CHICAGO, Jan. 19, 2005 (PRIMEZONE) -- American Stellar Energy (Pink Sheets:AMRS): The Company is pleased to provide a corporate progress report. Over the last 5 weeks, the company has evaluated and reworked its new well, named "Hilltop 1." The operator ran a cased hole log and determined that only 3 feet had been perforated at two shots (holes) per foot in the oil zone from 2035 to 2058. Subsequently, 12 feet of perforations at 4 shots/ ft. were added and the zone was fracture stimulated (gas gun). The well has now been swabbed and tubing has been installed with fluids running approximately 90% oil. Currently the hole is shut-in with an oil fluid column rising in the tubing to 1500 feet, 500 feet above formation. The well is now waiting for hook-up to surface production facilities and will be provided with an "Initial Production Test" as soon as possible.
Mr. Francis Biscan Jr., President of American Stellar Energy stated, "We are extremely pleased with the rate of success we have had on our properties. Although we do not expect to maintain a success rate of 100%, the project looks to be providing low risk production opportunities, as expected."
The company has made progress with its evaluation regarding other new projects that could provide the company with an even larger growth scenario and add some project depth. Our focus is on low risk, development type prospects, which have the ability to achieve short term payback and long term growth.
Currently, 20 to 50 addition wells could be drilled on the existing acreage. American Stellar Energy intends to fully develop its interests in this prospect.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.