Petrostar Petroleum Corporation
TSX VENTURE : PEP

Petrostar Petroleum Corporation

December 12, 2006 12:58 ET

Petrostar Petroleum Corporation: Maidstone Production Facilities Completed, Private Placement Amended, DHT Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 12, 2006) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (the "Company") is pleased to report that production to temporary battery facilities from it's horizontal well drilling program are now completed. Well HzD16/6 produced an initial oil flow rate of 4 meters3/25bo per hour. The pump motor has been reduced to 90 rpm to produce a daily production of 10 meters3/63 bopd in accordance with the capacity of the temporary tank battery for this well. Well Hz1A16/6 produced an initial oil flow rate of 1 meters3/ 6bo per hour. The pump motor has been reduced to 90 rpm to produce a daily production of 10 meters3/ 63 bopd in accordance with the capacity of the temporary tank battery for this well. The production should increase as drilling fluids and load oil is recovered. 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 is now be initiated with completion expected in the near future. The planned conversion of Hz1A16/6 to a water injection well will now be submitted to SIR for their approval. The water injection well will increase the reservoir pressure resulting in increased production rates and recovery volumes from the new horizontal and eight existing vertical wells.

In addition SaskEnergy will complete its gas pipeline tie-in to the Maidstone property enabling the wells to produce higher fluid levels and substantially increased production.

The Company has completed tests on its DHT unit and will incorporate some minor modifications that will further enhance dependability and failsafe operation when deployed into wellbore environments. The modifications will be completed shortly and deployment for field testing on the Maidstone well 9/16 is expected early January given that the Christmas holiday season is approaching. Deployment and testing status will be announced at that time.

The Company also plans to withdraw it's previously announced non-brokered private placement flow-through unit offering. The Company will now offer up to 3,350,000 non-flow through common share units (the "Units"). Each Unit will consist of 1 common share (each a "Common Share") in the capital stock of the Company and 1, non-transferable share purchase warrant (each a "Warrant") for a unit subscription price of $.15 per unit. Each Warrant will entitle the holder thereof to purchase one additional common share (a "Warrant Share") of the Company, 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 $0.30 per Warrant Share in the second year.

ON BEHALF OF THE BOARD OF DIRECTORS

Robert A. Sim - Director

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.

The Toronto Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information