Petrostar Petroleum Corporation (TSX VENTURE: PEP) (FRANKFURT: LMQ) ("Petrostar" or the "Company") is pleased to announce the following developments:
- Engagement of Mr. J.A. (Sandy) Sprinkle, P.Eng. B.Ed. to lead the next and subsequent stages of the Company's testing, measurement, analysis and commercialization of the GEN-2 DHT;
- Successful surface test results of the Company's GEN-2 DHT;
- Commencement of drilling of Well A-16-T-6-48-23W3 to a depth of 516m into the Waseca zone on its Maidstone property;
- Development of plans to drill Well 08-15-048-24W3 to a depth of 545m into the Waseca zone on its newly acquired Lashburn property, once drilling of a new well on its Maidstone property is completed.
On Mr. Sprinkles' engagement, Robert A. Sim, President of Petrostar commented, "the management recognized the need to engage someone with Mr. Sprinkle's wealth of technical, practical, academic and business experience, to allow the Company the best opportunity to move the development and ultimate commercialization of the Company's GEN-2 DHT forward. His experience coupled with his contacts in the heavy oil industry, having previous employment with Husky Oil, and a pilot steam project that was the predecessor to Suncore's project, will prove to be a tremendous asset for the Company and its shareholders, and we are extremely pleased someone of his caliber and professional credentials has joined us."
Additionally, the results of the surface test on the GEN-2 DHT have far exceeded the Company's metrics for temperature, steam generation, and all mechanisms for control. Prototypes of the GEN-2 DHT are being delivered to the Company's production/test facility at Maidstone, Saskatchewan where they will be deployed for field testing within the next 14 days, under the direction of Mr. Sprinkle. Further to the Company's past news releases, management continues to field inquiries for deployment of its GEN-1 and GEN-2 DHT from interested parties, which are being followed up with vigor. The inquiries are from domestic and international parties, demonstrating the interest and the potential application of this enhanced oil recovery technology.
The drilling of new wells is in line with the Company's strategy to develop and improve the production of heavy oil from its assets. The target for the new well on Petrostar's Maidstone property is based on geophysical mapping derived from analysis of well log files from its Fall 2006 drill program that identified a pay zone in the Waseca formation.
The continued technical development and evolution of the DHT is considered by the management as major achievements for 2007, however, the Company continues to be focused on the commercialization of the DHT and improving its daily production, especially under the current market conditions of all-time high oil prices.
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.
Petrostar Petroleum Corporation
Robert A. Sim
604-662-3005, ext. 105