SOURCE: Silver Star Energy, Inc.

October 05, 2005 09:00 ET

Silver Star Considering Purchase Offer for Joarcam -- Reports September Oil Production

LOS ANGELES, CA -- (MARKET WIRE) -- October 5, 2005 -- Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has received a "Binding Purchase Offer" from a Canadian oil and gas company to purchase the entire 70% interest of the Joarcam asset. The offer includes all current production and proven reserves.

This multi-million dollar offer net to Silver Star's interest is now being considered as to whether it represents "fair market" value for the Company's interest. The sale, if closed, would provide Silver Star additional capital to move forward in developing the North Franklin gas reservoir, fracture stimulate the EVI "7-11" well, advance the Kansas Project as well as consider future acquisitions.

Management also wishes to report the September oil production from the "13-27" and "13-22" wells at the Joarcam Project. The Company has sold and shipped 1,624 barrels of oil to Nexen for the production period of September from the two producing oil wells.

The "13-27" well produced 949 barrels, at a rate of 31.23 barrels per day and the "13-22" well produced 675 barrels at a rate of 22.2 barrels per day. The Joarcam Project has now cumulatively produced 10,538 barrels in 7 months. Based on an average of $65 per barrel, the Company has calculated September revenue to be $55,000 to the N.R.I. This revenue combined with the $225,000 from North Franklin, totals $280,000 for the month of September from all projects.

Currently, the 38 degree API light oil at Joarcam has been priced at over $76.00 CDN ($66.74 US) per barrel.

ABOUT SILVER STAR ENERGY, INC.

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.

ON BEHALF OF THE BOARD

Silver Star Energy, Inc.

Robert McIntosh-President

To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.

Contact Information

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    Silver Star Energy, Inc.