(zlus) CoreStream Energy, Inc. Announces Successful First Drilling Effort
Preparing to Drill Second Well on 1,600 Acres of Prime Oil and Gas Exploration Land
IRVING, TX--(Marketwire - January 7, 2011) - CoreStream Energy, Inc. (PINKSHEETS: ZLUS) today announced the successful drilling of the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, an area of significant proven reserves that has seen considerable success in the past. CoreStream Energy, Inc. maintains a non-operated working interest in this well. The well was spudded on December 28 and drilled in the Wilcox Sand formation at a total measured depth of approximately 4,695 feet with a directional drilling angle of 13° beginning at approximately 3000 feet. Once the well is completed, it is expected to be productive, although a projected production rate is not known at this time. Both the well logs and core samples indicate strong oil potential in two different pay zones. Natural gas production is not expected to be significant. All investors who participated in the exploration phase of the well are expected to participate in the completion phase as well. Due to these ongoing completion activities, the final calculation of CoreStream Energy, Inc.'s net working interest percentage has not been finalized. The well is in the process of completion and is expected to begin production by the end of January. This well is CoreStream's first of many planned investments in this established and steady production area. CoreStream Energy plans to continue to pursue a strategy of investing in intermediate depth drilling in low risk fields both on an operated and non-operated basis.
This well is located on a leased parcel of 1600 acres of prime oil and gas exploration land. Based on this week's successful effort, CoreStream is moving immediately to begin the process of exploring the next best geological opportunity within this leasehold. Chris Rainbolt, CoreStream's CEO, is extremely pleased with this effort and commented, "The interpretation of the core analysis of the State Lease #2 well provides a very strong indication of the consistency of productivity inherent in so many of the existing wells in the Catahoula Lake area, and we believe this success demonstrates that our investment strategies are on target. I wish to thank all those who gave around-the-clock effort during the holidays to help us deliver this initial major success for CoreStream and its shareholders. Because we were able to commit to this project before the end of 2010, this effort will bring new opportunities to CoreStream that would not have been made available had we not moved so quickly on this opportunity. We are extremely pleased to have successfully obtained rights to such properties in this very productive area at a time when oil demand only appears to be increasing worldwide."
Further details regarding CoreStream's net working interest percentage and production rates will be reported to shareholders when they become available. Due to the importance of this first project, and our commitment to inform our shareholders in a timely manner, CoreStream elected to issue this initial and limited report of well success and company operations. A more comprehensive report will be available in the coming weeks.
Regarding our previously reported lease to drill the Sanders #1 well, CoreStream still intends to drill in this very promising area and has begun the process of identifying the desired geological profile for a drilling site within the lease. While the annual flooding of Catahoula Lake provides hunters with one of the top duck hunting sites in the country, such flooding will postpone drilling activity until later in the spring of 2011. Shareholders will be updated as developments warrant.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Irving, TX is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Texas, Louisiana, Oklahoma and Mississippi. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
Forward-Looking Statement:
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning CoreStream Energy, Inc.'s strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that CoreStream expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions CoreStream made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond CoreStream's control. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Statements regarding future production, revenue and cash flow are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These forward-looking statements are only made as of the date of this press release and CoreStream Energy, Inc. does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact Info:
CoreStream Energy, Inc.
IR@CoreStreamEnergy.com
(214) 624-5200
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