disposal facility updatePetrostar Petroleum advances its disposal facility 2015-05-12 17:34 ET - News Release
Mr. R. Mackenzie Loree reports
PETROSTAR UPDATES ON DISPOSAL FACILITY
Petrostar Petroleum Corp. is providing an update relating to the arrangement that was announced on Dec. 12, 2014, where Mako Well Services, a non-arm's-length company, has committed to the fabrication and supply of surface equipment for a Class 1B disposal facility that is yet to be named.
As previously announced Mako Energy services will receive 12.5 million common shares of the company on completion of the manufacture and delivery of the equipment required to operate the company's proposed Class 1B deep disposal facility. The transaction will be a non-arm's-length and subject to TSX Venture Exchange approval.
R. Mackenzie Loree Petrostar, chief executive officer, stated: "The company is working diligently to develop a deep well disposal asset in Southern Alberta in order to stimulate cash flow and kick off a long-awaited era of Petrostar prosperity. The company feels strongly that a price competitive disposal facility will be beneficial to its customers and to the company through the means of an achievable and affordable project. Many producers are subject to adverse market conditions in Alberta and operating overhead is a grave concern for many. This provides a strategic opportunity for Petrostar to take the initiative and opportunity to execute a long-life project that is instrumental to the success of many. Mako Well Services is a non-arm's-length company and has been working on the development and production of the surface facilities required for a deep well disposal application. The company has reported that its manufacturing process is 75 per cent complete."