Star Energy Appoints Chief Operating Officer to Manage Anticipated Development of the Mohican River Enhanced Water Flood Oil Prospect
Star Energy Corp. (“Star”) (OTCBB: SERG) today announced that James K. Watson, president of Terrabyte, LLC (“Terrabyte”) accepted an appointment to act as Star’s chief operating officer in anticipation of Star’s acquisition of Terrabyte, an oil and gas exploration company headquartered in Allegan, Mich.
Watson is qualified as a geologist with more than 30 years of experience in the exploration, development and production of oil and gas. He began his career with Shell Oil, evaluating wells in Texas, Oklahoma and Michigan, before moving to Michigan Gas Utilities Co. Working as a staff geologist, Watson was involved with examining leasehold interests, identifying drilling prospect development and supervising well sites in southern Michigan. In 1978, Watson transferred to Michigan Consolidated Gas Co., where he mapped Michigan’s Southern Reef Trend and was responsible for prospect development and well site preparation. Watson then moved to Superior Oil Co., where he was responsible for the development of an offshore oil field in Louisiana and the supervision of geologists, geophysicists and support staff. He served as the vice-president of exploration for Smith Petroleum Co. between 1982 and 1987, where he managed joint venture prospect participation for public drilling funds. Watson formed Grey Hawk Energy Co., an oil and gas consulting company, in 1987, which offered evaluation and prospect generation for a wide variety of clients. He was a founding member of Terrabyte in May of 2005.
Terrabyte is positioned to initiate an enhanced secondary recovery water flood development to produce oil from the Mohican River field located in the vicinity of Perry Township in Ashland County, Ohio. The Mohican River field underlies 300 acres with a prospective pay zone that is up to 195 feet thick not more than 500 to 700 feet below the surface. A 30-acre pilot is planned that will require capital expenditures of $2.2 million. Pending the satisfactory performance of the pilot, an additional $6.57 million will be required for a full field expansion, for a total development cost of $8.77 million.
Star has signed a letter of intent to acquire Terrabyte subject to Star’s satisfaction of certain financing commitments. The anticipated closing date for Star’s acquisition of Terrabyte is May 26, 2006.
Star is an independent oil and gas company involved in the exploration, development, production and sale of oil and natural gas.
A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including the recovery of oil and gas resources, the successful completion and integration of prospective acquisitions, competitive market conditions and the ability to secure sufficient sources of financing. The actual results Star may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Star encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form 10-QSB. Star’s public filings may be viewed at www.sec.gov.