Southern Star Energy Announces New Cotton Valley Well Discovery

Southern Star Energy Announces New Cotton Valley Well Discovery

Southern Star Energy Inc., a fast-growing E&P company with reserves and production from leases located in northern Louisiana, today announced that it has successfully drilled and logged the targeted Cotton Valley interval in its Atkins-Lincoln 17-2 Well with positive results. The well reached planned intermediate pipe depth of 9,500 feet on September 26, 2008. Subsequent to logging the Cotton Valley and shallower horizons, 7-inch casing was set at 9,500 feet and the well is drilling ahead to test the Haynesville Shale at a planned total depth of 11,000 feet. This well is strategically located in the center section of the Company’s Sentell Field in Bossier Parish, Louisiana. The Atkins-Lincoln 17-2 is the second well in the Company’s 2008 development program and the first of two Haynesville Shale vertical test wells in the Sentell Field planned this year.

Wireline logging and mud log shows indicate the Atkins-Lincoln 17-2 Well encountered 68 feet of net effective gas pay in the Cotton Valley Formation. Notably, there are a number of pay sands correlative to the pay intervals in the Company’s existing wells, which indicates the 17-2 well may produce similar results to the other Cotton Valley wells drilled in the Sentell Field. The Atkins-Lincoln 17-2 is the Company’s seventh consecutive successful Cotton Valley well in the Sentell Field. Each of the Company’s seven Cotton Valley wells has similar log characteristics. Five of these wells are flowing into sales lines. The Company’s sixth successful Cotton Valley well, the Cash Point 30-1, is scheduled to flow into sales lines in 4th Quarter, 2008.

David Gibbs, Southern Star President and Chief Executive Officer said: “Our enthusiasm about the Sentell Field and our Cotton Valley Play increases with each well we drill. The well logs and formation evaluation for 17-2 are correlative to our previous successful wells, evidencing the viability of Southern Star’s Cotton Valley strategy. The preliminary results from the Atkins-Lincoln 17-2 Well suggest that this well should produce positive results for our shareholders from the Cotton Valley Sands.”

Gibbs continued: “As the Company drills ahead into the Haynesville Shale, we will work to determine the nature of our deep potential in the Sentell Field. We believe the deep test will confirm the presence of pay in the Lower Bossier/Haynesville, which would represent a valuation upside for our Company. Regardless, the quality of our Cotton Valley play has again been validated with the results from the Atkins-Lincoln 17-2 well.”

The Company’s strategy is to acquire under-drilled oil and natural gas leases with significant proven development drilling opportunities, and use all available technologies to increase the valuation of the acquired assets. This strategy reduces the Company’s risk, allowing the Company to build free cash flow for strategic acquisitions. The Company owns a 40% working interest and operates in approximately 5,300 acres in the Sentell Field, located in the heart of the known Cotton Valley trend north of Shreveport, Louisiana. To date, the Company has drilled five successful tests of the Cotton Valley Sands which are connected to the market and producing revenues. Shareholders and prospective investors and analysts are encouraged to visit the Company’s website: to learn more about the Company and the Cotton Valley Trend.

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