4/22/2004 9:04:25 AM News Release Index
Silver Star to Partner With Fidelis Energy at North Franklin Project -- Updates Evi Project Progress
LOS ANGELES, CA, Apr. 22, 2004 (MARKET WIRE via COMTEX) --
Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has farmed-out a 15% working interest in the North Franklin Project to Fidelis Energy, Inc. Under the terms of the agreement, Fidelis will contribute $250,000 towards the drilling and completion of the 'Archer-Whitney #1'well and participate as a full working interest partner on all further costs including drilling of any additional wells on the project.
In a news release dated April 13, 2004, Silver Star released details of the North Franklin Project, the first major gas play that Silver Star has acquired in the Sacramento Basin of California. The project is situated along the 'Eastside Winters Stratigraphic Trend'which has produced in excess of 450 Bcf gas. The North Franklin is located in Sacramento County, between the cities of Stockton and Sacramento. The project has, under lease, approximately 1,000 gross acres. The multi-objective gas reservoir target is thick, deep-water basin Winters Formation with potential prospect reserves estimated at 40.5 Bcf gas.
Silver Star has retained a 75% working interest in the play with Archer Exploration, Inc. and the operator of the project, Longbow LLC of Bakersfield retaining a 10% interest. Archer has elected to participate fully under the terms of the agreement.
The initial 7,800 foot test well, named 'Archer-Whitney #1'has an estimated cost of $615,000 through completion. The well location has been chosen, surveyed and permitted. Expected tie-in costs of a successful well are estimated at $300,000 as the prospect is proximal to existing gas infrastructure in the area. Silver Star anticipates the spud date of the well to be in early May as a rig contract will be signed shortly.
In related news, Silver Star also wishes to update the activities at the Evi Project in Alberta. The 7-11 well completion is underway though it has been temporarily suspended due to the Alberta Government imposed road restrictions. During spring break-up, road bans are effective each year and all heavy equipment is restricted until such time as weather permits. The Company is monitoring the situation on a daily basis and expects the 7-11 well completion, flow testing and evaluation of the multiple-hydrocarbon bearing formations encountered to re-commence shortly.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD Silver Star Energy. 'Robert McIntosh' Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.
Contact Investor Relations: Long Communications 1-866-739-6727
SOURCE: Silver Star Energy, Inc.
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