Thursday March 13, 8:30 am ET
HOUSTON--(BUSINESS WIRE)--Southern Star Energy Inc. (OTC BB: SSEY.OB) has drilled its fourth successful Cotton Valley test in its Sentell Field Development Program in Bossier Parish, Louisiana. The latest well, the Rendall 7-2, reached its planned total depth of 9,500 feet on March 10, 2008. Open hole logging and formation testing information indicates approximately 80 feet of net effective gas pay in the Cotton Valley interval. The Company is currently preparing the well to run 5 ?? production casing to total depth (TD). With this successful test, the Company continues its string of 100% success rate in the Cotton Valley. The first three wells drilled to the Cotton Valley formation are completed and are producing to market.
Completion operations are expected to commence expeditiously upon release of the drilling rig and scheduling of a completion rig and stimulation services. First production from the Rendall 7-2 well is expected during the month of April.
The Company plans to move the rig, Nabors Well Services Rig 971, to its next Cotton Valley test, the Atkins-Lincoln 17-1 immediately after rig release from the Rendall 7-2 well. The Company expects to spud the Atkins-Lincoln well on or about March 18, 2008.
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, 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.
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
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