ReoStar to acquire acreage in the Barnett Shale

ReoStar Energy Corp. has begun enhancement of its Barnett Shale operations in an effort to further improve production and bolster its core acreage position.

The Company recently acquired an additional 710 acres in its core oil window while divesting 1738 lease acres outside of its current development area in an effort to focus on the growth of its expanded “cluster” drilling program. The 710 acres acquired adjoin the current primary development area. With this acquisition, ReoStar has now identified 230 drilling locations for future development in the oil window of the Barnett Shale. The early results of the “cluster” program have been very encouraging and the realignment of resources, equipment and manpower should yield more positive results.

Gas production for the last 30 days ended October 28, 2007 was up 16.5% over the prior period. Oil production for the same 30 day period was up 42.3%. Given the positive early production results, the Company has elected to retain a larger working interest in recent and future new wells.