Green Star Energies Releases Information About Questus Energy, LLC
When the transaction is completed, Green Star Energies will emerge with four significant oil and gas properties. The first, approximately 1,000 acres of leasehold in the East Texas Field was originally developed by Amoco in the 1940s and has produced 21 million barrels of oil to date. The East Texas Field has average well production rates of 3.8 barrels of oil per day per well. There are 133 wells, all currently shut-in, that provide workover opportunities.
The second property is in a prolific producing region of the Western Appalachian Basin and has the potential to produce from multiple formations including the Huron Shale. This property was developed by a new subsidiary of a very large company as a diversification from their primary business of mobile application software. The company has drilled 300 gas wells and they are awaiting completion and hook-up for production. There are also 75 oil wells, of which 25 are producing and cash flowing, that offer a workover upside opportunity. The property was divested so that they could return to its core business in 2011. In addition to the oil and gas wells, there is 50% ownership of a six-inch, 115 mile gas distribution pipeline. The pipeline assets will provide significant value by allowing Green Star to participate in the value of neighboring development by other operators.
The third property is the Canadian River Properties. The Properties are in a prolific producing region of the Panhandle Hugoton Gas Complex, the largest gas field in the United States. It was originally developed by a 100 year old privately held company in the land, timber and exploration business who has recently decided to return to their core chemical and timber businesses. The property consists of approximately 6,500 acres with 115 oil and gas wells awaiting completion and hook-up. Of these, 91 are oil wells, 8 are gas wells and 16 are disposal wells. There are currently 8 wells that are producing and generating a net cash flow of over $7,000 per month. Due to the high BTU content of the gas, the company expects to receive a premium above the standard market rate for gas.
The fourth property is located in Central West Texas, just 10 miles south of Cisco, Texas. There are 166 wells on 1,100 acres comprised of two leases on this property. The field has experienced shallow production at average depth of 1,200 feet. Of the 166 oil and gas wells awaiting completion and hook-up, 35 of the wellbores are equipped and ready for production. The acreage is located in a trend that also has the Barnett Shale Combo play upside potential.
The company has arranged for developmental financing of all of the properties and expects to commence workover immediately after receiving approval from state regulatory agencies.
The acquisition has been approved by the Green Star Board of Directors pending an increase in the authorized common stock to allow for the acquisition. Shareholders are urged to approve the proposal. A shareholder meeting and proxy vote has been scheduled.
For additional information, visit the company's website at www.greenstarenergies.com.
ABOUT GREEN STAR ENERGIES, INC.
Green Star Energies, Inc. is currently targeting joint ventures or acquisitions in which existing oil projects are currently in or near term production. Additional information about the company and its holdings may be found on the company website at www.greenstarenergies.com
Legal Notice Regarding Forward-Looking Statements:
This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Green Star Energies, Inc. to be materially different from the statements made herein. Except for any obligation under the U.S. federal securities laws, Green Star Energies, Inc. undertakes no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise.
Green Star Energies, Inc.
Source: Green Star Energies, Inc.
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