SOURCE: Market Pulse

July 25, 2007 08:30 ET

Market Pulse Breaking News Alert for Wednesday, July 25, 2007: PEP -- Petrostar Petroleum Reports DHT Produces Positive Oil Production (Increase of 325%) From Off-Set Well!

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

ATLANTA, GA--(Marketwire - July 25, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Petrostar Petroleum Corporation (TSX-V: PEP),, Inc. (NASDAQ: AMZN), SanDisk Corp. (NASDAQ: SNDK) and GigaBeam Corp. (NASDAQ: GGBM).

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 it has received a positive in oil production from 1 of its off-set wells (11/6) that is attributable to the DHT test in May 2007 of well 9/6! 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 positive in oil production from 1 of it's off-set wells (11/6) that is attributable to the DHT test in May 07 of well 9/6. A production increase of 325 % has been realized from well 11/6 that has continued over the 6 weeks following termination of the 9/6 DHT test. 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 DHT is currently installed and operating in well 15/6 where it continues to maintain a constant 180 degrees C core temperature and it is planned on continuing the current testing with this unit until it can be replaced with 1 of the newer larger and higher operating temperature models that are currently under manufacture. The testing of well 15/6 will continue for a longer period then that of the 9/6 well test as there is substantial water produced from this part of the formation and the effects exhibited in the 9/6 and 11/6 wells is expected to take a longer period of testing. At this point there is an apparent effect to the off-setting well 14/6 as the gas production in the well has increased substantially and the indication is that the testing in well 15/6 is producing the desired influence.


The first shipment (2 units) of the current new DHT is scheduled to be completed and shipped on July 30/07 and will be deployed to the field thereafter. The units will be deployed to well 9/6 and 15/6 where it will replace the current unit. The tools will be deployed and the off-setting wells oil and gas production increases monitored.


The company has been advised by its contractor, Valex/Delpro of Delta, BC that the plans for the EDT are complete and the build of the first Electric Tank Heater (ETH) prototype is underway. The unit will be constructed to meet CSA approvals and forwarded to the Maidstone property for initial testing. The company is currently initiating the electric power hookup to its well 12/6 where the first ETH will be installed and tested.

It is Petrostar's belief that using the technology of the ETH will not only lower operating costs by reducing consumption of fossil fuels currently used to operate the burner systems that maintain heating in production tanks but also produce ZERO CO2 EMMISSIONS.

As previously announced the company has reviewed several potential acquisitions that it intends to pursue and in addition is reviewing a next phase of development on the Maidstone lease. Further information on these developments will be forthcoming in the near future.

More details of these technologies they are available on the Petrostar web site at

Stocks in the news and acting well as of late include: Inc. (NASDAQ: AMZN), SanDisk Corp. (NASDAQ: SNDK) and GigaBeam Corp. (NASDAQ: GGBM).

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