Petrostar Petroleum Corporation

Petrostar Petroleum Corporation

November 14, 2006 13:37 ET

Petrostar Petroleum Corporation: Maidstone Drilling Program Completed, Private Placement Announced, Incentive Options Proposed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Petrostar Petroleum Corporation (TSX VENTURE:PEP)(the "Company") is pleased to report Ensign Tri- City Rig. No. 45 has now successfully completed the drilling of A16-6-48-23 W3M horizontal well to a length of 1,850 meters, terminating in the McLaren formation in a 5 meter thick oil saturated pay zone. Initially, this second well will be an oil producer and in the future, it is planned to convert this well to water injection for the proposed pressure maintenance and enhanced recovery scheme. The two horizontal wells are being completed with production facilities to be initially produced to temporary battery facilities with a permanent battery facility to be installed at the A16-6 location with oil emulsion treating, production/storage/shipping tanks, flowlines and a water injection station. Flow rates will be available in the near future. A third 1250 meter McLaren horizontal wellbore is planned for the southern portion of the lease. This will be a Vertizontal Recovery System (VRS®) well drilled from a surface location at A9-6-48-23 W3M towards the west, adding horizontal legs to the existing A10-6, A11-6 and A12-6 wells that will capture considerable volumes of inter-well oil reserves. The combination of the two parallel horizontal wellbores, one in the north and one in the south portion of the lease, together with the parallel horizontal injection well midway in between the horizontal producers will improve sweep efficiency and thus recovery of the oil reserves. Water injection will increase the reservoir pressure resulting in increased production rates and recovery volumes from the two new horizontal and eight existing vertical wells.

The Company also plans a non-brokered private placement unit offering for up to 5,000 units (the "Units"). Each Unit will consist of 750 flow-through common shares (each a "Flow-Through Share") and 250 non-flow-through common shares (each a "Common Share") in the capital stock of the Company and 1,000 non-transferable share purchase warrants (each a "Warrant") for a unit subscription price of $200.00 per unit. Each Warrant will entitle the holder thereof to purchase one additional common share (a "Warrant Share") of the Company, which will not be a flow-through share, for a period of two years following the date of completion of the offering at a price of $0.25 per Warrant Share in the first year and at a price of $0.35 per Warrant Share in the second year.

The Company intends to grant a total of 2,345,000 incentive stock options to its officers, directors and consultants. The options proposed will be exercisable for a period of 2 to 5 years at a price of $ 0.20 per share and subject to required vesting periods.


(Signed) 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.

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