FORT WORTH, TX--(MARKET WIRE)--Aug 19, 2008 -- ReoStar Energy Corp. (OTC BB:REOS.OB - News) announced results of operations for the First Quarter Fiscal Year 2009, ended June 30, 2008.

 
Highlights of the Fiscal 2009 First Quarter

-- Oil and Gas revenues increased 338% to $2.7 million versus $813
   thousand for the previous first quarter
-- Oil Production increases 215% to 14,630 barrels versus 6,830 for the
   previous  first quarter
-- Natural gas production increases 164% to 109,755 mcf versus 66,815
   for the previous first quarter

First Quarter Fiscal Year 2009 Financial Review and Production Summary

Oil and gas revenues for the first quarter fiscal year 2009 were $2,752,747, compared with $813,924 for the first quarter of the previous year, an increase of 338%. Total costs and expenses increased approximately 46% to $1.7 million, and operating income was $1.2 million compared to a loss of $325 thousand for the first quarter of the previous year. Total operating costs and expenses increased primarily due to the increased number of producing wells and higher retained working interest per well.

During the first quarter ended June 30, 2008, ReoStar sold approximately 14,630 barrels of oil compared with 6,830 barrels of oil for the quarter ended June 30, 2007, an increase of approximately 215%. The average price for oil sold during the quarter ended June 30, 2008 was $123.01 per barrel compared the average price for the quarter ended June 30, 2007 of $61.06 per barrel.

ReoStar sold approximately 109,755 mcf of gas for the quarter ended June 30, 2008 compared with 66,815 mcf of gas for the quarter ended June 30, 2007, an increase of approximately 164%. The average price for natural gas sold during the quarter ended June 30, 2008 was $8.68 per mcf (net of transportation, compression and CO2 charges) compared with $5.94 per mcf for the quarter ended June 30, 2007.

Mark Zouvas, CEO of ReoStar, stated, "We are very pleased with our operational and financial performance during the first quarter. Our Barnett Shale properties continue to deliver positive returns on our investment and remain the focal point for generating cash flow for expanding our operations."

About ReoStar Energy Corporation

ReoStar Energy Corporation (OTC BB:REOS.OB - News), headquartered in Fort Worth, Texas, is an 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 strategy is to acquire an attractive portfolio of oil reserves for a low cost, which have a high ratio of possible, probable or proven undeveloped reserves. By converting these undeveloped reserves into proved producing reserves, the Company will continue to realize an increase in the overall value at low risk and cost.

The Company's assets include approximately 20,000 gross (16,250 net) acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville). 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.

     Contact:
     ReoStar Energy Corporation
     Mark Zouvas
     817.989.7367