Southern Star Reaches Daily Production Milestone, Plans 10-Well Program

Southern Star Energy Inc. provided an operating update. Since the beginning of 2008, the Company's focus is on re-establishing production and evaluating the commercial potential for future development drilling in its Sentell Field (40% working interest) located north of Shreveport. Gross production from the Sentell Field now exceeds 3.3 million cubic feet (MMcf) per day. The company offered the following operations update.

Operations Update:

The Company completed a five-well recompletion program in mid-May, and is producing all five wells into sales lines. A recap of each well is provided below.

Atkins-Lincoln 17-1

This well was placed into production on May 22, 2008. The well is currently testing at a rate of approximately 500 Mcf per day. The well is still flowing back from the fracture stimulation job; management believes the well will be produced at a higher rate after fluids from the fracture are produced.

Rendall 7-2

This newly drilled well was placed into production on April 25, 2008. Since then, natural gas production from this well stabilized at an average rate of approximately 1800 thousand cubic feet (Mcf) per day.

Atkins-Lincoln 18-2

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its Atkins-Lincoln 18-2 well in the Cotton Valley "C" Sand. The well was returned to sales on April 24, 2008 and is currently producing at an average rate of 500 Mcf per day.

R C Atkins 8-1

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its R C Atkins 8-1 well to re-stimulate the Upper Davis section of the Cotton Valley formation. The Upper Davis completion has been commingled with the existing Lower Davis production interval and the well was restored to production on June 4, 2008 and currently flowing at an average rate of approximately 325 Mcf per day. Production is expected to increase after additional clean-up.

Atkins-Lincoln 18-1

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its Atkins-Lincoln 18-1 well in the Upper Davis section of the Cotton Valley formation. The well was restored to production on June 5, 2008 and is currently flowing at an average rate of approximately 300 Mcf per day. The company expects the well to continue to increase after additional clean-up.

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