Petrostar Announces JV Agreement and $550,000 Private Placement
June 14, 2011 – Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) has arranged, subject to TSX Venture Exchange approval, a private placement of 3,928,572 units at $0.14 per unit for gross proceeds of $550,000 CAD (“the Offering”). Each unit shall consist of one common share and a two-year common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one additional common share for $0.16 in the first year and $0.18 in the second year. Proceeds will be used for funding obligations under the newly created joint venture described below and for general working capital.
Petrostar has entered into a joint venture agreement (“the JV”) with Four Sands Petroleum Corp. (“Four Sands”), a privately held resource merchant and Investment Corporation that has extensive exploration and production experience among its principal shareholders. The JV has been created to pursue oil and gas concessions throughout greater Europe and North America. The JV interests are a 30% interest to Petrostar and a 70% interest to Four Sands.
Four Sands has been actively engaged in the process of acquiring and developing projects in Europe and North America, and the formation of the JV will ensure that the Company will be able to participate in new projects with minimal initial risk or development costs. A principal term of the JV is mutual consent of the JV parties to proceed with any project. Under the terms of the JV, Petrostar will make an initial contribution to the JV in the amount of $250,000 CAD and, upon acceptance of a project, an additional $1 million for development of such project. Future contributions to the JV will be made by both parties on a pro rata basis. Four Sands has agreed to locate places for the Offering described above in an amount not less than $250,000, which will cover the Company’s initial costs of participating in the JV.
“Forming a joint venture with the experienced and successful management team of Four Sands will allow Petrostar to be part of larger opportunities and growth potential with minimal downside risk.”
Bruce Scafe, President and CEO of Petrostar Petroleum Corp.
About Petrostar Petroleum Corp.
Petrostar is Canadian-based oil and gas exploration company trading as a Tier 2 company on the TSX Venture Exchange. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure to various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
For further information contact Bruce Scafe, President at 1-877-737-8864.
Petrostar Announces Reinstated to Tier 2and 4:1 Rollback
June 10, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announcement that on June 8, 2011 the TSXV reinstated the Company to Tier 2 and trading of Petrostar’s shares resumed at market opening on June 9, 2011.
The Company also announces that on May 31, 2011 the TSXV approved the 4:1 rollback of Petrostar’s shares as passed by shareholders at the Company’s 2009 AGM held June 29, 2010.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company trading as a Tier 2 company on the TSX Venture Exchange. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
For further information contact Bruce Scafe, President at 1-877-737-8864.
June 8, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) issues this announcement to all its shareholders:
In the event of a Canada Post strike preventing Petrostar’s shareholders from receiving the AGM Notice, Proxy and Information Circular for the Company’s July 7, 2011 AGM, through the normal course of delivery, these documents will be posted on Petrostar’s web site (www.petrostarpetroleum.ca) and available on Sedar (www.sedar.com). All shareholders wishing to vote can retrieve these documents themselves or contact Dee Sauvé at 604-568-4350 or deesauve@bwkcorp.com to get copies.
All Proxies must be submitted to Computershare via fax at 1-866-249-7775 (toll-free in North America) or 1-416-263-9524 (International) by 10:00 a.m. (Pacific time) on July 5, 2011. Please note that the Proxies will not be personalized and all shareholders will need to ensure their names and addresses are added before submission and that the Proxies are duly signed and dated.
Registered shareholders may also wish to call Computershare’s National Customer Contact Centre at 1-800-564-6253 to obtain a control number to vote online or by telephone.
Beneficial owners should contact their brokerage firms directly in order to vote online or by phone.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
For further information contact Bruce Scafe, President at 1-877-737-8864.
May 25, 2011 – Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) announces it has complied with National Instrument 51-101 and filed its Oil and Gas Reserve report with the British Columbia Securities Commission and the Alberta Securities Commission. The report is available for viewing at www.sedar.com.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
For further information contact Bruce Scafe, President at 1-877-737-8864.
May 11, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) issues this announcement to all its shareholders:
Prior to the start of trading this morning (May 11, 2011) the British Columbia Securities Commission (“BCSC”) issued a Cease Trade Order (“CTO”) for Petrostar’s shares. The CTO was issued due the Company failing to file its audited annual financials and annual MD&A by the May 2, 2011 filing deadline.
Management has been in contact with the BCSC and is working to rectify the problem as quickly as possible. Management is also in daily contact with the Company’s auditors, BDO Dunwoody of Vancouver, BC, and will file all necessary documentations as soon as they are completed. Once all documentation is filed and all filing fees are paid, trading is expected to resume.
The Company has also filed notice with the TSXV to consolidate its outstanding shares on a 4:1 ratio, which was approved by shareholders at the Company’s last Annual General Meeting held June 29, 2010. Management feels the consolidation is necessary to attract future financings.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
For further information contact Bruce Scafe, President at 1-877-737-8864.
April 19, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that it has received final TSX Venture Exchange approval on the sale of its 100% net interest in 320 acres of petroleum and natural gas rights located in the Maidstone area of west-central Saskatchewan (“Maidstone Asset”) to Western Plains Petroleum Ltd. (TSX-Venture: WPP) (“Western Plains”).
The sale price for the Maidstone Asset was $750,000, subject to standard industry adjustments, based on an effective date of December 1, 2010. Please see the Company’s March 31, 2011 news release for further details.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
April 7, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) announces it has terminated negotiations with Capital Corp. Merchant Bank (“CCMB”) of Orlando, Florida. See news releases dated September 7, 2010 and February 23, 2011. Petrostar shall be refunded the $19,000 paid to CCMB for the appraisal. The appraisal process did not complete as there was no guarantee that the funding of the financing would conclude. Petrostar and CCMB have agreed that both parties would look at possible future business. For the immediate future, this allows Petrostar to entertain other possible financing opportunities and/or JV partnerships to allow for further exploration of the Company’s PN&G leases in SE Saskatchewan and SW Manitoba, or any other opportunity that may be presented to the Company.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
March 31, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that it has closed the previously announced arm’s length sale of its 100% net interest in 320 acres of petroleum and natural gas rights located in the Maidstone area of west-central Saskatchewan (“Maidstone Asset”) to Western Plains Petroleum Ltd. (TSX-Venture: WPP) (“Western Plains”).
The sale price for the Maidstone Asset was $750,000, subject to standard industry adjustments, based on an effective date of December 1, 2010, and was paid by Western Plains through:
(i) the payment and/or assumption of approximately $529,000 of Petrostar’s trade payables, and
(ii) a cash payment to Petrostar of approximately $182,000 (inclusive of applicable sales tax).
Western Plains previously paid Petrostar a $50,000 cash deposit. A finder’s fee equal to 2% of the gross proceeds plus appropriate taxes is payable to Henex Resource Marketing Inc. of Calgary, Alberta
The sale of this asset is part of management’s plan to reduce the Company`s holdings in the heavy oil sector and focus on plans to finance and develop the Company’s much larger 3,200 acres of PN&G leases in the Bakken region of SE Saskatchewan and SW Manitoba.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
March 7, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that the Company has entered into a purchase and sale agreement for its heavy oil Maidstone property with Western Plains Petroleum Ltd. (TSXV: WPP).
The agreement will give Western Plains a 100% interest in the 320 acres of petroleum and natural gas rights located in the Maidstone area of West Central Saskatchewan property. Cash consideration for this deal is $750,000 and is subject to industry standard closing adjustments, the effective date of the deal will be December 1, 2010. The deal is expected to close mid-March 2011, subject to regulatory approval. Petrostar will retain the 160-acre, heavy-oil Lashburn field in Lashburn, Saskatchewan.
The Company also holds over 3,200 acres of prospective leases, located within the prolific Bakken formation, in SE Saskatchewan and SW Manitoba. Currently, Petrostar’s management is negotiating a JV partnership/financing deal that will facilitate further exploration of the Bakken properties.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
February 23, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) would like to clarify its news release of January 13, 2011 wherein the Company updated its shareholders as to the status of announcements made in earlier news releases, and to update the information where necessary:
1. Regarding the $20 million financing deal with Capital Corp Merchant Bank (CCMB) of Orlando, Florida:
The terms of this agreement were first announced on September 7, 2010 and updated on September 29, 2010. The update stated that Capital Corp Merchant Bank had begun its due diligence as part of its final decision process for granting the financing to Petrostar. This process was estimated to take 60 days, but has taken much longer than anticipated. The update from CCMB states that the next step has been taken and all of the information for third party valuation appraisal has been sent to American Appraisal. American Appraisal has offices in many countries around the world including Canada. CCMB has indicated that once a satisfactory final appraisal has been received, CCMB will prepare final closing documents for funding, which would then be filed with the TSX Venture Exchange for approval. This process is estimated to take 15 – 30 days to complete. A multi-well drill program on the Company’s Bakken area properties is planned to start once funding is completed. The Bakken project will then become a joint venture project between Petrostar and CCMB.
As of February 23, 2011 the appraisal process had not been completed because of the further requests for more extensive geologic reports. Petrostar is currently compiling this information with its geologist and will be forwarding the data to American Appraisal as soon as completed. The cost of the report is estimated to be US$19,000 and is the responsibility of Petrostar. Payment will be sent with the additional documentation requested. Once this step is completed and is favourable to CCMB, CCMB has indicated closing documents would be prepared immediately. Once Petrostar has received and accepted the closing documents, these documents would be forwarded to the TSX Venture Exchange for approval. Unfortunately the process of these negotiations has delayed Petrostar’s future drill program. The drill program will be postponed until after the winter break up and completion/approval of financing. Petrostar will continue to update its shareholders as developments occur.
2. Regarding the sale of the Maidstone and Lashburn heavy oil properties:
The terms of this agreement were first announced on September 29, 2010. On October 15, 2010, it was announced that the sale for $1.3 million had not completed and the offer was withdrawn. At that time, management decided to accept new offers and market the two properties that made up the original deal as separate entities. The asking price for Maidstone was $750,000 and Lashburn was $550,000 totalling the $1.3 million. The Company is in discussion with two different companies interested in the Maidstone property and one company interested in the Lashburn property. Petrostar will announce details of any deal upon completion.
As of February 23, 2011, the Company had an offer on the table that was being reviewed. An announcement will be made if accepted.
3. Regarding the Electric Tank Heater (ETH) sale:
Further to the news release of October 8, 2010, Petrostar and its ETH distributor, King Energy, have received inquiries regarding the ETH and are working on quotes for future sales. Some of the quotes are for specialized heating solutions for different applications than what the ETH was originally designed for, thus there is additional engineering that needs to be calculated and/or possible modifications needed to the heater to suit individual client needs. These enquires are currently being processed and further sales are expected. Petrostar’s Down Hole Heating Tool (DHT) is currently being reviewed by engineers associated with King Energy. The DHT may require further engineering and design changes, therefore the DHT is not being marketed until the review is complete.
As of February 23, 2011, the Company had nothing new to report.
The Management of Petrostar wishes to thank its shareholders for their continued support and confidence while these projects work toward their completion.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.: