Silver Star Energy (SVSE)

[sricket]

5/12/2004 12:17:45 PM News Release Index


Silver Star to Spud Archer-Whitney #1 Well -- North Franklin Project
http://www.integratir.com/newsrelease.asp?news=2130828235&ticker=SVSE&lang=EN

LOS ANGELES, CA, May. 12, 2004 (MARKET WIRE via COMTEX) --

Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company is preparing to spud the 'Archer-Whitney #1'well at the North Franklin Project, in the Sacramento Basin of California. Drilling funds have been advanced to the operator totaling $500,000 under the terms of the AFE (Authority for Expenditure) for the initial 7,800 foot test well. The well location has been chosen, surveyed and permitted.

In addition, the Company has been informed that a drill contract has been signed and a drilling rig is currently being mobilized. Silver Star anticipates a spud date of the well to be on May 14, 2004. The well location has been 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.

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 North Franklin Project has, under lease, approximately 1,000 gross acres. The multi-objective gas reservoir target is thick, deep-water basin Winters Formation sands that are permeable, upper Cretaceous sandstones. Based on 450-acre closure, the potential prospect reserves are estimated at 40.5 Bcf of gas with analog wells nearby having initial production rates of 7,000 mcf per day.

Silver Star has retained a 40% interest in the play and has farmed out a 20% interest to Fidelis Energy, Inc. for an additional $250,000 giving Fidelis a 35% working interest. Other partners in the play are Archer Exploration, Inc. and the operator of the project, Longbow LLC of Bakersfield.

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 Silver Star Energy, Inc.

SOURCE: Silver Star Energy, Inc


Copyright 2004 Market Wire, All rights reserved