Silver Star Advances Funds for Joarcam Oil Well -- "13-27" Well to Commence
LOS ANGELES, CA, Dec. 01, 2004 (MARKET WIRE via COMTEX) --
Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has advanced funds in full to the operator, Transaction Oil and Gas Ventures, that cover the drilling and completion of the "13-27" oil well location at the Joarcam Project, Alberta, Canada. Funding for the drilling has come from financing by Cornell Capital Partners, LP.
Silver Star recently announced that the "13-27" location was to be drilled based on new data gathered from a new producer on a neighboring lease. The "13-27" will directly offset Enermark's new "16-28-47-20W4M" well. The offset well produced at initial rates of approximately 75 barrels per day. As the Silver Star location is directly adjacent to this producer, the Company anticipates a high probability of success and the well should produce at similar rates.
The "13-27" location has been licensed, permitted and surveyed with site preparation commencing. Silver Star anticipates the spud of the first well shortly as the operator has called for a drilling rig.
Currently, the 38 degree API light oil at Joarcam has been priced at over $57.00 CDN per barrel. The project is a low-risk development property with oil at a shallow depth and with a short payback period and long life reserves in the "Viking C" pool adjacent to the established Joarcam Viking pool, the largest Viking hydrocarbon accumulation in Alberta, Canada. The overall development strategy at Joarcam could see up to 16 well locations ultimately be drilled. With success at Joarcam, it is anticipated that the field could produce 500 barrels of oil per day (bbls/d) if fully developed. Oil wells at Joarcam demonstrate very shallow decline curves. 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"
Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.
Investor Information: 1-888-803-SVSE (7873) Silver Star Energy, Inc.
SOURCE: Silver Star Energy, Inc
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