Petrostar Petroleum Corporation
TSX VENTURE : PEP

Petrostar Petroleum Corporation

November 15, 2005 15:38 ET

Petrostar to Acquire Licensing for Enhanced Recovery Method and Ancillary Equipment... Acquires Interest in Vertizontal Energy Resources Inc...

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2005) - Petrostar Petroleum Corporation (the "Company") (TSX VENTURE:PSC) www.petrostarpetroleum.ca is pleased to announce that it has entered into a Letter of Intent to acquire a share of the technology for an innovative method to improve production volumes from oil and gas wells and fields from the innovator and inventor, Mr. Nick Baiton of Calgary, Alberta, President of Vertizontal Energy Resources Inc. ("Vertizontal"). Petrostar has an association with Mr. Baiton as a consultant to the Company and under his direction and expertise is developing the Company's Maidstone Project in west central Saskatchewan where the Company is presently producing heavy crude oil from seven existing vertical wells. Plans have been formulated for the Company to use an innovative Vertizontal® Drilling System patented by Mr. Baiton and licensed to Vertizontal for application in this field and in future properties that the Company intends to acquire and develop.

Application of this drilling system has the potential to significantly increase recovery of crude oil volumes, especially from those reservoirs that extensive pressure depletion has been experienced with the recovery of only a small portion of the original-oil in-place ("OOIP"). The drilling system will also be used in conjunction with specialized equipment being developed by the Company for enhanced recovery in existing and newly discovered reservoirs. In many fields, only 5% to 10% of the OOIP has been recovered under primary depletion at the time of abandonment. In conventional vertical and horizontal wells, stimulation techniques are used to improve recovery; however, a large portion of the OOIP is never recovered under primary depletion and conventional water flood schemes. The Company intends to utilize a stimulation and enhanced recovery technique that will involve the application of existing technology together with the implementation of the innovative specialized equipment. Mr. Baiton has designed the specialized equipment and Petrostar has undertaken to develop the equipment and a prototype is presently under construction. Petrostar will, upon completion and testing of the prototype, implement it in its Maidstone Project and is planning to incorporate it in conjunction with the development of future Company and third party projects. Following the successful field testing, patent applications for all aspects of the system and tools will be made. It is anticipated that application of the specialized equipment under licensing agreements in the future would provide a substantial revenue source to the Company.

Petrostar also wishes to announce that the Company has agreed to execute a Letter of Intent to acquire 3,500,000 or 20.5% of the 17,000,000 outstanding Vertizontal shares for a cash consideration of $191,667. More details are expected to be released in the near future.

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

ON BEHALF OF THE BOARD OF DIRECTORS

(Signed) Robert A. Sim

________________________

Robert A. Sim- Director

The Toronto Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to complete the proposed financing, failure to obtain necessary regulatory or shareholder approvals, exploration and other risk factors beyond its control and actual results may differ materially from the expected results

Contact Information

  • Petrostar Petroleum Corp.
    Robert A. Sim
    Director
    (604) 662-3004
    (604) 662-3063 (FAX)