WellStar Energy Corp. Announces McTaggart SK Acquisition

CALGARY, AB / ACCESSWIRE / November 30, 2015 / WELLSTAR ENERGY CORP. (TSXV: WSE) (“WellStar“, or the “Company“) announced today that it has signed a Purchase and Sale Agreement to acquire a partner’s (the “Vendor”) 39.2925% interest in the Company’s McTaggart, Saskatchewan oil project, plus additional lands and 2D seismic data. Before adjustments, the purchase price for the acquisition is $90,900. The Company has deemed this to be an exempt transaction.

WellStar’s President & CEO Andrew H. Rees stated “Management is extremely pleased to be able to sign the Purchase Agreement. The acquisition will provide the Company with an approximate 90% interest in its McTaggart facility, increasing revenues while reducing operating costs. This will allow for more flexibility and quicker action on future development opportunities and facility expansion plans necessary to accommodate additional development wells in the area.”

Acquisition Overview:

The acquisition interests at the McTaggart project includes two oil wells and facilities which include a salt water disposal well, a 5,000 barrel oil storage battery and a fresh water source well.

In September 2015 over $15,000 of monthly salt water disposal revenue was received net to the Vendor’s 39.2925% working interest. The Company expects to receive similar amounts in the forthcoming months.

In September 2015 the 5B9-6 oil well averaged 2.9 m3/d of oil production (or 18.2 bopd). The 39.2925% working interest being acquired from Vendor represents approximately 7 bopd. The well is currently undergoing maintenance while management is evaluating and budgeting for the installation of an ESP (Electronic Submersible Pump) which would significantly increase production volumes. The change in oil production would be dependent on the water cut.

The Company’s recent recompletion in the 1B9-6 well in September, 2015 is the second well in the acquisition package. The Vendor did not participate in the recompletion and has therefore been in penalty. After penalty payout, the vendor would have earned revenue from its 39.2925% working interest in the well.

As part of this acquisition the Company will acquire a licensed copy and/or the Vendor’s interests in four 2-D seismic lines in the McTaggart area. This 2D seismic data will aid in the development of future opportunities in the McTaggart area.

WellStar will acquire a 25% mineral interest from the Vendor in two Freehold leases. These lands directly offset the Company’s McTaggart property.

For further information please contact Andrew H Rees at (403) 919-7900.

ON BEHALF OF THE BOARD

(signed) “Andrew H. Rees“
Andrew H. Rees
President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE PRESENT THE EXPECTATIONS OF THE COMPANY AS OF THE DATE HEREOF AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.

SOURCE: Wellstar Energy Corp.

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