Southern Star Glimmers with 9th Cotton Valley Discovery

Southern Star's Cotton Valley Project
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Southern Star has announced the ninth successful Cotton Valley discovery well in its Sentell Field Development Project, Bossier Parish, Louisiana.

The Company has successfully drilled its ninth Cotton Valley discovery, the L. Moore 20-1 Well, which reached planned total depth (TD) of 9,904 feet on January 31, 2009. This well is the northwest offset to the recent Cash Pointe 30-1 discovery and confirms productivity in the southern portion of the field.

Wireline logging and mud log shows indicate the L. Moore 20-1 Well encountered 104 feet of net effective gas pay in the Cotton Valley Formation. Notably, there are key intervals in the most productive intervals of the Upper Davis with 47 net feet of pay. The Company has run and set 4 1/2 inch production casing to total depth. Completion operations commenced this week. Hydraulic fracturing in the Upper Davis was performed on February 13. The L. Moore 20-1 is Southern Star's ninth consecutive successful Cotton Valley well in the Sentell Field. The other eight wells encountered similar log characteristics; five wells are commercially producing, the sixth is awaiting pipeline construction and completion, and two wells were extended as successful Haynesville delineation tests.

Construction of an extension of the field gathering system to connect the Section 20 wells was completed on February 7, 2009. This extension will allow for immediate production from the Moore 20-1 well upon completion. Work continues on the system to extend the line down to the Cash Pointe 30-1 Well. The Company expects that work to be completed during March.

David Gibbs, Southern Star's President and Chief Executive Officer, said, "The results from the L. Moore 20-1 offer further indications of the quality of the Cotton Valley play in our acreage position. Developing the Sentell Field as a Cotton Valley producer remains a viable strategy at natural gas prices above $4.50 per Mcfe. The Company's advantage lies in our dual development strategy between Cotton Valley production and the planned Haynesville Development Program, which is based on previously-announced successful Haynesville tests in two locations within our Sentell Field. We remain optimistic about the quality of our acreage position and the future of the Company and believe our strategy will prove beneficial to shareholders."


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