Research, Report & Profiling Services by IPOdesktop.com American Stellar Energy, Inc. Stock symbol: AMRS.PK …….…..………………………..Float : 25.3 million shares

Stock price 12/3/04: $.08………………,,,…….Common shares (12/3/04): 50 million

52-week price range: $.04 - $.15……….…Equity market capitalization: $4.0 million

Recent News …. Stock Price …. Chart …. SEC Filings Listen to the Interview with Richard Biscan December 4, 2004

BUSINESS

AMRS’s objectives are;

To seek out and define low risk Oil & Gas exploration opportunities

To generate significant cash flow and profit from operations

To engage in new opportunities as cash flow increases

To become a fully reporting OTC.BB company, 2002 and 2003 audited financials to be posted shortly

HIGHLIGHTS

1000 acres of low risk acreage under control

3 successful wells have been drilled with excellent economics

Wells have low daily operating costs of less than barrel/day

Intends to drill a total of 50 wells on the Pecan Gap property (see below)

Should have the capability after two more wells of drilling two wells per month for two months, then four to six wells per month until fully developed

Right of First Refusal with Armen Energy, LLC on all projects generated by Armen

RECENT DEVELOPMENTS

First large sale of oil for the company (11-23-04 News Release)

Struther's Micro Cap Report: http://www.playstocks.net/Nov-amrs.htm

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Address: Chicago, IL

Telephone Tel: 630-462-2079

CEO: Francis R. Biscan Jr., acornholdings@comcast.net

Web Site: http://www.americanstellarenergy.com

State or other jurisdiction of incorporation or organization: Nevada

Transfer Agent: Holladay Stock Transfer, Scottsdale, AZ

Investor contact: Francis R. Biscan Jr., 630-462-2079, acornholdings@comcast.net

Clayton Smith, IR, (971) 506-9156

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PECAN GAP summary

History

The Development zone, known as Pecan Gap (1,700 ft deep) is a very low risk play as it is known to hold and produce oil. In the 1950's the zone flowed oil naturally with initial production rates from 76 bopd to 2 bopd from numerous wells surrounding the location and on the prospect acreage. The Pecan Gap formation has seen wells in the early days IP as high as 3,500 bopd. Most of the Pecan Gap zone has not been exploited using modern day technologies.

Application of New Technology

By applying modern fracturing completion and stimulation technologies to Pecan Gap (an old tight oil zone) one can expect at least a two to four fold increase of initial production rates, as compared to naturally flowing oil. Expected potential production from a successful well is estimated at 15 to 40 bopd, per well, from the Pecan Gap zone, with an above average chance of success to complete and produce oil, an estimated 90% success rate.

The Technologies

The GasGun http://thegasgun.com/

Create multiple radial fractures extending 10 to 50 feet from the wellbore. Minimal vertical growth avoids problems often associated with hydraulic fracturing.

Prepare well for hydraulic fracturing by breaking down formation first with the GasGun. Treating pressures are often dramatically reduced.

Hydraulic Sand Fracing

Sand is mixed with oil that is hydraulically pumped into the formation using pressures up to 4000 psi which combines to fracture the formation and carry the sand into the fractures. The fractured rock then settles around the sand and allows oil to more easily migrate to the well bore.

Layered Technologies

A term for using one technology on top of another; In this case allows for a far greater degree of uniformity and direction with regards to the fracturing of the formation. After using the Gas Gun, the Hydraulic Sand Frac is fracturing the formation at around 800 psi (pounds per square inch) rather than the expected 2-4000 psi with a far greater drainage area being the result.

PECAN CAP POSSIBILITIES

50 well potential, 15-40 barrels a day per well potential

Better then 90% chance of success expected

Low operating cost per well of approximately $27 per day

If all 50 wells produce just 20 barrels a day, the potential annual net cash flow to AMRS is $4.6 million, with oil at $40 per barrel

Additional acreage could be acquired

PECAN GAP DRILLING COSTS

For AMRS (50% of costs outlined below)

$25,000 if it’s a dry hole

$70-$80,000 if it’s a producing well

AMRS retains a 45% working interest in each well

GROWTH PLAN

Create cash flow

Stop stock dilution

Develop from cash flow

Acquire additional prospects

EXPLORATION AGREEMENTS

ARMS has an agreement with Armen Energy LLC, providing it with an option to acquire a 50% working interest in Pecan Gap, an oil and gas prospect, located in Corsicana, Texas. The Corsicana Field Pecan Gap Prospect consists of 1000 acres and provides a low cost opportunity to develop known oil bearing rocks under a shallow old oil field. The area is resource rich, having produced over 250 million barrels of oil already from shallow oil sands within a 6-mile radius of the prospect acreage. The acreage is in a structurally high "good" position to test three oil-bearing zones. All zones have produced oil, or have oil shows downdip in surrounding wells. Seismic shows good structural position to trap oil and gas in deeper zones.

Armen Energy LLC, is a privately held company in which Francis R. Biscan, President of American Stellar Energy Inc., is a minority shareholder. Armen Energy is run by veteran oil and gas specialist Jerry Witte. American Stellar Energy has also negotiated an additional agreement with Armen Energy that offers it a "first right of refusal" on all business opportunities that Armen Energy may generate.

COMPARABLE COMPANY

KOKO Petroleum (KKPT.PK) is an equal partner with ARMS in Pecan Gap

KKPT's approximate market cap is $26 million at $.75 per share, compared to $4.0 million for AMRS

MANAGEMENT

Francis R. Biscan Jr.

President, CEO and Director American Stellar Energy, Inc.

In the last 8 years Mr. Biscan has worked with various public companies, in the area of business consulting, structuring, mergers & acquisitions, and finance. He has served as a director for Latitude Minerals, a public mining company, and in numerous outside advisory roles. He has also served on the Board of Timothy Christian Schools. Clifford A. Brown CFO ans Director American Stellar Energy, Inc. Mr. Brown graduated from Northern Illinois University in 1980 with a B.S. in Accountancy and passed the Illinois Certified Public Accounts’ exam in 1981. He worked as an auditor for Arthur Andersen & Co in Chicago until 1983 when he left public accounting and became the controller for two successive private businesses. In 1985, Mr. Brown joined The Software Spectrum, Inc., a Dallas based accounting software sales and consulting firm to launch a regional office.  Mr. Brown left the firm in 1989 to start his own accounting software sales and consulting company, Clifford A. Brown and Co., a Certified Microsoft Partner, in which he continues as president. Mr. Brown has served as the Treasurer and Board Member of Restoration Ministries, Inc. for the past 10 years. Restoration Ministries is a not-for-profit corporation based in Harvey, Illinois with 33 different ministries to the inner city. Revenues have grown from $150,000 in 1993 to $1,380,000 in 2003. Mr. Brown also serves as the Winfield Township Clerk and the Vice-chairman of  his local political party.

Alfonso Sean Saavedra

Director American Stellar Energy, Inc.

Mr. Alfonso Sean Saavedra is a resident of Sylmar, California and has been successfully involved in the Real Estate and Land Development Industry for over 13 years. Some of his achievements include the award winning energy efficient community of "Village Green" in Sylmar, CA. This community garnered several awards including recognition by President Bill Clinton and Vice President Al Gore as well as a Department of Energy Award.

Alexander Anderson

Secretary, Treasurer, and Director American Stellar Energy, Inc.

Mr. Alexander Anderson has worked in banking for 32 years. Provided consulting services for 8 years and served as an officer or director for numerous companies.

Jerry Witte

Geologist, Armen Energy, LLC

Mr.Witte is an oil and gas geologist with Armen Energy LLC. who has twenty three years experience. He has a diverse background in geophysics, geochemistry, petrophysics, exploitation, reserves and reservoir mapping, and risk reduction technologies (RRT). Armen Energy is based in San Antonio, Texas. Armen has 20 years experience in the development, exploration and recovery of coal bed methane in the S.E United States and over 30 years experience in other oil and gas development. Mr. Witte began his career with Reservoirs Inc. in 1979 and moved to Gulf Oil in 1982 as development and enhanced recovery geologist. From 1985 to 1998 he was team leader and project manager for Sonat Exploration, now a multi-billion dollar public company. He directed Sonat's initial phase of acquisition, over $300 million dollars spent while more than doubling the companies reserve base, 300+ development wells drilled with 90% success. While at Sonat, special projects were Coal Bed Geology, a re-evaluation of a coal bed methane (CBM) property, with the outcome being a reversal in attitude, resulting in a major acquisition and 300 plus new CBM wells, after post CBM tax credits deadline. CBM production now accounts for over 30% of El Paso/Sonat's onshore production. After Sonat, from 1998-1999, Mr. Witte was VP Exploration for Power Exploration, a start-up company focusing on using RRT as recon exploration tools and then confirming with traditional exploration technologies. 2000 at FEI Exploration, Independent, generating prospects using Risk Reduction Technologies (RRT). 2001 at TriLucent Technologies, President and technical scientist in a start-up publicly traded company, utilizing remote sensing, radar based hydrocarbon identification and computer aided exploration technologies for resource development. Since 2002 he has worked as an independent at Armen Energy LLC.

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