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March 02, 2005
Initial Oil Production at Joarcam "13-27" Oil Well to Exceed 75 Barrels per Day
Silver Star Energy, Inc. (OTCBB: SVSE) today announces that initial testing at the "13-27" oil well has shown that the production rates should exceed the original estimates of 75 barrels per day.
Los Angeles, CA (PRWEB) March 2, 2005 -- Silver Star Energy, Inc. (OTCBB: SVSE) today announces that initial testing at the "13-27" oil well has shown that the production rates should exceed the original estimates of 75 barrels per day. The "13-27" will be on pump to establish the Initial Production Rates (I.P.R.) of the well.
As the "13-27" well location directly offset another well that initially produced oil at rates of approximately 75 barrels per day, Silver Star and the operator made a comparison between the logs of the two wells and had determined that the 5.2 metre (17.1) interval at the "13-27" well appeared to be a cleaner sand and thus may be more productive than the offsetting "16-28" well.
Third-party analysis of the swab report indicates that "the well will begin pumping at a rate exceeding 75 barrels oil per day."
A pump-jack is immediately being delivered and will be set up at the well-head. Silver Star anticipates the onset of commercial production of oil at the "13-27" well to be a matter of days. With near-record prices for crude oil, Silver Star has projected that the well should generate $112,000 per month in revenue, or $1.3 million per year, and will payout its entire cost in 6 months. The long-life reserves in the Viking allow wells to be in commercial production for 20 years.
Currently, the 38-degree API light oil at Joarcam has been priced at over $51.00 per barrel ($64.00 CDN). The prospect lands are located about 25 miles southeast of Edmonton, Alberta, and there is year-round access to the property.
About Silver Star Energy, Inc.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high-quality, low-risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
On Behalf of the Board:
Silver Star Energy, Inc.
Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTCBB: SVSE.OB - News), visit our website at www.silverstarenergy.com.
Source: Silver Star Energy, Inc.
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Silver Star Energy, Inc
Posted by Industrial at March 2, 2005 01:20 AM