Petrostar Petroleum Corporation

Petrostar Petroleum Corporation

March 24, 2009 07:00 ET

Petrostar Petroleum Reaches Commercial Milestone With DHT Technology Sale

VANCOUVER, BRITISH-COLUMBIA--(Marketwire - March 24, 2009) - Petrostar Petroleum Corporation (TSX VENTURE:PEP)(Frankfurt:LMQ)("Petrostar") is pleased to announce that Oilsands Quest Inc. of Calgary, AB, has purchased a DHT2C unit for their Axe Lake, SK doubling the number of units at their facility. The DHT technology is assisting Oilsands Quest in its development of the Province of Saskatchewan's emerging oil sands industry. Oilsands is a leader in the establishment of the Province of Saskatchewan's emerging oil sands industry, with major acreage permits and licenses in both Saskatchewan and Alberta. Their new DHT configuration (DHT2C) will address the specific needs required by Oilsands Quest, in particular their facility requires a DHT operating at 200-250 meters and with greater length heating rods and housing. In addition, the new unit will be a lighter skid mounted with telescoping mast and hydraulic controls making it a compact unit. This will enable the unit to be air lifted via helicopter providing access to additional locations over the large acreage of the project.

As previously announced in September 2008 the Company entered into a rental agreement with Oilsands Quest whereby Oilsands would test Petrostar's DHT (Down Hole Tool-DHT2) at their Northern Axe Lake, SK facility. The agreement has been extended an additional 3 months to May 2009 from the original September agreement

DHT & ETH Technology Review

The Down Hole Tool (DHT) is a system and method for generating controlled underground heat/steam and pressure. Specifically, the present invention relates to an electrical steam/heat generation system that enables efficient production of down-hole heating and steam production without the typical heat and pressure loss of traditional surface steam generation equipment. In addition to the DHT model for enhanced production deployment the Company will proceed with an additional model to address the waxing problem experienced in light oil production. A prototype is expected to be available for fieldtesting within the next 30 days.

The Electric Tank Heater (ETH) unit is capable of replacing current burner tube tank heating devices and has a zero CO2 emission signature, as well as being capable of reducing operating costs by using power generated from top drive motors and eliminating the fuel requirements of the burner units. Full CSA mass approvals are anticipated in April 2009, which will make the units available for installation at the manufacturing level as the alternative to current burner tube installations. More information on the DHT and its storage tank ETH is available on the Company website at

On behalf of the Board of Directors,

Robert A. Sim

President and 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.

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