Petrostar Petroleum Corporation
TSX VENTURE : PEP
FRANKFURT : LMQ

Petrostar Petroleum Corporation

September 13, 2007 07:00 ET

Petrostar's Well 15-6 Continues to Impress with DHT Results

Letter of Intent Signed with Trigas Ventures to Acquire 51 % Lease Interest

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2007) - Petrostar Petroleum Corporation (TSX VENTURE:PEP) (FRANKFURT:LMQ), (the "Company" or "Petrostar") announces the following update on its DHT field tests and new venture.

15/6 DHT TEST WELL UPDATE

The DHT test was initiated on June 23, 2007 and was completed August 11, 2007. The DHT attained a maximum temperature of 190 degrees C and maintained that temperature for the major time of the test. The production in well 15/6 before the DHT test was approximately 2.9 bopd and increased to 17.36 bopd or 598% when placed back on production August 17, 2007. The production as at September 10, 2007 is 13.88 bopd or a 479% increase from the original production rate and is currently maintaining that production rate.

The results are due to the effect of the heat and pressure that the DHT produces as a residual of the initial heat and pressure build up in the well. The after effect shows that, as the DHT operates, the heating of the fluids in the well-bore has the effect of releasing gas in suspension that then migrates through the various channels and reservoir openings to pressurize the formation and subsequently increase production in the well or wells in the vicinity. The test serves to confirm the after effect and residual heat and steam retention in the reservoir even after the DHT has been withdrawn from the well bore.

It is expected that, with deployment of the next generation DHT, these results may be exceeded and, more importantly, maintained during production as the DHT will operate at temperatures of 225 degrees C to 450 degrees C and, as an additional benefit, the DHT may be deployed and remain down hole without a production interruption making the economics of acquiring and operating the DHT very attractive. The DHT technology may aid in higher recovery factors in marginal producing fields and, with the current price of oil, become an even more viable production tool. The next generation will also be capable of deployment without the need of coil tubing pigging and a coil tubing service unit reducing deployment costs and making the DHT even more economic with lower initial costs and higher end revenues. The Company looks upon this proposed acquisition as an initiative to access oil that, but for the Down Hole Tool technology, would otherwise have not been accessible. Petrostar has now been testing the DHT since May 2007 and the results are already having a very significant positive impact on production. What needs to be considered is that all that has been accomplished thus far has been based on the testing of just ONE Down Hole Tool. With EIGHT new more sophisticated Down Hole Tools on order, the Company anticipates a very significant increase in its revenues and looks upon the following proposed acquisition/partnership as a means to meet its objectives.

Letter Of Intent Signed

The Company is also pleased to announce that it has entered into a Letter Of Intent with Trigas Ventures Ltd. of Major, Saskatchewan to acquire a 51% interest in leasehold 8-11-39-20W3M located in west-central Saskatchewan. The lease contains a non-producing well in C8-11-39-20W3M and is 40 acres in size allowing for the drilling of three additional wells on the property. The lease is located in a north-south trending channel, which contains heavy oil in the McLaren Formation. The formation contains 7-9 degrees gravity oil, which is comparable to the heavy oil being produced in the tar sands of Fort McMurray, Alberta. The well will be the subject of Petrostar's DHT (Down Hole Tool) technology and will be re-entered and equipped with Petrostar's new 2nd generation, more powerful DHT unit which is expected to be available for this location next month. Under the terms of the agreement, Petrostar will advance the sum of $25,000.00 to Trigas for a 51% ownership in the lease and Petrostar will become the operator of the project. Petrostar will receive 100% of all funds expended for development and operating until payout, at which time Trigas will be responsible for its 49% share of any costs incurred.

More details of these technologies are available on the Petrostar website at www.petrostarpetroleum.ca, which is currently undergoing an extensive update and redesign.

On behalf of the Board of Directors,

"Robert A. Sim"

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
    604-662-3004 ext. 105
    604-662-3063 (FAX)