News & Updates

VANCOUVER, BRITISH COLUMBIA – Petrostar Petroleum Corporation is pleased to announce that it has entered into a short-term rental agreement with an oil sands company to test Petrostar’s Down Hole Tool (DHT2).

The Down Hole Tool (DHT) is a system and method for generating underground heat, steam and pressure. Specifically, the present invention relates to an electrical steam generation system that enables efficient production of downhole heating and steam production without the typical heat and pressure loss of traditional surface steam generation equipment. Should the parties agree the testing has been successful, Petrostar will provide a quotation for the manufacture of a custom DHT unit (DHT-4-Mark10-480V) that will address the specific needs of the oil sands company. The facility will require a DHT operating at 200m and with greater length heating rods and housing.

Petrostar has increased its Lloydminster facilities to double the current size to be able to provide an assembly area for both the DHT units and its ETH (Electric Tank Heater). The DHT2 has recently been under a rigorous 60-day test at Petrostar’s 15/6 well site with a 100% operating performance. The program will be for a minimum of 30 days starting September 1, 2008 and is expected not to exceed 3 months.

Petrostar plans on having its DHT3 prototype unit on display at the Lloydminster, AB oil show, which begins on September 10, 2008. The DHT3 is the latest DHT model and incorporates all modifications and improvements from field tests of the DHT1 & 2 models, as well as having a 5,000 foot capability. More information on the DHT is available on the Company website at www.petrostarpetroleum.ca.

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.