Thursday May 8, 9:00 am ET
HOUSTON--(BUSINESS WIRE)--Southern Star Energy Inc., Houston, Texas May 8th, 2008 (OTC BB: SSEY.OB) is pleased to provide an update on the Company's continuing success in its Sentell Field Development Program.
The Company has begun re-completion activities on three wells, the Atkins-Lincoln 18-2, the R C Atkins 8-1 well and the Atkins Lincoln 18-1
Atkins ? Lincoln 18-2:
Southern Star Energy is pleased to announce excellent initial production from its recently re-completed Atkins ? Lincoln 18-2 well. As previously announced, the Company has performed a successful high rate ?slick water? fracture treatment on its Atkins-Lincoln 18-2 well in the Cotton Valley ?C? Sand through perforations at 8,093? ? 8,114?. The well was stimulated with 102,000 of proppant on March 31, 2008. Following successful treatment and flowback testing, the well was placed into the sales line on April 24, 2008. Currently, the well is flowing at a rate of 502 MCFD at 910 psi FTP. The company expects the well to continue to strengthen after additional clean-up.
R C Atkins 8-1
The Company has also performed a successful high rate ?slick water? fracture treatment on its R C Atkins8-1 well in the Upper Davis section of the Cotton Valley formation through perforations between 8494? and 8778? in order to enhance its performance. The well was stimulated with 151,600 of proppant on May 5, 2008. The well is currently flowing back stimulation fluids at a rate of 100 - 140 BPH. After flowback testing is complete, this completion will be commingled with the initial completion interval, the Lower Davis section of the Cotton Valley Formation with perforations at 8,874' ? 9,290'. Flowlines and equipment have been previously installed such that the well can be placed into sales as soon as testing and commingling operations are completed. Initial production is anticipated within the next two weeks.
Atkins-Lincoln 18-1
The Company has scheduled a similar re-stimulation project for its Atkins-Lincoln 18-1. The project will be performed on May 12, 2008.
The Company anticipates in having all five of its Cotton Valley wells flowing into the sales line in approximately 30-45 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.
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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