SOURCE: Silver Star Energy, Inc.

June 02, 2005 09:00 ET

Silver Star Updates "Archer-Whitney #1" Production

LOS ANGELES, CA -- (MARKET WIRE) -- June 2, 2005 -- Silver Star Energy, Inc. (OTC BB: SVSE) today announces the April and May 2005 production totals for the "Archer-Whitney #1" well and updates operations at North Franklin.

Since full production began on March 23rd to the most recent data received by the Company on May 31 the "Archer-Whitney #1" well has produced 98.5 Mmcf gas in 70 days at an average rate of 1.41 Mmcf per day. Total production to-date has generated $591,000 to the partners. Production by month has been 13.5 Mmcf in 9 days of March, 41.2 Mmcf for April and 43.8 Mmcf for May.

The operator of the project had intended to increase the flow rate to 2.5-3.0 Mmcf per day, but has maintained a choked back gas flow since the onset of production only increasing the gas flow in small increments. The latest project update at the well is that, under advice from the operator, the gas flow will remain choked back to between 1.75 Mmcf and 2.0 Mmcf per day until the second well is drilled and completed. As reported earlier, Silver Star anticipates a spud date to be announced shortly in June. With more information provided from the second well, this will provide important geological reservoir data and confidence that detriment will not be done to the reservoir prior to opening up the well to its fullest capacity. North Franklin is a new reservoir discovery and time will be required to evaluate the full potential of the gas field. Silver Star expects that in time, production rates will meet original expectations of 4-5 Mmcf per day.

The well is currently producing between 1.5-1.6 Mmcf per day from the latest numbers received by Silver Star. The operator's advice to the Company is to be prudently cautious in these early production days. We have been advised not to be overzealous in rapidly increasing the flow rates to maintain the integrity of the gas-charged sand to prevent the unlikely possibility of coning the reservoir and potentially drawing in excess condensate. Silver Star intends to announce gas production totals and rates on a monthly basis, or more frequently when warranted.

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.

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    Silver Star Energy, Inc.