Petrostar Petroleum Corporation
TSX VENTURE : PEP
FRANKFURT : LMQ

Petrostar Petroleum Corporation

September 19, 2007 07:00 ET

Petrostar Petroleum Corporation: Letter of Intent Signed with Brahma Resources to Acquire 100% Lease Interest

Additional Maidstone Drilling Program Announced

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (FRANKFURT:LMQ) (the "Company" or "Petrostar") announces the following new venture.

Letter Of Intent Signed

The Company is pleased to announce that it has entered into a Letter of Intent with Brahma Resources Ltd. of Lloydminster, Alberta to acquire a 100% interest in a freehold leasehold located near Maidstone, Saskatchewan. The lease contains a non-producing well in 101-07-15-48-24W3M with all production facilities in place. The lease is 160 acres in size allowing for the drilling of 3 additional wells on the property. Drilling will commence as soon as permitting and establishment of surface lease requirements for the well site are received. The initial well is to be located in A8-15-48-24W3M offsetting a well owned and operated by Husky Oil. The current non-producing 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 $185,000.00 to Brahma for a 100% ownership in the lease subject to burdens of a 2% GORR to Brahma and 4% to Baytex Resources. The closing is expected to take place on or before September 30, 2007. More details of the drilling and re-entry programs will be forth coming as these matters proceed.

Maidstone Drilling Program

The Company has received, from its engineering consultant, Calco Geological & Engineering of Calgary, Alberta, a recommendation to drill a Waseca A & B Sand well to be spudded at its A16/6 location and drilled to a depth of approximately 520m. The new well will be structurally higher then the offsetting wells, 1-07-48-23W3M and A13-05 owned respectively by Rife Resources and Harvest Energy. These wells have been on production for approximately 5 years and are still making 15-16m3 (94-100 bopd). Petrostar's anticipated production from both the A & B Sands is a possible 30m3 (188 bopd). Permitting and other regulatory approvals will be applied for immediately with drilling to commence as soon as possible after approvals are received.

More details of Petrostar's projects and development of its technologies are available on the Petrostar website, which is currently undergoing an extensive update and redesign, at www.petrostarpetroleum.ca.

On behalf of the Board of Directors,

"Robert A. Sim"

ROBERT A. SIM

President, Director

Safe Harbor Statement and Disclaimer:

This Press Release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed forward-looking statements. Although Petrostar Petroleum Corporation believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the development and production of oil wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of production operations; risks with respect to oil prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil prices and other risk factors.

Contact Information

  • Petrostar Petroleum Corporation
    Robert A. Sim
    President, Director
    604-662-3004 ext. 105
    604-662-3063 (FAX)
    www.petrostarpetroleum.ca