Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

February 26, 2007 08:17 ET

Gastem Signs Letter Agreement with Large U.S. Based Oil and Gas Producer

MONTREAL, QUEBEC--(CCNMatthews - Feb. 26, 2007) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has signed a Letter Agreement whereby Forest Oil Corporation may earn a working interest of up to 60% in Gastem's Yamaska Property which covers 45,381 hectares.

Conditions of the Letter Agreement between the companies provide that Forest Oil may earn up to 60% working interest by contributing capital to a drilling joint venture. Gastem plans to commence operations on two wells in this area in 2007, the first of which must be drilled prior to June and the second well would be drilled later in the year. Depending on the results of these two exploratory wells Forest Oil may conduct additional testing and commit to additional exploratory operations in order to earn this working interest. The Letter of Agreement also provides for future project cooperation in the Quebec area.

Gastem considers the Letter of Agreement important for its Yamaska Property as well as for other projects in Quebec.

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

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