SOURCE: Silver Star Energy, Inc.

April 25, 2005 09:00 ET

Production Increases Now to Begin at "Archer-Whitney #1" -- Gas Flow to Be Increased to 2.5-3.0 Mmcf per Day Up From First Month's Start-Up Rate of 1.4 Mmcf per Day

LOS ANGELES, CA -- (MARKET WIRE) -- April 25, 2005 -- Silver Star Energy, Inc. (OTC BB: SVSE) is very pleased to report on natural gas production at the "Archer-Whitney #1" well from the first 29 days of full production, which began on March 23rd, 2005. At these initial rates, the average daily gross earnings for the well amounted to roughly $11,000.00 per day, or $330,000 in total for all partners. The initial rates averaged 1.4 Mmcf per day. This is the first of six wells planned to be drilled into this reservoir on the leases.

The well has now settled and matured to the point that the operator intends to open the choke in the coming weeks to accommodate the high tubing and casing pressures. Silver Star now anticipates that the well should reach 2.5 Mmcf to 3.0 Mmcf in the first week of May, after the operator analyzes the pressures, again before allowing any increase. This would equate to a doubling of gas and revenue to $660,000 per month. This would generate $7.3 million per year revenue at these rates. The Company and partners, over time, have targeted 4-5 Mmcf per day production, and the step up of production is a very positive development. 5.0 Mmcf per day would equate to approximately $12.0 million per year in revenue from the well.

The operator of the project has choked down and metered the flow and would be increasing the gas flow in small increments. The operator's advice to the Company is to be prudently cautious in these early production days and not to be overzealous in rapidly increasing the flow rates. The operator has now indicated that the behind-pipe pressure has been stabilizing, and Silver Star can now report that the plan is to safely open up the flow incrementally at stepped rates. The operator and Company have been cautious with this initial period as the well was put online, working in a slow and methodical fashion to ensure that the reservoir is developed properly. The well will continue to be opened up until the stabilization of bottom-hole pressure.

In addition, the well was shut in during the lengthy delay in tie-in, and the Company and operator wish to ensure that every measure is taken to ensure the integrity of the reservoir so as to protect the Company's asset which is of vital importance to the development of significant cash flow to Silver Star. Pressures have been monitored both at the well and across the length of pipeline to sale point. The overall volume flow of a gas field can be a lengthy process that must be undertaken with caution to avoid damaging the reservoir or well to prevent gas reservoir "coning" and drawing condensate into the sands by the outgoing gas.

The April 22 PG&E-Citygate gas was priced at $6.81 per mcf.


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.


Silver Star Energy

"Robert McIntosh"
Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at

Contact Information

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    Silver Star Energy, Inc.
    1-888-803-SVSE (7873)