CHICAGO, May 24, 2005 (PRIMEZONE) – (Other OTC: AMRS.PK) The Company is pleased to report it has entered into an option agreement to allow Friendly Energy Corporation. (Other OTC:FDEG.PK) to participate in the development of the Corsicana Field.
If the option is exercised, Friendly Energy Corporation will fund 100% of the exploration and development of up to a thirty wells on ten acre spacing over the next twelve months. The JV Partners shall assign an undivided 63% working interest (70% of the 90% earned in the original Farmout Agreement) in and to said leases, delivering a 41.95% net revenue interest in each lease based on a combined JV Partner Working Interest of 90%, delivering a Net Revenue Interest of 66%, proportionately reduced. FDEG shall own an undivided 63% Working Interest in each well drilled until Payout. At Payout of each well Working Interest ownership shall change in that Well to represent Working Interests which will then be 45% (50% of the JV Partners 90%) held by FDEG and 45% held by the JV Partners, proportionately reduced, delivering an equal 33.3% Net Revenue Interest to each.
This JV Agreement does not include the 4 wells already drilled by American Stellar Energy and Koko Petroleum. All four wells continue to produce a total approximately 21 barrels/day, with the fourth well still awaiting an Acid Frac completion.
American Stellar Energy continues to explore opportunities and strategies with a focus on developing cash flow and containing dilution.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.
CONTACT: American Stellar Energy, Inc.
Website: http://www.americanstellarenergy.com
IR / Clayton Smith: (971) 506-9156
Francis R. Biscan Jr.: 630-462-2079
Email: Richard@americanstellarenergy.com
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