Petrostar Petroleum Corporation (TSX VENTURE: PEP) (FRANKFURT: LMQ)("Petrostar" or the "Company") is pleased to announce that it has deployed its first generation Down Hole Tool (Gen-1 DHT) in its well A10-6 on the Company's Maidstone oil lease. The purpose of this continued testing of the Gen-1 DHT is to duplicate and verify the success the Company achieved on the previous testing on wells A9-6 and A15-6, which generated increases in production by 600% and 598%, respectively.
In addition to this test, the Company is currently preparing well A15-6 to test its second generation Down Hole Tool (Gen-2 DHT). The modifications made to the Gen-2 DHT are designed to increase the heating capability of the tool from 190 degrees Celsius to 250 degrees Celsius, resulting in increased steam and pressure build up in the reservoir. The Gen-2 DHT will be deployed by the end of October 2007.
SHARE OF MULTI BILLION DOLLAR ENHANCED OIL RECOVERY TECHNOLOGY FIELD
Worldwide deposits of heavy hydrocarbons are estimated to total almost 5.5 trillion barrels, and four-fifths of these deposits are in the Western Hemisphere (estimated as at year 2000 figures).
There is currently more oil in North American reservoirs than is expected to be produced from Saudi Arabia and Venezuela combined. On average, only 15% of the "easy oil" is recovered from most medium and heavy crude oil reserves while the remaining oil is abandoned. In North America, tens of thousands of wells containing 70% to 80% of the original oil in place remaining in the formation/reservoir are currently capped due to their lack of economic viability and low & insufficient bottom hole pressure. In 1998, Steam Assisted Gravity Drainage (SAG-D) system was introduced in Canada to enhance production from Oil Sands and Heavy/Medium oil reservoirs, improving production and reservoir sweep efficiency by 15% to 20%. Within two years, over $3.4 billion in commercial ventures licensing the SAG-D system were in play in North America.
Upon completion of the testing of Gen-1 and Gen-2 DHT, Petrostar will be in possession of adequate data to allow it to move forward with its marketing plan for the Gen-2 DHT. The potential commercialization of the DHT is substantial, as there is as estimated above huge quantities of original heavy oil in place that potentially can be recovered through enhanced oil recovery technologies.
More details of Petrostar's projects and development of its technologies are available on the Petrostar web site, which is currently undergoing an extensive update and redesign at www.petrostarpetroleum.ca.
On behalf of the Board of Directors,
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.
Petrostar Petroleum Corporation
Robert A. Sim
604-662-3004 ext. 105
Petrostar Petroleum Corporation
Dee L. Sauve
604-662-3004 ext. 114