SOURCE: Market Pulse

June 05, 2007 08:30 ET

Market Pulse Breaking News Alert for Tuesday, June 5, 2007: PEP - Petrostar Petroleum Reports - 600% Production Increase Using Proprietary Oil Recovery Technology!

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

ATLANTA, GA--(Marketwire - June 5, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), Palm Inc. (NASDAQ: PALM), Solectron Corp. (NYSE: SLR) and WorldWater & Power Corp. (OTCBB: WWAT).

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 fields 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 their current prices, 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 the successful completion of initial field testing of its Enhanced Oil Recovery Technology or as it is currently described as its Down Hole Heating Device (DHT)! Investors need to go to the company's website www.petrostarpetroleum.ca and review this exciting technology! The company believes it can deliver the DHT at a cost that can effectively and economically revitalize tens of thousands of proven North American medium and heavy oil wells! Investors should be watching this one closely!

Petrostar Petroleum Corporation (TSX-V: PEP) announces the successful completion of initial field testing of its Enhanced Oil Recovery Technology or as it is currently described as its Down Hole Heating Device (DHT). The test commenced May 2, 2007 and concluded May 25, 2007. The initial test well A9/16 was tested for approximately 10-14 days at which time the tool test data was reviewed and evaluated. The testing has produced a significant 600% increase in production from the original well production. Historical fluid production on test well 9/16 increased from 2.1 m³ (13.21 bpd) to 9-12 m³ (56.6-75.5 bpd). The company has decided that given the initial successful testing on well A9/6 that it will also test well 15/6 where it is expected that there will also be a significant increase in its daily production.

During initial testing, the DHT was tested under several different configurations and well bore depth settings to determine the optimum placement in conjunction with well perforations, production zones, well fluid levels and wellhead pressure as well as testing the fail-safe safety shutdown in case of electrical mal-functions. The fail-safe tests passed with 100% efficiency. The testing has provided the company with information that will lead to modifications on its beta design that will increase down-hole temperatures to approximately 225°C while allowing it to achieve and maintain that temperature in shorter time frames.

With these promising results, the Company is immediately proceeding with the manufacture of 6 of the new configuration DHT units, to be manufactured by Valex Industries of Richmond, BC. The units will be used for additional tests to be conducted on both heavy and light oil formations. The tests will be supervised by B. Cabot, president of Western Petroleum Management of Calgary, Alberta, Canada.

The success of the Down Hole Heating Device test is viewed as a significant milestone achieved by Petrostar and it brings the Company one step closer to ultimately commercializing this revolutionary enhanced oil recovery technology. The company believes it can deliver the DHT at a cost that can effectively and economically revitalize tens of thousands of proven North American medium and heavy oil wells. Needless to say, the opportunity of penetrating this market is substantial.

For additional information on Petrostar, go to www.SEDAR.com under Petrostar Petroleum Corporation or to the company's website at www.petrostarpetroleum.ca.

Stocks in the news and acting well as of late include: Palm Inc. (NASDAQ: PALM), Solectron Corp. (NYSE: SLR) and WorldWater & Power Corp. (OTCBB: WWAT).

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