CHICAGO, April 28, 2004 (PRIMEZONE) -- (Pink Sheets:AMRS) The Company reports that Armen Energy Corp., the project operator, has rescheduled the drilling of the first well, named "1B McKinney", of Phase 1 of the Corsicana Project. Drilling is scheduled to begin on or about the third week of May, 2004 and should take up to 3 weeks to drill and complete. This first well initiates the development of the Corsicana Project.
The initial well will be drilled to a depth of 3,600 feet, in good position to test three target zones, 2 exploratory and one development. The two exploratory zones are the Woodbine (3,000 ft deep) and Wolfe City (2,000 ft deep) sands. The project operator has indicated that if these zones are found to be prolific, wells in the Woodbine or Wolfe City, could produce from 50,000 to 150,000 barrels of oil (BO) per well, over the life of the well. The development zone is a known oil bearing zone, the Pecan Gap (1,700 ft deep).
Pecan Gap completion is applying modern fracturing completion to an old tight oil zone which has flowed oil naturally in the 1950's with initial production (IP) rates from 76 BO / day to 2 BO / day from numerous wells surrounding the location and on the prospect acreage.
The project operator will use modern completion and stimulation technologies to develop the Pecan Gap oil zone, and by using this technology it is expected that at least a two to four fold increase of initial production (IP) rates, as compared to naturally flowing oil., will be achieved. Expected potential production from a successful well is estimated at 15 to 40 BO / day, per well, with an above average chance of success to complete and produce oil.
If any of the three potential zones are successful, 20 to 50 addition wells could be drilled on the existing acreage. American Stellar Energy intends to fully develop its interests in this prospect. The company auditor, HJ & Ass., LLC of Salt Lake City, will be commencing to file updated company financials for 2002 within the next few days, and would expect to file 2003 financials in May.
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.