Green Star Energies Executes Gas Contract With DCP Midstream

Published: 21-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Green Star Energies, Inc. (Green Star Energies) said that DCP Midstream Partners, LP (DCP Midstream) has signed an agreement with Green Star Energies operator for the purchase of gas from the Eberle project in Bastrop County, Texas. The Eberle project has been an ongoing pursuit for production since the company's predecessor. To date the well has been fully fracturized by Schlumberger Limited and produced gas.

In the hydraulic fracturing process, sand was forcibly injected into the formation at extremely high pressures, out to a radius that extended up to 200 feet outward from the well. This process is designed to open up the fractures of the formation more fully for the highest potential volume of gas flow.

Since obtaining the right of way from the adjacent land owner in February 2009, the company and its present partners moved into negotiations with the gas buying company previously mentioned. Exploring all options the company was pleased to find out that DCP Midstream could in fact buy all the gas from the present and future operations at the Eberle project. With the purchase agreement concluded, the tap has been identified and the line can be dropped. The company with its current partners has invested presently over $400k into the well making the final connection highly anticipated.

The company management is talks with existing well partners to potentially acquire a larger stake in the well. This will be discussed with the Stockholder Committee and explored to determine if it is in the best interest of the stockholders.

The connection and completion of our objectives will see the closing of the past and the opening of a new era for Green Star. As promised I will bring those stockholders interested with me to see the post-completion of the project. I will provide prompt updates on these activities as I am able, stated chief executive officer Brandon Toth.

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