PRZOOM - /newswire/ -
Los Angeles, CA, United States, 2005/06/30 - Silver Star Energy, Inc. (OTCBB: SVSE) today updates progress from ongoing oil and gas operations and drilling at Joarcam and North Franklin..
At Joarcam, the Company has received sales from Nexen for the 30 day production period at the "13-27" well totaling 1,311 barrels at a rate of 44 barrels per day. The well has now cumulatively produced 5,400 barrels in 4 months.
The "13-22" well began commercial production on June 25th after a slight delay waiting for electricity to be installed at the site due to wet conditions on the lease. The site and tank facilities at the "13-22" well location are complete and the Company has begun trucking oil for sale to Nexen. The initial production rates are now being established as the well is slowly stabilizing. The oil cut is increasing over time and yesterday's daily production of 22 barrels per day is anticipated to increase. The offsetting "4-27" well has been producing at 35 barrels per day since January 2004 and underwent similar oil cut stabilization. Silver Star has previously announced that the operator and reservoir engineering projection was for the well to produce between 35-50 barrels per day from the completion data and logs. The Company expects to meet this production target over time as the well stabilizes.
Additional oil production revenue from the "13-22" well for June will be booked in Q2 financials along with revenue from the "13-27" well and "Archer-Whitney" at North Franklin, California. Currently, the 38 degree API light oil at Joarcam has been priced at over $73.00 CDN ($58.00 US) per barrel.
The Company is rapidly developing its "core" Joarcam Project with two successful oil producers in the "13-27" and "13-22" wells. The next well to be drilled is the "12-27" location where an A.F.E. is now being generated. Combined daily production now approximates 66 barrels per day. Silver Star has a 70% working interest and a 56% net revenue interest. The operator of the project, Transaction Oil and Gas Ventures, is currently incurring a total production cost including trucking of $8.00 per barrel. This cost will decrease over time and will be lower as more wells come on line and as the Company considers tieing into large tank battery or pipeline for the project.
The Company also wishes to update the progress of the "Archer-Wildlands #1" well at North Franklin. The well is now at 2,400 feet and is on schedule to meet the total depth of 8,000 feet next week.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.