Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

February 27, 2008 10:16 ET

Gastem Begins Utica Project in New York State

MONTREAL, QUEBEC--(Marketwire - Feb. 27, 2008) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has signed a farm-in agreement with Utica Energy LLC., a private gas exploration company with 29,000 acres of land leases in New York State. Under the terms of the agreement, Gastem will undertake a drill program composed of drilling 5 vertical wells and one horizontal well prior to January 16th 2009 in order to earn a 65% working interest in all 29,000 acres as well as other leases which may be obtained during the present year. Drilling is expected to begin during the Second Quarter, and is subject to permitting and other approvals.

Gastem's program will target production from the Utica Shale formation, already the object of a substantial exploration program on Gastem's Yamaska property in Quebec. Utica Energy has during the summer of 2007 drilled, completed and fractured two test wells on its acreage. Other prospective intervals identified during logging, notably the Marcellus, will also be tested for potential gas production. Pipelines and related infrastructures are in proximity.

All Gastem operations in the US are administered and directed by Gastem USA, a wholly owned subsidiary of Gastem. Mr. Orville Cole was named President and CEO of Gastem USA.

Gastem (48,516,492 shares outstanding) is an independent oil and gas exploration company based in Montreal. The company holds exploration and storage rights to 3,135 km2 of land in the St. Lawrence Lowlands and the Gaspe Peninsula in Quebec as well as rights and interests in Alberta and West Virginia. Gastem also collects revenues from a participation in the Amber Bank shale gas project with Epsilon Energy in West Virginia.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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