SOURCE: Market Pulse

September 13, 2007 08:30 ET

Market Pulse Breaking News Alert for Thursday, September 13, 2007: PEP -- Petrostar Petroleum Reports Well 15/6 Continues to Impress With DHT Results and Letter of Intent Signed With Trigas Ventures!

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

ATLANTA, GA--(Marketwire - September 13, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), Amgen Inc. (NASDAQ: AMGN), Cardica Inc. (NASDAQ: CRDC) and McDonald's Corp. (NYSE: MCD).

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 that its well 15/6 continues to impress with its DHT results! The company also announced that it has entered into a letter of intent with Trigas Ventures Ltd. of Major, Saskatchewan to acquire a 51% interest in leasehold 8-11-39-20W3M located in West-Central, Saskatchewan! 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 the following update on its DHT field tests and new venture.


The DHT test was initiated on June 23, 2007 and was completed August 11, 2007. 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 or 598 % increase when placed back on production August 17, 2007. The production as at September 10, 2007 is 13.88 bopd or 479 % increase from the original production rate and is currently maintaining that production rate.

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. The test serves to confirm the after effect and residual heat and steam retention in the reservoir even after the DHT has been withdrawn from the well bore.

It is expected that with deployment of the next generation DHT these results may be exceeded and more important maintained during production as the DHT will operate at temperatures of 225 degrees C to 450 degrees C 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 DHT technology may aid in higher recovery factors in marginal producing fields and with the current price of oil become an even more viable production tool. 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 looks upon this proposed acquisition as an initiative to access Oil, that but for the Down Hole Tool technology, would otherwise have not been accessible. Petrostar has now been testing the DHT since May 2007 and the results are already having a very significant positive impact on production. What needs to be considered is that all that has been accomplished thus far has been based on the testing of just ONE Down Hole Tool. With EIGHT new more sophisticated Down Hole Tools on order, the Company anticipates a very significant increase in its Revenues and looks upon the following proposed acquisition/partnership as a means to meet its objectives.

Letter Of Intent Signed

The Company is also pleased to announce that it has entered into a Letter Of Intent with Trigas Ventures Ltd. Of Major, Saskatchewan to acquire a 51% interest in leasehold 8-11-39-20W3M located in West -Central, Saskatchewan. The lease contains a non-producing well in C8-11-39-20W3M and is 40 acres in size allowing for the drilling of 3 additional wells on the property. The lease is located in a North-South trending channel which contains heavy oil in the McLaren Formation. The formation contains 7-9 ° gravity oil which is comparable to the heavy oil being produced in the tar sands of Fort McMurray, Alberta. The well will be the subject of Petrostar's DHT (Down-Hole Tool) technology and will be re-entered and equipped with Petrostar's new 2nd generation more powerful DHT unit which is expected to be available for this location next month. Under the terms of the agreement Petrostar will advance the sum of $ 25,000.00 to Trigas for a 51% ownership in the lease and Petrostar will become the operator of the project. Petrostar will receive 100% of all funds expended for development and operating until payout at such time Trigas will be responsible for its 49 % share of any costs incurred.

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: Amgen Inc. (NASDAQ: AMGN), Cardica Inc. (NASDAQ: CRDC) and McDonald's Corp. (NYSE: MCD).

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