Francis R. Biscan, Jr.
biz.yahoo.com
American Stellar Energy Aquires Corsicana Oil Project
Wednesday January 21, 9:00 am ET
CHICAGO--(BUSINESS WIRE)--Jan. 21, 2004--The Board of Directors of American Stellar Energy, Inc. (NQB;PS:AMRS) is pleased to announce that the company has signed an agreement, providing it with an option to acquire a 50% Working Interest in an Oil and Gas prospect, located in Corsicana, Texas. The prospect consists of 1000 acres and provides a low cost opportunity to develop known oil bearing rocks under a shallow old oil field. The option was acquired through Armen Energy LLC, a privately held company in which Mr. Francis R. Biscan President of American Stellar Energy Inc. holds a minority interest.
Mr. Jerry Witte, of Armen Energy comments, "The area is oil rich, having produced over 250 million barrels of oil already from shallow oil sands within a 6-mile radius of the prospect acreage. The acreage is in a structurally high "good" position to test three oil-bearing zones. All zones have produced oil or have oil shows down-dip in surrounding wells. Seismic shows good structural position to trap oil and gas in deeper zones.
The initial well is 3,600 feet, in good position to test three target zones, 2 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 1950's 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 addition wells could be drilled on the existing acreage. American Stellar Energy intends to fully develop its interests in this prospect.
American Stellar Energy has also negotiated an additional agreement with Armen Energy, that offers it a "first right of refusal" on all opportunities generated by Armen Energy.
In other matters, Mr. Francis R. Biscan advises that the company has completed the reorganization from a software development company to focus its efforts on identifying viable opportunities in the energy sector. It actively continues to seek out and evaluate other opportunities for exploitation.
In addition to the name change, the Board of Directors is pleased to announce the appointment of Mr. Alfonso Sean Saavedra as a Director. Mr. Saavedra is a resident of Sylmar, California and has been successfully involved in the Real Estate and Land Development Industry for over 13 years. Some of his achievements include the award winning energy efficient community of "Village Green" in Sylmar, CA. . This community garnered several awards including recognition by President Bill Clinton and Vice President Al Gore as well as a Department of Energy Award.
Mr. Francis Biscan, company President commented, "Mr. Saavedra will be a great asset to our Board of Directors. His business experience and commitment to succeed will play a key role towards directing the company and realizing tangible value for all shareholders."
It is expected that the company will complete the process of updating all filings in the first quarter of 2004 and, in addition, to have an updated website and additional resources to disseminate the company progress to shareholders. The new CUSIP symbol for the company is 030082 10 1 and the new trading symbol is AMRS.
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.
Contact:
American Stellar Energy, Inc.
Francis R. Biscan, Jr., 630-462-2079
fax: 630-462-1224
Richard@americanstellarenergy.com |
