CoreStream Energy, Inc. (PINKSHEETS: ZLUS) is pleased to announce
that it has received an initial multi-million dollar funding
commitment from an institutional investor on a project by project
basis. The funds will be used for investment in the acquisition of
producing oil and gas wells and leases and to expand current
production. This financial commitment is subject to the investor
conducting its customary due diligence evaluations on each project.
It is significant to note that the hedge fund making the commitment
was a prior creditor and litigant of Zealous, Inc. Its financial
decision demonstrates its confidence in the management, direction,
and commitment of CoreStream Energy to oil and gas exploration,
production and energy trading. It also shows that the Company's
dedication for the last three years to work with its creditors and
resolve debt issues can have the unforeseen benefit of returning
previous strategic partners to participate in the Company's future
growth. Additional funding has also been obtained from another
source to expand and enhance the corporate infrastructure and
management team. Similar commitments from various other financial
sources are in discussion and negotiation.
As a result of the new financial commitments, the Company is in
active, late-stage negotiations for 3 multi-well oil opportunities.
These projects are located in Kansas, Kentucky and Louisiana. Each
of the projects is currently in production with negotiations
expected to be finalized in the next 30-60 days. While negotiations
are in progress at this time there are no guarantees of their
success. Success will be contingent upon the Company completing its
due diligence and achieving a positive evaluation for each project.
The Company will provide an update and details if positive
conclusions are reached. The funding discussed above contributes
significantly to these acquisitions.
To maximize its effectiveness on these new and future
opportunities, the Company has retained Mr. Kenneth Sonesen as the
Superintendent of Field Operations. Mr. Sonesen has over 25 years
of experience in both land and offshore oil projects and will play
a significant role in the evaluation and management of the
Company's opportunities and operations. Mr. Sonesen has a degree in
Marine Engineering specializing in fluid and oil management along
with a minor in Geology. Mr. Sonesen attended the Norwegian Naval
Academy in Horten, Norway. His experience includes working with
Statoil and helping to develop Oseberg C from inception. Oseberg C
is the crown jewel of Statoil's fleet of offshore wells in the
North Sea. He has also worked with TransOcean and other leaders in
North Sea offshore exploration and drilling and with European
land-based drilling projects. On the North American continent he
has worked on shallow and deep well drilling and operations
management. Mr. Sonesen has already presented two projects that the
Company is negotiating. The Company looks forward to working with
Mr. Sonesen and to all the contributions he will bring.
In addition to Mr. Sonesen, the Board of Directors of CoreStream
Energy, Inc. has appointed Milton C. Ault III as a member and its
Chairman and as the Company's CEO and President. Mr. Lewis V.
Graham has been appointed Chief Operating Officer. Mr. Graham
continues in his capacity as the Corporate Secretary.
Mr. Ault brings over twenty-one years' experience in various
aspects of the Oil and Gas Industry including capital formation,
finance and trading which are directly applicable to the
identification, analysis, investment, and operational objectives of
CoreStream Energy, Inc. and its plans for future growth. More
complete descriptions of Mr. Ault's and Mr. Graham's relevant
business experiences can be found in the recent 8K.
Effective February 12, Chris Rainbolt resigned as a member and
Chairman of the Board of Directors and as CEO and President of
CoreStream Energy to pursue other business activities. Kevin Adkins
resigned the same day as a Director and the Treasurer of the
Company for similar reasons. Mr. Rainbolt has been a strong
influence in the shift of the Company direction to the energy
sector and creating a strong foundation in the industry. There were
no known disagreements relative to corporate policies or the
activities of Mr. Rainbolt or Mr. Adkins that precipitated their
decisions. The Company will remain dedicated to oil and gas and it
is expected that Mr. Rainbolt will work with the Company from time
to time on items of mutual interest. The Company thanks Mr.
Rainbolt and Mr. Adkins for their contributions to the Company and
wishes each of them success with their future endeavors.
Mr. Ault said, "Our investors can be assured that we will
continue to concentrate on expanding the energy program we began
last year. As our primary corporate activity, significant progress
has been made to line up funding sources and secure new
opportunities. We are committed 100% to the growth and development
of CoreStream Energy. We have shown our investors considerable
progress on all fronts, and will continue to do so in the coming
weeks. We continue to expand and cultivate relationships with
recognized energy experts who will advise us in the field. The
Company expects to see a significant acceleration in its growth in
2011 based on changes in the marketplace, emerging new
opportunities and the active interest expressed by funding
partners."
As a demonstration of its commitment to the oil and gas business
model, the Company has renewed its effort for the expeditious
change of its trading symbol and to create a comprehensive new
website.
The Company would also like to take this opportunity to update
its investors on a few areas of interest and address some of the
common questions received.
With respect to State Lease #2, the well is expected to be
completed and production begun in the next few weeks. The bad
weather in the area has been the reason for the delay. CoreStream
is part of a partnership which, by drilling State Lease #2 in 2010,
has the rights to 1600 acres in this area of proven reserves and
success. CoreStream will enjoy a minimum 4% working interest in the
current well, and has the right of participation in any of the
wells in the project area over time. The cost of development and
operation of each future well will be proportionate to the
Company's participation. The partnership will determine when to
commit to future wells. More information about the well and its
expected performance, along with future activity, will be shared
when such facts are known.
As previously reported the start of the proposed well known as
Sanders #1 continues to be forecast for late Spring when conditions
will allow for it at Catahoula Lake, LA. The Company has received
no further update on this project at this time.
Gary Patterson has been retained to be the Company's consulting
Manager of Investor Relations. His contact information can be found
at the bottom of this press release.
The Company does not see any need to and it does not have any
plans to do a reverse split of the common shares in 2011. As of
January 10, 2011 the Company's current common stock share structure
is 1.5B authorized shares and 1,390,162,856 outstanding shares.
Increases in shares issued have resulted from extraordinary
opportunities to settle outstanding legacy debt and the Company
will continue to be opportunistic at issuing equity to pay off
debt. The Company believes this is a critical process to the future
of the Company and elimination of debt will continue to be a top
priority for CoreStream Energy in 2011.
The Company is pleased to report that the non-oil and gas assets
held in escrow have been sold or have been disposed of and final
settlements of these transactions are expected by the end of March.
Similar progress has been experienced with the creditors with over
75% of the legacy debt resolved and it is expected that the vast
majority of the debt settlement will be finalized during 2011. The
creditors who have reached settlements in this difficult financial
period are applauded by the Company for their interest and efforts
to reach solutions. The creditors have also expressed appreciation
for the effort and fairness that the Company has extended and a
number of them have approached the Company as possible investors in
its future activity.
The previous web sites for earlier businesses running under
Zealous Inc. have been deactivated. A new basic web site for
CoreStream will be initiated in the near future and it is the
Company's goal that the continued development of this site will
make it a valuable tool to keep investors aware of the Company's
efforts.
The Company's Q1 filing for 2010 will be submitted this week
while its Q2 is expected to be filed within a few weeks. The
Company intends to be current during 2011.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Fountain
Valley, CA is an independent energy company engaged in the
acquisition, development, exploitation and production of crude oil
and natural gas from onshore conventional properties in Texas,
Louisiana, Oklahoma and Mississippi and the Midwest. It currently
trades on the OTC Markets as ZLUS.PK with a symbol change expected
soon from FINRA.
This press release includes "forward-looking statements" as
defined by the Securities and Exchange Commission ("SEC"). Such
statements include those concerning CoreStream Energy, Inc.'s
strategic plans, expectations and objectives for future operations.
All statements included in this press release that address
activities, events or developments that CoreStream expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements are based on certain
assumptions CoreStream made based on its experience and perception
of historical trends, current conditions, expected future
developments and other factors it believes are appropriate under
the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond
CoreStream's control. Statements regarding future production,
revenue and cash flow are subject to all of the risks and
uncertainties normally incident to the exploration for and
development and production of oil and gas. These risks include, but
are not limited to, commodity price changes, inflation or lack of
availability of goods and services, environmental risks, drilling
risks and regulatory changes and the potential lack of capital
resources. Investors are cautioned that any such statements are not
guarantees of future performance and those actual results or
developments may differ materially from those projected in the
forward-looking statements.
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Contact Info: CoreStream Energy, Inc. (714) 418-1700 Gary
Patterson Investor Relations IR@CoreStreamEnergy.com (714)
369-2933