MERGERS-ACQUISITIONS / Gold Star Energy Inc. Announces Closing
of Acquisition in Argentina and Special Warrants
Private placement.
ASE SYMBOL: GSN
MAY 25, 1998
CALGARY, ALBERTA--Gold Star Energy Inc. ("Gold Star") (GSN - ASE)
is pleased to announce that it has closed the acquisition of two
oil concessions in Argentina, as announced on January 14 and March
25, 1998.
Gross production of the Puesto Guardian block averaged 770 BOPD to
date in May, 1998, 308 BOPD net to Gold Star. Gold Star, as
technical operator of the concession, is presently planning and
evaluating a number of workover candidates in the Puesto Guardian
block.
Gold Star also announced today that it has completed the initial
closing of 11,501,314 Special Warrants, as announced March 25,
1998, resulting in gross proceeds of approximately $4,025,000.
Gold Star intends to accept subscriptions for Special Warrants
from eligible investors until May 29, 1998. Each Special Warrant
will entitle the holder to one unit without payment of additional
consideration, each unit consisting of one common share and one
half of one common share purchase warrant. Each whole warrant
will entitle the holder to purchase one common share at any time
on or before November 20, 1999, at a price of $0.50 per share.
The net proceeds of the offering have and will be used to repay
interim financing secured to complete the acquisition and fund
exploitation projects on the concessions.
The shareholders of Gold Star at the annual general and special
meeting of its shareholders on May 8, 1998, approved the proposal
to consolidate its issued common shares on the basis of one new
common share for each three old common shares held and
concurrently change its name to "Netherfield Energy Corp.". The
proposed share consolidation and name change will be effected
immediately after the final closing of the special warrants
offering.
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