SOURCE: Market Pulse

August 30, 2007 08:30 ET

Market Pulse Breaking News Alert for Thursday, August 30, 2007: PEP -- Petrostar Petroleum Reports DHT Test of 15/6 Well Produces Huge Oil Production Increase!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Market Pulse.

ATLANTA, GA--(Marketwire - August 30, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), Apple Inc. (NASDAQ: AAPL), Superconductor Technologies Inc. (NASDAQ: SCON) and Intel Corp. (NASDAQ: INTC).

Investors need to be watching Petrostar Petroleum Corporation (TSX-V: PEP) this AM! Petrostar Petroleum Corporation is an independent government licensed Oil & Gas Operator focused on the development of existing and proven heavy and medium crude oil assets utilizing patented and patent pending Drilling and Recovery Systems and other proprietary technology to enhance oil recovery. Petrostar pursues a balanced strategy combining production and development of Enhanced Oil Recovery technologies. Petrostar has two EOR technologies (the Vertizontal Recovery System (VRS®) and Enhanced Recovery System (ERS - Down Hole Tool < DHT > ) that can be integrated with each other and to existing in-situ applications, allowing for maximum technological efficiencies. The VRS® has licensing opportunities for medium to larger sized projects that are well capitalized while the DHT has licensing opportunities for small to medium sized projects. Petrostar is 100% owner and operator of the 320-acre Maidstone Oil prospect located in Central Western Saskatchewan which includes the petroleum and natural gas rights. Currently, there are eight producing vertical wells on the Maidstone property. The company has initiated an aggressive $4 million work-over program to further develop the prospect and increase recovery volumes of the oil reserves and enhance the value of the prospect. The undiscounted cash flow for the project, based on constant oil price of $35 per barrel and capital investment in further developing the prospect of $4.0 million and project life of 30 years, is estimated at $41.5 million. Petrostar has added two horizontal wells with the approximate distance of 1,200 meters each into the reservoir and is initiating a pressure maintenance system. The initial production rate of the two horizontal wells is estimated at 250 to 300 barrels of oil per day. Petrostar also holds working interest in two leases located south of Calgary, Alberta. The Turner Valley Project and the Kew Field Oil and Gas Project are thought to be an extension of a storied and prolific oil and gas field, having had historical production. Turner Valley has produced over 150 million barrels of oil and has dissipated over three trillion cubic feet of natural gas. In the process of completing the first three phases of testing the VRS®, the company has successfully tripled its production and expects production to increase significantly once phases 4 and 5 are completed. With oil futures maintaining its current price, advances Petrostar Petroleum Corporation has made in 2006 and will be making in 2007, the present and future of the company and its shareholders look very promising. Petrostar Petroleum Corporation is poised to become a significant player in the oil and gas exploration industry! Petrostar just had excellent news out in a press release before today's opening bell announcing that it has received 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! Investors need to go to the company's website and review this exciting technology! Investors should be watching this one closely!

Petrostar Petroleum Corporation (TSX-V: PEP) announces that it has received 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 30 m(3) -189 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 2.9 bopd and increased to 17.36 bopd 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 220 m(2) in 15/6 and influenced gas production in offset wells 14/6 to 250 m(2) and up to 310 m(2) per day and well 1A16/6 to 310 m(2) and up to more then 700 m(2) per day. The results are due to the effect of the heat and pressure that the DHT produces as a residual of the initial heat and pressure build up in the well. The after effect shows that, as the DHT operates, the heating of the fluids in the well-bore has the effect of releasing gas in suspension that then migrates through the various channels and reservoir openings to pressurize the formation and subsequently increase production in the well or wells in the vicinity.

It is expected that with deployment of the next generation DHT these results may be exceeded as the DHT will operate at temperatures of 225 degrees C or higher and as a additional benefit the DHT may be deployed and remain down hole without a production interruption making the economics of acquiring and operating the DHT very attractive. The next generation will also be capable of deployment without the need of coil tubing pigging and a coil tubing service unit reducing deployment costs and making the DHT even more economic with lower initial costs and higher end revenues. The Company is awaiting delivery of the next generation DHT and expects to be able to announce a schedule of tests on its lease or other parties the Company is currently in discussions with. Once the schedule has been confirmed the Company is planning on initiating an order for substantially more units and possibly up to 20,000 feet of its new configuration stainless steel cable. It is expected to confirm these orders in early to mid September 2007.


The Company is also awaiting delivery of its new ETH (electric tank heater) which will be installed on production facilities located on well site 12/6 and testing commence. In addition the Company has contracted with SaskEnergy to run electric power to the location for a continuous power supply which is expected to be installed during September 2007. The test will be conducted on receipt of the ETH with the use of a temporary power source and adapted to the SaskEnergy source when it is completed. This will allow an immediate test and evaluation of the ETH without unnecessary delay.

As was previously announced, the Company has reviewed several potential acquisitions or ventures that it is pursuing and expects to have further information on these developments in the near future.

More details of these technologies are available on the Petrostar web site which it is currently going to extensively update and redesign at

Stocks in the news and acting well as of late include: Apple Inc. (NASDAQ: AAPL), Superconductor Technologies Inc. (NASDAQ: SCON) and Intel Corp. (NASDAQ: INTC).

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