REOS ReoStar Energy Corporation (PK)

ReoStar Energy Corp. (OTCBB: REOS) today announced that it completed the sale of its 30 percent interest in the Tri-County Gas Gathering System to Cimmarron Gathering, LP., an indirect wholly-owned subsidiary of Copano Energy, L.L.C. (Nasdaq: CPNO), for an approximately $15 million all cash transaction. Mark Zouvas, CEO of ReoStar indicated the following; �This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area. The original purpose of building and owning the pipeline was to insure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating, Inc., negotiated a new gas gathering contract that mitigates our original concerns. We are very pleased to have concluded the successful sale of our Tri-County interest with Cimmarron and its parent Copano Energy and look forward to a mutually beneficial relationship with these quality firms.� 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's assets include over 20,000 acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville), 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.