Petrostar Petroleum Corporation

Petrostar Petroleum Corporation

May 01, 2008 07:00 ET

Petrostar Petroleum Corporation: Announcement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2008) - Petrostar Petroleum Corporation (TSX VENTURE:PEP)(FRANKFURT:LMQ) ("Petrostar" or the "Company") announces that it has received confirmation from its electrical contractor that its Electric Tank Heater (ETH) is completed and is being shipped to Petrostar's Lloydminster, AB office and assembly shop. The unit will be installed for testing at the Maidstone, SK well site 12/6 production tank concurrently with the pending CSA application approval of the product. When the CSA approvals are received the product will be available for commercial release. In Saskatchewan there are more then 39,600 oil wells capable of production (SIR-2006 statistics) with considerably more located in Alberta so there is a potential multi-million dollar commercial market for this product.

Electric Tank Heater

The ETH is intended to be put into a crude oil storage tank to keep the crude oil warm inside of the tank. The heater elements can be controlled to maintain lower temperatures in the 250 degrees Celsius range of tube surface temperature. It is an invention of using electrical heating elements to replace the present gas burner. The current gas burner is using natural gas and/or equivalent to heat metal pipes inside of tanks, the upward gas flame causes un-evenly heated metal pipe, the stress between the over-heated pipe top and less-heated pipe bottom produces hazardous situations of cracking the pipes. The current burner tube configuration is hazardous when the tank fluids are not maintained and the burner tube becomes exposed creating the potential to ignite the oil and gas in the tank. There have been many explosions, fires and accidents over the years due to this problem. The ETH contains electrical heater elements with high limit temperature sensor, heat transfer pipes, flanges, terminal box, process temperature sensor, and remote control panel. Each heater element is sheathed and inserted into stainless steel 40 pipe making the system extremely safe compared to the open flame system currently in use in the burner tube system.

Electric Tank Heater Controls

The remote control panel has one set of PLC (Logic Controller) to continuously scan each individual heater element surface temperature and the process temperature. The process temperature will be maintained at approximately 80 degrees Celsius, (500,000 BTU) and the contact surface with the oil will be held to a maximum of 250 degrees Celsius. This will eliminate the potential of high temps that burner tubes maintain which can cause flashing and ignition of oil. The individual overheated heater element will be shut down from the power supply source automatically if the system overheats should the fluids in the tank drop to a critical level. The system will inform the operators of any alarming situations by a display screen and red warning light on the panel door.

Most important aspect of this ETH system is that by eliminating the current burner tube system and converting to a electric system there will be no CO2 emissions. Currently the burner tube system is running 24/7 and 365 days a year which produces large quantities of CO2 emissions which are now becoming a major problem for the industry and which must be addressed and ways found to help reduce this mounting global problem. The ETH is an important step in addressing that problem. In addition, the operating costs savings will be substantial given the current and future price of propane and natural gas.

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.

Contact Information

  • Petrostar Petroleum Corporation
    Robert A. Sim
    President, Director
    604-662-3004 ext. 105
    604-662-3063 (FAX)
    Petrostar Petroleum Corporation
    Dee L. Sauve
    Filing Clerk/Bookkeeper
    604-662-3004 ext. 114
    604-662-3063 (FAX)