Source: Circle Star Energy Corp.
Circle Star Energy Corp. (OTC.BB: CRCL.OB) (the "Company"), a performance-driven company with interests in a number of high-impact, large scale oil and gas plays in Texas is pleased to announce the acquisition of a 3.167% non-operated interest in the Glass Prospect, located in Glasscock County, Texas. The Company will issue an aggregate of approximately 203,500 common shares of the Company (valued at approximately $380,677) to five sellers as consideration for the acquisition (the "Acquisition Shares"). Year-to-date cash flow from the project has averaged approximately $4,000 per month. The acquisition is subject to due diligence by the Company and customary closing conditions. There are no assurances that these conditions will be satisfied, fulfilled or waived.
The Acquisition Shares have not and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state of the United States. Accordingly, the Acquisition Shares are "restricted securities" (as defined in Rule 144(a)(3) of the Securities Act) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Acquisition Shares will be placed pursuant to exemptions from the registration requirements of the Securities Act provided by Section 4(2) thereof.
The project area encompasses 1,280 gross acres and 640 net mineral acres located in the oil-rich Permian basin region and is operated by Apache Corporation ("Apache"). The operator has already drilled 4 Spraberry wells and is evaluating the potential for additional development.
Covering 2,500 square miles and six Texas counties, the Spraberry Formation is one of the largest in the nation for total proved reserves. The formation produces oil from a single enormous sedimentary unit located between the depths of 5,100 and 8,300 feet. In 2007, the U.S. Department of Energy ranked the Spraberry Trend third in the United States by total proved reserves and seventh in total production. Estimated reserves for the entire Spraberry-Dean unit exceed 10 billion barrels. To-date the formation has produced an estimated one billion barrels of oil.
While development on the Glass Prospect leases has focused on the Spraberry formation to-date, the project is prospective for both Fusselmen and Cline Shale opportunities. Apache is actively drilling horizontal Cline shale wells in the same field as the Glass prospect, and a recent Cline well drilled by Apache produced 8,800 bbl of oil equivalent in the first 30 days on-line.
Company CEO Jeff Johnson comments, "We are very pleased to announce this latest opportunity for our shareholders. It expands our overall asset mix, and perhaps most importantly, strengthens and broadens our relationship with a growing number of top-notch operators working throughout the region. Our immediate aim has been to develop opportunities to increase our asset portfolio and industry profile, and we couldn't be more pleased with the recent results of those efforts."
Further details regarding the Company, its appointments, finances and agreements are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934, as amended, filed with the Securities and Exchange Commission's EDGAR database. For more information visit: www.circlestarenergy.com.
Circle Star Energy announces all-stock transaction to acquire Permian Basin oil production operated by Apache Corporation
Source: Circle Star Energy Corp.