Petrostar Petroleum Corporation
TSX VENTURE : PEP
FRANKFURT : LMQ

Petrostar Petroleum Corporation

June 12, 2007 07:00 ET

Petrostar Petroleum Enhanced Oil Recovery Technology Project Update...

DHT Testing Produces New Application for Zero CO2 Emission Potential...

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (FRANKFURT:LMQ) (the "Company" or "Petrostar") announces that in addition to increasing well production by up to 600%, its proprietary down-hole heating device(DHT) has significant and secondary application potential as a replacement to current production tank heating systems otherwise known as propane or gas fired tank heaters(burners). Current heaters are used to heat the tank oil and maintain it at approximately 70 degrees C which is a significant operating cost especially during colder months. In addition to the operating costs, the burner system emits potentially harmful CO2 emissions Petrostar's improved electric tank heater (ETH) will lower operating costs by reducing consumption of fossil fuels. Additionally, the improved ETH is not only more economical then the current system but more importantly, it emits ZERO CO2 EMMISSIONS. This would be a major development to help Canada's oil industry meet or surpass the standards put forth by the KYOTO ACCORD. The company plans on approaching the regulatory agencies to discuss implementing a program that if endorsed, could offer producers an incentive to change. The company plans to initiate a test on 1 of its tanks as soon as it can complete fabrication of the equipment.

ENHANCED OIL RECOVERY UPDATE

Field testing of Petrostar's proprietory DHT on its 15/6 is underway and will continue for the next few weeks. Test results previously announced on well 9/6 resulted in a 600% fluid production increase over the testing period.

The testing will be carried out by its new prototype design which will increase down-hole temperatures to approximately 225 degrees C and time to achieve said temperature and allowing maintenance of said temperature for longer periods of time. In addition the placement of the DHT and water injection have been refined by incorporating new sensors that allow it to maintain steam and deliver heat and pressure to the production zone. These refinements should enable the DHT to be effective not only in heavier oil but lighter oil where waxing is a production problem. Currently the oil industry uses a system whereby oil is heated on surface then pumped down the well casing where it temporarily reduces the waxing problem. The DHT will create a constant temperature at the formation level and provide a longer term solution. A major oil and gas producer has made inquiries to the Company in regards to its wells in southeastern Saskatchewan where waxing is a prominent problem with CO2 injection fields. Petrostar's oil field superintendent feels this could be a major breakthrough for the oil industry and at a very significant cost saving.

The success of the down -hole tool test is viewed as a significant milestone achieved by Petrostar and it brings the Company closer to commercializing this revolutionary enhanced oil recovery technology. The Company believes it can deliver the DHT at a cost that can effectively and economically increase the production of tens of thousands of proven North American medium and heavy oil wells. Needless to say, the opportunity of penetrating this market is substantial. More details of these technologies they are available on the Petrostar web site at www.petrostarpetroleum.ca.



On behalf of the Board of Directors,

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.

The TSX-Venture Exchange Inc. has not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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