News & Updates

Petrostar Petroleum Corporation (TSX-Venture: PEP, Frankfurt: LMQ, the “Company” or “Petrostar”) announces that it has received a positive in oil production from one of its off-set wells (11/6) that is attributable to the DHT test in May 07 of well 9/6. A production increase of 325% has been realized from well 11/6 that has continued over the 6 weeks following termination of the 9/6 DHT test. 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 DHT is currently installed and operating in well 15/6 where it continues to maintain a constant 180º C core temperature and it is planned on continuing the current testing with this unit until it can be replaced with one of the newer larger and higher operating temperature models that are currently under manufacture. The testing of well 15/6 will continue for a longer period then that of the 9/6 well test as there is substantial water produced from this part of the formation and the effects exhibited in the 9/6 and 11/6 wells is expected to take a longer period of testing. At this point there is an apparent effect to the off-setting well 14/6 as the gas production in the well has increased substantially and the indication is that the testing in well 15/6 is producing the desired influence.

NEW DHT UPDATE

The first shipment (2 units) of the current new DHT is scheduled to be completed and shipped on July 30/07 and will be deployed to the field thereafter. The units will be deployed to well 9/6 and 15/6 where it will replace the current unit. The tools will be deployed and the off-setting wells oil and gas production increases monitored.

ETH UPDATE

The Company has been advised by its contractor, Valex/Delpro of Delta, BC that the plans for the EDT are complete and the build of the first Electric Tank Heater (ETH) prototype is underway. The unit will be constructed to meet CSA approvals and forwarded to the
Maidstone property for initial testing. The Company is currently initiating the electric power hookup to its well 12/6 where the first ETH will be installed and tested.

It is Petrostar’s belief that using the technology of the ETH will not only lower operating costs by reducing consumption of fossil fuels currently used to operate the burner systems that maintain heating in production tanks but also produce ZERO CO2 EMMISSIONS. As previously announced, the Company has reviewed several potential acquisitions that it intends to pursue and, in addition, is reviewing a next phase of development on the Maidstone lease. Further information on these developments will be forthcoming in the near future.
More details of these technologies are available on the Petrostar web site at www.petrostarpetroleum.ca.

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 forwardlooking 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.

The TSX-Venture Exchange Inc. has not reviewed and do not accept responsibility for the adequacy or accuracy of this release.