TPC Tenth Avenue Petroleum Corp

TrueStar Petroleum Corporation ("TrueStar" or the "Company") (TSX VENTURE:TPC)
announces that the sale of the major portion of the assets of TrueStar Barnett,
LLC to Global Energy Partners L.P. was approved pursuant to the rules and
regulations of the United States Bankruptcy Court. The sales price of $17.8
million (US) reflects an adjustment for the withdrawal of two wells that were
removed from the sale pending a lease assignment resolution. Closing is
scheduled to be on or before May 30, 2008. Proceeds of the sale will be used to
immediately pay the secured creditors. The remaining monies will be escrowed
pending a determination of the parties respective rights in the funds by the
Bankruptcy Court.


BGC Consultants Ltd., through the British Columbia courts, issued the Company
notice of seizure for the gold properties. "Although we acknowledge BGC
Consultants Ltd. has a judgement against the Company, it is somewhat
disheartening to have received this. They are the only major creditor we have
who have not shown us any compassion as we are turning the financial corner,"
stated TrueStar CEO & Chairman, Dick Shuster.


The Company has also signed a Memorandum of Understanding (MOU) with Zhong Yuan
Ltd. of Xinjiang Province, China. The MOU provides the structure for partnering
with Zhong Yuan Ltd. for the purpose of Coal Bed Methane (CBM) and Coal Mine
Methane (CMM) operations and exclusive access to this initial block and other
proposed blocks in the area. The MOU also establishes the framework for TrueStar
and Zhong Yuan Ltd. to work in concert to receive all necessary regulatory
approvals required for the implementation of CBM and CMM projects in Xinjiang
Province. The execution of this MOU firmly establishes TrueStar's strategic
entry into the Chinese energy market as it relates to CBM, CMM, electric power
generation and associated vertical markets.


Zhong Yuan Ltd.'s core business is related to the provision of electricity to
the central power grid in Xinjiang Province and it holds interests in over 2,800
sq/km of coal rich acreage in the prolific Zhungaar and Tuha Basins.


Following final Board approval, funding for this project will be obtained
through the previously announced agreement between TrueStar Petroleum
Corporation and China Carbon Corporation.


"Although it is bittersweet to divest the Barnett assets of TrueStar Barnett,
the opportunities we now have, to move forward in Guatemala and China should
start the re-creation of an asset base available to drive shareholder value up,"
stated Shuster.


About TrueStar

TrueStar Petroleum Corporation is an oil and gas exploration, development, and
production company. TrueStar has interests in 34 producing gas wells in the
Barnett Shale gas play in Texas and a 10% interest in a license for oil and gas
development on 554,000 acres in Guatemala, and is waiting the reassignment of
the remaining 90% interest in the 554,000 acre License. Working interest
partners in Texas include publicly listed Devon Energy (NYSE:DVN), Carrizo Oil &
Gas (Nasdaq NM:CRZO), and EnCana (NYSE:ECA). Additional information on TrueStar
Petroleum Corporation is available at http://www.truestar-petroleum.com.


ON BEHALF OF THE BOARD OF DIRECTORS

Dick Shuster, Chairman and CEO

Tenth Avenue Petroleum (TSXV:TPC)
Historical Stock Chart
From May 2024 to Jun 2024

Tenth Avenue Petroleum (TSXV:TPC)
Historical Stock Chart
From Jun 2023 to Jun 2024