newsPetrostar Petroleum Corporation: Letter of Intent Signed to Develop Bakken Oil Play in SE Saskatchewan
6/3/2008 7:01:34 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Jun 03, 2008 (MARKET WIRE via COMTEX News Network) --
Petrostar Petroleum Corporation (TSX VENTURE: PEP)(FRANKFURT: LMQ), the "Company" or "Petrostar") announces the following new venture:
The Company is pleased to announce that it has entered into a Letter of Intent with Leaf & Stone Resonance Services Ltd.(L&SRS) of Saskatoon, SK to develop certain leaseholds acquired by L&SRS located in SE Saskatchewan. The leases will cover up to 12 quarter sections of freehold lands that have been acquired.
The area to be developed has two potential oil bearing zones; the Frobisher at a depth of approximately 500m and the Bakken at a depth of 1,100m - 1400m.
Under the terms of the agreement Petrostar will be the operator and provide up to $250,000.00 in drilling funds which matches the technical and mineral rights acquisition costs provided by L&SRS. All future costs will be shared on an equal 50/50 basis.
It is planned to initiate a 3-well drilling program, which will commence as soon as permitting and establishment of surface lease requirements for the well site are received. The initial well is to be the 1st of a potential 3-well program designated for the project.
Petrostar is the operator of the project and has retained DJ Craven Oilfield Consultants to supervise and assemble equipment and services to prepare for spudding of the first well. At this time, the intent is to drill the 3 wells consecutively while the services and equipment is readily available.
The parties will also continue to locate and acquire additional lands within the general area of the Bakken play under the same terms and conditions. More developments will be forthcoming as the project proceeds. Inquiries can be made to Mr. Thor Gauti, Director of Corporate Information Services at 1-250-748-3786 or at the corporate web site: www.petrostarpetroleum.ca.
On behalf of the Board of Directors,
Robert A. Sim
President and 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