CHICAGO, Feb. 13, 2004 (PRIMEZONE) -- American Stellar Energy, Inc. (the "Company") (Pink Sheets:AMRS) is pleased to confirm that all financial statements since June 2002 up to September 30, 2003 have been forwarded by the company accountant to the auditor, for completion of reviews and audits.
It is expected that, as the reviews required are completed, the financials will then be filed. It is expected that the year end financials for December 31, 2003 will be submitted by the accountant for review and completion of the required audit by February 29, 2004, at which time the company will be up to date for filing financial statements and will immediately look to be reinstated to the OTC Bulletin Board.
In addition, the Company, over the next several days, will be exercising its option to enter into a formal agreement to develop the Corsicana Oil & Gas project.
The initial well is 3,600 feet, in good position to test three target zones -- two exploratory and one development. The two exploratory zones are the Woodbine (3,000 ft deep) and Wolfe City (2,000 ft deep) sands. 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 1950s with initial production (IP) rates from 76 BO/day to 2 BO/day, from numerous wells surrounding the location and on the prospect acreage.
Using modern completion and stimulation technologies one can expect at least a two- to four-fold increase of initial production (IP) rates, as compared to naturally flowing oil, in the Pecan Gap oil zone. Expected potential production from a successful well is estimated at 15 to 40 BO/day per well, from the Pecan Gap zone, with an above average chance of success to complete and produce oil.
If any of the three potential zones are successful, 20 to 50 additional 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.