ReoStar Acquires Acreage and Increases WI in the Barnett Shale

ReoStar Energy has begun enhancement of its Barnett Shale operations in an effort to further improve production and bolster its core acreage position.

The Company recently acquired an additional 710 acres in its core oil window while divesting 1738 lease acres outside of its current development area in an effort to focus on the growth of its expanded "cluster" drilling program. The 710 acres acquired adjoin the current primary development area. With this acquisition, ReoStar has now identified 230 drilling locations for future development in the oil window of the Barnett Shale. The early results of the "cluster" program have been very encouraging and the realignment of resources, equipment and manpower should yield more positive results.

Gas production for the last 30 days ended October 28, 2007 was up 16.5% over the prior period. Oil production for the same 30-day period was up 42.3%. Given the positive early production results, the Company has elected to retain a larger working interest in recent and future new wells.

"The past year has been an exciting time for our Company especially in the Barnett Shale. We have recently transitioned to what we refer to as our Chapter 4 development within the Barnett. We believe we have only begun to realize the positive impact of the transition," stated Mark Zouvas, Chief Executive Officer. "We intend to step up our cluster drilling and completions with the addition of another rig in the area to accelerate our development of the new acreage acquired. Also, to avoid potential delays in accessing necessary oilfield equipment, we have purchased a swab rig and a work-over rig. The current activities coupled with the realignment of our property holdings should add significantly to our production and overall reserves in the Barnett."