News & Updates

Petrostar Petroleum Corp. has deployed its first-generation downhole tool in its well A10-6 on its Maidstone oil lease. The purpose of this continued testing of the first-generation DHT is to duplicate and verify the success the company achieved on the previous testing on wells A9-6 and A15-6, which generated increases in production by 600 per cent and 598 per cent, respectively.

In addition to this test, the company is currently preparing well A15-6 to test its second-generation downhole tool. The modifications made to the second-generation DHT are designed to increase the heating capability of the tool from 190 C to 250 C, resulting in increased steam and pressure buildup in the reservoir. The second-generation DHT will be deployed by the end of October, 2007.

Share of multibillion-dollar enhanced oil recovery technology field:

Worldwide deposits of heavy hydrocarbons are estimated to total almost 5.5 trillion barrels, and four-fifths of these deposits are in the western hemisphere (estimated as at year 2000 figures).

There is currently more oil in North American reservoirs than is expected to be produced from Saudi Arabia and Venezuela combined. On average, only 15 per cent of the easy oil is recovered from most medium and heavy crude oil reserves while the remaining oil is abandoned. In North America, tens of thousands of wells containing 70 per cent to 80 per cent of the original oil in place remaining in the formation/reservoir are currently capped due to their lack of economic viability and low and insufficient bottom hole pressure. In 1998, a steam-assisted gravity drainage (SAG-D) system was introduced in Canada to enhance production from oil sands and heavy/medium oil reservoirs, improving production and reservoir sweep efficiency by 15 per cent to 20 per cent. Within two years, over $3.4-billion in commercial ventures licensing the SAG-D system were in play in North America.

Upon completion of the testing of first-generation and second-generation DHT, Petrostar will be in possession of adequate data to allow it to move forward with its marketing plan for the second-generation DHT. The potential commercialization of the DHT is substantial, as there is, as estimated above, huge quantities of original heavy oil in place that potentially can be recovered through enhanced oil recovery technologies.

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