VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2008) - Petrostar Petroleum Corporation (TSX VENTURE:PEP)(FRANKFURT:LMQ)("Petrostar" or the "Company") announces that on March 4, 2008 the Gen#2-DHT (Down Hole Tool) was deployed to its well 15/6 on the Maidstone test property in Maidstone, SK. The Company was forced to suspend testing during the harshest winter months due to severe weather and temperature conditions that posed a threat to some of the more delicate control modules. The Company was able to use this time to design and construct its new DHT delivery system and implement other improvements to its control module that can now operate in severe temperature conditions of down to -50º centigrade. This will ensure continuous operation even in the most severe of conditions.
The Company hopes to duplicate or surpass its previous test results from both the 15/6 and 14/6 wells, which were publicized in August and May 2007. The results were as follows:
"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 3 m3 -18 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 2.9bopd and increased to 17.36bopd 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".
During the shut down period the Company re-designed its Gen#1 DHT and plans to deploy it to well 10/6 on or before March 15, 2008. The objective will be to test the new DHT modifications and attempt to duplicate or improve upon the results in the off-setting 9/6 well and, in addition, influence the proximity wells, 11/6 and 12/6 respectively.
The Company is awaiting delivery of its Gen#3 DHT which is scheduled to be shipped from the contractor on March 13, 2008. This latest DHT has the capacity to be deployed to a depth of 5,000ft and will be utilized initially on a test to determine the effectiveness on light oil waxing issues. The Company is currently in discussions to deploy this tool in the United States - more specifically California, Texas and Louisiana where waxing is a prevalent production problem.
The Company is awaiting delivery of its initial ETH (Electric Tank Heater) and control panel, which is completed and has CSA approval pending. The ETH will undergo testing immediately in the production facilities located on the Company's 12/6 well site. The unit will be capable of replacing current burner tube tank heating devices and potentially have a zero CO2 emission signature, as well as reducing operating costs by using power generated from top drive motors and eliminating the fuel requirements of the burner units. The Company, subject to successful field tests of the ETH, will proceed with formal discussions to form a joint venture that will combine the new ETH concept with an additional new-chambered drive-motor tank installation innovation. The combination of both innovations can be a major step forward in reducing both CO2 emissions, but provide substantial reduction in operating costs.
The delivery system and test deployment are available for viewing on the Company's web site at www.petrostarpetroleum.ca.
On behalf of the Board of Directors,
Robert A. Sim
President and Director
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.