Monday November 19, 9:00 am ET
HOUSTON--(BUSINESS WIRE)--Southern Star Energy Inc., (OTC BB: SSEY.OB) is pleased to provide an update the company?s well the R.C. Atkins 8-1.R.C. Atkins 8-1: Drilled and completed February 24, 2007 to depth of 9950 feet. First stage completion with perforations from 9084? thru 9291? was perforated and frac stimulated with a conventional ball out procedure from September 25 through September 27. The well was allowed to flow back and clean up to tanks until October 19 when operations commenced to complete the Upper Cotton Valley section from 8500? to 8876?. The Upper Cotton Valley section from 8500? through 8876? was completed utilizing the new coiled tubing conveyed minifrac method in six stages from October 19 through October 25. The well was allowed to flow back completion fluids up 4.5 inch casing and clean up over the next eight days (November 1) at which time it began to show traces of hydrocarbons. From November 1 through November 10, gas rates flowing up casing have built up to about 740 mcfpd and 25 bwph with flowing casing pressure of 575 psi. Production has stabilized at 505 mcfpd 30 bwph at flowing casing pressure of 575 psi on 24/64 choke. From November 12 through 14, a completion rig was set up running production tubing into the well. Also a 150 foot sales line has been installed to begin producing the well to sales.
All of the estimated recoverable oil and gas reserves in different zones are confirmed by mudlog, wireline logs evaluations and in some cases with sidewall cores and Formation Tester pressure measurement. Total of 64 feet estimated gas pay is distributed over a gross (total) interval of 900 feet in the Cotton Valley section. Three shallower zones demonstrating primarily oil potential will continue to be evaluated in subsequent wells. Results of those evaluations will determine the feasibility of additional future developments targeting the oil potential. The zones indicating oil potential are regionally known and have been economically developed within a ten mile radius of this well.
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 approximately 5500 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. 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.
For Further Information, Contact:
RedChip Companies, Inc.
500 Winderley Place, Suite 100, Orlando, FL 32751, (800) 733-2447,
Fax: (407) 644-0758, info@redchip.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment