News & Updates

Mr. Robert Sim reports

ENHANCED RECOVERY SYSTEM FIELD TESTING TO COMMENCE SHORTLY

Petrostar Petroleum Corp. has provided the following progress report on the field testing of its enhanced recovery system (ERS).
Since July 27, 2006, Western Petroleum Management of Calgary, Alta., a company well versed in all facets of the oil and gas industry from construction to production, has been contracted to develop and execute the field testing plans of the ERS. Proposed downhole well profile of Maidstone well A9-06-48-23W3 has been completed and securing all elements of field testing such as coil tubing, reel, rig, generator etc. is nearing completion.

The assembly of the downhole tool (DHT) is nearing completion. The specialized cable required to conduct power to the heating rod within the DHT has been at the company’s fabrication plant since early July and assembly will be completed by Seband Mechanical Services Ltd., a company based in Red Deer, Alta., with expertise in all areas of servicing, repairing and fabricating specialized oil field equipment.

The company has completed its licensing agreement with Nick Baiton, PEng, the inventor and author of the DHT and the associated ERS (enhanced recovery system). Petrostar will receive 75 per cent of all royalty and licensing revenues generated by the commercialization of the DHT and ERS.

The company expects to be testing the DHT on its Maidstone well A9-06-48-23W3 and/or other candidate wells within the next 45 to 60 days.

Additionally, as a follow-up to the company’s news release of Tuesday, Sept. 5, 2006, in Stockwatch, the in situ testing of the vertizontal recovery system is moving forward with drill pad construction and is scheduled to sign its drilling contract with Ensign drilling (Tricity rig No. 45) this week. Thus, the company is moving closer to its mandate of proving up its technologies to enhance production of its original oil in place (OOIP).

About the enhanced recovery system

The enhanced recovery system is an invention which relates generally to a downhole tool (DHT) system and method for generating underground steam. Specifically, the present invention relates to an electrical steam-generation system that enables efficient production of downhole steam without the heat and pressure losses realized by surface steam-generation equipment.
Simply put, the DHT is placed underground through existing vertical and/or horizontal wellbores and initialized from an energy source connected from the surface by an encased coil cable. The DHT is heated while it is underground to a temperature that will be significant enough to generate downhole steam and pressure whereby the desired effect of enhancing production OOIP can potentially be achieved. More details are available on the company’s website.

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The Toronto Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to complete the proposed financing, failure to obtain necessary regulatory or shareholder approvals, exploration and other risk factors beyond its control and actual results may differ materially from the expected results.