SOURCE: TexStar Holdings, Inc.

TexStar Holdings, Inc.

October 09, 2012 09:00 ET

TexStar Holdings (SYMBOL-TSTH) Announces Plan to Issue Preferred Stock With an 8% Dividend

LULING, TX--(Marketwire - Oct 9, 2012) - TexStar Holdings, Inc. (TSTH), (the "Company"), announced today that it plans an offering of its convertible Series A Preferred Stock. The Company will offer 2,000,000 shares of Series A Preferred Stock at an offering price of $5.00 per share. Net proceeds will be used to acquire oil and natural gas reserves and provide additional working capital to the Company. The Company hopes to close the offering in 2012. The Preferred provides for conversion of each preferred share into 10 shares of common stock in two years. The Preferred stock will pay an 8% dividend per annum for two years until the conversion is made to common or the shares are redeemed.

The offering is being made through the Company's officers and directors. The prospectus contains supplemental information relating to the offering, which is available to "Accredited and Institutional Investors" only. Before considering investing, you should read the prospectus and related prospectus supplements, for more complete information about the Company and this offering. You may obtain these documents by written request to TexStar Holdings, Inc. 402 West Davis Street Luling, Texas 78648 Attention: Investor Relations. Alternatively, you may obtain these documents by contacting our offices by calling (800) 380-9104.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

TexStar Holdings is engaged in the acquisition / development of oil and gas reserves, with operations located primarily in Texas. The Company believes that its oil and natural gas acquisition / development strategy will provide long-term growth to the Company in the future. Charles Burris, President, stated, "TexStar is excited to have merged with Southern Cross, subsequently TexStar Holdings as aligns with our long term goals and exposure to public markets. TexStar has plans for acquisitions to add to our ever growing asset base in Texas."

About Us:

TexStar Holdings (TSTH) is a newly formed Texas based public company engaged in the acquisition and development of oil and natural gas reserves. TexStar Energy Corporation is a wholly owned subsidiary, which functions as the development arm of its oil and natural gas reserves. The Company's ultimate strategic focus is to create shareholder value by calculated acquisitions, sound business practices, fundamentals of excellence, prudency, and integrity. TexStar's experienced management team believes the company is well situated to take advantage of the many opportunities that are present in today's energy markets. TexStar feels that with the stabilization of higher than average oil prices, it is well positioned to profit in today's booming energy market.

Forward-Looking Statement

Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks including but not limited to geological and geophysical risks inherent to the oil and gas industry, uncertainties and other factors that may cause the actual results, price of oil and natural gas, state of the economy, industry regulation, reliance upon expert recommendations and opinions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or strategic business arrangements to fund its drilling plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control, including but not limited to the strength of the overall economy; and (iv) other risk factors inherent to the oil and gas industry.

Company and Subsidiary Ratings: BBB D&B

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