Star Energy closes purchase of Volga-Neft
  by: OilOnline
  Monday, October 09, 2006

Star Energy has acquired Volga-Neft, a Russian oil and gas producer. Under the terms of the purchase, Star acquired one hundred percent (100%) of Volga-Neft in exchange for ten million (10,000,000) newly issued, restricted shares of Star Energy. Volga-Neft will become a wholly owned operating subsidiary of Star Energy.

Volga-Neft has several attributes, including an executed contract to buy the Rodnikovsky oilfield in the Orenburg region. This field has estimated total extraction reserves of 95 million barrels, with a market value to Volga-Neft of approx. USD 190 million. Volga had audited 2005 gross revenue in excess of USD 90 million.