Green Star Energies to Acquire Majority Interest in Fortunate Energy, LLC
Feb 24, 2011, 09:30 ET
ADDISON, Texas, Feb. 24, 2011 /PRNewswire/ -- Green Star Energies, Inc. (Pink Sheets: GSRE) is pleased to announce they entered into a preliminary agreement with Fortunate Energy, LLC to acquire 80% of the company. Fortunate Energy was formed in 2010 to acquire and exploit the E. J. Robicheaux lease in St. Mary's Parish, Louisiana. The lease is approximately 20 acres with an 80 acre option and consists of five (5) oil wells and one (1) salt water disposal well. 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 tragedy in the operators family.
Fortunate Energy acquired the lease in 2010 and has invested significantly in equipment and infrastructure in order to bring the wells back online. "After visiting the site and meeting with the management of Fortunate Energy, I understand why they feel so strongly about the opportunity of this lease." stated Steve Rackley, CEO of Green Star Energies. "There is an opportunity to bring back combined production to the 15 to 20 barrel per day level. In addition, there are multiple drilling opportunities on the leases. When these wells were initially drilled in the early 1980's they had initial production of between 9.7 and 36 barrels of oil per day. The decline curve is not very steep and the edge of the productive field at this level has not clearly been defined. For these reasons we feel that this is an excellent opportunity for our company to invest in order to increase shareholder value."
Green Star management has visited the leases and is in the process of completing due diligence with the intent to close the transaction quickly.
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 it's holdings may be found on the company website at www.greenstarenergies.com
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.
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