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Gold/Mining/Energy : 25,740' WINFIELD RANCH JV PARTNERS -- Ignore unavailable to you. Want to Upgrade?

To: Natedog who wrote (1218)	5/20/1999 10:47:00 AM
From: Gord Bolton	Read Replies (2) \| Respond to of 1326

Newstar was halted at the same time. This is Newstar's news from yesterday. Newstar Resources Inc Announces Extension to File Financial Statements MONROE, Mich., May 19 /CNW/ -- Newstar Resources Inc (Nasdaq: NERIF; Toronto: NER) announces that it is not able, at this time, to present annual audited consolidated financial statements for its year ended December 31, 1998 (the ''1998 Annual Financial Statements'') or quarterly audited consolidated financial statements for its quarter ended March 31, 1999 (the ''First Quarter Interim Financial Statements'') for the following reasons: -- Effective April 1, 1999 the Company's wholly-owned subsidiary, Newstar Energy U.S.A., Inc. (''Newstar Energy''), and Newstar Energy's 90% owned subsidiary, Newstar Energy of Texas, LLC (''Newstar Texas'') filed bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code (the ''Code''). -- Sufficient funds were not available prior to April 1, 1999 to permit the preparation of the 1998 Annual Financial Statements. -- Newstar Energy and Newstar Texas have been negotiating with creditors the terms of a plan of reorganization, which was presented, to the bankruptcy court on April 28, 1999. -- As part of the reorganization, the Company, Newstar Energy and Newstar Texas (collectively, ''Newstar'') have closed their Ohio and Texas field offices, are pursuing divestitures of non-core properties and are negotiating financing or joint venture arrangements to assist them in continuing the development of their core properties, resulting in additional funds being made available to Newstar. -- A motion of the creditors of Newstar (the ''Motion'') authorizing the release of sufficient funds currently held in escrow to permit the preparation of independent reserve reports with respect to Newstar's oil and gas properties (the ''Reserve Reports''), and the preparation of the 1998 Annual Financial Statements and the First Quarter Interim Financial Statements, among other matters, is expected to be approved on or prior to June 14, 1999. -- The Company has not yet prepared the 1998 Annual Financial Statements or the First Quarter Interim Financial Statements as the Company's ability to obtain the Reserve Reports and prepare such financial statements is dependent upon the creditors of Newstar approving the Motion which is not expected to be approved until after the May 20, 1999 and May 31, 1999 respective deadline dates under applicable securities laws. -- An Order has been issued by the Ontario Securities Commission and an application has been filed with the Alberta Securities Commission granting additional time to the Company to obtain the Reserve Reports necessary to prepare the 1998 Annual Financial Statements and First Quarter Interim Financial Statements and to file and disseminate such financial statements to its shareholders. Assuming the creditors of Newstar approve the Motion on or before June 14, 1999, the Company will send to its shareholders the 1998 Annual Financial Statements and the First Quarter Interim Financial Statements on or prior to July 15, 1999. Michigan-based Newstar Resources Inc. is an independent natural gas and oil exploration and production company with operations in Michigan, Ohio and Texas. The Company is listed on The Toronto Stock Exchange under the symbol NER. Newstar cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such factors including, but not limited to, volatility of oil and gas prices, product demand, market competition, imprecision of reserve estimates, the Company's ability to replace and expand oil and gas reserves, and other risks detailed herein and from time to time in the Securities and Exchange Commissions filings of the Company. %SEDAR: 00004128E -30- Looks like Newstar kind of choked on the low oil and gas prices last year. Might be a good deal for THE.