March 31, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that it has closed the previously announced arm’s length sale of its 100% net interest in 320 acres of petroleum and natural gas rights located in the Maidstone area of west-central Saskatchewan (“Maidstone Asset”) to Western Plains Petroleum Ltd. (TSX-Venture: WPP) (“Western Plains”).
The sale price for the Maidstone Asset was $750,000, subject to standard industry adjustments, based on an effective date of December 1, 2010, and was paid by Western Plains through:
(i) the payment and/or assumption of approximately $529,000 of Petrostar’s trade payables, and
(ii) a cash payment to Petrostar of approximately $182,000 (inclusive of applicable sales tax).
Western Plains previously paid Petrostar a $50,000 cash deposit. A finder’s fee equal to 2% of the gross proceeds plus appropriate taxes is payable to Henex Resource Marketing Inc. of Calgary, Alberta
The sale of this asset is part of management’s plan to reduce the Company`s holdings in the heavy oil sector and focus on plans to finance and develop the Company’s much larger 3,200 acres of PN&G leases in the Bakken region of SE Saskatchewan and SW Manitoba.
About Petrostar Petroleum Corp.
Petrostar is a Canadian-based oil and gas exploration company. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies”, where possible, in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
March 7, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that the Company has entered into a purchase and sale agreement for its heavy oil Maidstone property with Western Plains Petroleum Ltd. (TSXV: WPP).
The agreement will give Western Plains a 100% interest in the 320 acres of petroleum and natural gas rights located in the Maidstone area of West Central Saskatchewan property. Cash consideration for this deal is $750,000 and is subject to industry standard closing adjustments, the effective date of the deal will be December 1, 2010. The deal is expected to close mid-March 2011, subject to regulatory approval. Petrostar will retain the 160-acre, heavy-oil Lashburn field in Lashburn, Saskatchewan.
The Company also holds over 3,200 acres of prospective leases, located within the prolific Bakken formation, in SE Saskatchewan and SW Manitoba. Currently, Petrostar’s management is negotiating a JV partnership/financing deal that will facilitate further exploration of the Bakken properties.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
February 23, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) would like to clarify its news release of January 13, 2011 wherein the Company updated its shareholders as to the status of announcements made in earlier news releases, and to update the information where necessary:
1. Regarding the $20 million financing deal with Capital Corp Merchant Bank (CCMB) of Orlando, Florida:
The terms of this agreement were first announced on September 7, 2010 and updated on September 29, 2010. The update stated that Capital Corp Merchant Bank had begun its due diligence as part of its final decision process for granting the financing to Petrostar. This process was estimated to take 60 days, but has taken much longer than anticipated. The update from CCMB states that the next step has been taken and all of the information for third party valuation appraisal has been sent to American Appraisal. American Appraisal has offices in many countries around the world including Canada. CCMB has indicated that once a satisfactory final appraisal has been received, CCMB will prepare final closing documents for funding, which would then be filed with the TSX Venture Exchange for approval. This process is estimated to take 15 – 30 days to complete. A multi-well drill program on the Company’s Bakken area properties is planned to start once funding is completed. The Bakken project will then become a joint venture project between Petrostar and CCMB.
As of February 23, 2011 the appraisal process had not been completed because of the further requests for more extensive geologic reports. Petrostar is currently compiling this information with its geologist and will be forwarding the data to American Appraisal as soon as completed. The cost of the report is estimated to be US$19,000 and is the responsibility of Petrostar. Payment will be sent with the additional documentation requested. Once this step is completed and is favourable to CCMB, CCMB has indicated closing documents would be prepared immediately. Once Petrostar has received and accepted the closing documents, these documents would be forwarded to the TSX Venture Exchange for approval. Unfortunately the process of these negotiations has delayed Petrostar’s future drill program. The drill program will be postponed until after the winter break up and completion/approval of financing. Petrostar will continue to update its shareholders as developments occur.
2. Regarding the sale of the Maidstone and Lashburn heavy oil properties:
The terms of this agreement were first announced on September 29, 2010. On October 15, 2010, it was announced that the sale for $1.3 million had not completed and the offer was withdrawn. At that time, management decided to accept new offers and market the two properties that made up the original deal as separate entities. The asking price for Maidstone was $750,000 and Lashburn was $550,000 totalling the $1.3 million. The Company is in discussion with two different companies interested in the Maidstone property and one company interested in the Lashburn property. Petrostar will announce details of any deal upon completion.
As of February 23, 2011, the Company had an offer on the table that was being reviewed. An announcement will be made if accepted.
3. Regarding the Electric Tank Heater (ETH) sale:
Further to the news release of October 8, 2010, Petrostar and its ETH distributor, King Energy, have received inquiries regarding the ETH and are working on quotes for future sales. Some of the quotes are for specialized heating solutions for different applications than what the ETH was originally designed for, thus there is additional engineering that needs to be calculated and/or possible modifications needed to the heater to suit individual client needs. These enquires are currently being processed and further sales are expected. Petrostar’s Down Hole Heating Tool (DHT) is currently being reviewed by engineers associated with King Energy. The DHT may require further engineering and design changes, therefore the DHT is not being marketed until the review is complete.
As of February 23, 2011, the Company had nothing new to report.
The Management of Petrostar wishes to thank its shareholders for their continued support and confidence while these projects work toward their completion.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
January 13, 2011 - Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) would like to update its shareholders as to the status of announcements made in earlier Company news releases.
Regarding the $20 million financing deal with Capital Corp Merchant Bank (CCMB) of Orlando, Florida:
The terms of this agreement were first announced on September 7, 2010 and updated on September 29, 2010. The update stated that Capital Corp Merchant Bank had begun its due diligence as part of its final decision process for granting the financing to Petrostar. This process was estimated to take 60 days, but has taken much longer than anticipated. The update from CCMB states that the next step has been taken and all of the information for third party valuation appraisal has been sent to American Appraisal. American Appraisal has offices in many countries around the world including Canada. CCMB has indicated that once a satisfactory final appraisal has been received, CCMB will prepare final closing documents for funding, which would then be filed with the TSX Venture Exchange for approval. This process is estimated to take 15 – 30 days to complete. A multi-well drill program on the Company’s Bakken area properties is planned to start once funding is completed. The Bakken project will then become a joint venture project between Petrostar and CCMB.
Regarding the sale of the Maidstone and Lashburn heavy oil properties:
The terms of this agreement were first announced on September 29, 2010. On October 15, 2010, it was announced that the sale for $1.3 million had not completed and the offer was withdrawn. At that time, management decided to accept new offers and market the two properties that made up the original deal as separate entities. The asking price for Maidstone was $750,000 and Lashburn was $550,000 totalling the $1.3 million. The Company is in discussion with two different companies interested in the Maidstone property and one company interested in the Lashburn property. Petrostar will announce details of any deal upon completion.
Regarding the Electric Tank Heater (ETH) sale:
Further to the news release of October 8, 2010, Petrostar and its ETH distributor, King Energy, have received inquiries regarding the ETH and are working on quotes for future sales. Some of the quotes are for specialized heating solutions for different applications than what the ETH was originally designed for, thus there is additional engineering that needs to be calculated and/or possible modifications needed to the heater to suit individual client needs. These enquires are currently being processed and further sales are expected. Petrostar’s Down Hole Heating Tool (DHT) is currently being reviewed by engineers associated with King Energy. The DHT may require further engineering and design changes, therefore the DHT is not being marketed until the review is complete.
The Management of Petrostar wishes to thank its shareholders for their continued support and confidence while these projects work toward their completion.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
LMQ; “Petrostar” or “the Company”) announces it has complied with National Instrument 51-102 and filed its Quarterly Financials and MD&A for the period ending September 30, 2010. The documents are available for viewing at www.sedar.com.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
October 19, 2010, Victoria, BC -Petrostar Petroleum Corp. (TSX-Venture: PEP, Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that Mr. Bruce Balazs has been appointed Board of Directors of the Company.
Mr. Balazs graduated from NAIT in biological sciences, pollution and environmental option. He was a lab technician with Core Labs where his duties included obtaining surface and bottom hole samples of a product at surface and returning them to the lab for analysis; offshore rig sampling during drill stem tests; and analyzing core samples brought to the lab by various oil & gas production companies. Mr. Balazs then went on to develop and sell several service companies in Alberta and BC in regards to the fitness industry. He is currently the owner of a fitness club in Victoria, BC.
Mr. Balazs’ duties as a Director of Petrostar Petroleum include sitting as an independent director on the board; sitting as a member of the Audit Committee; offering his technical expertise in the oil & gas industry and assisting the Company’s geologist in the field. Management would like to welcome Bruce to the Company and feel that Bruce’s vast knowledge and experience will be a strong addition to the Board of Directors going forward.
Mr. Balazs is in the process of completing his Personal Information Form that will be submitted to the TSX Venture Exchange, along with the appropriate filing fees, in due course.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
October 8, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or “the Company”) wishes to announce that further to its news release of earlier today, the number of options being granted has been revised to 3,775,000 from 3,525,000.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.
October 8, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or “the Company”) is pleased to announce the first commercial sale of its Electric Tank Heater (ETH) technology.
SR Rentals of Elk Point, Alberta has agreed to purchase 2 ETH units to be delivered immediately. These units will generally be used in SR Rentals’ tank rental business, and specifically used to heat drilling fluid tanks on drill rigs during the winter season. As reported in an earlier news release, the purchase of these heaters validates the success of the test that was conducted last winter on an active rig. Petrostar’s management believes that this is the important first sale and will trigger many future sales. Even though this sale is small, it is significant in that it proves Petrostar’s heater technology works and is reliable under a demanding situation. As these heaters begin to roll out, the industry will see that there is a safer, more reliable, more environmentally friendly, and a more cost effective way to heat all manner of tanks used for different applications. The tank heater is not limited to the oil and gas industry. Any industry that requires heated fluid can use the technology. For example, waste management, drill rigs, above-ground oil tanks and above-ground water tanks.
The value of this sale was agreed upon during the test period and totals $30,000 CAD plus tax. A discount was offered to SR Rentals for facilitating the test. All future sales will now be booked through Petrostar’s master distributor, King Energy of Winnipeg, Manitoba. The units will retail for $24,000 each, which is cost comparable to other methods of heating.
About SR Rentals
SR Rentals provides oilfield equipment to some of Canada’s largest energy companies. This includes floc tanks and flare tanks, open top storage tanks, storage tanks with steam lines, as well as many other types of innovative and customized equipment. You can visit their website at www.srrentals.ca.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
October 8, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or “the Company”) is pleased to announce that it has, in accordance with its 10% rolling stock option plan, granted 3,525,000 options at a exercise price of $0.10. The options have been granted to certain directors, officers, consultants and employees of the Company. These options are being issued in light of the recent expiration of over 5.5 million options previously granted.
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry.
On behalf of the Board of Directors,
Bruce Scafe, President
For further information please contact Renmark Financial Communications Inc.:
September 30, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or “the Company”) is pleased to announce that its designated marketing firm, King Energy Distribution, has obtained the rights and been named exclusive master distributor to an environmentally friendly, down to earth generator, that can be used virtually anywhere and in almost any weather condition.
The E-POD Generator (Energy – Power on Demand Generator) is a new generation of battery style generator that needs no diesel fuel and no maintenance. This generator is being made available to Petrostar through the strong working relationship with the principles of King Energy Distribution. The E-POD generator is now being adapted to run Petrostar’s Electric Tank Heater (ETH) for many reasons: it is super quiet and can supply power to the ETH on an ongoing basis and has the ability to pay for itself over a reasonable time period. It is envisioned that within a short period of time, it may supply all the power at remote producing wells for all the operational needs. The actual 10-year life cycle of the unit is made possible by the re-chargeable batteries that are the main feature of this rugged generator. The batteries have many ways of being recharged including solar or wind. Perhaps one of the most durable generators on the market at this time, it has been used in the far North with outstanding reliability and results over the last two years. The key features of this new type of self sustaining battery generator are Safety, Noiseless Operation, No Fume Discharge, and Zero Maintenance.
Pairing the E-POD Generator with Petrostar’s ETH will significantly increase the marketability of the Electric Tank Heater (and in the near future, the Down Hole Tool) by keeping costs down and reliability up. It will also allow both tools to be used in remote sites with little maintenance and no refuelling. After a successful test of the ETH last winter, Petrostar expects to see sales for this application for the upcoming winter drill season.
Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry
About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.
For further information please contact Renmark Financial Communications Inc.: