Southern Star Cites Significant Gas Estimates for Sentell Field

Southern Star has announced the preliminary results of Core Laboratories' ("Core Lab") technical evaluation of the well data and core samples provided by the Company for the Atkins-Lincoln 17-2 and Burt 20-1 Haynesville test wells.

The Company recently completed drilling operations on its two initial Haynesville delineation wells, the Atkins-Lincoln 17-2 and the Burt 20-1. As part of the evaluation program for these two wells, extensive core sampling was performed on each well. The Company provided these cores to Core Lab as part of its proprietary Regional Haynesville Study.

Preliminary results of Core Lab's technical analysis of the Atkins-Lincoln 17-2 and Burt 20-1 well data, wireline logs and core samples indicate net thickness of the porous, gas-bearing Haynesville Shale intervals to be 327 feet and 249 feet respectively. The study further indicates that the Sentell Field's Haynesville Shale potential ranges between 258 Bcf and 321 Bcf gas in place per section. This compares favorably with other data evaluated by Core Lab in proven productive areas of Southern Bossier Parish, south of the Sentell Field, where gas in place estimates are approximately 165 Bcf per section.

Other key factors, including Total Organic Content, Kerogen Type and Quality, Observed Pressure Gradients, and Clay Content of the Company's core data, appear consistent with industry data across this sector of Bossier Parish. There is still substantial laboratory and field testing work to be completed, but these preliminary results, combined with conservative recovery factors of less than 25%, indicate Sentell Field reserve potential exceeding 100 Bcfe net to the Company's interest.Analysis and completion design work continues in order to optimize results.

The Company is carefully following industry activity in the area and working the laboratory results into completion plans for both of the Company's initial Haynesville delineation wells. In the meantime, the Company is currently erecting a new drilling rig in preparation for spudding its third delineation well, the Boyce Pate 16-1.

David Gibbs, Southern Star's President and Chief Executive Officer, said, "The results of the Core Lab study of our Haynesville test wells are evidence of the quality of our acreage in this play. Gas in place estimates of this magnitude are significant for a company of our size. Even with conservative recovery factors, the upside potential indicated by the Core Lab study suggests positive potential results for our shareholders."