Jeremiah Desormeaux, President of Fortunate Energy, will remain in that capacity and continue to run the operation. "I believe that this is good fit between Fortunate Energy and Green Star," said Mr. Desormeaux. "As a local operator, we've had to rely on the limited pool of expertise in the area. Joining forces with Green Star provides us with much more in the form of resources and expertise available to develop the field."
The development plan will be broken into multiple phases. "Initial efforts will be focused on re-working the #1, #2 and #3 wells," stated Gabriel Prieto, COO of Green Star. "The second phase will be to re-work wells #4 and #5. Phase three will be to drill at least one, or possibly two, wells between wells #3 and #5 to exploit the sandbar reservoir that both wells produce from. In addition, there are two oil columns behind pipe that show on the log for the salt water disposal well that can be reached through lateral drilling from the #4 wellbore. We anticipate drilling to recover these reserves also. There are also possible drilling locations on the additional acreage that is available."
The wells are shallow, about 1,200 feet deep, and were all drilled in the early 1980's. Initial production varied between 9.7 barrels of oil per day and 36 barrels of oil per day. In 2007 the wells were shut-in following a personal tragedy in the family of the operator at the time. Fortunate Energy acquired the lease in 2010 and has invested in equipment and infrastructure in order to begin to bring the wells back online. The company is in the process of gathering bids and lining up vendors for the anticipated work.
"This is the first step of a new life for Green Star Energies under our new management team," said Steve Rackley, CEO of Green Star Energies. "We are very pleased with this agreement to acquire a majority interest in Fortunate Energy. We believe that there is substantial opportunity for growth on the current lease as well as in the general area. Our goal will be to re-work the existing wells and develop combined production of between 15 to 20 barrels per day. We look forward to sharing additional information on this and other projects in the near future."
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