RedStar Oil & Gas Inc.

RedStar Oil & Gas Inc.

January 26, 2006 09:30 ET

RedStar Oil & Gas Inc. Announces $2.3 Million Seismic Sale

CALGARY, ALBERTA--(CCNMatthews - Jan. 26, 2006) -

Not for distribution to U.S. newswire services or for dissemination in the United States of America.

RedStar Oil & Gas Inc. ("RedStar") (TSX VENTURE:RED) (TSX VENTURE:RED.NV) is pleased to announce today that it has completed a sale on a portion of its Cutbank 3-D seismic data to another oil & gas producer with the early release approval of the sale by RedStar's joint venture partner. The 32 square miles of data was sold for gross proceeds of $2.3 million (approximately $1.9 million net) equating to $72,000 per square mile. RedStar continues to have the proprietary ownership of the 3-D seismic totaling approximately 400 square miles at the Cutbank Ridge area. The shoot was a joint venture initiative with a large independent producer.

Following the examination of the seismic data, RedStar will be exploiting identified opportunities with large industry partners in the area and intends to lever its seismic investment to bring production and additional land into the company. RedStar management believe that this proprietary data will provide RedStar with a competitive advantage in an area characterized by large natural gas exploration opportunities.

RedStar Oil & Gas Inc. is a junior oil and gas company engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin.

Cautionary Statements

Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond this party's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. RedStar disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • RedStar Oil & Gas Inc.
    Chester J.R. Krala
    (403) 262-3130
    RedStar Oil & Gas Inc.
    William Gallacher
    (403) 237-9949
    (403) 239-0621 (FAX)