PRZOOM - /newswire/ -
Los Angeles, CA, United States, 2005/05/25 - Silver Star Energy, Inc. (OTCBB: SVSE) today announces that the Company has begun discussions with Fidelis Energy, Inc. regarding the possible future amalgamation of the two companies..
Silver Star and Fidelis currently have common working interests in various oil and gas projects and the amalgamation of these interests would provide a larger and stronger entity for future growth. Oil and gas sector growth occurs by either merger or "growth by the drill bit" and Silver Star is positioning itself to consider both these options.
The proposed amalgamation would combine all assets of both oil and gas companies into one entity, which would then have in the portfolio a combined working interest in 5 projects, these being North Franklin, Joarcam, Comanche Point, Evi and Verdigris Lake. The recent management changes of Fidelis have brought new strength of both corporate and oil and gas expertise and Silver Star has been approached by Fidelis with this proposal.
The amalgamation of the aforementioned assets and individual company working interests would be based on "fair market opinion" provided by third party arms length reservoir engineering. The companies have now commissioned these reports on the various projects as a valuation of assets as a precursor to formal negotiations regarding the possible new structure of the amalgamated companies.
Silver Star anticipates that discussions and negotiations will be ongoing over the next several months and will endeavor to provide regular updates on this corporate development as well as current operations.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD
Silver Star Energy, Inc.
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SOURCE: Silver Star Energy, Inc.