Los Angeles, CA (PRWEB) December 15, 2004
Silver Star Energy, Inc. (OTCBB: SVSE) today announces that the Company has received the first tranche of $750,000 from Cornell Capital Partners as part of a $1.5 million bridge loan.
Under the terms of the agreement with Cornell, the debentures have a term of three years, bear interest at 5% per year, and are convertible into Silver Star common stock. Conversion occurs at a price of 120% of our trading price on the date of purchase or 80% of the average of the three lowest volume weighted average daily closing prices of the Company's common stock, as quoted by Bloomberg, LP, during the thirty trading days immediately proceeding the conversion date, whichever is lower.
The use of proceeds was announced on December 1st where Silver Star advanced funds in full to drill and complete the "13-27" oil well at the Company's Joarcam project. Silver Star anticipates the receipt of the remainder of the bridge loan within 14 days and plans to drill an additional well at Joarcam where Transaction Oil and Gas Ventures is undertaking steps to prepare the "13-22" well location.
Silver Star and Cornell have put in place a Standby Equity Facility for a further $10 million. The Standby Equity Distribution Agreement ("SEDA") allows Silver Star, at its discretion, to utilize the facility and Cornell to provide up to $10 million of funding to Silver Star over a 24-month period. When the Company requires additional capital to conduct exploration and or development on its various projects, the required funding will be made available.
Silver Star now is now able to fully fund all projects while the Company waits for the upcoming cash flow from natural gas sales at the Sacramento Basin North Franklin Project.
About Cornell Captila Partners, LP
Established in January 2001, Cornell Capital Partners, LP (http://www.cornellcapital.com) has funded numerous companies listed on the OTCBB. Building on that solid foundation, Cornell has consummated transactions with AMEX and NASDAQ listed companies, and continues its success in international markets.
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.
Silver Star Energy Inc. is Featured Company on NaturalGasStocks.com
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To find out more about Silver Star Energy, Inc. (OTCBB: SVSE), visit our website at http://www.silverstarenergy.com.
Silver Star Energy, Inc.
Source: Silver Star Energy, Inc.
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