SOURCE: Market Pulse

May 15, 2007 08:30 ET

Market Pulse Breaking News Alert for Tuesday, May 15, 2007: PEP -- Petrostar Petroleum Announces Its Innovative Enhanced Oil Recovery Technology Program Update!

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

ATLANTA, GA--(Marketwire - May 15, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP), Critical Therapeutics Inc. (NASDAQ: CRTX), Advanced Micro Devices Inc. (NYSE: AMD) and Applied Materials Inc. (NASDAQ: AMAT).

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 Down Hole Tool testing continues. Investors need to go to the company's website and review this exciting technology! The company said the DHT has the potential of economically revitalizing tens of thousands of proven North American medium and heavy oil wells that have been suspended due to insufficient reservoir pressure and drive! Investors should be watching this one closely!

Petrostar Petroleum Corporation (TSX-V: PEP) announces the field testing of its Enhanced Oil Recovery Technology or as it is currently described as its Down Hole Heating Device that commenced May 2, 2007 continues with several time and temperature test configurations. The initial test well A9/16 was entered with a down hole temperature of 21 degrees C and a 11 hour test of time to temperature run. The temperature increased to 94.3 degrees and the wellhead pressure increased from 0 psi to 14 psi. The temperature at 94.3 degrees was continued for a 6 hour period at which time the adjacent 10/6 well fluid level increased from 2 meters to 4 meters. One conclusion of this test is that initially the tool was heating oil and not water and therefore the time factor was unduly long. The tool was withdrawn and was prepared for the second time to temperature test. The bottomhole temperature was an initial 22 degrees and this test produced a wellhead pressure of 45 psi in addition the fluid in the well was reduced by 2 joints (80ft) indicating conversion to steam and dispersal into the formation. During this time it was noted that by injecting 40 degrees or hotter water from the surface, the time to temperature was reduced by 80%. This would suggest that the zone in this well is holding the heat. The temperature has increased to a constant average of 110 degrees C with steam being dispersed into the target zone. The 10/6 and adjacent wells will be tested for fluid increases during the next 12-24 hours to reconfirm initial fluid level increases.

The well A15/6 has been prepared for testing and where there is more water in the well bore and daily production has higher water content. It is also at a low in the field with 4 adjacent wells higher in the formation which will influence the expected response in higher fluid levels and higher daily production volumes. It will also provide information as to whether the drive created by the steam pressure expands in a circular or straight line effect. Additionally the company is currently awaiting delivery of a second DHT unit, which will include several modifications that will increase its efficiency and effectiveness. The data from the A15/6 well will be reported as it becomes available during and after the testing is complete.

The success of the down hole tool test will be a significant milestone achieved by Petrostar as it brings the company one step closer to proving and ultimately commercializing this revolutionary enhanced oil recovery technology. The DHT has the potential of economically revitalizing tens of thousands of proven North American medium and heavy oil wells that have been suspended due to insufficient reservoir pressure and drive. Needless to say, the opportunity of penetrating this market is substantial.

The company is focused on the exploitation of existing and proven heavy and medium crude oil utilizing new technologies, the first being the patented Drilling and Recovery System using its patented Vertizontal Recovery System or VRS® and other proprietary technology it is developing, and currently testing , its DHT or down hole tool as commented on earlier.

The methodology is an application of conventional SAGD and incorporation of a new down hole tool to generate steam in situ and enhance the recovery and production procedure. More details of these technologies are available on the Petrostar web site at

Stocks in the news and acting well as of late include: Critical Therapeutics Inc. (NASDAQ: CRTX), Advanced Micro Devices Inc. (NYSE: AMD) and Applied Materials Inc. (NASDAQ: AMAT).

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