WellStar Energy Corp.

WellStar Energy Corp.

November 21, 2006 13:21 ET

WellStar Announces Reserve Evaluation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 21, 2006) - WellStar Energy Inc. (TSX VENTURE:WST)(FWB:W6V) is pleased to announce its reserves and an operational update following its successful summer drilling program.

WellStar has interests ranging from 50% to 75% (Before Payout - "BPO") in three producing oil wells, in the Virgo-Zama area of Alberta, and a 50% interest in 2,000 bbl/day production facility. The Company has the right to earn an additional 50% interest in two leases by participating in drilling or re-entry of two additional wells.

WellStar has recently completed a reserves assessment according to National Policy 51-101, conducted by Fekete Associates Inc. of Calgary, Alberta, dated September 30, 2006. The summary of that report follows. The complete report is available for viewing on the company's website www.wellstarenergy.com or on SEDAR at www.sedar.com.

These reserves and forecasts do not take into account any additional production that might be developed from the company's proposed 3 well capital drilling and re-entry program. This program will be funded by a combination of cash flow, and if successfully completed, proceeds from future equity financings.


Company Interest Reserves Remaining
Before Royalty(i) After Royalty(ii)
Light/ Light/
Med Heavy Med Heavy
Oil Oil Gas NGL Oil Oil Gas NGL
Total Proved
Producing 44.7 0.0 0.0 0.0 38.5 0.0 0.0 0.0
Total Proved 44.7 0.0 0.0 0.0 38.5 0.0 0.0 0.0
Total Proved
Plus Probable 62.0 0.0 0.0 0.0 53.6 0.0 0.0 0.0

Net Present Value ($M)
Net Present Value 0% 5% 10% 12% 15% 20%

Total Proved Producing 1598.8 1507.7 1429.0 1400.4 1360.3 1299.8
Total Proved 1598.8 1507.7 1429.0 1400.4 1360.3 1299.8
Total Proved Plus Probable 2198.1 2029.5 1895.0 1847.2 1781.0 1683.2

(i) Includes only Company working interest share of remaining natural gas,
solution gas, oil, condensate and natural gas liquids reserves.

(ii) Includes Company working interest after royalty and Company royalty
interest share of remaining natural gas, solution gas, oil, condensate and
natural gas liquids reserves.

NOTE: Numbers may not add due to rounding.

The company is planning an active winter drilling and re-entry program. The initial program comprising of one new well and one well re-entry will complete the earning provisions of the next two farm-ins at the Virgo Zama project. The new well is proposed to develop a reservoir which is related to oil pools producing in adjacent leases. If successful, two additional drilling locations may be identified on the company's lands. The well re-entry is planned to re-establish production from a formerly producing reservoir.

The Company believes there is an opportunity to increase the historical low recoveries realized from past off-pinnacle drilling. An additional well is planned to further this development model. The reservoir currently being produced by the Company's well 13-22 has 2.83 million original barrels of oil in place, an attributed proved producing recovery factor of 10.20% and approximately 249 thousand barrels of production to date (see reserve assessment). Devonian Keg River reefs can have recovery factors far greater than 50%, which presents an exciting development opportunity for WellStar in this and other reservoirs on its property.

Andrew H. Rees, President of WellStar said; "We are optimistic that the planned exploration program will substantially increase output, allowing the company an exciting opportunity to realize significant value from its assets."

This News Release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release, which was prepared by management.

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