Petrostar's DHT2 catches oil attention of sands company

Petrostar Petroleum Corp (C:PEP)
Shares Issued 83,142,902
Last Close 9/3/2008 $0.385
Thursday September 04 2008 - News Release

Mr. Robert Sim reports

PETROSTAR'S DHT2 TO BE TESTED BY AN OIL SANDS COMPANY

Petrostar Petroleum Corp. has entered into a short-term rental agreement with an oil sands company to test Petrostar's downhole tool (DHT2).

The 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 production 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 200 metres 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-per-cent operating performance. The program will be for a minimum of 30 days starting Sept. 1, 2008, and is expected not to exceed three months.

Petrostar plans on having its DHT3 prototype unit on display at the Lloydminster, Alta., oil show, which begins on Sept. 10, 2008. The DHT3 is the latest DHT model and incorporates all modifications and improvements from field tests of the DHT1 and DHT2 models, as well as having a 5,000-foot capability.

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