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Truestar Petroleum
Corporation is a natural resources company, whose primary business is the
exploration, development and production of oil and gas properties, with its
primary assets located in the United States and Guatemala. Through its
wholly-owned and partially-owned subsidiaries, the Company also holds mining
interests in California and Nevada.
- is managed, low-risk, high reward oil &
gas opportunities.
- is restructuring to become a focused E&P oil
& gas business under the direction of Dick Shuster.
- operating strategy is to acquire core assets that
provide high internal rates of return on investments and cash flow.
Central to this strategy is the Acquisition of
development acreage that is 70 - 80% undeveloped and the opportunity to drive
profitability through the drill bit by developing high return proved and
probable undeveloped reserves.
After the sale of its gold assets, TrueStar
Petroleum Corporation, will have two core oil and gas assets:
a) the Newark East Gas
Field in the Barnett Shale, and
b) Guatemala License
A-2-92
On August 23, 2004 , the Company closed on the
acquisition of certain producing and non-producing oil and gas assets in
the Newark East Gas Field in Denton and Tarrant counties, Texas from Eagle Oil
& Gas Co. The initial purchase price effective March 1, 2004, was
US$14,002,000 plus adjustments for capital expenditures, revenues, expenses,
and hydrocarbon inventory over the period commencing March 1, 2004 and ending
on the date of closing. As of the closing date of August 23, 2004, the adjusted
purchase price was approximately $20,645,476.
The acquisition covered certain producing and
non-producing leasehold interests covering approximately 3,200 mineral acres,
including surface facilities, gathering systems, 19 producing vertical gas
wells, 8 producing horizontal gas wells, and the right to drill up to 4
additional developmental gas wells in the Newark East Gas Field in Denton and
Tarrant counties, Texas.
TrueStar Petroleum Corporation, through majority owned
Ceiba Petroleo SA, holds a 10% equity interest in Guatemalan Oil Production
Sharing Contract 4-93 and is also one of only 9 companies engaged in oil and
gas exploration and development in Guatemala.
PSC 4-93 encompasses 554,000 acres located in the
oil-rich Southern Peten Basin along the Mexico-Guatemala border. Successful
wells are located to the east, west and north of the license area.
TrueStar Petroleum Corporation's management will seek
to maximize shareholder value through the development of its existing assets
and through future acquisitions.
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