VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (FRANKFURT:LMQ), (the "Company" or "Petrostar") announces the following:
DHT DEPLOYMENT (DOWN HOLE TOOL)
The Company is pleased to report that delivery of its 2nd generation DHT and proprietary cable is expected on its Maidstone property within 2 weeks. Surface testing is being completed at the manufacturer's site in Delta, B.C., and is expected to be concluded this week.
The 2 new DHTS will be shipped to the Maidstone lease for on site testing. One of the DHT's will be for a further test at location 15/6. A second DHT is expected to be deployed for testing on another well site in the near future. The new DHT is designed to reach and operate at a higher temperature of 250º Celsius with expectations that, the more steam and heat generated, the result will be increased oil and gas production.
Previous tests conducted with the first DHT prototype had an operating temperature of 190º Celsius and was still able to produce an impressive 598% increase in oil production from well 15/6 as a result of its DHT test. The test was initiated on June 23, 2007 and was completed August 11, 2007. The first prototype was also responsible for the results from well 9/6, which had a very significant 600% increase in oil production during its May 2-25, 2007 test.
In addition to the 2 new 2nd generation DHT's coming into service, the initial DHT prototype has been refurbished and upgraded and will be used to implement an additional test on Maidstone location 10/6. This will assist in generating data from the offsetting well locations, (11/6, 9/6) and in conjunction with the new DHT at location 15/6 which will generate data from well locations (14/6 and 1A16/6) and provide the basis for the Company to prepare a business plan. The objective is to use this information to prepare a marketing strategy as to the terms and conditions the DHT will be offered to the industry.
The Company will also incorporate a new hydraulic delivery system for the DHT, which will eliminate the need for other service equipment and reduce deployment costs significantly.
Upon successful completion of the aforementioned tests and system, the Company will then take delivery of an additional 6 DHT units that could be in operation before the year end.
WASECA DRILLING PROGRAMS
The Company is planning on drilling 2 new wells in the Maidstone area of North Central Saskatchewan to test the Waseca A and B sands on 2 leases. At this date, the surface lease requirements have been secured, and surveying to file for the drilling permits has been conducted. The permits should be received shortly. Subject to permit receipts, the Company has a tentative spud date of October 24, 2007 at its Maidstone A 16/6 location and has a drilling rig on standby to accommodate this start date.
The well will be spudded and drilled to a depth of approximately 520m. The new well will be structurally higher then the offsetting wells, 1-07-48-23W3M and A 13-05 owned respectively by Rife Resources and Harvest Energy that are producing from this zone.
The second well will be drilled in A8-15-48-24W3M offsetting a well owned and operated by Husky Oil. More details of the drilling programs will be forth coming as these matters proceed.
More details of Petrostar's projects and development of its technologies are available on the Petrostar web site, which it is currently undergoing an extensive 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.