SOURCE: Green Star Energies, Inc.

October 27, 2009 15:30 ET

Green Star Energies Finalizes Investment Agreement for Eberle #1

The Agreement Provides the Capital Necessary to Complete and Start to Produce From the Eberle #1

VANCOUVER, WA--(Marketwire - October 27, 2009) - Green Star Energies Inc. (PINKSHEETS: GSRE) has facilitated the final agreement with the partners and operator of the Eberle #1 Well in Bastrop County, Texas. A portion of the funding as approved by Jim Hale, the Project Manager (PM), has already been delivered to the operator to start operations.

Through the negotiations between Jim Hale, PM and the related parties the new investment in the amount of (up to) $100,000 will earn a 37.46 % working interest until a 300% return (initial investment + 200%) is received. Once the full principle plus interest has been paid back the working interest will be converted to 26.25%. Green Star's current interest in the project is 21.87%. Together the new working interest plus Green Star's current working interest is 59.33% of all initial production.

Under the guidance of Jim Hale, PM and consultation with the Stockholder Committee there have been careful considerations made in regards to the prices of natural gas (which have underperformed according to projections) and delays with land owner easements required for the pipeline. Recently drilling rigs have become readily available and reduced costs making investment into oil projects very lucrative compared to both the last couple years and natural gas at current market prices. Due to these factors the partners and PM agreed that it would be best to continue as originally planned to drill the remaining 700 - 900 feet to the original target depth where the well originally produced oil.

Historical data, as previously reported, verified the production source of oil from its original drillers at the point where they completed both target depth and fracturing in the 1980s. New technology is available compared to decades ago that, together with new techniques and materials, to allow the reduction of water ratios to maximize the return of oil production. The Eberle #1 has a test history of production of between 123 to 170 barrels of oil per day. After historical completion the lease holders shut in the well due to very low oil prices that were not economical then but are very profitable at current levels. While continuing to drill moves us out of the gas zone previously targeted, the operator said the fracturing done will in fact benefit the production in the original zone due to its proximity.

"I have arrived in Texas to prepare for operations and meet with special operatives and Eberle #1 investors. While I am in Texas I would like to make time to meet in person with any of our stockholders or investors who wish to visit the Eberle #1 site. This should present an opportunity for those who have had a desire to see their investment firsthand. Please contact the Company's office to inquire further," stated Brandon Toth, CEO.

ABOUT GREEN STAR ENERGIES, INC.

Green Star is an energy company with interests in oil and gas development and production. Green Star follows an aggressive business model, focusing on redevelopment of oil and gas fields with a history of production, and also, exploration of green projects and businesses such as biodiesel and wind power. Please visit our website: http://www.GreenStarEnergies.com

Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Green Star Energies, Inc.) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. These forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated. Please read the full disclaimer here: http://www.GreenStarEnergies.com/disclaimer.

Contact Information

  • Contact:
    Green Star Energies, Inc.
    Brandon Toth
    President
    Contact: 1-360-977-6820
    Email: Email Contact