ADDISON, Texas, Feb. 2, 2011 /PRNewswire/ -- Green Star Energies, Inc. (Pink Sheets: GSRE) is pleased to announce the acquisition of DCD Operating, Inc. (DCDO) based in Gillette, Wyoming in an all-stock transaction. DCDO is the owner/operator of 5 fields in Campbell County, Wyoming, which currently produces 25 BOPD from 10 wells out of 28 representing 1,980,000 barrels of oil on leases covering 6,000 acres within the Powder River Basin.
DCDO is a reorganization of DCD, Inc., which ranked #768 out of 8,608 active lessees in 12 Western US States, based on total acres leased. They were one of the top (38) operators filing permits in the Powder River Basin in 2001. The majority of their leases and oil & gas production are contained within the Muddy Sandstone of the Lower Cretaceous Stratigraphic area. From the USGS' Assessment of Undiscovered Oil and Gas Resources of the Powder River Basin Province of Wyoming and Montana, 2002, the Muddy Sandstone field's 1996 figures are 59.10 (MMBO million barrel of oil) of un-recovered oil reserves.
Green Star welcomes Donald Cross and Tyrone Williams who will continue to serve as the CEO and CFO respectively of DCDO. Mr. Cross has been in the oil patch for the past 35 years and has been involved in the drilling and re-completion of over 150 oil & gas wells. Mr. Williams has been a real estate and energy executive with over 13 years of experience. As per the terms of the agreement management has been offered a long-term profit sharing plan with milestones set from 50 BOPD to 250 BOPD based on projected production from these oil fields.
The Wyoming leases held by DCDO have spacing for up to another 150 wells that can be drilled in this reservoir. A plan has been prepared with Green Star Energies to immediately begin improvements to the 10 current producers as well as the 18 shut in wells that are available to reactivate and re-work. DCDO's development plan includes the use of a hot air injection technology to pressurize the reservoir and increase the ability for the oil to flow into existing well bores. DCDO has tested this on a limited basis in this field and was able to improve production to over 10 BOPD per well during the test.
This transaction is subject to final due diligence which includes independent review of historical reserves, the current and past production and an onsite visit which is currently being scheduled. For additional information please view filings with OTC Markets of all applicable agreements anticipated to be posted once the submission has been approved.
ABOUT GREEN STAR ENERGIES, INC.
Green Star Energies, Inc. is currently targeting joint ventures or acquisitions in which existing oil projects are currently in or near term production. Green Star owns producing oil wells in Oklahoma as well as Louisiana through its ownership in Aeon Holdings.
Email: [email protected] | Phone: 1-888-270-0027
Corporate Site: http://GreenStarEnergies.com | IR Site: http://PeakPetro.com
5057 Keller Springs Road Suite 300 Addison, Texas 75001
SOURCE Green Star Energies, Inc.