Southern Star Energy's daily production reaches new milestone
  by: OilOnline
  Tuesday, June 10, 2008

Southern Star Energy Inc. has been re-establishing production and evaluating the commercial potential for future development drilling in its Sentell Field (40% working interest) located north of Shreveport.  Gross production from the Sentell Field now exceeds 3.3 million cubic feet (MMcf) per day.

David Gibbs, Southern Star President said: “Having successfully completed the pilot phase of our re-completion work in the Sentell Field, we are fully engaged preparing to begin field wide development. At present, Southern Star is applying for 10 drilling permits, engaged Nabors Well Services to drill on its behalf and is completing arrangements for the necessary capital to complete its current 2008 drilling plans. The re-completions went according to plan; on a rate-of-return basis, they are an excellent way to reliably increase production from existing wells in a low-risk manner. In aggregate, Southern Star is receiving more than 10.00per Mcfe for its production. Regarding the commercial development of the field, we have the potential to drill up to 50 wells on our existing acreage position. Ten well locations are in various stages of preparation. Our goal is to spud the first of this initial ten-well program by the end of July. As part of the Company’s development process, the Sentell Field will also be evaluated for the potential for drilling and producing from the Haynesville Shale, a highly prolific horizon found elsewhere in northern Louisiana.”

The Company completed a five-well recompletion program in mid-May, and is producing all five wells into sales lines. A recap of each well is provided below.

Atkins-Lincoln 17-1

This well was placed into production on May 22, 2008. The well is currently testing at a rate of approximately 500 Mcf per day. The well is still flowing back from the fracture stimulation job; management believes the well will be produced at a higher rate after fluids from the fracture are produced.

Rendall 7-2

This newly drilled well was placed into production on April 25, 2008. Since then, natural gas production from this well stabilized at an average rate of approximately 1800 thousand cubic feet (Mcf) per day.

Atkins-Lincoln 18-2

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its Atkins-Lincoln 18-2 well in the Cotton Valley "C" Sand. The well was returned to sales on April 24, 2008 and is currently producing at an average rate of 500 Mcf per day.

R C Atkins 8-1

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its R C Atkins 8-1 well to re-stimulate the Upper Davis section of the Cotton Valley formation. The Upper Davis completion has been commingled with the existing Lower Davis production interval and the well was restored to production on June 4, 2008 and currently flowing at an average rate of approximately 325 Mcf per day. Production is expected to increase after additional clean-up.

Atkins-Lincoln 18-1

As previously announced, the Company performed a successful high rate "slick water" fracture treatment on its Atkins-Lincoln 18-1 well in the Upper Davis section of the Cotton Valley formation. The well was restored to production on June 5, 2008 and is currently flowing at an average rate of approximately 300 Mcf per day. The company expects the well to continue to increase after additional clean-up.

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