News & Updates

Mr. Robert A. Sim, President and Director, is pleased to announce Petrostar Petroleum Corporation’s (TSX-Venture: PEP; Frankfurt: LMQ, the “Company” or “Petrostar”) first phase of field testing of its second-generation downhole tool (GEN-2 DHT) commenced at its Maidstone testing facilities on December 7, 2007.

The GEN-2 DHT, which evolved from applying modifications to the successfully tested first-generation DHT, has the capability of reaching temperatures of 250°C, a significant increase from 190°C that was achieved by the first- generation DHT, and has been redesigned to maintain the targeted temperature for a longer time frame in the wellbore, allowing for increased downhole steam and pressure generation. As well, the GEN-2 DHT is capable of reaching temperatures of 250°C using a 22-kilowatt generator as opposed to a 66-kilowatt generator required by the first-generation DHT.

During this phase of field testing, the GEN-2 DHT reached the temperature target of 250°C within three hours of deployment. Furthermore, the temperature of the water in the wellbore reached 93°C. The next step in the first phase of the field diagnostic testing is to pull the GEN-2 DHT out of the wellbore to evaluate the integrity of the new stainless- steel-wrapped electrical cable, the capabilities of the newly designed and constructed hydraulic delivery system, and the GEN-2 DHT itself, which has commenced. The second phase of field testing will commence immediately after these evaluations are complete.

The company plans to issue, through a non-brokered private placement, up to 1.75 million units of the company at a price of 20 cents per unit, for a total of $350,000. Each unit will consist of one common flow-through share in the capital of the company and one non-transferable share purchase warrant. Each full warrant will entitle the holder thereof to purchase one additional common share of the company for a period of two years following the closing date at a price of 25 cents per share in the first year and 30 cents per share in the second year. The private placement is subject to the acceptance of the TSX-Venture Exchange and all shares issued thereunder will be subject to a four- month hold period.

Sandy Sprinkle, P.Eng, consultant to Petrostar, a qualified person under National Instrument 51-101, has approved the technical content of this news release.

On behalf of the Board of Directors,

Robert A. Sim
President and 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 forward-looking 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.