TrueStar Petroleum Corporation

TrueStar Petroleum Corporation

October 18, 2005 13:55 ET

TrueStar Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) - TrueStar Petroleum Corporation (TSX VENTURE:TPC) announces it has authorized a Private Placement of its equity for up to US$5 million at a price of Cdn$0.32 per unit. Each unit consists of one common share and one-half warrant. Each whole warrant is exercisable for 24 months at CDN$0.40 per share. TrueStar has engaged Fox-Davies Capital Corporation as financial adviser and manager for this placement with a fee payable of 5% cash and 5% warrants.

"We are fortunate to be able to contract with Fox-Davies Capital and draw on their familiarity and experience with TrueStar and its activities and growth program for this financing," said Charles Kohlhaas, Chairman.

The funds from the equity placement will be used for new well costs for TrueStar's re-activated development program and for payment of certain corporate debts, working capital and general corporate purposes.

About TrueStar

The Company's focus is on the efficient development of hydrocarbons in North and Central America while maintaining high standards of environmental responsibility. TrueStar now has interests in 27 producing natural gas wells (19 vertical and 8 horizontal), 2 horizontal wells drilled awaiting completion and one horizontal well starting drilling. Working interest partners involved in the Company's various acreage holdings include publicly-listed Devon Energy (NYSE:DVN) and Carrizo Oil &Gas (Nasdaq NM:CRZO), along with other privately-held entities. TrueStar is an oil and gas exploration and development company.


Charles A. Kohlhaas, Chairman of the Board

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

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