Nanton, AB / ACCESSWIRE / December 12, 2014 / Petrostar Petroleum Corporation ("Petrostar" or "the Company") is pleased to announce that the Company and Mako Well Services have reached an agreement for the design and fabrication of TexAltas' new disposal facility. Mako Well Services is building the disposal facilities surface equipment, which has a total ESTIMATED cost of $1.25 million. The facility will include related surface handling, filtration and injection infrastructure for TexAlta's Class 1s disposal project.
Petrostar will issue Mako 12,500,000 shares valued at $0.10 per share. The issued shares will be held by Petrostar in trust pending completion of the associated equipment at Makos' designated point of manufacturing.
Mako Well Services is a non-arms length entity. All equipment and services will be provided and manufactured at fair market value. Fair market value will be determined through valid third party quotations and documented open market pricing.
TexAltas' Phase 1 work program will complete site specific evaluations, completion and the AER mandated injectivity testing by February 2015. The Companies Phase 2 will consist of site preparation and licensing in preparation for equipment possession. The completion of Phase 2 will vary pending AER's licensing; the Company is prepared to be operational by the SECOND QUARTER of 2015.
In a SEPARATE AGREEMENT, Petrostar will provide TexAlta the complete Mako disposal facility on a lease to own arrangement. Financing will be offered on a 5 year term at 15% interest per annum paid quarterly. Additional operating capital will be supplied by Petrostar to TexAlta through a combination of equity and debt financing arrangements.
The transaction is a strategic arrangement that will allow Petrostar to aid TexAlta which is its 100% owned subsidiary in its pursuit for the development of its oilfield disposal project. Petrostar will obtain financial benefit from the strategic placement and collection of lease payments on the designated facility from TexAlta.
The transaction may be subject to Exchange and Securities approvals.
About Petrostar Petroleum Corp.
Petrostar is a Tier 2 Canadian-based oil and gas exploration company trading on the TSX Venture Exchange with property assets in both Alberta and Saskatchewan.
For further information, please contact:
Bruce Scafe, IR and Communications Officer
1-877-737-8864 or [email protected]
Alternate Contact.
Mackenzie Loree, CEO
1-403-861-6779 or [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.
When relying on forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION ON AT ANY PARTICULAR TIME.
SOURCE: Petrostar Petroleum Corporation