GOLDEN, Colo., Sept. 25 /PRNewswire-FirstCall/ -- 1st NRG Corp.
(OTC Bulletin Board: FNRC) ( www.1stnrg.com ) announces that it has signed a
letter of intent (LOI) with TrueStar Petroleum for the development and
production of oil and gas resources in Guatemala.
1st NRG Corp. is pleased to announce that it has signed a Letter of Intent
(LOI) with TrueStar Petroleum Corporation for the development and production
of oil and gas resources in Guatemala. The LOI calls for 1st NRG to
participate with TrueStar Petroleum the development and production of oil and
gas resources in all areas for which TrueStar contracted with the Guatemalan
The LOI calls for 1st NRG to invest $650,000 for licensing and changeover
and to invest up to $12 million for the drilling and completion of two wells
in the development area. 1st NRG will receive 97% of the revenue from the
production area until its initial capital is recovered. Following the recover
of the initial capital by 1st NRG, the revenue will be split 80% to 1st NRG
and 20% to TrueStar. The final terms and condition of the agreement are
subject to the signing of a Definitive Agreement between TrueStar and 1st NRG.
The property is 554,000 acres. A discovery well was drilled that produced
approximately 145,000 barrels. A second confirmation well produced
approximately 85,000 barrels. Due to an unsettled civil war at the time and
low oil prices, the field was never developed. In addition, recent seismic
data have identified two additional structures and one strong lead. This
project would consist of developing the known discovery and explore the other
structures. Total potential reserves could be estimated at 50 to 100 million
barrels. Other licenses in the area are possibly available. This project
could be developed quickly with production in less than one year.
About 1st NRG
1st NRG Corp. is a development stage oil and gas company focused on
acquiring, developing and operating petroleum based facilities. The
management of 1st NRG Corp. intends to focus on acquiring, developing and
operating oil and natural gas properties. This will allow the company and its
shareholders to take advantage of management's extensive experience in the
Management believes certain statements in this press release may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are made on the
basis of management's views and assumptions regarding future events and
business performance as of the time the statements are made. Actual results
may differ from those expressed or implied. Such differences may result from
actions taken by the company prior to its current fiscal year end, as well as
from developments beyond the company's control, including changes in global
economic conditions that may, among other things, affect the performance of
the company's anticipated acquisitions or future business. In addition,
changes in domestic competitive and economic conditions may also affect
performance of all significant company businesses.
For Additional Information:
Please visit the company's web site: www.1stnrg.com
SOURCE 1st NRG Corp.