News & Updates

Mr. Robert Sim reports

Petrostar to Commence Testing of its Second Generation DHT, Maidstone Drilling Programs Permitting Underway

Petrostar Petroleum Corp. has provided information on the following.

DHT deployment (downhole tool)

The company is pleased to report that delivery of its second-generation DHT and proprietary cable is expected on its Maidstone property within two weeks. Surface testing is being completed at the manufacturer’s site in Delta, B.C., and is expected to be concluded this week.

The two new DHTS will be shipped to the Maidstone lease for on-site testing. One of the DHT’s will be for a further test at location 15/6. A second DHT is expected to be deployed for testing on another well site in the near future. The new DHT is designed to reach and operate at a higher temperature of 250 C with expectations that, the more steam and heat generated, the result will be increased oil and gas production.

Previous tests conducted with the first DHT prototype had an operating temperature of 190 C and was still able to produce an impressive 598-per-cent increase in oil production from well 15/6 as a result of its DHT test. The test was initiated on June 23, 2007, and was completed Aug. 11, 2007. The first prototype was also responsible for the results from well 9/6, which had a very significant 600-per-cent increase in oil production during its test from May 2, 2007, to May 25, 2007.

In addition to the two new second-generation DHT’s coming into service, the initial DHT prototype has been refurbished and upgraded and will be used to implement an additional test on Maidstone location 10/6. This will assist in generating data from the offsetting well locations (11/6, 9/6) and in conjunction with the new DHT at location 15/6 which will generate data from well locations (14/6 and 1A16/6) and provide the basis for the company to prepare a business plan. The objective is to use this information to prepare a marketing strategy as to the terms and conditions the DHT will be offered to the industry.

The company will also incorporate a new hydraulic delivery system for the DHT, which will eliminate the need for other service equipment and reduce deployment costs significantly.

Upon successful completion of the aforementioned tests and system, the company will then take delivery of an additional six DHT units that could be in operation before the year-end.

Waseca drilling programs

The company is planning on drilling two new wells in the Maidstone area of north-central Saskatchewan to test the Waseca A and B sands on two leases. At this date, the surface lease requirements have been secured, and surveying to file for the drilling permits has been conducted. The permits should be received shortly. Subject to permit receipts, the company has a tentative spud date of Oct. 24, 2007, at its Maidstone A 16/6 location and has a drilling rig on standby to accommodate this start date.

The well will be spudded and drilled to a depth of approximately 520 metres (m). The new well will be structurally higher then the offsetting wells, 1-07-48-23W3M and A 13-05, owned respectively by Rife Resources and Harvest Energy that are producing from this zone.

The second well will be drilled in A8-15-48-24W3M offsetting a well owned and operated by Husky Oil. More details of the drilling programs will be forth coming as these matters proceed.

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