Looks like we are going to get the $5 million by months end.Let the drilling begin:
N e w s R e l e a s e
Petrostar Updates Shareholders on Previous Announcements
January 13, 2011 - Victoria, BC - Petrostar Petroleum Corp.(TSX-Venture: PEP; Frankfurt:
LMQ; “Petrostar” or “the Company”) would like to update itsshareholders as to the status of
announcements made in earlier Company news releases.
1. Regarding the $20 million financing deal with Capital CorpMerchant Bank (CCMB) of Orlando, Florida:
The terms of this agreement were first announced on September 7,2010 and updated on
September 29, 2010. The update stated that Capital Corp MerchantBank had begun its
due diligence as part of its final decision process for grantingthe financing to Petrostar.
This process was estimated to take 60 days, but has taken muchlonger than anticipated.
The update from CCMB states that the next step has been taken andall of the information
for third party valuation appraisal has been sent to AmericanAppraisal. American
Appraisal has offices in many countries around the world includingCanada. CCMB has
indicated that once a satisfactory final appraisal has beenreceived, CCMB will prepare
final closing documents for funding, which would then be filed withthe TSX Venture
Exchange for approval. This process is estimated to take 15 - 30days to complete. A
multi-well drill program on the Company’s Bakken area properties isplanned to start
once funding is completed. The Bakken project will then become ajoint venture project
between Petrostar and CCMB.
2. Regarding the sale of the Maidstone and Lashburn heavy oilproperties:
The terms of this agreement were first announced on September 29,2010. On October 15, 2010, it was announced that the sale for $1.3 million had notcompleted and the offer was withdrawn. At that time, managementdecided to accept new offers and market the two properties thatmade up the original deal as separate entities. The asking pricefor Maidstone was $750,000 and Lashburn was $550,000 totalling the$1.3 million. The Company is in discussion with two differentcompanies interested in the Maidstone property and one company interested in the Lashburn property.Petrostar will announce details of any deal upon completion.
3. Regarding the Electric Tank Heater (ETH) sale:
Further to the news release of October 8, 2010, Petrostar and itsETH distributor, King Energy, have received inquiries regarding the ETH and are workingon quotes for future sales. Some of the quotes are for specialized heating solutions fordifferent applications than what the ETH was originally designedfor, thus there is additional engineering that needs to becalculated and/or possible modifications needed to the heater tosuit individual client needs. These enquires are currently beingprocessed and further sales are expected. Petrostar’s Down HoleHeating Tool (DHT) is currently being reviewed by engineersassociated with King Energy. The DHT may require furtherengineering and design changes, therefore the DHT is not beingmarketed until the review is complete.
The Management of Petrostar wishes to thank its shareholders fortheir continued support and confidence while these projects worktoward their completion.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producercommitted to providing sustainable growth and value to itsshareholders through progressive production of heavy and medium oilproperties. The long-term objective of management is toaggressively seek properties with high potential that can beadvanced with minimum expenditures. The policy of the Company is tolower shareholders’ risk exposure at various stages of explorationby entering into joint ventures with third parties or acquiringprojects that the Company can operate as the soleowner-operator.
Petrostar is committed to advancing the use of “green technologies”where possible in the exploration and production of oil and gas.Petrostar and its partner, King Energy Distribution, are workingtogether to lessen overall emissions by developing, using anddistributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President |
