REOS ReoStar Energy Corporation (PK)

ReoStar Energy Corp. (OTCBB: REOS) today provided an update of the Company�s Barnett Shale drilling operations, located in Cooke County and its redevelopment operations in Corsicana, Texas. Barnett Shale Operations Update New Production The Inglish D #7 reached a total depth of 8,790 feet after 20 days of drilling and was completed on April 7th using an improved version of the �mighty-acid� frac. The well was turned over to production on May 2, 2007 and production continues to improve as flowback water has been reduced. As of May 6, the well was producing 776 mcf/gas and 185 bbls/oil with a gas flow rate of 1,955 mcf. The Inglish D #6 has averaged 743 mcf/gas and 93 bbls/oil over the first 53 days of production, with nominal depletion in flow rate. ReoStar continues to sustain improved production results on recently completed vertical wells using its newly developed completion strategies. Recently, ongoing high gas line pressure has impeded the production potential of the area. The pipeline operator is addressing the issue by re-locating two 1,000 hp compressors to push the gas through the system more efficiently. This new configuration should be completed by the end of May and will significantly reduce line pressure and thus improving overall production. Drilling & Completion The Inglish #6 was spud on May 5th and is at a current depth of 6,000 feet. The Inglish D #9 will be fraced on May 12th. Intent to Drill The Inglish #7 has been permitted by the Texas Railroad Commission to follow the Inglish #6. Corsicana Operations Update The Company�s Corsicana operations have achieved two key milestones toward achieving production status. First, REOS received an exemption to the state wide rule prohibiting production swabbing on several of its leasehold properties. As a result of the hearing, its affiliate operator, Texas MOR, Inc. was granted the right to swab wells on certain leases that do not have access to the current power grid. Swabbing production can produce 300 to 500 barrels of incremental oil per month with two units operating full time. Pending weather conditions, ReoStar hopes to begin full time swabbing operation in the field within 30 days. Secondly, the Company has received an approval permit to inject its Alkaline-Surfactant-Polymer (ASP) flood in its King Pilot Flood. The permit, issued by the Texas Railroad Commission, marks a significant milestone in ReoStar�s efforts to test its redevelopment strategies on a potentially significant amount of in place, shallow reserves. Pending additional requirements, the ASP flood should commence on the Company�s pilot location in June of 2007. About ReoStar Energy Corporation ReoStar Energy Corporation, headquartered in Fort Worth, Texas, is a publicly traded (OTCBB:REOS) oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects. The Company has vertically integrated its assets to remove potential obstacles to growth, which will enable it to develop and produce assets without the risk, cost and time involved in traditional exploration. The Company's assets include over 20,000 acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville), pipeline infrastructure and drilling rig interests. ReoStar's assemblage of E&P assets allows for appreciable, unimpeded growth into the foreseeable future. Additional information is located on the company's website www.reostarenergy.com. 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.