TSX - Venture: TPC
VANCOUVER, April 3 /CNW/ - TrueStar Petroleum Corporation (TSX-V: TPC)
today announced that it has formed a joint venture with Petron Resources, LP
(Petron), an independent, Texas based, oil and gas exploration company, to
explore and develop the PSC 4-93 license area in Guatemala. PSC 4-93 is a
highly prospective 554,000-acre land package located in the central region of
the country, close to existing producing fields and pipeline infrastructure.
"PSC 4-93 is a significant opportunity, especially for a junior oil and
gas company, to exploit a potentially world-class producing asset," said Dick
Shuster, President and CEO of TrueStar Petroleum. "With peace, good governance
and contractual law restored, now is the time to refocus our efforts in
Guatemala. This region, which is well serviced by infrastructure, is an
extension of the Peten Basin, Mexico's primary producing region."
Under the terms of the agreement, Petron will provide $11 million in
funding for seismic and drilling commitments in exchange for an interest in
Previous Work at PSC 4-93 Will Help with Planned Exploration
In 1981, the San Diego exploratory well discovered oil in the Coban
Formation between 7,000 and 8,000 feet. Approximately 145,000 barrels were
produced from this well during various tests. The oil was found to be
36 degrees API and free of contaminants. An internal estimate for potential
reserves was calculated but that estimate does not meet currently acceptable
regulatory reporting standards for proven reserves.
As such, new exploratory wells will be drilled, the first to twin the
initial well. The license includes 200 line miles of seismic data that has
identified other suitable targets. TrueStar has analyzed this data and, as a
result, expects to put further exploratory wells into the San Diego structure.
Additionally, the data reveals the likely existence of two other structures;
these structures will be priority targets.
The wells are forecast to be drilled to a depth of approximately
9,000 feet at an approximate cost of US$4.0 million per well. In spite of
increased drilling worldwide, rigs and crews are available. Pipelines with a
capacity of approximately 60,000 bpd cross TrueStar's property; additionally a
30,000 bpd pumping station is located on the license area.
It is anticipated that final documentation for the project will be
completed by the end of April and field level activities will commence in the
third quarter of 2007.
"The ability to leverage the 4-93 License with the technical expertise of
Petron will create a very strong project for both companies," said Shuster.
Recent meetings with various parties within the Guatemalan government
agree that this is a project that will be beneficial to the country as it will
mean additional revenue for the country and jobs for the people of Guatemala.
TrueStar Petroleum Corporation is an oil and gas exploration,
development, and production company. TrueStar has interests in 33 producing
gas wells in the Barnett Shale gas play in Texas and a 10% interest in a
license for oil and gas development on 554,000 acres in Guatemala, and is
waiting the reassignment of the remaining 90% interest in the 554,000 acre
License. Working interest partners in Texas include publicly listed Devon
Energy (NYSE: DVN), Carrizo Oil & Gas (Nasdaq NM: CRZO), and EnCana (NYSE:
ECA). Additional information on TrueStar Petroleum Corporation is available at
ON BEHALF OF THE BOARD OF DIRECTORS
"Dwain M. Immel"
Dwain M. Immel
Chairman and CFO
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
For further information:
For further information: The Equicom Group - Dave Feick, Calgary Office:
(403) 538-4787 (O), (403) 831-7557 (F), email@example.com; TrueStar
Petroleum Corporation, Dick Shuster: (303) 298-0041 (O), (303) 298-1141 (F),
firstname.lastname@example.org; Canada Office: Cindy Newton, Secretary, (604)
669-6952 (O), (604) 669-6331 (F), email@example.com