Petrostar Petroleum Corporation (TSX VENTURE: PEP) (FRANKFURT: LMQ), the "Company" or "Petrostar" announces that it has received a tremendous 598% increase in oil production from well 15/6 as a result of its DHT test. The Company considers this as a major confirmation of the DHT and its capabilities and benefits.
The test was initiated on June 23, 2007 and was completed August 11, 2007. The test was longer then the previous 9/6 DHT test as well 15/6 has a greater water inflow over the test time that resulted in a longer time to steam interval. During the 9/6 DHT test water was required to be injected into the well bore (approximately 30m3 -189 bls) but no water was required to be injected into the 15/6 well during its test. The DHT attained a maximum temperature of 190 degrees C and maintained that temperature for the major time of the test. The production in well 15/6 before the DHT test was approximately 2.9 bopd and increased to 17.36 bopd when placed back on production August 17, 2007 and is currently maintaining that production rate.
The production increase is similar to that experienced by well 9/6 well (600%) that was tested in May 2007. In addition to increased oil production gas production has increased from near zero to 220m2 in 15/6 and influenced gas production in offset wells 14/6 to 250m2 and up to 310m2 per day and well 1A16/6 to 310m2 and up to more then 700m2 per day. The results are due to the effect of the heat and pressure that the DHT produces as a residual of the initial heat and pressure build up in the well. The after effect shows that, as the DHT operates, the heating of the fluids in the well-bore has the effect of releasing gas in suspension that then migrates through the various channels and reservoir openings to pressurize the formation and subsequently increase production in the well or wells in the vicinity.
It is expected that with deployment of the next generation DHT these results may be exceeded as the DHT will operate at temperatures of 225Ã¯Â¿1/2C or higher and as a additional benefit the DHT may be deployed and remain down hole without a production interruption making the economics of acquiring and operating the DHT very attractive. The next generation will also be capable of deployment without the need of coil tubing pigging and a coil tubing service unit reducing deployment costs and making the DHT even more economic with lower initial costs and higher end revenues. The Company is awaiting delivery of the next generation DHT and expects to be able to announce a schedule of tests on its lease or other parties the Company is currently in discussions with. Once the schedule has been confirmed the Company is planning on initiating an order for substantially more units and possibly up to 20,000 feet of its new configuration stainless steel cable. It is expected to confirm these orders in early to mid September 2007.
The Company is also awaiting delivery of its new ETH (electric tank heater), which will be installed on production facilities located on well site 12/6 and testing commence. In addition the Company has contracted with SaskEnergy to run electric power to the location for a continuous power supply, which is expected to be installed during September 2007. The test will be conducted on receipt of the ETH with the use of a temporary power source and adapted to the SaskEnergy source when it is completed. This will allow an immediate test and evaluation of the ETH without unnecessary delay.
As was previously announced, the Company has reviewed several potential acquisitions or ventures that it is pursuing and expects to have further information on these developments in the near future.
More details of these technologies are available on the Petrostar website, which it is currently going to extensively update and redesign at www.petrostarpetroleum.ca.
On behalf of the Board of Directors,
"Robert A. Sim"
ROBERT A. SIM
Safe Harbor Statement and Disclaimer:
This Press Release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed forward-looking statements. Although Petrostar Petroleum Corporation believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the development and production of oil wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of production operations; risks with respect to oil prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil prices and other risk factors.
The TSX-Venture Exchange Inc. has not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Petrostar Petroleum Corporation
ROBERT A. SIM
604-662-3004 ext. 105