SOUTHERN STAR ENERGY INC.: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

5 Mar 2009drilling progress report● Neutral

In a company press release (not independently verified), the company said it spudded its third Haynesville test well, Boyce-Pate 16-1, on February 19, 2009, with results expected later in March. The L. Moore 20-1 Cotton Valley well was testing at about 400 Mcf/d from its first zone, and Cash Point 30-1 completion is expected by early April 2009 after pipeline work. It continues the drilling programme from 2008; the release names the earlier Haynesville wells as Atkins-Lincoln 17-1 and A.S. Burt 20-1 and says nine Cotton Valley tests have been drilled, five producing.

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30 Oct 2008drilling progress report▲ GoodMajor

The company furnished a press release, which is company-stated and not independently verified. It says the Burt 20-1 well was spudded October 25, 2008 as a second Haynesville test in the Sentell Field, following an announced Haynesville discovery at Atkins-Lincoln 17-2 (completion techniques still being evaluated). The first five Cotton Valley wells are producing, averaging 2.3 MMcf/d from October 13 to 27 and sold at $7.67 per MMBtu in September; the Cash Pointe 30-1 awaits completion. The company has drawn $3.5 million of the $5.0 million Macquarie borrowing base and says the $25 million revolver remains available while it works with Macquarie on the borrowing base and drilling priorities. It also hired Deborah Null as land manager. This indicates production and a new discovery, though no Haynesville production rates are given.

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7 Dec 2006drilling progress report▲ GoodMajor

The company announced it had started drilling its first well, the Atkins-Lincoln 18-1 in Bossier Parish, Louisiana, planned to reach about 9,950 feet. A second well about a mile away is planned next under a Nabors Drilling USA contract, on a 5,300-acre block. This is the first drilling step after the move into oil and gas; no results are reported.

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