Thursday, October 30, 2008

Haynesville Shale: SSEY Spuds 2nd Well 10/30/08

South Star Energy ( SSEY ) has come out with news today, 10/30/08, saying that they have spudded their second Haynesville Shale well.

The Company recently announced a successful Haynesville Shale well discovery from its Atkins-Lincoln 17-2 in the Sentell Field. This news is a significant strategic milestone for the Company, further demonstrating its ability to deliver positive results, even during a period of historically unique market conditions within the E & P sector.The Company remains focused on delivering operational success and building shareholder value through solid growth of both reserves and production rates. In light of the successful Haynesville test at the Atkins-Lincoln 17-2 location, the Company spudded the Burt 20-1 Well on October 25, 2008 as a second Haynesville test in the Sentell Field. This well is located in the southwest section of the Company's acreage position and is designed to demonstrate the quality and extent of the Field's Haynesville potential. In addition, the Company continues to examine the objectives of its current drilling program to balance both Cotton Valley and Haynesville development.

The Company is actively working with its senior lender, Macquarie Bank Limited, on balancing the Company's priorities between its Cotton Valley development objectives and actively building on its Haynesville discovery.