Silver Star Successfully Completes
5/31/2005 10:21 AM GMT (TransWorldNews)
May 31, 2005
Silver Star Successfully Completes "13-22" Well -- Commercial Production to Begin at 35-50 Barrels per Day
LOS ANGELES, CA., May 31, 2005 - Silver Star Energy, Inc. (OTCBB: SVSE) today announces that the "13-22" well has been successfully completed and will be put into immediate production. This is now the second well to be brought on for commercial oil production at Joarcam by Silver Star.
The completion program involved a 3.0 meter perforation of 2.5 meters (8.2 feet) of the Viking (oil) zone. The oil pay zone was thicker than earlier thought. The result was an excellent influx of fluid confirming strong permeability and porosity and that the perforation contacted the oil zone. The operator has estimated from swab testing and offset well data that the "13-22" well oil production rate should be between 35 and 50 barrels per day. The well is now being put into production where actual flow rates will be established. The operator is now constructing site services, and installing pump-jack and tank facilities.
The "13-22" well offsets the producing "4-27" well (33-40 barrels per day since January 2004) and along trend from the "13-27" well (44-50 barrels per day) that has been in production since March 1, 2005 that Silver Star is receiving its pro-rata share of production revenue.
The project is a low-risk development property with oil at shallow depth, short payback period and long life reserves. The play is located in the "Viking C" pool adjacent to the established Joarcam Viking pool, the largest Viking hydrocarbon accumulation in Alberta, Canada. The "13-22" well is the second well to be drilled by Silver Star under the Company's overall development strategy at Joarcam. This plan is to drill up to 10 wells during 2005. With success at Joarcam, it is anticipated that the field could produce 500 barrels of oil per day (bbls/d) if fully developed. Oil wells at Joarcam demonstrate very shallow decline curves. The prospect lands are located about 25 miles southeast of Edmonton, Alberta.
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.
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Silver Star Energy, Inc.