CHICAGO, July 7, 2005 (PRIMEZONE) -- American Stellar Energy (Pink Sheets:AMRS) is pleased to provide a corporate update surrounding its 1000 acres of oil and gas interests in Corsicana, Texas.
The company continues to see good flow rates out of its Corsican oil field, in which it owns a 45% Working Interest. On average, the field is producing approximately 400 barrels per month, 95% of which is coming from just two of the three wells. The company is preparing to complete its fourth well at the Hill lease, which has shown early indications exceeding those of the previous wells. We expect this well to be completed over the next two weeks.
Additionally, the company has signed a Joint Venture Option, to further develop the field, that would allow for the drilling of up to 30 additional wells in Corsicana. Outside of this agreement, the field would allow for American Stellar Energy and partners to drill of another 40 to 60 Pecan Gap wells.
Over the last 6 weeks American Stellar Energy has also acquired two substantial Gold and Silver properties, one which is producing currently and one that has near term production potential. The company looks forward to providing an update on these projects over the following days and weeks, along with a completed NI 43-101 Report.
Mr. Francis Biscan Jr., President of American Stellar Energy stated, "We are excited with our asset base and cash flow base. The value of these new assets have yet to realized by the market place, from an asset perspective or from a cash flow perspective. It will become more apparent over the coming weeks and months."
American Stellar Energy is currently reviewing other significant opportunities in energy sector, including oil, gas, coal, and uranium. It also continues to evaluate gold and silver properties that would compliment its existing properties outside of Temoris, Chihuahua, Mexico.
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.