ReoStar Energy Corp on Fiscal year 2008

ReoStar Energy Corp on Fiscal year 2008

ReoStar Energy Corp has just published the results of its operations for the Fiscal Year (FY) ended March 31, 2008. The Company’s previous fiscal year-end for 2007 reflects activity only for the three months ending March 31, 2007 due to the accounting treatment of the partnership interests merged into the Company. In certain instances, the company will be comparing results of the two successive 12-month periods and annualizing the results of the 2007 data. ReoStar’s three key trailing metrics — reserves, production and revenue, increased year-on-year as follows:

Reserves: At fiscal year-end March 31, 2008, a certified engineering firm valued the Company’s proven reserves at $425 million net present value (discounted 10%), which reflects an increase of approximately 235% from the previous year. Proven reserves increased 377% in the Company’s core producing properties of the Barnett Shale.

Production: At fiscal year-end March 31, 2008 production increased to 92,192 BOE which represents approximately a 36% increase from the previous fully recorded year.

Revenues: At fiscal year-end March 31, 2008, revenues from the sale of Oil and Gas increased approximately 71% to $4.9 million for the FY ended March 31, 2008 compared to the previous fully recorded year.

ReoStar Energy Corporation, headquartered in Fort Worth, Texas, is an oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects. The Company has vertically integrated its assets to remove potential obstacles to growth, which will enable it to develop and produce assets without the risk, cost and time involved in traditional exploration.

The Company’s strategy is to acquire an attractive portfolio of oil reserves for a low cost, which have a high ratio of possible, probable or proven undeveloped reserves. By converting these undeveloped reserves into proved producing reserves, the Company will continue to realize an increase in the overall value at low risk and cost.

The Company’s assets include approximately 20,000 gross (16,250 net) acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville). ReoStar’s assemblage of E&P assets allows for appreciable, unimpeded growth into the foreseeable future.

Contact: Company Contacts: ReoStar Energy Corporation Scott Allen CFO

817.989.7367

For Investors Mark McPartland

817.350.4760

Source: ReoStar Energy Corporation

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