TriStar Announces Closing of Southeast Saskatchewan Acquisition, Reiterates 2009 Guidance



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    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

    Toronto Stock Exchange Symbol "TOG"

    CALGARY, June 1 /CNW/ - TriStar Oil & Gas Ltd. ("TriStar" or the
"Company") is pleased to announce the successful closing of the previously
announced strategic acquisition of assets in southeast Saskatchewan and
Montana (the "Acquired Assets") from Talisman Energy Canada and Fortuna (US)
L.P. for cash consideration of approximately $325 million (the "Acquisition").
    With the closing of the Acquisition, the outstanding subscription
receipts of the Corporation have been exchanged for common shares. Holders of
subscription receipts will receive one common share for each subscription
receipt held. Holders of subscription receipts are not required to take any
action in order to receive the common shares to which they are entitled. The
subscription receipts will be delisted from the TSX.
    The Acquired Assets include approximately 4,000 boepd of high quality,
high netback, long life crude oil and natural gas production in southeast
Saskatchewan. The Acquisition provides TriStar with the combination of legacy
conventional light oil assets which have high netbacks and a low decline
profile while also significantly adding to the Company's southeast
Saskatchewan Bakken resource play and undeveloped land base.
    Brett Herman, President & Chief Executive Officer of TriStar commented,
"We are excited about the closing of the Talisman asset acquisition as it
materially expands our core area of Southeast Saskatchewan. The assets have
extensive low risk development potential at extremely attractive economics,
particularly due to the significant amount of freehold mineral title lands
being acquired which do not have associated royalties."

    CORPORATE OVERVIEW

    With the completion of the Acquisition and continued successful execution
of TriStar's integrated strategy, the Company has the following key
attributes:

    
    -  High Quality Assets:           Top decile netbacks, light oil and
                                      natural gas reserves and production
                                      focused in four core operating areas

    -  Operatorship/High Working      Approximately 90 percent operated
       Interest:                      assets, and more than a 70 percent
                                      average working interest

    -  Long Life Reserves:            over 108.5 mmboe (P+P); RLI
                                      approximately 12 years

    -  High Netback Production:       over 25,000 boepd (2009E Exit Guidance)

    -  Extensive Drilling Inventory:  over 1,700 development drilling
                                      locations

                                      over 900,000 net acres of undeveloped
                                      land

                                      greater than four year drilling
                                      inventory

    -  Significant Bakken Upside:     over 600 development drilling locations
                                      (more than 420 not booked in current
                                      reserve report)

                                      193 net sections of prospective Bakken
                                      acreage

    -  Estimated Net Debt:            ~$400 million

                                      Increased bank line to $525 million

    -  Shares Outstanding:            151.9 million (Basic)
                                      158.3 million (Fully Diluted)
    

    TriStar Oil & Gas Ltd. is a Calgary based light oil and natural gas
company active in the acquisition, exploration, development and production of
crude oil and natural gas in Western Canada.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements. More
particularly, this press release contains statements concerning the
anticipated exit rate of production of the Company for 2009.
    The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by TriStar, including concerning
the success of future drilling and development activities, the performance of
existing wells, the performance of new wells, prevailing commodity prices and
anticipated capital expenditures..
    Although TriStar believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance should
not be placed on the forward-looking statements because TriStar can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. These
include, but are not limited to, the failure to obtain necessary regulatory
approvals or satisfy the conditions to closing the Acqusition and Subscription
Receipt financing, risks associated with the oil and gas industry in general
(e.g., operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures. Certain of these risks are set out in more detail in TriStar's
Annual Information Form which has been filed on SEDAR and can be accessed at
www.sedar.com.
    The forward-looking statements contained in this document are made as of
the date hereof and TriStar undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by applicable
securities laws.

    MEANING OF BOE

    When used in this press release, boe means a barrel of oil equivalent on
the basis of 1 boe to 6 thousand cubic feet of natural gas. Boepd means a
barrel of oil equivalent per day.
    Boe's may be misleading, particularly if used in isolation. A boe
conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.

    
    THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

    %SEDAR: 00025796E




For further information:

For further information: Brett Herman, President and C.E.O., TriStar Oil
& Gas Ltd., Telephone: (403) 268-7800, Fax: (403) 218-6075; Jason J. Zabinsky,
Vice President, Finance and C.F.O., TriStar Oil & Gas Ltd., Telephone: (403)
268-7800, Fax: (403) 218-6075

Organization Profile

TriStar Oil & Gas Ltd.

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