PRZOOM - /newswire/ -
Los Angeles, CA, United States, 2005/05/26 - Silver Star Energy, Inc. (OTCBB: SVSE) today is pleased to announce details of the deep gas potential in the Forbes (F-zone) at the Company's North Franklin gas reservoir, Sacramento Basin California..
Silver Star Energy, Inc. (OTCBB: SVSE) today is pleased to announce details of the deep gas potential in the Forbes (F-zone) at the Company's North Franklin gas reservoir, Sacramento Basin California. North Franklin is situated in the southern Sacramento Basin of California between the cities of Sacramento and Stockton that has produced in excess of 9 Tcf of gas. The deep Forbes F-zone has the potential to contain 60 Bcf gas. Combined with the producing Winters, North Franklin now has the potential to contain in excess of 100 Bcf gas.
The Deep Forbes F-zone lies beneath the younger Winters sand that is currently producing from the "Archer-Whitney #1 well" and will be drilled by a second well named "Archer-Wildlands." After an aggressive land-leasing program by the partners over the last year, the North Franklin Project has now, under lease, 3,465 gross acres.
North Franklin deep F-zone has approximately 1,200 acres of structural and stratigraphic closure based on mapping of the seismic anomaly. It is defined by regional well control and 2-D seismic data from three seismic lines. The strong AVO anomaly present indicates that gas may be present. The prospect potential is based on net pay averaging 50 feet over this closure and recovery factor of 1,000 Mcf per acre foot. The prospect reserves are estimated at 60 Bcf of gas. Gas quality is anticipated to be greater than 900 Btu. The nearest F-zone production at the Clarksburg gas field, located with in five miles of the prospect, is 930 Btu.
Gas is expected to be contained in permeable, Upper Cretaceous, deep-water F-zone sandstones that are of equivalent age to sandstones that are the major producing zones in the northern portion of the Sacramento Valley. An estimated 75 feet of net reservoir sandstones are expected to be present in the upper and middle F-zone fans at the proposed test location. Equivalent Forbes sandstones are the chief producing gas reservoirs in the northern Sacramento Valley having produced in excess of 2 Tcf of gas.
Drill depth through the prospective upper and middle fans at North Franklin Deep is 11,000 feet. The well would offset the productive upper Winters sand discovered in 2004 and penetrate the both the upper and middle F-zone fans at a structural favorable position. In the event that the F-zone is not productive at this location, the well could be put into production from the Winters sands. The 11,000 foot well is estimated to cost $1.5 million and Silver Star has a 40% working interest in the project. The North Franklin partners are planning to drill the test well in Q3-4 2005.
In other news, the Company wishes to update the drilling timing of the Archer-Wildlands #1 well, the second well at the North Franklin project. Silver Star now expects the well to be spudded in early June. The timing of drilling is always approximate, as all companies must line up in a drilling schedule that varies and is subject to change as to when the rig is released following drilling jobs. Silver Star has always reported when the rig was expected and anticipated using the best information it has at that time.
Silver Star has paid in full for the cost of drilling "Archer-Wildlands #1" and has been informed by the operator that all required site preparations and permitting is complete. In addition, facilities are already in place to tie-in the gas immediately on well completion and no further permitting delays will occur as happened with the initial well.
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.
ON BEHALF OF THE BOARD
Silver Star Energy, Inc.
SOURCE: Silver Star Energy, Inc.