Petrostar Petroleum Corporation
TSX VENTURE : PEP

Petrostar Petroleum Corporation

June 05, 2007 07:00 ET

Petrostar Petroleum Reports-600% Production Increase Using Proprietary Oil Recovery Technology

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (FRANKFURT:LMQ) ("the Company" or "Petrostar") announces the successful completion of initial field testing of its Enhanced Oil Recovery Technology or as it is currently described as its Down Hole Heating Device (DHT). The test commenced May 2, 2007 and concluded May 25, 2007. The initial test well A9/16 was tested for approximately 10-14 days at which time the tool test data was reviewed and evaluated. The testing has produces a significant 600 % increase in production from the original well production. Historical fluid production on test well 9/16 increased from 2.1 m3 (13.21 bpd) to 9-12 m3 (56.6-75.5 bpd). The Company has decided that given the initial successful testing on well A9/6 that it will also test well 15/6 where it is expected that there will also be a significant increase in its daily production.

During initial testing, the DHT was tested under several different configurations and well bore depth settings to determine the optimum placement in conjunction with well perforations, production zones, well fluid levels and wellhead pressure as well as testing the fail-safe safety shutdown in case of electrical mal-functions. The fail-safe tests passed with 100% efficiency. The testing has provided the Company with information that will lead to modifications on its beta design that will increase down-hole temperatures to approximately 225 degrees C while allowing it to achieve and maintain that temperature in shorter time frames.

With these promising results, the Company is immediately proceeding with the manufacture of 6 of the new configuration DHT units, to be manufactured by Valex Industries of Richmond, BC. The units will be used for additional tests to be conducted on both heavy and light oil formations. The tests will be supervised by B. Cabot, president of Western Petroleum Management of Calgary, Alberta, Canada.

The success of the Down Hole Heating Device test is viewed as a significant milestone achieved by Petrostar and it brings the Company one step closer to ultimately commercializing this revolutionary enhanced oil recovery technology. The Company believes it can deliver the DHT at a cost that can effectively and economically revitalize tens of thousands of proven North American medium and heavy oil wells. Needless to say, the opportunity of penetrating this market is substantial.

For additional information ON Petrostar, go to www.SEDAR.com under Petrostar Petroleum Corporation or to the Company's website 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.

Contact Information

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