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 On October 15, 2010, it was announced that the sale for $1.3 million had not completed and the offer was withdrawn.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.:
September 29, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or “the Company”) is pleased to announce that the Company has accepted an offer to purchase its Maidstone and Lashburn heavy oil fields near Lloydminster Saskatchewan from Pavillion Energy Corp of Richmond BC. The offer is for both properties being sold as a package for $1,300,000.00 CAD. The closing date for this deal is October 15, 2010.
By divesting the Company’s interest in these two fields, it will allow Petrostar to focus its efforts on the development of the Company’s Bakken properties in SE Sakatchewan and SW Manitoba where management sees the most future potential. Proceeds of the sale will be used to further develop current holdings in the Bakken properties; look for other possible land acquisition or farm-in opportunities; and retire debt.
Further to the Company’s news release dated September 7, 2010, the Company has now entered into the due diligence phase with CCMB. This phase is the final step in procuring the $5,000,000 previously announced and subsequent additional funding of $15,000,000 upon a successful drill program. Petrostar has created a wholly owned subsidiary, Bakken Oil Resources Inc., to facilitate this joint venture. Twenty-three quarter-sections of leased land in Moosomin and Kirkella areas will be rolled into the venture, and when the funding closes, $5,000,000 will be contributed by CCMB for a 50% interest in Bakken Oil ($4.6M debenture and $400K equity interest). It is anticipated that funding will occur within the next 60 days.
Mr. Bruce Scafe said “This sale will allow the Company to further develop its current interest on the Bakken Lands and will allow the Company to look at other possible opportunities in the area. As management, our job is to maximize the potential value for shareholders and we feel the Bakken is where the Company should be focused to achieve greater potential at this time.”
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.
September 9, 2010 – Victoria, BC – Petrostar Petroleum Corp. (TSX-V: PEP) (“Petrostar” or the “Company”) is pleased to announce that it has retained the services of Renmark Financial Communications Inc. (“Renmark”) to handle its investor relations activities.
“Petrostar is pleased to announce that it has selected Renmark to reinforce Petrostar’s profile in the financial community and enhance the visibility of its project portfolio. Management choose Renmark because its standards and methodologies fit best with the message Petrostar wishes to communicate to the investing public,” noted Bruce Scafe, President and Director of Petrostar Petroleum Corp.
In consideration of the services to be provided, the Company has agreed to a 13-month agreement with Renmark starting September 1, 2010 with payment terms as follows:
a retainer of $2,500 in September 2010;
$5,000 a month from October 2010 – March 2011;
$6,000 a month from April 2011 to June 2011; and
$7,000 a month for the remainder of the agreement.
Renmark does not have any interest, directly or indirectly, in Petrostar or its securities, or any right or intent to acquire such an interest.
Need a “blurb” about Renmark – not just contact info…. and why are we putting contact info in for Renmark? Is it necessary? Sorry if this is a stupid question, but I’ve never seen the contact info for an IR firm/person in a company’s NR before…???
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 and development, implementation and commercialization of enhanced oil recovery systems and processes.
The long-term objective of management is to aggressively seek lower risk 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 Bruce Scafe, President/CEO at 1-877-737-8864 or visit www.petrostarpetroleum.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Safe Harbor Statement and Disclaimer:
This News 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.
September 7, 2010, Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP, Frankfurt: LMQ; “Petrostar” or “the Company”) is pleased to announce that the Company has agreed to terms on a $20 million funding agreement with Capital Corp. Merchant Banking of Orlando, Florida, USA via a debenture instrument.
Capital Corp. Merchant Banking is part of a group that was formed 25 years ago to meet the growing needs of companies/clients and promoters looking for funding and professional assistance in a diversity of projects. For further information on Capital Corp., please see its website at www.capitalcorpmerchantbanking.com. Funding for the project will be delivered in 2 phases. Phase 1 will be an initial $5 million and phase 2 will be $15 million to be disbursed within 12 months from the initial disbursement. The total disbursement of $20 million will consist of $400,000 in common stock of the new subsidiary and $19.6 million as a debenture to the subsidiary. The debenture is for a term of 84 months with 4 annual fixed payments and an annual interest rate of 3% calculated on the net balance of the debenture payable on a quarterly basis. There will be a 24-month grace period from the quarterly payments.
Funding will be used specifically for exploration and development of Petrostar’s Bakken property. Under the terms of the agreement, Petrostar will form a subsidiary private company exclusively for the Bakken project. The new subsidiary company will be a 50/50 joint venture between Petrostar and Capital Corp. Merchant Banking. Petrostar will be the operator for this project.
Phase 1 of exploration will consist of further mapping of the properties and the purchase of seismic trade data, which will determine up to 8 drill targets to be drilled. Phase 2 of the project will be to expand on the success of Phase I with new wells and infill wells planned in the appropriate areas. Further property acquisition or farm-ins will be considered. As operator, Petrostar will be in charge of all aspects of the Bakken project. After a period of 5 years, Petrostar will have the option to buy back all shares in the subsidiary owned by the funder at the market value to be determined by a professional third party.
Petrostar management is pleased to have Capital Corp. Merchant Banking as the funding partner in this project and look forward to a long and successful relationship. Capital Corp has indicated to Petrostar management that it will continue to fund the project past the initial $20 million program as long as the project continues to be successful.
Management negotiated the debenture with Capital Corp rather than issuing shares and further diluting the shareholder base of the company. Management feels that this protects its shareholders and gives them the best value for this project. This is a major step forward for Petrostar to increase its oil production and revenue substantially over the next 12 to 24 months. Final documentation is being prepared with funding expected within 30 to 60 days. The Company expects to start the drilling program in December 2010.
For further information please contact Bruce Scafe, President/CEO at 1-877-737-8864.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.