Estrella International Energy Services Ltd.
TSX VENTURE : EEN

Estrella International Energy Services Ltd.

July 25, 2011 17:30 ET

Estrella to Issue Shares to Satisfy Interest Payment

BUENOS AIRES, ARGENTINA--(Marketwire - July 25, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. ("Estrella") (TSX VENTURE:EEN), announces that it intends to issue 1,928,558 common shares to satisfy a semi-annual interest payment of CDN$892,602.74 due to holders of convertible debentures issued on January 24, 2011. Pursuant to the terms of the convertible debentures, Estrella is permitted to make such payments in common shares at its discretion.

The deemed issue price of the shares has been set at a price of $0.4628, which is equal to 90% of the volume-weighted average trading price of the common shares for the 10 trading days immediately preceding the date hereof. The issue price for the shares was determined in accordance with the terms of the convertible debentures at the close of business on July 22, 2011. Completion of the issue is subject to regulatory approval.

Estrella also announces that it has granted options to purchase 3,944,000 common shares of the Company at an exercise price of $0.5865 per share pursuant to the stock option plan of the Company. The grant included options granted to directors and officers of Estrella to purchase an aggregate of 2,350,000 common shares.

In determining to grant options to directors and officers of Estrella, the Board of Directors reviewed the recommendations of management and the Governance, Nominations and Compensation Committee, and compensation information with respect to companies in Estrella's peer group.

Finally, Estrella also announces that it has taken steps to complete its continuance to Ontario under the Business Corporations Act (Ontario), as approved by the shareholders of the Company at its AGM held on June 22, 2011.

Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to the future business plans and services.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THERE FROM.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Estrella International Energy Services Ltd.
    Christian Bauwens
    Chief Financial Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280 (FAX)

    Estrella International Energy Services Ltd.
    Warren Levy
    Chairman & Chief Executive Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280 (FAX)
    info@estrellasp.com
    www.estrellasp.com