CHICAGO, Sept. 7, 2004 (PRIMEZONE) -- The Company is pleased to provide an update on Phase one's first successful well, named "1B McKinney". Armen Energy Corp., the project operator, has completed a second successful enhancement technique on the well, which has achieved positive results. Armen is awaiting the completion of a permanent electrical service to the well pump over the next several days, whereby it will then begin to measure the "Initial Production Rate."
Furthermore, the company will initiate the drilling of its second well over the next couple of days. As previously mentioned, the target depth will now only be 1750 feet and will result in significantly reduced drilling and completion costs, which are now estimated at approximately $90,000 and may be further reduced by "project of scale" economics.
Armen has also initiated a "Detailed Hyper-spectral Geophysical Survey" encompassing the project acreage and is expecting to receive 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, which begins with a 10 well program, focused on developing the Pecan Gap Zone.
With continued success, 20 to 50 addition 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.