Southern Star Begins 2nd Stage Frac on the Lincoln Atkins 18-1
HOUSTON, Nov 12, 2007 (BUSINESS WIRE) -- Southern Star Energy Inc., November 2007 (OTCBB:SSEY) is pleased to provide an update the company's well the Lincoln Atkins 18-1.
Atkins-Lincoln 18-1: Drilled and completed January 16, 2007 to depth of 9950 feet, first production July 11, 2007. First sales September 5, 2007, currently the well is only producing from the bottom 14% (50 feet) of total Cotton Valley pay interval. Early production, over 500 mcfd has been encouraging, this has led the company to optimizing the engineering design for the completion for the remainder (900 feet gross) of the Cotton Valley pay interval. Petrophysical, geologic and engineering information indicates that the quality of the upper Cotton Valley pay is materially better than the lower interval now producing. The Company has commenced completion operations on this well to complete the entire Cotton Valley pay section to commingle all available gas production into sales by end of November 2007.
All of the estimated recoverable oil and gas reserves in different zones are confirmed by mudlog, wireline logs evaluations and in some cases with sidewall cores and Formation Tester pressure measurement. Total of 85 feet estimated gas pay is distributed over a gross (total) interval of 900 feet in the Cotton Valley section. Three shallower zones demonstrating primarily oil potential will continue to be evaluated in subsequent wells. Results of those evaluations will determine the feasibility of additional future developments targeting the oil potential. The zones indicating oil potential are regionally known and have been economically developed within a ten mile radius of this well.
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. 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.
SOURCE: Southern Star Energy Inc.
CONTACT: Southern Star Energy
Bruce Ganer, 281-851-9500
bruce@ssenergyinc.com
or
Investor Relations:
RedChip Companies, Inc.
Jon Cunningham, 1-800-733-2447 ext. 107
Jon@RedChip.com
www.RedChip.com
