SOURCE: ReoStar Energy Corporation

December 13, 2007 11:02 ET

ReoStar Energy Announces Operations Update

FORT WORTH, TX--(Marketwire - December 13, 2007) - ReoStar Energy Corp. (OTCBB: REOS) today announced an update of the Company's Barnett Shale drilling operations, located in Cooke County, and its redevelopment operations in Corsicana, Texas.

Barnett Operations Update

The Company continues to enhance and develop its completion technology in the "oil window" of the Barnett Shale. ReoStar's cluster program has resulted in significant recent accomplishments, including a decrease in the number of days required to drill wells, reduced drilling & completion costs, and increased average production rates.

ReoStar's two new-drills (Inglish Sisters #6 and Inglish Sisters #7) included in the mid-September cluster program continue to sustain improved production results. Through the first 60 days of production, the Inglish Sisters #6 averaged 453 mcf /gas and 98 bbls/oil per day. The Inglish Sisters #7 averaged 385 mcf /gas and 68 bbls/oil per day. Production from the three re-fracs (Inglish Sisters #2, #3, and #4) included in the above-mentioned cluster program also continues to increase as treatment water is being recovered.

ReoStar is currently in the process of developing its second cluster program. This cluster will include 4 new-drills and 4 re-fracs fracture stimulated over the course of 8 days. The Company is expecting to have the new-drills on production by the end of December.

Corsicana Operations Update

The Company continues with the expansion of the Corsicana EOR Pilot Project. The company designed and installed an EOR (Enhanced Oil Recovery) system on its leasehold in Corsicana and began injecting in June of this year. The EOR system uses polymer and surfactant blend; thus the company has since purchased and installed a reverse osmosis system to purify the produced water from the oil wells for blending and injection back into the formation. This will not only produce tremendous savings, but ensures a constant supply of water at a fixed cost.

To date, we have injected approximately 80,000 barrels of fluid at an average rate of 500 BPD (80 BPD per injection well). Based on our engineering, we anticipate "fill-up" of the pilot area to occur during the next six months. Three wells have flowed intermittently without a pump for short periods, indicating the polymer injection is working, resulting in a modest production increase.

Mark Zouvas, CEO of ReoStar, stated, "We are pleased with the progress we continue to make in our Barnett and Corsicana operations. Our well economics in the Barnett have gotten much better with the incorporation of new completion methods, and as a result, we have begun retaining larger working interests in new wells. Our Corsicana pilot has begun to gain traction as we have seen increases in water and oil production while maintaining consistent pumping pressures, signifying we are ahead of our timetable projections. These production activities should significantly add to our production revenue in the next fiscal year and increase our overall reserve base."

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

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    ReoStar Energy Corporation
    Scott Allen

    For Investors
    Mark McPartland