Southern Star Energy Updates Completion Activitiesadmin
Southern Star Energy Inc., is pleased to provide an update on the Company’s well the Rendall 7-2.
Southern Star Energy is pleased to announce continuing successful progress in its Sentell Field Development Program, Bossier Parish Louisiana. The Company has successfully completed two stages of very large volume, high rate â€œslick waterâ€ fracture treatments on its recently drilled Rendall 7-2 well in multiple Cotton Valley Davis Sand intervals. The Company has fracture stimulated over 800â€™ of gross gas bearing section between 8449â€™ and 9252â€™. The well was stimulated in two stages with over 250,000 pounds of proppant and 16,000 barrels of water per stage at rates as high as 76 barrels per minute. The stages were pumped on April 7 and April 14, 2008. The well is currently flowing back stimulation fluids at a rate of 100 – 150 BPH. Flowlines and equipment have been previously installed such that the well can be placed into sales as soon as flowback testing is complete. We anticipate first sales within the next 7-10 days.
Following up on this success, the company will begin pumping the first stage of a similar treatment on its latest well, the Atkins-Lincoln 17-1 on April 21, 2008.
Shareholders and prospective investors are encouraged to visit Southern Star Energyâ€™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 5700 acres under lease within the prospect area, which is defined by a string of ten vintage wells drilled in the 1950â€™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 Energyâ€™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 Energyâ€™s operations.
Southern Star Energy Dave Gibbs, President, 832-375-0330 firstname.lastname@example.org or Investor Relations: RedChip Companies, Inc. Jon Cunningham, 1-800-733-2447 ext. 107 Jon@RedChip.com
Source: Southern Star Energy Inc.