Southern Star Energy Inc., Houston, Texas May 5, 2008 (OTCBB: SSEY) is
pleased to provide an update on the Company's continuing success in its
Sentell Field Development Program.
Rendall 7-2 Well:
Southern Star Energy is pleased to announce excellent initial production
from its recently completed Rendall 7-2 well. As previously announced,
the well was completed and fracture stimulated in multiple Cotton Valley
Davis Sand intervals over an 800’ of gross gas
bearing section between 8449’ and 9252’.
Following successful treatment and flowback testing, the well was placed
into the sales line on April 25, 2008. Currently, the well is flowing at
a rate of 1440 MCFD at 1325 psi FTP. The company expects the well to
continue to strengthen after additional clean-up. This marks the fourth
consecutive successful completion in the Cotton Valley in this program.
Atkins – Lincoln 17-1:
The Company has also successfully completed two stages of very large
volume, high rate “slick water”
fracture treatments on its fifth successful well, recently drilled
Atkins- Lincoln 17-1well in multiple Cotton Valley Davis Sand intervals.
We have fracture stimulated over 800’ of gross
gas bearing section between 8512’ and 9315’.
The well was stimulated in two stages with over 250,000 pounds of
proppant and 16,000 barrels of water per stage at rates as high as 76
barrels per minute. The stages were pumped on April 21 and April 28,
2008. The well is currently flowing back stimulation fluids at a rate of
100 - 150 BPH. Flowlines and equipment have been previously installed
such that the well can be placed into sales as soon as flowback testing
is complete. We anticipate first sales within the next 7-10 days.
The Company is furthering its field activities by conducting completion
activities in three of its wells; the Atkins Lincoln 18-2, the Atkins
Lincoln 18-1 and the Atkins Lincoln 8-1. These activities have been
ongoing and the Company expects to have five wells flowing into the
sales line in the next 30 days.
Further Information
Shareholders and prospective investors are encouraged to visit Southern
Star Energy’s website: www.ssenergyinc.com
to learn more about the Company and the Cotton Valley Trend. Please feel
free to call investor relations at 1-800-733-2447 ext. 107 to receive a
full corporate investor package.
About Southern Star Energy.
Southern Star Energy has a 40% working interest in approximately 5700
acres under lease within the prospect area, which is defined by a string
of ten vintage wells drilled in the 1950’s.
The prospect area was historically developed on 640 acre spacing (wells
approximately one mile apart). Most of these old wells were abandoned
before 1972 after only producing from one relatively thin (20 feet) zone
of the Cotton Valley sand members. None of the zones with identified
reserve potential have been produced within a five mile radius of the
prospect area. Preliminary plans, with continued successful evaluation
drilling, will be to develop the leased acreage with at least one well
per 160 acres, yielding a potential for 30 to 60 additional locations.
Analog fields are being economically developed with at least one well
per 80 acres indicating that many more wells can be reasonably
contemplated.
Information Regarding Forward-Looking Statements:
Except for historical information contained herein, the statements in
this Press Release are forward-looking statements that are made pursuant
to the safe harbor provisions in the Private Securities Legislation
Reform Act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause Southern star Energy’s
actual results in future periods to differ materially from forecasted
results. These risks and uncertainties include, among other things:
volatility of natural resource prices; product demand; market
competition and risks inherent in Southern Star Energy’s
operations.
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