DALLAS, TX — (Marketwire) — 08/22/11 — Green Star Energies, Inc. (PINKSHEETS: GSRE) is pleased to announce that it has entered into an preliminary Agreement to execute a Reverse Merger with Questus Energy, LLC., a privately held oil and gas company. As part of the transaction Green Star will receive the rights to properties that cover approximately 1,100 acres in the Hawkeye and Midkiff Field in Eastland County, Texas, and are just south of Cisco, Texas. Of the 166 well bores on the property, 35 of the wellbores are equipped and ready for production. Most of the wells were drilled to and produced from the Adams Branch Sandstone.
The Adams Branch is a Pennsylvanian aged sandstone and a member of the Canyon group. On the Hawkeye and Midkiff leases, the Adams Branch is buried at a subsurface depth of approximately 1,200 feet. Additional potential in the fields exists in the marble Falls Limestone, Barnett Shale, and Ellenburger formation, all of which produce in Eastland County.
Gleason Engineering was commissioned by the previous owners of the fields to evaluate the properties in March of 2006. At that time Gleason estimated that Proved Reserves were 404,821 barrels of oil equivalent with a net present value (PV10) of $6.4 million using an oil price of $63.25 per barrel. No oil has been produced from the leases since the reserve report was prepared, so adjusting for a current oil price of $85.00 per barrel, the remaining 404,821 barrels of proved oil have a net present value of $10.8 million.
Green Star Energies will file appropriate paperwork with the Texas Railroad Commission to allow it to become the operator of the properties. The company intends to begin the process of permitting immediately with workover expected to begin within 45 days. The transaction is subject to board and shareholder approval.
This transaction will require an increase in authorized common stock. The company will be holding a special shareholder meeting and vote to seek the required approval. In addition, the company will be asking shareholders for permission to change the company name and trading symbol.
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
Green Star Energies, Inc.
Email:
Phone: 1-800-983-3586
Corporate Site:
5057 Keller Springs Road Suite 300
Addison, Texas 75001