SOURCE: ReoStar Energy Corporation

October 05, 2007 09:23 ET

ReoStar Energy Announces Acquisition and Addition to Management Team

FORT WORTH, TX--(Marketwire - October 5, 2007) - ReoStar Energy Corporation (OTCBB: REOS) announced today a purchase and sale agreement with Vern Wilson Energy Inc. (VWEI). The agreement provides for ReoStar to acquire all of the working interests in several oil and gas leases located in Texas and Louisiana, a service rig, and other equipment held by VWEI. ReoStar Energy agreed to pay VWEI $159,000 in cash and issue to VWEI 240,000 shares of its common stock.

In connection with the purchase of VWEI, ReoStar is pleased to announce that it has appointed Vern Wilson its Vice President of Operations. Mr. Wilson, a thirty year veteran of the oil and gas business and a certified petroleum engineer, brings exemplary credentials to the Company. His primary responsibility will be to lead the Company's re-development efforts in its Corsicana Field.

Mark Zouvas, CEO of ReoStar, stated, "We are very pleased to announce the acquisition of Vern Wilson Energy. This provides ReoStar with not only additional producing properties and equipment but personnel capital to expand our operations. The purchase solidifies our commitment and working relationship with Vern Wilson, who will head our Corsicana operations, and implement our alkaline surfactant polymer (ASP) flood in the field. We have found Mr. Wilson's 30 plus years of experience invaluable in our continued expansion and development of our Corsicana operations."

Vern Wilson has held positions in the oil and gas industry throughout the world including Nigeria and Libya and has owned and operated his own production companies throughout his career. He is a graduate of the University of Oklahoma and a Registered Professional Engineer in the State of Texas. He is also a member of Coren in Nigeria. He holds prior registrations in Saskatchewan and Alberta, Canada.

About ReoStar Energy Corporation

ReoStar Energy Corporation (OTCBB: REOS), headquartered in Fort Worth, Texas, is a oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects. The Company has vertically integrated its assets to remove potential obstacles to growth, which will enable it to develop and produce assets without the risk, cost and time involved in traditional exploration.

The Company's strategy is to acquire an attractive portfolio of oil reserves for a low cost, which have a high ratio of possible, probable or proven undeveloped reserves. By converting these undeveloped reserves into proved producing reserves, the Company will continue to realize an increase in the overall value at low risk and cost.

The Company's assets include over 20,000 acres of mineral leasehold located in Texas (Barnett & Corsicana) and Arkansas (Fayetteville). ReoStar's assemblage of E&P assets allows for appreciable, unimpeded growth into the foreseeable future.

Additional information is located on the company's website

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.

Contact Information

  • Company Contacts:
    ReoStar Energy Corporation
    Mark Zouvas

    For Investors:
    Mark McPartland