FOUNTAIN VALLEY, CA--(Marketwire - March 25, 2011) - CoreStream Energy, Inc. ("CoreStream Energy") (
With respect to the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, we have been updated by the general partner that the delays, including weather, on bringing the well to production have been overcome. Over the next few days the pump for this well should be installed and become operational. Early results continue to be encouraging and it is expected that within 2 to 4 weeks the well will produce revenue and allow its operators to have a better understanding of the well's future performance. We expect drilling of the second well on this 1600 acre lease will begin in approximately 60 days, according to the general partner. CoreStream Energy plans to participate in these future wells since the area is a proven site and it appears that the first well will be a success.
The Company's Chief Operating Officer, Mr. Lew Graham, has been in Kentucky this past week working with consultants. They have been reviewing all pertinent data related to the recently announced agreement to purchase leases in Kentucky and Tennessee. These leases currently support 18 existing oil and gas wells and will allow for a number of additional wells on the 2,700 acres in four counties in the future. The information reviewed has been positive and consistent with early discovery efforts of CoreStream Energy. The Company is moving forward to conclude the final lease contracts and should do so within the original forecast of 90 days.
It was previously reported that CoreStream Energy restored relationships with some past investors. The Company exercised an offer received from one hedge fund to provide funding for operations starting with an initial small amount. More information related to this activity will be disclosed in the Subsequent Events section of the Company's next financial filing expected by the end of April.
While the new CoreStream Energy website was forecast to be live by now, it is expected to be available in the near future and will allow the Company to keep its shareholders updated on progress that doesn't necessarily command a press release.
The Company announced today that Milton C. Ault, III has transitioned to Interim CEO from CEO. The Company's Board of Directors acknowledges Mr. Ault's knowledge and experience will continue to be instrumental in resolving legacy debt and issues and leading CoreStream Energy's future commodity trading efforts. The Board of Directors understands that the growth of CoreStream Energy is dependent on retaining a CEO with more experience in oil and gas production and operations. CoreStream Energy believes this change hallmarks its efforts to transition the Company's focus from the past to concentrate on its core business model and its future.
Mr. Ault, CoreStream's Chairman, commenting on these events, stated, "I am pleased to see the recent challenges with the State Lease resolved and look forward to a promising future in that field. I'm also excited to see that we are forging a great relationship in Kentucky which will yield near term revenue and potential opportunities beyond this first endeavor in the area. Finally, it is encouraging to see that the efforts to resolve legacy financial issues have been appreciated by some past investors and that we are able to work with them again. I appreciate all those working on both sides of these issues for their continued efforts and support to clean up the past which will allow the Company to change its focus to oil and gas development and production and direct most of its energies on building the core business."
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 Louisiana, Mississippi, Kentucky, and Tennessee. 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