Peak Oil News - Silver Star to Drill

News Release
September 27, 2004

Silver Star to Drill "5-27" Oil Well at Joarcam

LOS ANGELES, CA - Sep 27, 2004 - Silver Star Energy, Inc. (OTCBB: SVSE) today announces that the Company is preparing to commence drilling of the "5-27" location as part of a multi-well program on the Joarcam lands, located southeast of Edmonton, Alberta.

The "5-27" well location is an 800 metre offset to a new producer, drilled by a Canadian company. The new well is reported to be producing at a rate of between 60-65 barrels per day of top quality light crude. The "5-27" well location is located between the "4-27-47-20W4M" producing oil well and the new offset producer. The operator is moving ahead with survey and site preparation. The Company plans to drill and complete this well by the end of October.
The Energy Conservation Board of Alberta has now classified the Joarcam "4-27" well, currently producing, as a Viking "C" pool producer and that it is a previously untapped reservoir. The Joarcam project can be classified as a low risk development property with oil at a shallow depth and with a short payback period and long life reserves.
Transaction Oil and Gas Ventures, the operator of the Joarcam project, has engineered the "5-27" drilling location offset to the "4-27" producer. The "4-27" well has been producing 32 barrels per day with 70% water cut from 3.0 metres (9.6 feet) of sand pay. The operator constructed tie-in and oil storage facilities on the lands and has been shipping oil since mid-January 2004.
The "5-27" well has an A.F.E. (Authority for Expenditure) totaling $303,262. With up to 16 well locations that can ultimately be drilled at Joarcam, it is anticipated that the field could produce 500 barrels of oil per day (bbls/d) if fully developed. Oil wells at Joarcam demonstrate very shallow decline curves and produce at the primary recovery stage for at least 15 years. The new Viking "C" pool reservoir is adjacent to the established Joarcam Viking pool, the largest Viking hydrocarbon accumulation in Alberta, Canada. The prospect lands are located about 25 miles southeast of Edmonton, Alberta and there is year round access to the property.
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
Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB:SVSE.OB - News), visit our website at www.silverstarenergy.com.

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Source: Silver Star Energy, Inc.