November 8, 2006 - 4:30 PM EST
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SERG 2.85 0.20
Today 5d 1m 3m 1y 5y 10y
Star Energy Signs Letter of Intent with Samara Transoil
Star Energy (OTCBB:SERG) announced today that it has entered into a Letter Of Intent (LOI) to purchase 100% of Samara Transoil, an oil-services company located in Samara, Russia. Terms of the agreement call for the issuance of one million restricted shares of Star Energy Corporation in consideration of the purchase. Pending an audit of Samara Transoil, the transaction is expected to close within 45 days.
Samara Transoil is principally engaged in the specialized transport of dangerous and heavyweight goods, including various kinds of crude oil and related products. The firm's main customers are companies involved in the production, treatment and refining of crude oil in the Samara, Saratov, Orenburg, and Nizhni Novgorod areas within the Volga region of Russia, as well as Tatarstan, Bashkortostan, and the Udmurt Republic. The company averages roughly 400,000 kilometers of transport per month. Samara Transoil currently has USD $5 million in annual revenue, is debt free, and has hard assets valued at more than USD $3 million.
Commenting on the proposed acquisition, Star CEO Marcus Segal said "The acquisition of Samara Transoil is a wonderful opportunity for us to further expand Star Energy into a strong, resource-based business. We look forward to concluding the purchase process."
About Star: Star Energy Corporation is a U.S.-based public oil and gas exploration company with one hundred percent (100%) of its assets located in Europe, primarily the Samara region of Russia. The company is pursuing a strategy of seeking investment and acquisition opportunities in Russia and Eastern Europe with the goal of providing Western investors with access to a portfolio of natural resource licenses and operating companies. Additional information can be found at
www.starvolga.com. Safe Harbor Statement: A number of statements contained in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including the recovery of oil and gas resources, the successful completion and integration of prospective acquisitions, competitive market conditions, and the ability to secure sufficient sources of financing. The actual results Star may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Star encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form 10-QSB. Star's public filings may be viewed at
www.sec.gov.STAR ENERGY CORP.
245 Park Avenue
24th & 39th Floors
New York, NY 10167
212-792-4334
info@starvolga.com
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