WellStar Energy Corp.
TSX VENTURE : WSE

WellStar Energy Corp.

January 18, 2006 13:08 ET

WellStar Energy Corp.: Production Commences at Virgo Zama

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - The Board of Directors of WellStar Energy Corp. (TSX VENTURE:WST) is pleased to announce the commencement of production on its first well 13-22-114-6 W6M in northwestern Alberta at its Virgo, Alberta project.

The 13-22 well was re-entered and successfully completed in the Keg River Formation (see News Release 05-08, Oct. 6, 2005). Since then a production battery with the design capability of 2000 b/d of fluid has been constructed at the well. Based on information provided by Warburg Resources Inc. (the operator), production has commenced with the well flowing clean oil at an initial rate of 190 barrels per day (net 95 b/d), on 6 mm choke at an average flowing wellhead pressure of 2200 kPa (g).

Subject to the acceptance of the TSX Venture Exchange approval WellStar has been granted the right to earn a 50% interest Before Pay Out ("BPO") and a 32.5 % interest. After Pay Out ("APO") in three properties, and a 45% and 30% interest in the fourth property subject to Crown and farmor royalties ranging from 5% to 22.5%. The participation cost for these interests is 50% of the estimated costs to re-enter, and/or drill and case four Keg River wells.

The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The four prospects are all define by 3D seismic and all proposed wells offset former producers in existing pools.

On Behalf of the Board of Directors

Andrew H. Rees, President, CEO

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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