DHT UNIT DELIVERED TO OILSANDS QUEST INC.... ETH UPDATE... PRIVATE PLACEMENT & INCENTIVE OPTIONS ANNOUNCED...
Petrostar Petroleum Corporation (TSX-Venture: PEP, Frankfurt: LMQ; "Petrostar" or the "Company") announces plans to issue, through a non-brokered private placement, up to 3,500,000 units (the "Units") of the Company at a price of $0.08 per Unit for a total of $280,000.00. Each Unit will consist of one (1) common share (a "Common Share") in the capital of the Company and one non-transferable share purchase warrant. Each full warrant will entitle the holder thereof to purchase one additional common share of the Company for a period of two years following the closing date at a price of $0.10 per share in the first year and $0.12 per share in the second year. The private placement is subject to the acceptance of the TSX Venture Exchange and all shares issued thereunder will be subject to a 4-month hold period.
The Company also intents to grant a total of 1,785,000 incentive options to its consultants, officers and directors for a period of 2 to 5 years at a price of $ 0.10 per share.
DHT UPDATE
The Company delivered a custom DHT unit to Oilsands Quest Inc. on May 12, 2009 to be used at their Axe Lake, SK facility. The DHT technology is assisting Oilsands Quest Inc., in its development of the Province of Saskatchewan's emerging oil sands industry. Petrostar is currently discussing a new pilot project with a senior oil and gas company. The pilot project would be located in North Central Alberta and the DHT would be used to provide a heat source in a horizontal heavy oil well to stimulate increased production. An announcement pending a successful conclusion to these negotiations is expected shortly.
ETH UPDATE
The Company has received notice from the US Patent & Trademark Office (USPTO) that the receipt for the ETH patent filing was received and accepted for filing on April 9, 2009. The Canadian patent has also been filed and forwarded to the USPTO. Further status of the filings will be announced as the process continues.
The Company has also been advised by its CSA submission agent that the process for mass CSA approval for the ETH is nearing completion. Full CSA mass approvals will make the units available for installation at the manufacturing level as the alternative to current burner tube installations.
The Electric Tank Heater (ETH) unit is capable of replacing current burner tube tank heating devices and has a zero CO² emission signature as well as being capable of reducing operating costs by using power generated from top drive motors and eliminating the fuel requirements of the burner units.
More information on the DHT and its storage tank ETH is available on the Company website at www.petrostarpetroleum.ca.
On behalf of the Board of Directors,