GlobeStar Therapeutics Corp (GSTC)

[Voices of Reason]

JamesOTC - as your first post, not sure which other companies you are referring to, but for FTTN let's look at the statements of facts (not my opinion or "pessimism"):

1. Corporate address is out of a strip center at Miramar Beach, Florida - even for an upstart company, being located no where near their operations seems odd.

2. FTTN's recent headline claims that their new prospect in Alabama is expected to produce a whopping "400,000 to 800,000 barrels of oil a day in production". This of course is pure fantasy, since current production from ALL wells in this field currently produce only about 1414 bbls/day (latest data from August 2011 shows 43,819 bbls over 31 days: http://www.ogb.state.al.us/ogb/production_unit.aspx?UNIT_NAME=LITTLE+CEDAR+CREEK+OIL+UNIT ). This production figure is for 108 wells in this field, which on average would indicate a production rate of about 13 bbls per day. (http://www.gsa.state.al.us/ogb/lcc.aspx ).

3. FTTN does not have cash on hand to pursue ANY of these alleged projects - having about $694 in the bank. Even with massive dilution or toxic convertible debt, the prospects for shareholders would be cause for pessimism.

4. Robert Federowicz has no experience in oil & gas ventures. the history (or lack thereof) is too lengthy to repost, but you can get a feel for it here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73218067

5. Regarding existing Working Interests, you may wish to read up on what the company states in their financial reports about the same:
The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. The Company has not generated any revenue from operations since its inception.

On January 3, 2012, the Company entered into a participation agreement in an oil and gas drilling project in Calcasieu Parish, Louisiana (the “Participation Agreement”). Under the terms of the Participation Agreement, the Company will participate in the drilling of one well and may participate in the drilling of future wells if it chooses. The Company will pay 25% of the drilling cost of the first well and will receive 13.59% of the net revenue from the well. The Company anticipates that its share of the total drilling and completion cost of the initial well, projected to be drilled to approximately 15,500 feet, will be $3.4 million. The Company has paid $40,000 of its share of the costs of the well to date. The Company does not have cash on hand in order to fully satisfy its obligations under the Participation Agreement and is currently seeking additional required financing. There is no guarantee that the Company will be able to obtain adequate financing, and the Company currently does not have a firm commitment from a lender to loan additional funds.

On January 19, 2012, the Company entered into a working interest purchase and sale agreement (the “Big Canyon Agreement”) related to 640 acres of land located in Terrell County, Texas (the “Big Canyon Prospect”). According to the terms of the Big Canyon Agreement, the Company will purchase an 82.5% working interest and will receive a 64.35% net royalty interest in the Big Canyon Prospect. The Company will pay $60,000 for the rights under this contract. This amount is payable in weekly installments of $5,000 beginning January 27, 2012. Under the terms of the Big Canyon Agreement, the Company will have the right to drill one well within six months and a second well within the next six months if the first well is unsuccessful. If either well is successful, the Company must pay a $200 per acre bonus for the entire leased acreage.

6. Deals announced by FTTN that never happened:
a. FTTN signs LOI to acquire RenGen, LLC
b. FTTN plans shale gas venture in Poland
c. Acquisition of Bedford Operating Company
d. Spudding of Louisiana well/prospect
e. First Titan Technical subsidiary
f. Auto component manufacturing venture