Southern Star Shines Brighter with Third Haynesville Well Discovery

Southern Star has successfully drilled and logged the targeted Haynesville interval in its Boyce-Pate 16-1 Well, with positive results. This well is strategically located in the east-central section of the Company's Sentell Field in Bossier Parish, Louisiana. This well successfully encountered its Cotton Valley target, logging 66 feet of net gas pay in the Davis Sand intervals before the Company drilled ahead to further evaluate the well's Haynesville potential. The Boyce-Pate 16-1 Well reached a total depth of 11,200 feet on March 21, 2009. This is the third well in the Company's Haynesville development program, and the last of three Haynesville Shale vertical test wells in the Sentell Field planned this year.

Wireline logging and mud log shows indicate the Boyce-Pate 16-1 Well encountered 177 feet of net porous Haynesville Shale over a gross interval of 395 feet. The pay interval calculated average porosity of 10% with water saturation averaging 12%. Mud logs indicated gas shows throughout the interval, ranging from 1100 - 5900 units. The results at the Boyce-Pate location are consistent with earlier Cotton Valley locations within the Sentell Field, as well as the Company's two successful Haynesville tests previously announced.

The Company is a member of the Core Laboratories Integrated Reservoir Solution's ("Core Lab") regional Haynesville Shale Study, and data from the Company's three Haynesville test wells will be incorporated into Core Lab's regional database. The Company will use the results from the three successful Haynesville tests, coupled with industry expertise available through Core Lab's Haynesville Shale Study, to evaluate and design optimal completion techniques.

The Boyce-Pate 16-1 is the Company's tenth consecutive successful Cotton Valley well in the Sentell Field, and the third well to positively evaluate the Haynesville Shale. Each of the Company's ten Cotton Valley wells has similar log characteristics, and six of these wells are currently flowing into sales lines. The seventh well is awaiting a pipeline connection which should be completed during the second quarter of 2009. Each of the Company's Haynesville test wells will be completed in the Haynesville Shale pending thorough analysis and final completion design.

David Gibbs, the Company's President and Chief Executive Officer, said, "The positive results we achieved at the Boyce-Pate 16-1 location is further evidence of the quality of our acreage position across two pay zones in the Sentell Field. The petrophysical results from the Boyce-Pate 16-1 Well correlate to earlier evidence that our acreage is prospective in the Haynesville play. Together, the three Haynesville well discoveries could be additive to our reserve base and could ultimately benefit our shareholders. We are working to complete the extensive analytical work needed to develop our completion designs. If and when these wells are completed, we will provide initial production rate information for each of our Haynesville locations."

Gibbs continued, "Despite the recent drop in commodity prices, the Cotton Valley and Haynesville formations may be two attractive plays in the continental United States. Our ability to successfully identify, drill and deliver positive results in both the Cotton Valley and Haynesville formations suggests long-term value and growth opportunities for Southern Star. Each new discovery we announce potentially benefits Southern Star's financial position, capital budget, drilling program, and strategic growth plans. We remain confident in our ability to navigate through today's challenging economic environment as we continue to drive the company forward."



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