CHICAGO, Nov. 4, 2004 (PRIMEZONE) -- American Stellar Energy, Inc. (Pink Sheets:AMRS) --
The Company has received the Initial Production Rate (IP Rate) on Well #3 of the Corsicana Oil Development Project.
The third well's Initial Production Rate has been measured at 36 barrels of fluids per day and the ratio of oil to water is estimated to be approximately 95% oil and 5% water. The well should operate at approximately $27.00 / Day, or less then 1 barrel / Day.
Mr. Francis Biscan Jr., President of American Stellar Energy, stated: "We are extremely pleased with these results. We have optimized our completion techniques and have now achieved results at the high end of our expectations."
The second well continues to maintain good head pressure, currently at approximately 200 psi, ever since final completion methods were applied. The operator is preparing the site and the well is expected to be put on pump and flow tested over the next few days.
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 addition 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.