Petrostar Petroleum Corporation

Petrostar Petroleum Corporation

December 11, 2007 07:00 ET

Petrostar Petroleum Corporation: GEN-2 Down Hole Tool Field Testing Commences on Maidstone Property, Plans for $350,000 Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP)(FRANKFURT:LMQ); "Petrostar" or the "Company") is pleased to announce that the first phase of field-testing of its second generation Down Hole Tool (GEN-2 DHT) commenced at its Maidstone testing facilities on December 7, 2007.

The GEN-2 DHT, which evolved from applying modifications to the successfully tested first generation DHT, has the capability of reaching temperatures of 250ºC, a significant increase from 190ºC that was achieved by the first generation DHT, and has been redesigned to maintain the targeted temperature for a longer timeframe in the well bore allowing for increased down-hole steam and pressure generation. As well, the GEN-2 DHT is capable of reaching temperatures of 250ºC utilizing a 22-kilowatt generator as opposed to a 66-kilowatt generator required by the first generation DHT.

During this phase of field-testing, the GEN-2 DHT reached the temperature target of 250ºC within three hours of deployment. Furthermore, the temperature of the water in the well bore reached 93ºC. The next step in the first phase of the field diagnostic testing is to pull the GEN-2 DHT out of the well bore to evaluate the integrity of the new stainless steel wrapped electrical cable, the capabilities of the newly designed and constructed hydraulic delivery system and the GEN-2 DHT itself, which has commenced. The second phase of field-testing will commence immediately after these evaluations are complete.

The Company plans to issue, through a non-brokered private placement, up to 1,750,000 units (the "Units") of the Company at a price of $0.20 per Unit for a total of $ 350,000. Each Unit will consist of one common flow through share (a "Flow Through Share") in the capital of the Company and one non-transferable share purchase warrant. Each full warrant will entitle the holder thereof to purchase one additional common share of the Company for a period of two years following the closing date at a price of $0.25 per share in the first year and $0.30 per share in the second year. The private placement is subject to the acceptance of the TSX Venture Exchange and all shares issued there under will be subject to a 4-month hold period.

Mr. Sandy Sprinkle, P.Eng and Consultant to Petrostar, a qualified person under NI51-101, has approved the technical content of this news release.

On behalf of the Board of Directors,

"Robert A. Sim"

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)