Three in a Row for Southern Star Energy

Southern Star Energy has successfully drilled their third oil and gas productive evaluation well, the Rendall 7-1, in Louisiana to approximately a depth of 5000. This is the third successful of three attempted wells this year.

The Company has tested four potentially hydrocarbon bearing formations, the Nacatoch at 1000 feet, the Annona-Buckrange at 2050 feet, and two zones in the Paluxy at 3500 feet and 3800 feet. These targeted zones were primary objectives and are known significant oil and gas bearing producers within a ten-mile radius of the company's leased acreage.

At this time, from the drilling of three wells, it is estimated that 9.4 Bcfe has been developed, based on 160 drainable acres per zone per well. An estimated 3.6 Bcfe in three different zones is confirmed by mudlog shows, openhole logs and in some cases with sidewall cores and Formation Tester pressure measurements. Another estimated 5.8 Bcfe in four different zones is confirmed at least by mudlog shows and openhole logs. There is at least one more evaluation well planned to be drilled, to more than 9950' immediately, in a structurally advantaged position about one mile from the Atkins Lincoln 18-1. The Atkins Lincoln 18-1 is the first oil and gas productive evaluation well drilled by the company.

Southern Star Energy has approximately 5300 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 of the Cotton Valley sand members. None of the zones with identified reserve potential has been produced within 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.

Southern Star Energy Inc. is an oil and gas exploration company with attractive lease acreage properties in Louisiana. The company has acquired over 5,500 net acres of land and has drilled its first two wells. Southern Star Energy has expanded its holdings by acquiring additional leasehold interests and increasing its total acreage position to approximately 8,500 gross acres with estimates for more than 90 wells.


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