Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), China Sunergy Co. Ltd. (NASDAQ: CSUN), Sirius Satellite Radio Inc. (NASDAQ: SIRI) and Valero Energy Corp. (NYSE: VLO).
Investors need to be watching Petrostar Petroleum Corporation (TSX-V: PEP) this AM! Petrostar Petroleum Corporation is an independent government licensed Oil & Gas Operator focused on the development of existing and proven heavy and medium crude oil assets utilizing patented and patent pending Drilling and Recovery Systems and other proprietary technology to enhance oil recovery. Petrostar pursues a balanced strategy combining production and development of Enhanced Oil Recovery technologies. Petrostar has two EOR technologies (the Vertizontal Recovery System (VRS®) and Enhanced Recovery System (ERS -- Down Hole Tool < DHT >) that can be integrated with each other and to existing in-situ applications, allowing for maximum technological efficiencies. The VRS® has licensing opportunities for medium to larger sized projects that are well capitalized while the DHT has licensing opportunities for small to medium sized projects. Petrostar is 100% owner and operator of the 320-acre Maidstone Oil prospect located in Central Western Saskatchewan which includes the petroleum and natural gas rights. Currently, there are eight producing vertical wells on the Maidstone property. The company has initiated an aggressive $4 million work-over program to further develop the prospect and increase recovery volumes of the oil reserves and enhance the value of the prospect. The undiscounted cash flow for the project, based on constant oil price of $35 per barrel and capital investment in further developing the prospect of $4.0 million and project life of 30 years, is estimated at $41.5 million. Petrostar has added two horizontal wells with the approximate distance of 1,200 meters each into the reservoir and is initiating a pressure maintenance system. The initial production rate of the two horizontal wells is estimated at 250 to 300 barrels of oil per day. Petrostar also holds working interest in two leases located south of Calgary, Alberta. The Turner Valley Project and the Kew Field Oil and Gas Project are thought to be an extension of a storied and prolific oil and gas field, having had historical production. Turner Valley has produced over 150 million barrels of oil and has dissipated over three trillion cubic feet of natural gas. In the process of completing the first three phases of testing the VRS®, the company has successfully tripled its production and expects production to increase significantly once phases 4 and 5 are completed. With oil futures maintaining its current price, advances Petrostar Petroleum Corporation has made in 2006 and will be making in 2007, the present and future of the company and its shareholders look very promising. Petrostar Petroleum Corporation is poised to become a significant player in the oil and gas exploration industry! Petrostar just had excellent news out in a press release before today's opening bell announcing that delivery of its 2nd generation DHT and proprietary cable is expected on its Maidstone property within 2 weeks! The company also announced that it 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! Investors need to go to the company's website www.petrostarpetroleum.ca and review this exciting technology! Investors should be watching this one closely!
Petrostar Petroleum Corporation (TSX-V: PEP) 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 manufactures 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 DHTS 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 250 degrees 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 which had an operating temperature of 190 degrees 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 very significant 600% increase in oil production during its May 2-25, 2007 test.
In addition to the 2 new 2nd generation DHTS 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 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 the spudded and drilled to a depth of approximately 520 meters. 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 these technologies are available on the Petrostar web site which it is currently going to extensively update and redesign at www.petrostarpetroleum.ca.
Stocks in the news and acting well as of late include: China Sunergy Co. Ltd. (NASDAQ: CSUN), Sirius Satellite Radio Inc. (NASDAQ: SIRI) and Valero Energy Corp. (NYSE: VLO).
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