSB have been omitted.

NOTE 2. ORGANIZATION AND BUSINESS OPERATIONS

Lucas 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, Lucas operates forty-one separate oil and gas leases. The
business is conducted through its wholly-owned operating subsidiary, Lucas
Energy Resources, Inc., which was incorporated on April 6, 2005 in Nevada.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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
during the reporting period. Actual results could differ from those estimates.

Lucas' financial statements are based on a number of significant estimates,
including oil and gas reserve quantities which are the basis for the calculation
of depreciation, depletion and impairment of oil and gas properties, and timing
and costs associated with its retirement obligations.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in banks and financial instruments which
mature within three months of the date of purchase.

MARKETABLE SECURITIES

Marketable securities consist of investments in the common stock of Solar Night,
Inc. and Bonanza Oil & Gas, Inc. Marketable equity securities are classified as
"available-for-sale" and are reported at fair value. The investments are
publicly-traded and considered liquid. The unrealized gains or losses on these
securities, represented by net changes in the fair value of the security, are
included in accumulated other comprehensive income as a separate component of
shareholder's equity unless the decline in value is deemed to be
other-than-temporary, in which case the securities are written down to fair
value and the loss is charged to income.

On October 25, 2007, Lucas Energy sold its 25% working interest in the ApClark
prospect, an oil and gas property covering approximately 6,700 acres located in
the ApClark field in Southwestern Borden County, Texas, in exchange for
3,000,000 shares valued at $848,850 of Bonanza Oil & Gas, Inc. representing a
24.6% stake in the company. Bonanza Oil & Gas, Inc. is a publicly-held oil and
gas company. On November 20, 2007 Lucas Energy sold 1,290,000 shares of Bonanza
Oil & Gas, Inc. to a third party for cash proceeds of $365,000. No gain or loss
was recognized on the sale.

                                       7
<PAGE>
CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject Lucas to concentration of credit
risk consist of cash. At December 31, 2007, Lucas had $2,671,990 in cash in
excess of federally insured limits. Lucas maintains cash accounts only at large
high quality financial institutions and Lucas believes the credit risk
associated with cash held in banks is remote.

Lucas's receivables primarily consist of accounts receivable from oil and gas
sales. Accounts receivable are recorded at invoiced amount and generally do not
bear interest. Any allowance for doubtful accounts is based on management's
estimate of the amount of probable losses due to the inability to collect from
customers. As of December 31, 2007, no allowance for doubtful accounts has been
recorded and none of the accounts receivable have been collateralized.

FAIR VALUE OF FINANCIAL INSTRUMENTS

As of December 31, 2007, the fair value of cash, accounts receivable, and
accounts payable, including amounts due to and from related parties, if any,
approximate carrying values because of the short-term maturity of these
instruments.

OIL AND GAS PROPERTIES, FULL COST METHOD

Lucas uses the full cost method of accounting for oil and gas producing
activities. Costs to acquire mineral interests in oil and gas properties, to
drill and equip exploratory wells used to find proved reserves, and to drill and
equip development wells including directly related overhead costs and related
asset retirement costs are capitalized.

Under this method, all costs, including internal costs directly related to
acquisition, exploration and development activities are capitalized as oil and
gas property costs. Properties not subject to amortization consist of
exploration and development costs which are evaluated on a property-by-property
basis. Amortization of these unproved property costs begins when the properties
become proved or their values become impaired. Lucas assesses the realizability
of unproved properties, if any, on at least an annual basis or when there has
been an indication that impairment in value may have occurred. Impairment of
unproved properties is assessed based on management's intention with regard to
future exploration and development of individually significant properties and
the ability of Lucas to obtain funds to finance such exploration and
development. If the results of an assessment indicate that the properties are
impaired, the amount of the impairment is added to the capitalized costs to be
amortized.

Costs of oil and gas properties are amortized using the units of production
method.

Under full cost accounting rules for each cost center, capitalized costs of
proved properties, less accumulated amortization and related deferred income
taxes, shall not exceed an amount (the "cost ceiling") equal to the sum of (a)
the present value of future net cash flows from estimated production of proved
oil and gas reserves, based on current economic and operating conditions,
discounted at 10 percent, plus (b) the cost of properties not being amortized,
plus (c) the lower of cost or estimated fair value of any unproved properties
included in the costs being amortized, less (d) any income tax effects related
to differences between the book and tax basis of the properties involved. If
capitalized costs exceed this limit, the excess is charged as an impairment
expense.

ASSET RETIREMENT OBLIGATIONS

Lucas follows the provisions of Financial Accounting Standards Board Statement
No. 143, "Accounting for Asset Retirement Obligations" (SFAS No. 143). The fair
value of an asset retirement obligation is recognized in the period in which it
is incurred if a reasonable estimate of fair value can be made. The present
value of the estimated asset retirement costs is capitalized as part of the
carrying amount of the long-lived asset. For Lucas, asset retirement obligations
relate to the abandonment of oil and gas producing facilities. The amounts
recognized are based upon numerous estimates and assumptions, including future
retirement costs, future recoverable quantities of oil and gas, future inflation
rates and the credit-adjusted risk-free interest rate.

REVENUE RECOGNITION

Lucas recognizes oil and natural gas revenue under the sales method of
accounting for its interests in producing wells as oil and natural gas is
produced and sold from those wells. Oil and natural gas sold by Lucas is not
significantly different from Lucas's share of production.

INCOME PER SHARE OF COMMON STOCK

Basic and diluted net income per share calculations are presented in accordance
with Financial Accounting Standards Statement No. 128 and are calculated on the
basis of the weighted average number of common shares outstanding during the
year. Common stock equivalents are excluded from the calculation when a loss is
incurred as their effect would be anti-dilutive. The basic income per share of

                                       8
<PAGE>
common stock is based on the weighted average number of shares issued and
outstanding at the date of the financial statements. Lucas has warrants
outstanding which are exercisable for common stock on a one warrant for one
share basis. The warrants were not common stock equivalents from date of
issuance until December 31, 2007 because they were out-of-the-money for purposes
of computing fully diluted income per share.

RECLASSIFICATION

Certain amounts in prior periods have been reclassified to conform to current
period presentation.

NOTE 4. NOTES RECEIVABLE

During the nine months ended December 31, 2007, Lucas loaned $400,000 to a third
party engaged in identifying potential oil and gas prospects in which Lucas
would likely participate. The note bears an interest rate of 8% per annum with a
six-month term. On January 13, 2008 the note was extended for an additional six
month term. Lucas intends to further extend the term beyond six months and,
accordingly, has classified the note receivable and the related accrued interest
of $14,466 as noncurrent. Lucas also had a note receivable with Global
Production, Inc., that was originally executed on March 26, 2007 for $32,000,
which came due as of December 31, 2007 and is currently in default. Management
is currently evaluating the realizability of its notes receivable from Global
Production.

NOTE 5. NOTES PAYABLE

During the nine months ended December 31, 2006, Lucas entered into a Promissory
Note in the amount of $2,300,000 with an original maturity date of February 3,
2008. On June 25, 2007, the maturity date was extended to February 3, 2009. On
July 20, 2007, the note was repaid in full.

NOTE 6. STOCKHOLDERS' EQUITY AND WARRANTS

The Board of Directors approved a 4 to 1 reverse stock split as of February 4,
2008. All common stock shares and share-related information are presented to
reflect the reverse stock split for all periods presented.

During the nine months ended December 31, 2007, Lucas issued 2,763,049 Units in
a private placement for $4.60 per Unit. Lucas received gross proceeds of
$12,710,002 (net proceeds of $11,364,483 after placement costs). Each Unit was
comprised of one share of restricted common stock and one common stock purchase
warrant. Each warrant is exercisable at $8.00 per share of common stock for a
period of 3 years. The holders of the warrants, at their option, can exercise
the warrants on a cashless basis. Lucas issued 247,500 warrants to purchase
common stock to the placement agents with an exercise price of $8.00 per share
for a period of 3 years with a value of $1,230,426. As of December 31, 2007 the
warrants mentioned above were the only warrants issued and outstanding by Lucas.
No warrants were exercised, cancelled, or expired during the nine months ended
December 31, 2007 and all warrants outstanding were determined to have no
intrinsic value.

The relative fair value of the Common Stock and the Common Stock Purchase
Warrants comprising the Units are as follows:

                                                              Relative Fair
               Description                     Shares         Value Amount
               -----------                     ------         ------------

     Common Stock                             2,763,049       $  5,398,367
     Common Stock Purchase Warrants           2,763,049          7,311,635
                                                              ------------

     Total Proceeds                                             12,710,002
     Placement Fees                                             (1,345,519)
                                                              ------------

     Net Proceeds                                             $ 11,364,483
                                                              ============

                                       9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

     THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH
THE UNAUDITED FINANCIAL STATEMENTS AND NOTES THERETO INCLUDED ELSEWHERE IN THIS
REPORT. THE TERMS "LUCAS ENERGY," "LUCAS," "WE," "US" AND "OUR" REFER TO LUCAS
ENERGY, INC.

OVERVIEW

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report includes "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, and Section 21E of the Securities Exchange
Act of 1934. These forward-looking statements may relate to such matters as
anticipated financial performance, future revenues or earnings, business
prospects, projected ventures, new products and services, anticipated market
performance and similar matters. When used in this report, the words "may,"
"will," "expect," "anticipate," "continue," "estimate," "project," "intend," and
similar expressions are intended to identify forward-looking statements
regarding events, conditions, and financial trends that may affect our future
plans of operations, business strategy, operating results, and financial
position. We caution readers that a variety of factors could cause our actual
results to differ materially from the anticipated results or other matters
expressed in forward-looking statements. These risks and uncertainties, many of
which are beyond our control, include:

     *    the sufficiency of existing capital resources and our ability to raise
          additional capital to fund cash requirements for future operations;
     *    uncertainties involved in the rate of growth of our business and
          acceptance of any products or services;
     *    volatility of the stock market, particularly within the energy sector;
          and
     *    general economic conditions.

Although we believe the expectations reflected in these forward-looking
statements are reasonable, such expectations cannot guarantee future results,
levels of activity, performance or achievements.

All forward-looking statements included in this report and all subsequent
written or oral forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by these cautionary
statements. The forward-looking statements speak only as of the date made, other
than as required by law, and we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

MANAGEMENT ANALYSIS OF OPERATION

Lucas Energy, Inc., through its consolidated operations, is an independent oil
and gas company currently focused on building and revitalizing a diversified
portfolio of oil and gas production assets located in the State of Texas. We
seek to acquire underperforming oil and gas assets that we believe we can
revitalize in a short period of time.

Acquisitions are a core part of our growth strategy. The majority of the
acquisition proposals and candidates that we review are sourced directly by our
senior management or specialized third-party consultants with local area
knowledge. We focus on well acquisitions in which we estimate (a) have a good
opportunity and the appropriate acreage to drill additional laterals (PUD'S),
(b) our related payback periods will be less than 12 months and (c) our
projected internal rate of return on capital invested will exceed 80%.

We have conducted engineering on a program to drill laterals on existing
well-bores or offset locations that we have already leased. The purpose of these
laterals will be to provide more aerial access to the formation in order to
increase the flow rate and to recover additional oil and gas reserves not
recoverable from the existing vertical (straight) holes. We began our drilling
program on September 20, 2007 with the drilling of a new horizontal leg in the
Hagen Ranch No. 3 well, located in the Austin Chalk formation. The Hagen Ranch
No. 3 well was acquired in 2006 and is located in Gonzales County, Texas. The
well sits on a 1330-acre lease which has room for at least two additional wells.
The well was completed on October 16, 2007, and initial production was 163
barrels of production per day ("BOPD"). The RVS No. 3 was completed on October
30, 2007, and initial production was 111 BOPD. The Perkins Oil Unit No. 1 was
completed on January 3, 2008, and initial production was 73 BOPD and 30 MCF of
gas per day. The drilling program continues with the movement of a drilling rig
to Well No. 4 located in Gonzales County, Texas.

We focus on acquiring shut-in wells that we believe have been overlooked by
larger companies and have a high probability of containing large reserves
recoverable through the lateral drilling process and responding to our
revitalization process. We seek opportunities to acquire mature oil fields that
have 30% to 50% of original oil in place. These fields typically have lost some

                                       10
<PAGE>
or all of the reservoir pressure required to drive the oil through the overlying
rock and sand and into the well bores of the producing wells, or have
experienced mechanical problems. We believe we have standardized a process that
enables us to quickly restore oil production as well as increase production
yield.

We employ a wide variety of financing structures to acquire assets, including
payment of cash and/or stock consideration, seller financing, and royalty fee
arrangements.

We seek to maintain a low overhead cost structure while we remain focused on
growing our portfolio. For the past eleven consecutive quarters since inception,
we have achieved positive net income and have retained our earnings in order to
grow our portfolio of assets.

RESULTS OF OPERATIONS:

OIL AND GAS REVENUES

For the three and nine months ended December 31, 2007, our oil and gas net sales
were $811,023 and $1,737,510, respectively, versus $396,367 and $910,788 for the
three and nine months ended December 31, 2006, respectively. Oil and gas
revenues increased during the period due to additional wells put on line through
the ongoing acquisition and rework program as well as the addition of new
laterals drilled during the quarter. The increase in revenues for the three
months ended December 31, 2007 compared to the three months ended December 31,
2006 is attributable to an increase in average price received and an increase in
production of 2,039 net barrels as our new laterals came online.

                             For the three       For the three
                              months ended        months ended
                              December 31,        December 31,       Increase/
                                 2007                2006           (Decrease)
                               --------            --------         ----------
Volumes: (net)
  Oil (bbls)                      9,093               7,045             2,039
  Gas (mcf)                         584                  --               584

Average price received:
  Oil                          $  88.89            $  56.27          $  32.62
  Gas                          $   5.08                  --          $   5.08

Revenues:
  Oil                          $808,238            $396,367          $411,871
  Gas                          $  2,785                  --          $  2,785
                               --------            --------          --------
  Total                        $811,023            $396,367          $414,656
                               ========            ========          ========

GENERAL AND ADMINISTRATIVE EXPENSES

For the three and nine months ended December 31, 2007, general and
administrative expenses totaled $253,740 and $606,749, respectively, versus
$43,726 and $125,390, respectively, for the three and nine months ended December
31, 2006. The increases during 2007 are principally due to an increase in
professional fees, headcount and investor relations costs as we ramp up our
business for increased operating activities.

INTEREST EXPENSE

For the three months ended December 31, 2007, interest expense decreased from
$84,060 in 2006 to $0 in 2007. This change is attributed to the repayment in
July 2007 of $2,300,000 debt issued in August 2006. For the nine months ended
December 31, 2007, interest expense decreased from $139,236 in 2006 to $101,877
in 2007. The decrease is due to the retirement of the $2,300,000 debt that was
outstanding from August 2006 to July 2007.

                                       11
<PAGE>
INTEREST INCOME

For the three months ended December 31, interest income increased from $4,187 in
2006 to $51,919 in 2007. This change is attributed to the sale of common stock
and the subsequent increase in cash balances held during the period in addition
to interest income related to the notes receivable. For the nine months ended
December 31, interest income increased from $8,347 in 2006 to $118,045 in 2007
due to the increased cash balances held during the period.

NET INCOME

For the three months ended December 31, 2007, we had net income of $179,906
versus net income of $166,467 for the three months ended December 31, 2006. For
the nine months ended December 31, 2007, we had net income of $267,168 versus
$349,938 for the nine months ended December 31, 2006. The increase in income for
the three-month period is attributable to the increase in revenues. The decrease
in net income for the nine-month period ended December 31, 2007 is primarily
attributable to increased operating costs offsetting increased revenues. The
increased operating costs reflect a ramp up of our operations to meet increased
operating activities.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2007, we had cash of $2,771,990 and working capital of
$2,276,868. This compares to cash of $710,018 and working capital of $473,556 at
March 31, 2007. During the nine months ended December 31 2007, we completed a
private placement that provided net proceeds of $11,364,483. We used the funds
received in the private placement principally to repay the $2,300,000 note
payable and acquire oil and gas property and equipment. We anticipate that cash
on hand will be sufficient to cover our planned capital and operating expense
budget for the remainder of our fiscal year.

We have adequate capital to fund our ongoing operations. An acceleration of
acquisitions or our planned drilling operations over the next twelve months may
require additional capital expenditures. Additional financing through
partnering, public or private equity financings, lease transactions or other
financing sources may not be available on acceptable terms, or at all.
Additional equity financings could result in significant dilution to our
stockholders.

For the nine months ended December 31, 2007, Lucas issued 2,763,049 Units in a
private placement for $4.60 per Unit. Lucas received gross proceeds of
$12,710,002 (net proceeds of $11,364,483 after placement costs). Each Unit was
comprised of one share of restricted common stock and one common stock purchase
warrant. Each warrant is exercisable at $8.00 per share of common stock for a
period of 3 years. The holders of the warrants, at their option, can exercise
the warrants on a cashless basis.

CASH FLOW FROM OPERATING ACTIVITIES

For the nine month period ended December 31, 2007, net cash provided from
operating activities was $1,105,737, versus net cash provided from operating
activities of $726,201 in the nine month period ended December 31, 2006. This
increase in net cash provided from operations activities is primarily due to an
increase in our accounts payable and accrued expenses as a result of our
increased drilling activity.

CASH FLOW FROM INVESTING ACTIVITIES

For the nine month period ended December 31, 2007, net cash used in investing
activities was $8,108,263, primarily attributed to our drilling and continued
rework program, versus net cash used in investing activities of a $3,321,322 for
the nine month period ended December 31, 2006. Our investing activities were
funded from the use of proceeds from the private placement completed in the
second quarter.

CASH FLOW FROM FINANCING ACTIVITIES

For the nine month period ended December 31, 2007, net cash flows from financing
activities was $9,064,483 primarily attributable to our $12,710,002 Unit
offering versus net cash flows provided from financing activities of $3,546,858
primarily attributable to short-term financings for the nine month period ended
December 31, 2006.

HEDGING

We did not hedge any of our oil or natural gas production during 2007 and have
not entered into any such hedges from December 31, 2007 through the date of this
filing.

                                       12
<PAGE>
CONTRACTUAL COMMITMENTS

None.

OFF-BALANCE SHEET ARRANGEMENTS

As of December 31, 2007, we had no off-balance sheet arrangements.

RELATED PARTY TRANSACTIONS

On September 1, 2007, the CEO was billed $3,032 for reimbursement of a legal
retainer related to patent work on a product that the company's board decided
not to pursue. As inventor of the patent, Mr. Cerna agreed to reimburse the
company and pay all future costs related to the patent. The receivable was fully
paid on October 22, 2007.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations
is based on our financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States of America.
The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities and expenses.
We base our estimates on historical experience and on various other assumptions
that we believe to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market risk is the risk of loss arising from adverse changes in market rates and
prices. We are exposed to risks related to increases in the prices of fuel and
raw materials consumed in exploration, development and production. We do not
engage in commodity price hedging activities.

ITEM 4. CONTROLS AND PROCEDURES.

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures that are
designed to ensure that the information required to be disclosed by a company in
the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
SEC's rules and forms. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed in the reports that a company files or submits under the
Exchange Act is accumulated and communicated to the Company's management,
including its Principal Executive Officer and Principal Financial Officer, as
appropriate to allow timely decisions regarding required disclosure.

We maintain disclosure controls and procedures designed to ensure that material
information related to our company is recorded, processed, summarized and
reported within the time periods specified in the SEC rules and forms.

Under the supervision of our Chief Executive Officer and our Chief Financial
Officer, we evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of the end of the period covered by this
report. Based upon that evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that as of December 31, 2007, the design and
operation of such disclosure controls and procedures were effective. Based on
managements' assessment of disclosure controls and procedures in the first
quarter, the Company hired an accounting firm to augment internal accounting
staff and to assist with oil and gas related disclosures and financial
reporting.

There were no changes in the Company's internal controls over financial
reporting other than the addition of the accounting firm that occurred during
the fiscal quarter ended December 31, 2007 that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over
financial reporting.

                                       13
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Our management is not aware of any significant litigation, pending or
threatened, that would have a significant adverse effect on our financial
position or results of operations.

ITEM 2. SALES OF UNREGISTERED SECURITIES AND USE OF PROCEEDS.

For the nine months ended December 31, 2007, Lucas issued 2,763,049 Units in a
private placement for $4.60 per Unit. Lucas received gross proceeds of
$12,710,002 (net proceeds of $11,364,483 after placement costs). Each Unit was
comprised of one share of restricted common stock and one common stock purchase
warrant. Each warrant is exercisable at $8.00 per share of common stock for a
period of 3 years. The holders of the warrants, at their option, can exercise
the warrants on a cashless basis.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

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

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

Exhibit 31.1, 31.2*      Chief Executive Officer and Chief Financial Officer
                         Certifications Pursuant to Section 13a-14 of the
                         Securities Exchange Act

Exhibit 32.1, 32.2*      Certifications Pursuant to 18 U.S.C. Section 1350, as
                         Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                         Act of 2002

----------
* Filed herewith

                                       14
<PAGE>
                                   SIGNATURES

Pursuant to the requirements 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.

                               LUCAS ENERGY, INC.
                                   Registrant

      Signature                           Title                      Date
      ---------                           -----                      ----


/s/ JAMES J. CERNA            President, C.E.O. and Chairman    February 7, 2008
----------------------------  (Principal Executive Officer)
James J. Cerna


/s/ MALEK BOHSALI
----------------------------  Principal Financial Officer       February 7, 2008
Malek Bohsali                 and Accounting Officer


                                       15
<PAGE>
                                INDEX TO EXHIBITS

                                       OF

                               LUCAS ENERGY, INC.


Exhibit 31.1 *   Chief Executive Officer Certification Pursuant to Section
                 13a-14 of the Securities Exchange Act

Exhibit 31.2 *   Chief Financial Officer Certification Pursuant to Section
                 13a-14 of the Securities Exchange Act

Exhibit 32.1 *   Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2 *   Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


----------
*  Filed herewith