Petrostars DHT2 to Be Tested by an Oil Sands Company

Petrostar Petroleum Corporation 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 pr oduction 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.