ADDISON, Texas, April 12, 2011 /PRNewswire/ -- Green Star Energies, Inc. (Pink Sheets: GSRE) announced that the reverse merger with North Texas Energy was not completed. CEO Steve Rackley stated, "Gabriel Prieto and I were both hired by the principals of North Texas Energy immediately prior to the proposed date of the merger of North Texas Energy with Green Star Energies. Neither one of us had any previous knowledge of either North Texas Energy or Green Star Energies prior to accepting the positions; nor had we ever met or spoken to any of the previous officers or management of Green Star Energies. We were told Green Star Energies was a distressed oil company, but the debt that held it back was being settled and the company's balance sheet was soon to be cleaned. We were also told that there would be significant assets contributed by North Texas Energy into the deal that would allow for our growth."
"Once onboard and aware of the merger, we started doing serious due diligence on the assets that were to be exchanged for shares of Green Star Energies as a result of the merger. We disagreed with the principals of North Texas Energy, the very principals that had hired us, regarding the value of the assets that they were placing with Green Star in exchange for a significant amount of shares. We have a fiduciary responsibility to protect the shareholders of the company. This deal did not meet the criteria that we have established for our acquisitions, so we told the principals of NTE that we would not consummate the merger and that they would not receive any shares in the company," said Mr. Rackley.
The company has also announced today that the letters of intent for acquisition of DCD Operating in Wyoming and the California Creek Field in Oklahoma have been withdrawn. "We wanted to take a very close look at the opportunities that these projects presented. That's why we executed the letter of intent for each of them. Ultimately, we could not reach terms that we felt would be satisfactory for our shareholders," Mr. Rackley said.
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. Additional information about the company and its holdings may be found on the company website at www.greenstarenergies.com
SOURCE Green Star Energies, Inc.