RedStar Oil & Gas Inc.

RedStar Oil & Gas Inc.

November 08, 2005 09:00 ET

RedStar Oil & Gas Inc. Operations Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2005) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States.

RedStar Oil & Gas Inc. (TSX VENTURE:RED) (TSX VENTURE:RED.NV) ("RedStar" or the "Company") is pleased to give an update on current operations.

RedStar has completed a 12-section farm-in with a major independent oil and gas producer at its core area of Ekwan, British Columbia, further adding to its available working interest on its winter drilling program.

RedStar has currently budgeted 22 winter drilling locations on its land position and is concluding the licensing process. A drilling rig and completion rig have been secured to execute this program. RedStar has begun construction on a lease in the Greater Sierra area and will spud a shallow Mississippian formation test, offsetting existing production in the next 10 to 14 days. The Company is also pursuing other all-season drilling opportunities in this area to complement its winter drilling program.

One of RedStar's existing, non-operated Alberta wells in the Peace River Arch area, that had initially tested 8 million cubic feet of gas per day (gross), has recently been tied in by the operator and will be flowing once facility adjustments are completed. RedStar has an 11% convertible gross overriding royalty before payout and a 28% working interest after payout on the well. Production from this well is expected prior to the end of the year.

As part of our efforts to further develop more year-round access areas, RedStar has drilled and completed a successful shallow gas well in southwest Saskatchewan. RedStar is currently evaluating this well and will provide a further update when the data is available.

RedStar is currently producing approximately 700 BOE/D.

RedStar is a junior oil and gas producer focused on creating shareholder value by growing per share production, reserves and cashflow, through acquisitions and a focused exploration, development and exploitation program.

Measurements expressed in boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an approximate energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward-Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ from those expressed in or implied by these forward-looking statements.

The TSX Exchange 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
    President & CEO
    (403) 262-3130
    (403) 239-0621 (FAX)
    Avenir Capital Corporation
    William Gallacher
    (403) 237-9949 or Cell: (403) 613-5204