FOUNTAIN VALLEY, CA--(Marketwire - February 21, 2011) - CoreStream Energy, Inc. (
As a result of the new financial commitments, the Company is in active, late-stage negotiations for 3 multi-well oil opportunities. These projects are located in Kansas, Kentucky and Louisiana. Each of the projects is currently in production with negotiations expected to be finalized in the next 30-60 days. While negotiations are in progress at this time there are no guarantees of their success. Success will be contingent upon the Company completing its due diligence and achieving a positive evaluation for each project. The Company will provide an update and details if positive conclusions are reached. The funding discussed above contributes significantly to these acquisitions.
To maximize its effectiveness on these new and future opportunities, the Company has retained Mr. Kenneth Sonesen as the Superintendent of Field Operations. Mr. Sonesen has over 25 years of experience in both land and offshore oil projects and will play a significant role in the evaluation and management of the Company's opportunities and operations. Mr. Sonesen has a degree in Marine Engineering specializing in fluid and oil management along with a minor in Geology. Mr. Sonesen attended the Norwegian Naval Academy in Horten, Norway. His experience includes working with Statoil and helping to develop Oseberg C from inception. Oseberg C is the crown jewel of Statoil's fleet of offshore wells in the North Sea. He has also worked with TransOcean and other leaders in North Sea offshore exploration and drilling and with European land-based drilling projects. On the North American continent he has worked on shallow and deep well drilling and operations management. Mr. Sonesen has already presented two projects that the Company is negotiating. The Company looks forward to working with Mr. Sonesen and to all the contributions he will bring.
In addition to Mr. Sonesen, the Board of Directors of CoreStream Energy, Inc. has appointed Milton C. Ault III as a member and its Chairman and as the Company's CEO and President. Mr. Lewis V. Graham has been appointed Chief Operating Officer. Mr. Graham continues in his capacity as the Corporate Secretary.
Mr. Ault brings over twenty-one years' experience in various aspects of the Oil and Gas Industry including capital formation, finance and trading which are directly applicable to the identification, analysis, investment, and operational objectives of CoreStream Energy, Inc. and its plans for future growth. More complete descriptions of Mr. Ault's and Mr. Graham's relevant business experiences can be found in the recent 8K.
Effective February 12, Chris Rainbolt resigned as a member and Chairman of the Board of Directors and as CEO and President of CoreStream Energy to pursue other business activities. Kevin Adkins resigned the same day as a Director and the Treasurer of the Company for similar reasons. Mr. Rainbolt has been a strong influence in the shift of the Company direction to the energy sector and creating a strong foundation in the industry. There were no known disagreements relative to corporate policies or the activities of Mr. Rainbolt or Mr. Adkins that precipitated their decisions. The Company will remain dedicated to oil and gas and it is expected that Mr. Rainbolt will work with the Company from time to time on items of mutual interest. The Company thanks Mr. Rainbolt and Mr. Adkins for their contributions to the Company and wishes each of them success with their future endeavors.
Mr. Ault said, "Our investors can be assured that we will continue to concentrate on expanding the energy program we began last year. As our primary corporate activity, significant progress has been made to line up funding sources and secure new opportunities. We are committed 100% to the growth and development of CoreStream Energy. We have shown our investors considerable progress on all fronts, and will continue to do so in the coming weeks. We continue to expand and cultivate relationships with recognized energy experts who will advise us in the field. The Company expects to see a significant acceleration in its growth in 2011 based on changes in the marketplace, emerging new opportunities and the active interest expressed by funding partners."
As a demonstration of its commitment to the oil and gas business model, the Company has renewed its effort for the expeditious change of its trading symbol and to create a comprehensive new website.
The Company would also like to take this opportunity to update its investors on a few areas of interest and address some of the common questions received.
With respect to State Lease #2, the well is expected to be completed and production begun in the next few weeks. The bad weather in the area has been the reason for the delay. CoreStream is part of a partnership which, by drilling State Lease #2 in 2010, has the rights to 1600 acres in this area of proven reserves and success. CoreStream will enjoy a minimum 4% working interest in the current well, and has the right of participation in any of the wells in the project area over time. The cost of development and operation of each future well will be proportionate to the Company's participation. The partnership will determine when to commit to future wells. More information about the well and its expected performance, along with future activity, will be shared when such facts are known.
As previously reported the start of the proposed well known as Sanders #1 continues to be forecast for late Spring when conditions will allow for it at Catahoula Lake, LA. The Company has received no further update on this project at this time.
Gary Patterson has been retained to be the Company's consulting Manager of Investor Relations. His contact information can be found at the bottom of this press release.
The Company does not see any need to and it does not have any plans to do a reverse split of the common shares in 2011. As of January 10, 2011 the Company's current common stock share structure is 1.5B authorized shares and 1,390,162,856 outstanding shares. Increases in shares issued have resulted from extraordinary opportunities to settle outstanding legacy debt and the Company will continue to be opportunistic at issuing equity to pay off debt. The Company believes this is a critical process to the future of the Company and elimination of debt will continue to be a top priority for CoreStream Energy in 2011.
The Company is pleased to report that the non-oil and gas assets held in escrow have been sold or have been disposed of and final settlements of these transactions are expected by the end of March. Similar progress has been experienced with the creditors with over 75% of the legacy debt resolved and it is expected that the vast majority of the debt settlement will be finalized during 2011. The creditors who have reached settlements in this difficult financial period are applauded by the Company for their interest and efforts to reach solutions. The creditors have also expressed appreciation for the effort and fairness that the Company has extended and a number of them have approached the Company as possible investors in its future activity.
The previous web sites for earlier businesses running under Zealous Inc. have been deactivated. A new basic web site for CoreStream will be initiated in the near future and it is the Company's goal that the continued development of this site will make it a valuable tool to keep investors aware of the Company's efforts.
The Company's Q1 filing for 2010 will be submitted this week while its Q2 is expected to be filed within a few weeks. The Company intends to be current during 2011.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Fountain Valley, CA is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Texas, Louisiana, Oklahoma and Mississippi and the Midwest. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning CoreStream Energy, Inc.'s strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that CoreStream expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions CoreStream made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond CoreStream's control. Statements regarding future production, revenue and cash flow are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
Contact Information:
Contact Info:
CoreStream Energy, Inc.
(714) 418-1700
Gary Patterson
Investor Relations
IR@CoreStreamEnergy.com
(714) 369-2933