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

To: Natedog who wrote (1222)	5/20/1999 11:03:00 AM
From: Gord Bolton	Respond to of 1326

If THE can pick up some producing assets they can afford to wait for Winfield and or put up cash for a new well if neccessary.

To: Natedog who wrote (1222)	5/20/1999 11:27:00 AM
From: Gord Bolton	Respond to of 1326

Thursday May 20, 10:25 am Eastern Time Company Press Release SOURCE: Newstar Resources Inc. Newstar Resources Inc. Announces Joint Venture Arrangement to Develop Madisonville, Texas MONROE, Mich., May 20 /PRNewswire/ -- Newstar Resources Inc. announces that it has signed a letter of intent with T&H Resources Ltd., to develop its shallow Madisonville, Texas acreage. The formations targeted will be the Glen Rose and Georgetown. Pursuant to the terms of the joint venture arrangement, T&H will pay 100% of the estimated $1.4 million cost to drill, complete and equip a horizontal well to test the Glen Rose formation. T&H also commits to pay 100% of the cost to drill, complete & equip a horizontal well to the Georgetown Formation. The Georgetown operation could encompass drilling a horizontal well from a new vertical well bore or by using the vertical section of the Glen Rose well bore. By funding the two operations, T&H will earn 50% of Newstar's interest in the project. Prior to T&H recouping its costs, Newstar will receive an approximate 15% royalty interest and T&H 100% of the working interest in all oil and gas revenues. After T&H receives payout, proceeds shall be 50% for the account of T&H and 50% for the account of Newstar. Newstar and T&H anticipate spudding the initial well on or about the 15th of July 1999. The joint venture arrangement is subject to Chapter 11 Bankruptcy Court approval. 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. SOURCE: Newstar Resources Inc.

To: Natedog who wrote (1222)	5/20/1999 11:53:00 AM
From: Gord Bolton	Read Replies (1) \| Respond to of 1326

T&H Signs Letter of Agreement to Madisonville, Texas Project with Newstar Resources Inc. Listed: TSE Symbol: THE Shares Issued: 35,169,245 TORONTO, May 20 /CNW/ - T & H Resources Ltd. (''T&H'') is pleased to announce that it has signed a letter of understanding with Newstar Resources Inc. (NER-TSE) through its subsidiaries, Newstar Energy USA, Inc. and Newstar Energy of Texas, LLC (''Newstar'') to develop Newstar's Madisonville, Texas acreage. The Formations targeted will be the Glen Rose and Georgetown. Pursuant to the terms of a letter of agreement, T&H will pay 100% of the estimated US$1.4 million cost to drill, complete and equip a horizontal well to test the Glen Rose formation. T&H also commits to pay 100% of the cost to drill, complete & equip a horizontal well to the Georgetown Formation. The Georgetown operation could encompass drilling a horizontal well from a new vertical well bore or by using the vertical section of the Glen Rose well bore. By funding the two operations, T&H will earn 50% of Newstar's interest in Madisonville in all formations. Prior to T&H recouping its costs, Newstar will receive a sliding scale royalty to a maximum 15% royalty interest and T&H 100% of the working interest in all oil and gas revenues. After T&H receives payout, proceeds shall be 50% for the account of T&H and 50% for the account of Newstar. Newstar and T&H anticipate spudding the initial well on or about the 15th of July 1999. The agreement is subject to regulatory approvals and necessary financing. T&H understands that Newstar is in Chapter 11 and the terms of the agreement may be subject to court appproval of the US Bankruptcy Court. T&H also reports its participation in a deep Ellenburger Formation project in Pecos County, Texas located between the Gomez and Pucket gas fields each of which have produced several trillion cubic feet of natural gas. T&H has a 20% working interest in the initial well drilled on the prospect, the Winfield Ranch well. The well was drilled to 25,740 feet and encountered 1,100 feet gross feet of fractured Ellenburger dolomite reservoir. Production casing was run, however when attempting to clean out the casing prior to completing the pay zone a rental drilling string failed. Attempts at fishing out the drill string were unsuccessful. Consequently the well has been suspended pending a satisfactory resolution of the problem with Weatherford International,Inc., from whom the failed drilling string was rented, and their insurance carrier. Negotiations during February with Weatherford and their insurance carrier were unsuccessful resulting in a law suit being filed against them in Pecos County, Texas. ''John A. Pollock'' President -30-