News ....UPDATE re Testing of DTPETROSTAR DHT FIELD TESTING TO COMMENCE
FLOW-THROUGH PRIVATE PLACEMENT ANNOUNCED
Petrostar Petroleum Corporation (TSX.V-PEP, Frankfurt-LMQ, the ”Company”) announces it has today finalized equipment and a coil tubing rig to move onto its Maidstone lease to begin the testing on its Down Hole Heating Device. The coil tube “pigging” (drawing the 750m DHT cable through the coil tubing) has received approval of the Saskatchewan Dept. of Highways to use its facilities to lay out 750m of coil and cable to complete the operation in Maidstone, SK. Once the pigging is completed, the rig will move on location and commence operations. Dry weather conditions are necessary for this procedure, so start date is subject to weather conditions. At this date, the pigging operation is scheduled to take place Monday, April 30, 2007 and delivered to the 9/6 well location to begin testing Tuesday, May 1, 2007.
The success of the down hole test will be a significant milestone achieved by Petrostar as it brings the Company one step closer to proving, and ultimately commercializing, this revolutionary enhanced oil recovery technology. The Down Hole Heating Device has the potential of revitalizing tens of thousands of proven North American medium and heavy oil wells that have been suspended due to insufficient reservoir pressure. As a point comparison of the commercial potential of the Down Hole Heating Device, Steam Assisted Gravity Drainage (SAG-D) technology produced $3.4 billion in commercial licensing revenue within two years of its introduction to North American Oil & Gas producers.
The following outlines the Company’s plans for the field testing process, subject to weather conditions:
Down Hole Heating Device left within the well for 10 days.
Results of the test to be analyzed and available later in May 2007.
The coil-tubing delivery equipment has been contracted to Sanjel of Red Deer, Alberta, electrical supervision by Valex/Delpro Manufacturing of Richmond. BC and the engineering management provided by Bernie Cabot, president of Western Petroleum Management, a leading Oil and Gas project management firm based in Calgary, Alberta (www.westpetro.com).
The Company also announces a non-brokered flow-through private placement of up to 1,500,000 units. The flow-through units at $0.20 per unit are for one flow-through share and one non-transferable share purchase warrant to purchase one non-flow-through share at $0.25 in the first year and $0.30 in the second year.
On Behalf of the Board of Directors,
“Robert A. Sim”
Robert A. Sim
President
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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