UNITED STATES
                       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 quarterly period ended September 30, 2007

                         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 November 8, 2007
              -----                           ----------------------------------
Common Stock, par value $.001 per share                     40,844,625

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

                         FOR THE QUARTERLY PERIOD ENDED

                               SEPTEMBER 30, 2007

                                TABLE OF CONTENTS

PART I FINANCIAL INFORMATION                                                PAGE
                                                                            ----
Item 1. Financial Statements                                                  3

     - Consolidated Balance Sheets as of September 30, 2007 and
       March 31, 2007 (unaudited)
     - Consolidated Statement of Operations for the three and six months
       ended September 30, 2007 and 2006 (unaudited)
     - Consolidated Statement of Shareholders' Equity for the six months
       ended September 30, 2007 (unaudited)
     - Consolidated Statement of Cash Flows for the six months ended
       September 30, 2007 and 2006 (unaudited)
     - Notes to Financial Statements

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

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>
                                                                      September 30, 2007       March 31, 2007
                                                                      ------------------       --------------
<S>                                                                      <C>                    <C>
CURRENT ASSETS
  Cash                                                                   $  4,987,370           $    710,018
  Marketable securities                                                        83,000                     --
  Oil and gas receivable                                                      196,398                131,485
  Related party receivable                                                      3,032                     --
  Note receivable                                                             438,400                 32,000
  Other current assets                                                        297,507                 38,823
                                                                         ------------           ------------

      TOTAL CURRENT ASSETS                                                  6,005,707                912,326

OIL AND GAS PROPERTIES, FULL COST METHOD
  Properties subject to amortization                                       14,450,008              9,623,745
  Properties not subject to amortization                                           --                     --
  Accumulated depletion                                                      (265,331)              (166,204)
                                                                         ------------           ------------
      OIL AND GAS PROPERTIES, NET                                          14,184,677              9,457,541

OTHER ASSETS                                                                  348,433                 56,123
                                                                         ------------           ------------

      TOTAL ASSETS                                                       $ 20,538,817           $ 10,425,990
                                                                         ============           ============
CURRENT LIABILITIES
  Accounts payable and accrued expenses                                  $  1,260,139           $    386,004
  Accrued interest payable                                                         --                 52,766
                                                                         ------------           ------------
      TOTAL CURRENT LIABILITIES                                             1,260,139                438,770

NON-CURRENT LIABILITIES
  Note payable                                                                     --              2,300,000
  Asset retirement obligation                                                 126,986                111,022
  Deferred tax liabilities                                                    178,434                132,185
                                                                         ------------           ------------
      TOTAL LIABILITIES                                                     1,565,559              2,981,977

STOCKHOLDERS' EQUITY
  Preferred stock, 10,000,000 shares authorized of $0.001 par value,
   no shares issued and outstanding                                                --                     --
  Common stock, 100,000,000 shares authorized of $0.001 par value,
   40,844,625 and 29,792,429 shares issued and outstanding                     40,844                 29,792
  Additional paid-in capital                                               18,387,708              7,029,777
  Retained earnings                                                           471,706                384,444
  Unrealized gain on marketable equity securities                              73,000                     --
                                                                         ------------           ------------
      TOTAL STOCKHOLDERS' EQUITY                                           18,973,258              7,444,013
                                                                         ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $ 20,538,817           $ 10,425,990
                                                                         ============           ============
</TABLE>
                 See notes to consolidated financial statements.

                                       3
<PAGE>
                               Lucas Energy, Inc.
                      Consolidated Statements of Operations
         For the Three and Six Months Ended September 30, 2007 and 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          For the Three     For the Three      For the Six        For the Six
                                          Months Ended      Months Ended       Months Ended       Months Ended
                                          September 30,     September 30,      September 30,      September 30,
                                              2007              2006               2007               2006
                                           -----------       -----------        -----------        -----------
<S>                                        <C>               <C>                <C>                <C>
REVENUES
  Oil and gas revenues                     $   431,673       $   401,063        $   926,487        $   514,421
  Consulting income                                 --            34,000             10,000             34,000
                                           -----------       -----------        -----------        -----------
      TOTAL REVENUES                           431,673           435,063            936,487            548,421

EXPENSES
  Lease operating expenses                     121,537            65,719            307,141            104,800
  Depreciation and depletion                    51,889           106,360            107,074            127,818
  General and administrative                   197,978            49,300            353,010             81,664
                                           -----------       -----------        -----------        -----------
      TOTAL EXPENSES                           371,404           221,379            767,225            314,282
                                           -----------       -----------        -----------        -----------

INCOME FROM OPERATIONS                          60,269           213,684            169,262            234,139
                                           -----------       -----------        -----------        -----------
OTHER INCOME (EXPENSES)
  Gain on sale of assets                            --                --                 --             81,534
  Interest income                               62,383             2,546             66,126              4,160
  Interest expense                             (18,730)          (52,082)          (101,877)           (55,176)
                                           -----------       -----------        -----------        -----------
      TOTAL OTHER EXPENSES                      43,653           (49,536)           (35,751)            30,518
                                           -----------       -----------        -----------        -----------

NET INCOME BEFORE INCOME TAXES                 103,922           164,148            133,511            264,657

INCOME TAX EXPENSE                              42,326            43,942             46,249             81,186
                                           -----------       -----------        -----------        -----------

NET INCOME                                 $    61,596       $   120,206        $    87,262        $   183,471
                                           ===========       ===========        ===========        ===========
UNREALIZED HOLDING GAIN ON MARKETABLE
 EQUITY SECURITIES                              43,000                --             73,000                 --
                                           -----------       -----------        -----------        -----------

COMPREHENSIVE INCOME                       $   104,596       $   120,206        $   160,262        $   183,471
                                           ===========       ===========        ===========        ===========

INCOME PER SHARE - BASIC AND DILUTED       $      0.00       $      0.00        $      0.00        $      0.01
                                           ===========       ===========        ===========        ===========
WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING - BASIC AND DILUTED            37,386,516        27,450,562         33,610,221         27,358,961
                                           ===========       ===========        ===========        ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       4
<PAGE>
                               Lucas Energy, Inc.
                 Consolidated Statements of Stockholders' Equity
             From the Three and Six Months Ending September 30, 2007
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                         Accumulated
                                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            --      $   --    29,792,429    $29,792    $ 7,029,777    $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
                              -------      ------    ----------    -------    -----------    --------      -------    -----------

Comprehensive income               --          --            --         --             --      25,666       30,000         55,666
                              -------      ------    ----------    -------    -----------    --------      -------    -----------

Balance, June 30, 2007             --          --    29,792,429     29,792      7,029,777     410,110       30,000      7,499,679
                              -------      ------    ----------    -------    -----------    --------      -------    -----------
Common Stock issued for
 cash at $1.15 per share
 (net of proceeds)                 --          --    11,052,196     11,052     11,357,931          --           --     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
                              -------      ------    ----------    -------    -----------    --------      -------    -----------

Comprehensive income               --          --            --         --             --      61,596       43,000        104,596
                              -------      ------    ----------    -------    -----------    --------      -------    -----------

Balance, September 30, 2007        --      $   --    40,844,625    $40,844    $18,387,708    $471,706      $73,000    $18,973,258
                              =======      ======    ==========    =======    ===========    ========      =======    ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       5
<PAGE>
                               Lucas Energy, Inc.
                      Consolidated Statements of Cash Flows
              For the Six Months Ended September 30, 2007 and 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                For the Six            For the Six
                                                                Months Ended           Months Ended
                                                                September 30,          September 30,
                                                                    2007                   2006
                                                                ------------           ------------
<S>                                                             <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                    $     87,262           $    183,471
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation and depletion                                      107,074                127,818
     Deferred taxes                                                   46,249                     --
     Noncash interest on note receivable                              (6,400)                    --
     Gain on sale of assets                                               --                (81,534)
  Changes in operating assets and liabilities
     Increase in accounts receivable                                 (64,913)              (119,207)
     Increase in other current assets                               (258,684)                (1,553)
     Increase in other assets                                       (292,310)               (22,875)
     Increase in related party receivable                             (3,032)                    --
     Increase in accounts payable                                    812,143                252,393
     Increase in accrued expenses                                      9,227                     --
                                                                ------------           ------------

          NET CASH PROVIDED BY OPERATING ACTIVITIES                  436,616                338,513
                                                                ------------           ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds from sale of operating interest                                --                302,975
  Investments in marketable securities                               (10,000)                    --
  Issuance of  note receivable                                      (400,000)                    --
  Purchase of oil and gas properties                              (4,818,247)            (3,366,758)
                                                                ------------           ------------

          NET CASH USED IN INVESTING ACTIVITIES                   (5,228,247)            (3,063,783)
                                                                ------------           ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from the sale of common stock                          11,368,983                928,518
  Proceeds of note payable                                                --              2,300,000
  Repayment of note payable                                       (2,300,000)              (125,000)
                                                                ------------           ------------

  NET CASH PROVIDED BY FINANCING ACTIVITIES                        9,068,983              3,103,518
                                                                ------------           ------------
NET INCREASE IN CASH                                               4,277,352                378,248

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

CASH AT END OF PERIOD                                           $  4,987,370           $    437,480
                                                                ============           ============

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                $         --           $    550,000
  Unrealized holding gain on available for sale securities            73,000                     --
  Increase in ARO liability                                            8,017                     --
</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's financials 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 an investment in the common stock of Solar
Night, Inc. Equity securities are classified as "available-for-sale" and are
reported at fair value. The investment is 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 securities
are written down to fair value and the loss is charged to income.

CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject Lucas to concentration of credit
risk consist of cash. At September 30, 2007, Lucas had $4,887,370 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.

                                       7
<PAGE>
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 September 30, 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 September 30, 2007, the fair value of cash and accounts and advances
payable, including amounts due to and from related parties, 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 condition,
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.

BASIC INCOME PER SHARE OF COMMON STOCK

Basic and diluted net income per share calculations are presented in accordance
with Financial Accounting Standards Statement 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
common stock is based on the weighted average number of shares issued and
outstanding at the date of the financial statements.

                                       8
<PAGE>
RECLASSIFICATION

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

NOTE 4. NOTES RECEIVABLE

During the three months ended September 30, 2007, Lucas loaned $400,000 to a
third party at an interest rate of 8% per annum with a six month term. In the
event the note is not paid by January 18, 2008 (the due date), the interest rate
on the unpaid balance shall be 16% thereafter.

NOTE 5. NOTES PAYABLE

During the three months ended September 30, 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. WARRANTS

In the second quarter, Lucas issued 11,052,196 Units in a private placement for
$1.15 per Unit. Lucas received gross proceeds of $12,710,002 (net proceeds of
$11,368,984 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 $2.00 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 990,000 warrants to purchase common stock to the
placement agents with an exercise price of $2.00 per share for a period of 3
years with a value of $1,230,426.

The relative fair value of the Common Stock and the Common Stock Purchase
Warrants were as follows:

                                                           Relative Fair
         Description                       Shares           Value Amount
         -----------                       ------           ------------
     Common Stock                         11,052,196        $ 4,828,385
     Common Stock Purchase Warrants       11,052,196          6,540,599
                                                            -----------
     Total Proceeds                                          12,710,002
     Placement fees                                          (1,339,534)
                                                            -----------
     Net Proceeds                                           $11,368,984
                                                            ===========

NOTE 6. SUBSEQUENT EVENTS

On October 25, 2007, Lucas Energy exchanged 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, for 3,000,000
shares valued at approximately $800,000 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 led by a team of industry veterans and holds assets ranging from
wholly owned prospects to working interests in producing oil wells as well as a
large seismic library. Lucas will account for the shares of Bonanza Oil & Gas,
Inc. using the equity method of accounting.

                                       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 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 are conducting 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.

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
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

                                       10
<PAGE>
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. Since becoming a publicly-traded company in June 2006, we have
placed a greater emphasis on using our common stock as a form of consideration.

We seek to maintain a low overhead cost structure while we remain focused on
growing our portfolio. For the past nine 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 six months ended September 30, 2007, our oil and gas net sales
were $431,673 and $926,487, respectively, versus $401,063 and $514,421for the
three and six months ended September 30, 2006, respectively. Oil and gas
revenues increased during the period due to additional wells put on line through
the ongoing acquisition and rework program. The increase in revenues for the
three months ended September 30, 2007 compared to the three months ended
September 30, 2006 is primarily attributable to a $19.60 per barrel increase we
received for oil. The volume decrease for the three month period is attributable
to a testing program initiated to begin our drilling program.

                                 For the           For the
                               three months      three months
                                  ended             ended
                               September 30,     September 30,       Increase/
                                   2007              2006           (Decrease)
                                 --------          --------         ----------
Volumes: (net)
  Oil (bbls)                        5,323             6,138              (815)
  Gas (mcf)                           778                --               778

Average price received:
  Oil                            $  80.51          $  69.91          $  19.60
  Gas                            $   5.96                --          $   5.96

Revenues:
  Oil                            $428,540          $401,063          $ 27,477
  Gas                            $  4,634          $      0          $  4,634
  Total                          $433,174          $401,063          $ 32,111
                                 --------          --------          --------

GENERAL AND ADMINISTRATIVE EXPENSES

For the three and six months ended September 30, 2007, general and
administrative expenses totaled $197,978 and $353,010, respectively, versus
$49,300 and $81,664, respectively, for the three and six months ended September
30, 2006. Professional fees principally associated with public company costs and
payroll for the three and six months ended September 30, 2007, were $150,833 and
$261,955, respectively, versus $9,157 and $15,808, respectively, for the three
and six months ended September 30, 2006.

INTEREST EXPENSE

For the three months ended September 30, 2007, interest expense decreased from
$52,082 in 2006 to $18,730 in 2007. This change is attributed to the repayment
in July of $2,300,000 debt issued in August 2006. For the six months ended
September 30, 2007, interest expense increased from $55,176 in 2006 to $101,877
in 2007. The increase is due to the $2,300,000 debt that was outstanding from
August 2006 to July 2007.

                                       11
<PAGE>
INTEREST INCOME

For the three months ended September 30, 2007, interest income increased from
$2,546 in 2006 to $62,383 in 2007. This change is attributed to the sale of
common stock and the subsequent increase in cash balances held during the
period. For the six months ended September 30, 2007, interest income increased
from $4,160 in 2006 to $66,126 in 2007.

NET INCOME

For the three months ended September 30, 2007, we had net income of $61,596
versus net income of $120,206 for the three months ended September 30, 2006. The
decrease in net income is attributable to the increase in general and
administrative expenses offset by interest earned on the increase in the cash
balance and reduced interest expense due to the repayment of our $2,300,000 note
payable. For the six months ended September 30, 2007, we had net income of
$87,262 versus $183,471 for the six months ended September 30, 2006. The
increase in income is attributable to an $81,534 gain on the sale of assets for
the six month period ended September 30, 2006.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2007, we had cash of $4,987,370 and working capital of
$4,745,568. This compares to cash of $710,018 and working capital of $473,556 at
March 31, 2007. During the second quarter, we completed a private placement that
provided net proceeds of $11,368,984. We used a portion of the funds received in
the private placement to fully repay the $2,300,000 note payable. 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 beyond our fiscal year 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.

In the second quarter, Lucas issued 11,052,196 Units in a private placement for
$1.15 per Unit. Lucas received gross proceeds of $12,710,002 (net proceeds of
$11,368,984 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 $2.00 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 six months ended September 30, 2007, net cash provided from operating
activities was $436,616, versus net cash provided from operating activities of
$338,513 in the six months ended September 30, 2006.

CASH FLOW FROM INVESTING ACTIVITIES

For the six months ended September 30, 2007, net cash used in investing
activities was $5,228,247, primarily attributed to our continued rework program,
versus net cash used in investing activities of a $3,063,783 for the six months
ended September 30, 2006.

CASH FLOW FROM FINANCING ACTIVITIES

For the six months ended September 30, 2007, net cash flows from financing
activities was $9,068,983 primarily attributable to our $12 million Unit
offering versus net cash flows provided from financing activities of $3,103,518
primarily attributable to short-term financings for the six months ended
September 30, 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 June 30, 2007 through the date of this
filing.

                                       12
<PAGE>
CONTRACTUAL COMMITMENTS

None

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 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 it. The receivable was paid off 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 re-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 September 30, 2007, the design and
operation of such disclosure controls and procedures were effective. Based on
managements' assessment of disclosure controls and procedures in the prior
quarter, the Company hired the accounting firm of Schmuck, Smith, Tees & Company
P.C. 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 of Schmuck, Smith, Tees
& Company P.C. that occurred during the fiscal quarter ended September 30, 2007
that have materially affect, 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.

In the second quarter, Lucas issued 11,052,196 Units in a private placement for
$1.15 per Unit. Lucas received gross proceeds of $12,710,002 (net proceeds of
$11,368,984 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 $2.00 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
                      Certification Pursuant to Section 13a-14 of the Securities
                      Exchange Act

Exhibit 32.1, 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

                                       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    November 9, 2007
----------------------------  (Principal Executive Officer)
James J. Cerna


/s/ MALEK BOHSALI
----------------------------  Principal Financial Officer       November 9, 2007
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