Green Star Energies has executed an agreement amending their original agreement with Bialy Gas Production LLC (BGP) in order to hasten production returns.
The new Joint Venture agreement with Purchase Option will allow Green Star to operate through BGP and it will not require the change of the secured bond thus leaving nothing in the way to start oil production with the initial 27 wells. This agreement removes Green Star's obligation to purchase the bond with cash [$28,000+] and it now can focus all of its capital on development of the field. Under this JV agreement Mr. Bialy has opted to not take his overriding royalty and Green Star agreed to a 70/30 % split in favor of Green Star of all net profits.
"During my 6 week stay in Pennsylvania earlier this year I was able to spend extensive time onsite mapping out our Operation Plans and meeting with key operatives with our well service partners and onsite manager. Now that we don't have anything holding us back we can start the production of oil as soon as possible and don't expect it any later then the end of January," stated President Toth.
President Toth continued, "We have now scheduled the onsite manager to commence production. Financed capital can now go directly into the reworking of each of the wells and revenues will start to grow with more wells coming online."
The purchase option allows for Green Star to complete the full purchase of BGP as a wholly owned subsidiary once proper due diligence is completed. The option allows Green Star to acquire the certificate of deposit valued around $28,000 in addition up to 16 of the addition wells held by BGP in exchange for common stock. Additionally it would give Green Star 100% of the working interest less a 6.25% overriding royalty to Mr. Bialy.
Corporate Spokesperson Rick Hupe stated, "A lot of investors have been looking forward to production to start. Companies with real assets and real cash flow are the ones that should add the best value to shareholders in this tough economy. I believe this is a good step by Green Star in moving in that direction, I look forward to seeing the results."
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