FORT WORTH, TX--(Marketwire - April 19, 2012) - Circle Star Energy Corp. (OTCBB: CRCL) (the "Company" or "Circle Star"), a rapidly emerging development and production company with interests in several notable oil and gas plays in Texas and Kansas, is pleased to announce plans to increase its leasehold position in Northwest Kansas. The accumulation of several transactions totaling approximately 111,000 net acres to the Company are in addition to the previously announced 64,000 acre leasehold in Gove and Trego counties, positioning the Company's total contracted Northwest Kansas acreage position at approximately 175,000 net acres.
The 111,000 acres are located in Decatur, Graham, Logan, Norton, Rawlins, Sheridan, and Thomas counties, Kansas. The leasehold interests include 100% working interest and an average net revenue interest of approximately 80%. The Company will receive, as part of these new acquisitions, approximately 40 square miles of 3D seismic and 100% operated working interest in an oil well producing from the Kansas City-Lansing formation, which sits above the Kansas Mississippian.
Circle Star CEO Jeff Johnson comments, "The contracting of over 175,000 net acres in Northwest Kansas is an important step towards fulfilling the Company's goal of leasing a meaningful acreage position in Northwest Kansas. With this announcement, Circle Star Energy is better positioned to begin the process of focusing on increasing Company revenues via oil production through the drill bit and exploring potential Joint Venture opportunities." Johnson continues, "Although there is much work to be done, this is an important step in realizing Circle Star's long term goals of maximizing shareholder value."
The agreements contain customary representation and warranties, covenants and indemnification provisions and conditions. The transactions are anticipated to close within 60-75 days. Consideration to be paid will comprise of cash and Company common stock. 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: www.circlestarenergy.com.
Notice Regarding Forward-Looking Statements
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. 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:
Circle Star Energy Corp.
7065 Confederate Park Road, Suite 102
Fort Worth, Texas 76108
Phone: +1 (817) 744-8502