SOURCE: ReoStar Energy Corp.

October 17, 2007 13:20 ET

ReoStar Energy Corp. Operations Update

FORT WORTH, TX--(Marketwire - October 17, 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 Shale Operations Update

ReoStar entered a new chapter in their completion technology by using a modified "mighty-acid simo-frac." During the week of September 10th through September 15th, two new drills (Inglish Sisters #6 and Inglish Sisters #7) were fraced in conjunction with three re-fracs (Inglish Sisters #2, Inglish Sisters #3, and Inglish Sisters #4). The new drills have been put into production. The re-frac results are still pending as treatment water is being recovered.

We have been experiencing high line pressure in the area of our Inglish wells. With the purchase of the Greenwood System, our gas gatherer has added additional capacity of 5MMcf/day and will be diverting gas from their Harry Gas Compression Station to the new line which in turn should reduce our gathering line pressure significantly and enhance production.

New Production

--  The Inglish Sisters #7 reached a total depth of 8,736 feet on
    September 11th and was completed on September 15th.  Production started on
    September 26th and through October 14th has produced 11,127 MCF and 2,614
--  The Inglish Sisters #6 reached a total depth of 8,762 feet on August
    20th and was completed on September 13th.  Production started on October
    4th and through October 14th has produced 10,109 MCF and 3,414 BO.

Production -- Other recently completed wells

--  The Inglish #6 well has averaged 445 mcf gas/day and 54 bbls oil/day
    in 97 days of production.
--  The Inglish #7 well has averaged 383 mcf gas/day and 50 bbls oil/day
    in 81 days of production.
--  The Inglish D #9 has averaged 289 mcf gas/day and 32 bbls oil/day over
    the first 97 days of production.
--  The Ford #1 well has averaged 179 mcf gas/day and 77 bbls oil/day in
    27 days of production.

Drilling & Completion

--  The Berry #1 was spud on September 13th and reached a total depth of
    8657' on October 4th.
--  The Boyd #2 was spud on October 8th.
--  Eight "simo-fracs" (4 new drill and 4 re-fracs) are scheduled for the
    week of December 10th.

Intent to Drill

--  The Berry #2, Busby #2 and Inglish D #17 are currently with the Texas
    Railroad Commission to be permitted.

Corsicana Operations Update

The Company is now casing swabbing about 50 wells in its Corsicana Field. It is anticipated that these wells will average approximately 300 barrels of oil per month. The swab unit can only be operated during dry weather.

ReoStar acquired some new leases in East Texas as a result of purchasing Vern Wilson Energy. These leases represent approximately 25 well bores and are producing 12 barrels a day -- the Company is replacing certain equipment (pumps) in the field which will increase production to approximately 50 barrels per day.

The company designed and installed an EOR (Enhanced Oil Recovery) system on the King lease. The EOR system uses polymer and surfactant blended with water to provide an efficient sweep mechanism for the reservoir. The first polymer project commenced injection on Tuesday, June 19, 2007. The injection plant blends fresh water with a surfactant and also with a polymer to give the water viscosity or "body." The chemical properties of both the injected and produced water are monitored to determine the effectiveness of the program. To date, we have injected approximately 54,000 barrels of fluid at an average rate of 400 BPD. Based on our engineering, we anticipate "fill-up" of the pilot area to occur in the next nine months. Two wells have flowed intermittently without a pump for short periods indicating the polymer injection is working.

An expansion program, adjacent to the original Pilot Polymer System, has been designed to optimize the current facilities. We plan on drilling an additional 10 to 20 production/injection wells for this expansion, which should commence in the first quarter of fiscal 2008.

Currently three deeper wells are under application to be drilled with the Texas Railroad Commission. These deeper wells will be testing the Pecan Gap and Rodessa zones on our acreage.

About ReoStar Energy Corporation

ReoStar Energy Corporation, headquartered in Fort Worth, Texas, is a publicly traded (OTCBB: REOS) 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 assets include over 20,000 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.

Contact Information

  • Contacts:
    ReoStar Energy Corporation
    Mark Zouvas

    For investors
    Mark McPartland