News & Updates

Mr. Robert Sim reports

ENHANCED OIL RECOVERY TECHNOLOGY PROGRAM UPDATE DHT TESTING CONTINUES

Petrostar Petroleum Corp.’s field testing of its enhanced oil recovery technology, or as it is currently described as its downhole heating device, that commenced May 2, 2007, continues with several time and temperature test configurations. The initial test well A9/16 was entered with a downhole temperature of 21 degrees Celsius and an 11-hour test of time to temperature run. The temperature increased to 94.3 degrees and the wellhead pressure increased from zero pounds per square inch to 14 pounds per square inch. The temperature at 94.3 degrees was continued for a six-hour period, at which time the adjacent 10/6 well fluid level increased from two metres to four metres. One conclusion of this test is that initially the tool was heating oil and not water and therefore the time factor was unduly long. The tool was withdrawn and was prepared for the second time to temperature test. The bottom hole temperature was an initial 22 degrees and this test produced a wellhead pressure of 45 pounds per square inch. Iin addition, the fluid in the well was reduced by two joints (80 feet) indicating conversion to steam and dispersal into the formation. During this time it was noted that by injecting 40 degrees or hotter water from the surface, the time to temperature was reduced by 80 per cent. This would suggest that the zone in this well is holding the heat. The temperature has increased to an constant average of 110 degrees Celsius with steam being dispersed into the target zone. The 10/6 and adjacent wells will be tested for fluid increases during the next 12 to 24 hours to reconfirm initial fluid level increases.

The well A15/6 has been prepared for testing where there is more water in the wellbore and daily production has higher water content. It is also at a low in the field with four adjacent wells higher in the formation which will influence the expected response in higher fluid levels and higher daily production volumes. It will also provide information as to whether the drive created by the steam pressure expands in a circular or straight line effect. Additionally the company is currently awaiting delivery of a second DHT unit, which will include several modifications that will increase its efficiency and effectiveness. The data from the A15/6 well will be reported as it becomes available during and after the testing is complete.

The success of the downhole tool 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 DHT has the potential of economically revitalizing tens of thousands of proven North American medium and heavy oil wells that have been suspended due to insufficient reservoir pressure and drive. Needless to say, the opportunity of penetrating this market is substantial.

The company is focused on the exploitation of existing and proven heavy and medium crude oil using new technologies, the first being the patented drilling and recovery system using its patented Vertizontal Recovery System or VRS and other proprietary technology it is developing, and currently testing , its DHT, or downhole tool, as commented on earlier.

The methodology is an application of conventional SAGD and incorporation of a new downhole tool to generate steam in situ and enhance the recovery and production procedure. More details of these technologies are available on the Petrostar website.

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