Star Energy Intends to Buy Terrabyte Oil, Gas Company
March 28, 2006
Star Energy Corp., a Salt Lake-based oil and gas company, announced Monday that it has executed a letter of intent to acquire Terrabyte, an oil and gas company headquartered in Allegan, Mich.
The letter anticipates that Star will give 5 million shares of stock for Terrabyte, and 5 million additional shares issued once 1 million barrels of recoverable oil have been recovered as part of a pilot project planned in Ohio. An additional 2.5 shares will be issued for each barrel in excess of 1 million barrels.
In addition, Star is committed to completing a financing of $1.5 million, plus another $1.5 million within 90 days of closing. Another $7 million will be raised within 18 months of closing. The sale is expected to close on May 26.