CHICAGO, December 15, 2004 (BUSINESS WIRE) – (OTCBB: AMRS.PK) The Company is pleased to report it has acquired a 45% Working Interest in approximately 15 acres which has the potential to host 4 Pecan Gap wells, 2 Austin Chalk wells, and 4 Nacatoch wells, with development rights from surface to the top of the Woodbine formation. The property is approximately 2.5 miles from our current development project and includes a drilled and cased well completed in the Pecan Gap zone. The well is capped with tubulars installed, and is maintaining a well head pressure of 560 psi. Armen intends to workover the well, using some of the new completion technologies it continues to have success with. Importantly, the prospect can also be easily accessed by way of a paved road.
Mr. Francis Biscan Jr., President of American Stellar Energy stated; “We have secured another property that should provide more low risk opportunities for several productive wells and also provide us with wells that can be accessed and worked through all types of weather conditions.
Additionally, the operators have now serviced the second well pump (Blackburn 1C) and are expecting to deliver a daily production rate within the next few days. The well continued to produce oil to tanks throughout the period of time it was inaccessible by a service rig.
The company continues to evaluate other new projects that would be expected to provide the company with an even larger growth scenario and add some project depth. Our focus is on low risk, development type prospects, which have the ability to achieve short term payback and long term growth.
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.
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.