CHICAGO, Nov. 1, 2004 (PRIMEZONE) -- American Stellar (Pink Sheets:AMRS): The Company is pleased to provide an update on the Corsicana Oil Development Project.
Currently, the second and third wells have now been successfully perforated, fractured, and are flowing oil. The second well has maintained good head pressure ever since final completion methods were applied and, while not always being allowed to flow because of the lack of sufficient storage capacity, has produced 80 barrels of fluids to tanks through a choke, without the use of a pump. The ratio of oil to water is estimated to be 95% oil or better. The well is also producing gas, which although not marketable, looks to be providing a strong drive. The well will be put on pump and flow tested over the next few days.
The third well has been completed with pump, piping, and tanks installed. It is currently producing significant oil to tanks, with similar oil to water ratios and indications of a gas drive. It will also be flow tested over the next few days.
On October 19th, the project partners repaid the 150 barrels of oil that had been borrowed for the "1B McKinney" sand frac and made its first sale of 64 barrels of oil.
Armen Energy should receive the "Detailed Hyper-spectral Geophysical Survey" encompassing the project acreage and the completed survey map with detailed interpretation shortly. The objective of the survey will be to further optimize well targets for its continuous development strategy. Given the success of the first three wells, the company also intends on using the survey to add to its acreage position.
Currently, 20 to 50 additional wells could be drilled on the existing acreage. American Stellar Energy intends to fully develop its interests in this prospect.
The current capital structure of American Stellar Energy as of October 31, 2004 is 49,970,669 Outstanding, with 25,325,300 being classified as Common Free Trading and 24,645,369 being Restricted. There are currently no Preferred Shares, Warrants, or Options.
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.