Press Release Source: American Stellar Energy, Inc.
American Stellar Energy Signs Option on CBM Gas Project Tuesday February 8, 8:30 am ET
CHICAGO, Feb. 8, 2005 (PRIMEZONE) -- The Board of Directors of American Stellar Energy, Inc. (Other OTC:AMRS.PK - News) is pleased to announce that the company has signed an agreement, providing it with an option to acquire a 100% Working Interest, delivering an initial 80% Net Revenue Interest until payout, in a Coal Bed Methane (CBM) gas project located in Virginia. ADVERTISEMENT [Blocked Ads]
The CBM project is part of a Mississippian age coal basin in Virginia, east of the Appalachian Mountains approximately 40,000 acres in size. The coals consist of two dominant seams sixty feet apart, the Merimac (3+ ft thick) thick and the Langhorne (11 ft thick). These Coal seams outcrop at the edge of the basin and reach a depth of 5,000 feet in center.
What gives this project even more distinction is the fact that it is situated with a pipeline that runs down the center of the basin providing a 4 mile maximum distance to any well. Additionally, being east of the Appalachians should generate a product price that is $0.50 to 0.75 higher at the wellhead, for each MCF of gas, due to the minimal pipeline transport needed to get to East Coast demand centers.
Three core-holes were drilled in the 1980's to test coal in the basin. The lab results showed the coal to have a gas content of 200 to 400 SCF/ ton equating to 1.5 to 2.2 BCF gas in place per 160 acres. The project is expected to be drilled on 80 acre spacing with each well recovering approximately 0.5 BCF per 80 acre location.
Mr. Francis Biscan Jr., President of American Stellar Energy stated: ``We have now identified another viable project which gives us project depth, maintains our low risk strategy, and provides a substantial growth opportunity.''
CBM accounts for a significant increase in the gas production for the United States. Viewed in the late 1980's as an unconventional gas source, today CBM accounts for 57 percent of the overall growth in U.S. natural gas production.
The option was acquired through Armen Energy LLC, a privately held company in which Mr. Francis R. Biscan Jr., President of American Stellar Energy, holds a minority interest.
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.