GlobeStar Therapeutics Corp (GSTC)

[Voices of Reason]

Unfortunately, the news out this morning appears to be hype or even worse.... a lie.

Here are the REAL production numbers from the company's well in Alabama: http://www.gsa.state.al.us/ogb/prod_report.aspx?PERMIT=16714-B&API=01035202710000

As one can see, the production dropped off significantly in July down to a mere 13 bbls/day. Worse yet, the gas production has dropped off to zero. The well will NEVER make the highly touted "400,000-800,000 bbls" of production and is magically producing at a HIGHER pressure than ever before "....The well currently has a flowing tubing pressure of just over 400 pounds per square inch on 16/64ths choke..." - a feat that is simply impossible when it comes to reservoir performance: http://www.businesswire.com/news/home/20121108005715/en/FTTN-Alabama-Production-Remains-Highly-Encouraging

From today's press release touting a workover to get production back up, it states that the well is producing 370 bbls of oil per day (or about 11,100 bbls per month). The well has NEVER produced this much oil since the first days of production back in September. The steep declining production data clearly refutes the notion that this well is magically producing like a brand new well.

Even taking into account the Company's refuted production figures: "Midway through October, the well has produced nearly 5,500 gallons of oil and 4,000,000 cubic feet of gas." and doubling it for a full month production - this would yield the following potential revenue results:

5500 gallons x 1 BBl/42 gallons x 2 x $100/bbl x 1% net revenue position = $261.90 per month

4,000 MCF x 2 x $3.50/MCF x 1% net revenue position = $280.00 per month

Grand total = $261.90 + $280.00 = $541.90**

**Less Rework & Operating Costs, and G&A.

I suppose claiming ANY revenue by the company would be pause for excitement by Robert Federowicz.....