Petrostar Petroleum Corporation: Enhanced Oil Recovery Technoligy Update
Petrostar Petroleum Corporation announces the field testing of its Enhanced Oil Recovery Technology or as it is currently described as its Down Hole Heating Device commenced May 2, 2007.The initial test well A9/16 will continue for approximately 10-14 days at which time the tool will be removed from the test well and test data reviewed and evaluated. Additionally the company will test its A15/6 well to evaluate its performance and influence on the offsetting wells A14/6, A16/6 and the 1A16/6 HZ well.
During the tests the tool will be operated under several different configurations and well bore depth settings to determine the optimum placement in conjunction with well perforations, production zones, well fluid levels and wellhead pressure. Preliminary indications on a short period test were that the DHT significantly influenced the production of the surrounding well A10/6. A second test will be run to confirm this influence and quantify the resulting production increase.
The Company has decided that given the initial testing on well A9/6 it will also move the Tool and test it in well A15/6 where there is more water in the well bore and daily production has higher water content. It is expected that with its proximity to the horizontal well 1A16/6 that there will also be a significant increase in its daily production. Additionally the Company is immediately proceeding with the manufacture of a second DHT unit, which it hopes will be completed within the current testing time frame. The second unit, subject to completion and arrival on site will be run in tandem with the initial unit. The data will be reported as it becomes available during and after the testing is complete.
The success of the down hole tool test will be a significant milestone achieved by Petrostar as it brings the Company one step closer to proving and ultimately commercializing this revolutionary enhanced oil recovery technology. The DHT has the potential of economically revitalizing tens of thousands of proven North American medium and heavy oil wells that have been suspended due to insufficient reservoir pressure. Needless to say, the opportunity of penetrating this market is substantial.
On behalf of the Board of Directors,
ROBERT A. SIM
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.
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Contacts: Petrostar Petroleum Corporation Robert A. Sim President, Director 604-662-3004 ext. 105