Circle Star Energy Announces Contract to Lease 64,000 Acres of Mississippi Lime Oil & Gas Prospect Lands in Northwest Kansas
(firmenpresse) - FORT WORTH, TX -- (Marketwire) -- 03/12/12 -- (OTCBB: CRCL) (the "Company"), a performance-driven company with interests in a number of high-impact, large scale oil and gas plays in the mid-continent region, is pleased to announce a lease agreement to lease approximately 64,000 acres of lands prospective for oil development in Northwest Kansas.
The leasehold encompasses lands in both Trego and Gove counties in Kansas and is structured to deliver effective Net Revenue Interests ("NRI") of approximately 81% to the Company. The area is located within a segment of the oil-rich Mississippian Limestone formation known as the "Mississippian Extension." The transaction is for both Company common stock and cash valued at approximately $110 per acre.
This latest announcement joins with the previously announced contract of an outright land purchase of approximately 7,500 acres prospective for the "Original Mississippian" formation in Southern Kansas. Upon closing of both announced transactions, the Company will have a combined Kansas land position of approximately 71,500 acres in this exciting area.
Circle Star plans to exploit the shallow 4500' Kansas City-Lansing sub-formation at an estimated cost to drill and complete of approximately $500K per well. Additionally the Company will look to Joint Venture or farm-out the deeper Mississippian Limestone.
Company CEO Jeff Johnson comments, "Our ongoing efforts in pursuit of a significant land position in Kansas continue to move forward with today's announcement. This emerging new play provides extraordinary upside potential for Circle Star shareholders as has been made clear in recent months through the participation and success of other players in the region."
The agreement contains customary representation and warranties, covenants and indemnification provisions and conditions. The transaction is anticipated to close by the end of April, 2012. Further details regarding the Company, its appointments, finances and agreements are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934, as amended, filed with the Securities and Exchange Commission's EDGAR database. For more information visit: .
This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, results and potential diversification of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new business opportunities and development stage companies and the possibility that the acquisition will not close and the possibility that alternative sources of revenue will not materialize. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
7065 Confederate Park Road, Suite 102
Fort Worth, Texas 76108
Phone: +1 (817) 744-8502
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Datum: 12.03.2012 - 13:00 Uhr
Sprache: Deutsch
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