Westar Oil Acquires Control of Truestar Petroleum
DALLAS, TX--(Marketwire - July 25, 2007) - Terax Energy (OTCBB:
TEXG), soon to be called Westar Oil and Gas Inc. (Westar), announced
that Westar has purchased on the open market a controlling
shareholder position in Truestar Petroleum Corporation listed on the
Canadian exchange. Westar purchased for cash nearly 18 million
shares. Westar intends to dramatically increase the production and
value of the assets of Truestar. The Texas-based assets of Truestar
provide an amazing opportunity for Westar to develop. It is of
particular advantage for Westar given the large acreage position and
the close proximity of the Truestar leases to the Westar operations.
TrueStar recently reported its reserves prepared pursuant to National
Instrument 51-101 guidelines. The company also prepared an evaluation
using the guidelines as approved by the United States Securities
Exchange Commission (SEC). Total proven reserves, using definitions
approved by the SEC, at year-end 2006 were 33,046 MMscfe. The value,
discounted at a rate of 10% was US$ 48.80 MM.
We believe the reserve definitions of the two countries are very
similar. Nuances in the methodology for the assignment of reserves,
primarily proven undeveloped, allow the SEC reserves to show a higher
value than permitted through the National Instrument 51-101
definitions.
About TrueStar
TrueStar Petroleum Corporation is an oil and gas exploration,
development, and production company. TrueStar has interests in 34
producing gas wells in the Barnett Shale gas play in Texas located on
nearly 4,000 acres and a 10% interest in a license for oil and gas
development on 554,000 acres in Guatemala, and is awaiting the
reassignment of the remaining 90% interest in the 554,000 acre
License.
The closing of the transaction is subject to certain closing
conditions, including, among other conditions: (i) receipt of all
consents, or approvals required consummating the exchange and due
diligence; (ii) neither the Companies having suffered any material
adverse effect.
About Terax Energy
Terax Energy is an independent oil exploration and production
company. Terax operates in two principal areas. 11,000 acres in
Comanche County, Texas and 16,200 acres located in Erath County. The
company is focused on gas reserves located in the Barnett Shale
Formations.
This Press Release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Act of 1934. A statement identified by the words
"expects," "projects," "plans," and certa
the other foregoing
statements may be deemed "forward-looking statements." Althou
Westar Oil believes that the expectations reflected in such
forward-looking statements are reasonable, these statements involve
risks and uncertainties that may cause actual future activities and
results to be materially different from those suggested or described
in this press release. These include risks inherent in the drilling
of oil and natural gas wells, including risks of fire, explosion,
blowout, pipe failure, casing collapse, unusual or unexpected
formation pressures, environmental hazards, and other operating and
production risks inherent in oil and natural gas drilling and
production activities, which may temporarily or permanently reduce
production or cause initial production or test results to not be
indicative of future well performance or delay the timing of sales or
completion of drilling operations; risks with respect to oil and
natural gas prices, a material decline in which could cause the
Company to delay or suspend planned drilling operations or reduce
production levels; and risks relating to the availability of capital
to fund drilling operations that can be adversely affected by adverse
drilling results, production declines and declines in oil and gas
prices and other risk factors.
Contact:
Taylor Capitol, Inc.
Investor Relations:
Stephen Taylor
973-351-3868
Stephtayl9@aol.com
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