SOURCE: ReoStar Energy Corporation

October 31, 2007 08:10 ET

ReoStar Energy Acquires Acreage and Increases Working Interest in the Barnett Shale

FORT WORTH, TX--(Marketwire - October 31, 2007) - ReoStar Energy Corp. (OTCBB: REOS) today announced that it has begun enhancement of its Barnett Shale operations in an effort to further improve production and bolster its core acreage position.

The Company recently acquired an additional 710 acres in its core oil window while divesting 1738 lease acres outside of its current development area in an effort to focus on the growth of its expanded "cluster" drilling program. The 710 acres acquired adjoin the current primary development area. With this acquisition, ReoStar has now identified 230 drilling locations for future development in the oil window of the Barnett Shale. The early results of the "cluster" program have been very encouraging and the realignment of resources, equipment and manpower should yield more positive results.

Gas production for the last 30 days ended October 28, 2007 was up 16.5% over the prior period. Oil production for the same 30 day period was up 42.3%. Given the positive early production results, the Company has elected to retain a larger working interest in recent and future new wells.

"The past year has been an exciting time for our Company especially in the Barnett Shale. We have recently transitioned to what we refer to as our Chapter 4 development within the Barnett. We believe we have only begun to realize the positive impact of the transition," stated Mark Zouvas, Chief Executive Officer. "We intend to step up our cluster drilling and completions with the addition of another rig in the area to accelerate our development of the new acreage acquired. Also, to avoid potential delays in accessing necessary oilfield equipment, we have purchased a swab rig and a work-over rig. The current activities coupled with the realignment of our property holdings should add significantly to our production and overall reserves in the Barnett."

About ReoStar Energy Corporation

ReoStar Energy Corporation (OTCBB: REOS), headquartered in Fort Worth, Texas, is a oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects. The Company has vertically integrated its assets to remove potential obstacles to growth, which will enable it to develop and produce assets without the risk, cost and time involved in traditional exploration.

The Company's strategy is to acquire an attractive portfolio of oil reserves for a low cost, which have a high ratio of possible, probable or proven undeveloped reserves. By converting these undeveloped reserves into proved producing reserves, the Company will continue to realize an increase in the overall value at low risk and cost.

The Company's assets include over 17,000 acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville). ReoStar's assemblage of E&P assets allows for appreciable, unimpeded growth into the foreseeable future.

Additional information is located on the company's website

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.

Reserve estimates and estimates of reserve potential or upside with respect to the acquisitions were made by our internal engineers without review by an independent petroleum engineering firm. Data used to make these estimates were furnished by the sellers and may not be as complete as that which is available for our owned properties. We believe our estimates of proved reserves comply with criteria provided under rules of the Securities and Exchange Commission.

Contact Information

  • Company Contacts:
    ReoStar Energy Corporation
    Mark Zouvas

    For Investors
    Mark McPartland