SOURCE: Market Pulse

March 06, 2008 08:30 ET

Market Pulse Breaking News Alert for Thursday, March 6, 2008: PEP - Petrostar Petroleum Updates on Positive Testing Results and Continues Testing of Gen-2 DHT!

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

ATLANTA, GA--(Marketwire - March 6, 2008) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), Capstone Turbine Corp. (NASDAQ: CPST), Canadian Solar Inc. (NASDAQ: CSIQ) and Exxon Mobil (NYSE: XOM).

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 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 they will continue testing of the Gen-2 DHT at Maidstone, SK! The company also updated again on their past positive results of testing! Investors need to go to the company's website www.petrostarpetroleum.ca and review this exciting technology! This could be great news for investors!

Petrostar Petroleum Corporation (TSX-V: PEP) announces that on March 4, 2008 the Gen#2-DHT(Down Hole Tool) was deployed to its well 15/6 on the Maidstone test property in Maidstone, SK. The Company was forced to suspend testing during the harshest winter months due to severe weather and temperature conditions that posed a threat to some of the more delicate control modules. The Company was able to use this time to design and construct its new DHT delivery system and implement other improvements to its control module that can now operate in severe temperature conditions of down to -50 degrees centigrade. This will ensure continuous operation even in the most severe of conditions.

The Company hopes to duplicate or surpass its previous test results from both the 15/6 and 14/6 wells which were publicized in August and May 2007. The results were as follows:

"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 m³ -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 ° 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 m² in 15/6 and influenced gas production in offset wells 14/6 to 250 m² and up to 310 m² per day and well 1A16/6 to 310 m² and up to more then 700 m² per day."

During the shut-down period the Company has re-designed its Gen#1 DHT and plans to deploy it to well 10/6 on or before March 15, 2008. The objective will be to test the new DHT modifications and attempt to duplicate or improve upon the results in the off-setting 9/6 well and in addition influence the proximity wells, 11/6 and 12/6 respectively.

The Company is awaiting delivery of its Gen#3 DHT which is scheduled to be shipped from the contractor on March 13, 2008. This latest DHT has the capacity to be deployed to a depth of 5,000 ft and will be utilized initially on a test to determine the effectiveness on light oil waxing issues. The Company is currently in discussions to deploy this tool in the United States more specifically California, Texas and Louisiana where waxing is a prevalent production problem.

The Company is awaiting delivery of it initial ETH (Electric Tank Heater) and control panel which is completed and has CSA approval pending. The ETH will under go testing immediately in the production facilities located on the Company's 12/6 well site. The unit will be capable of replacing current burner tube tank heating devices and potentially have a zero CO² emission signature as well as reducing operating costs by using power generated from top drive motors and eliminating the fuel requirements of the burner units. The Company subject to successful field tests of the ETH will proceed with formal discussions to form a joint-venture that will combine the new ETH concept with an additional new chambered drive-motor tank installation innovation.

The combination of both innovations can be a major step forward in reducing both CO² emissions but provide substantial reduction in operating costs.

The delivery system and test deployment are available for viewing on the Company's web site at: www.petrostarpetroleum.ca.

Stocks in the news and acting well as of late include: Capstone Turbine Corp. (NASDAQ: CPST), Canadian Solar Inc. (NASDAQ: CSIQ) and Exxon Mobil. (NYSE: XOM).

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