HOUSTON, Aug. 13 /PRNewswire-FirstCall/ -- Southern Star Energy Inc. (BULLETIN BOARD: SSEY) , a fast-growing E&P company with reserves and production from leases located in Northern Louisiana, today announced the commencement of its 10 well development program with the spud of the Cash Point Plantation 30-1 well. The spud of Well 30-1, a Cotton Valley Test Well in the southern section of the company's Sentell Field acreage, represents the next phase of Southern Star's 2008 Development Program, designed to further delineate the company's Cotton Valley and other resource potential and to consolidate acreage. This is the first well in the company's 2008 development program, which includes other strategic locations within the company's Cotton Valley position, as well as a vertical Haynesville evaluation well planned for later this year.
David Gibbs, Southern Star President and Chief Executive Officer said: "Spudding the Cash Point Plantation 30-1 well is the next step in our overall strategic business plan, and demonstrates our company's firm commitment to a development program designed to fully delineate our Cotton Valley and Haynesville potential in a measured, deliberate manner. We have every reason to expect 30-1 will produce equally impressive results as the five previously successful Cotton Valley completions to continue Southern Star's notable commercial success percentage in this play."
About Southern Star Energy.
Southern Star Energy's strategy is to acquire under-drilled oil and natural gas leases with significant proven development drilling opportunities, and use all available technologies to increase the valuation of the acquired assets. This strategy reduces Southern Star's risk, allowing the Company to build free cash flow for strategic acquisitions. The Company owns a 40% working interest and operates in approximately 5,700 acres in the Sentell Field, located in the heart of the known Cotton Valley trend north of Shreveport, La. To date, the Company has drilled five successful tests of the Cotton Valley sands, all of which are connected to the market, and producing revenues. Shareholders and prospective investors and analysts are encouraged to visit Southern Star Energy's website: http://www.ssenergyinc.com/ to learn more about the Company and the Cotton Valley Trend.
Cautionary Statements to Shareholders
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions in the Private Securities Legislation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Southern Star Energy's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: volatility of natural resource prices; product demand; market competition and risks inherent in Southern Star Energy's operations. Southern Star makes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.
