Item 1.01 Entry into a Material Definitive Agreement

On October 8, 2008, the Company closed on a Credit Agreement (the "Agreement") with Amegy Bank National Association ("Amegy"), the Administrative Agent for certain institutional investors. Pursuant to the terms of the Agreement, Amegy has agreed to provide the Company up to a $100 million reserve-based Revolving Line of Credit and Letter of Credit Facility. The Company has immediate access to $3 million of the credit facility and can borrow additional amounts as -- proved developed producing reserves are added to the Company's borrowing base. The Company has agreed to use the proceeds from the Credit Agreement (1) to finance trade payables, (2) to fund its continuing lateral drilling and revitalization programs on existing underperforming, overlooked and shut-in wells, (3) to finance leasehold acquisitions, (4) to conduct other activities on the Company's properties as described in the Agreement, and (5) for working capital purposes in accordance with the terms of the Agreement. The credit facility is secured by first liens on certain of the Company's proved developed producing properties. Additionally, the Company has agreed to pay interest on amounts borrowed as set forth in the Credit Agreement, but not less than at 5%, and a fee for the unused portion of the full Line of Credit. The Company has agreed to re-pay funds borrowed within 3 years of the Closing Date. The Agreement and supporting documents are attached hereto as exhibits.

Item 9.01 Financial Statements and Exhibits

Exhibit No. Description 10.7 Credit Agreement between Lucas Energy, Inc. and Amegy Bank National Association 10.8 Secured Promissory Note between Lucas Energy, Inc. and Amegy Bank National Association 10.9 Deed of Trust, Security Agreement, Financing Statement and Assignment of Production from Lucas Energy to Kenneth R. Batson, Trustee, for the benefit of Amegy Bank National Association 10.10 Security Agreement by Lucas Energy, Inc. in favor of Amegy Bank National Association

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