Petrostar finds sandstone-locked oil in Saskatchewan

2008-07-30 16:21 ET - News Release

Mr. Robert Sim reports

BAKKEN DISCOVERY WELL CASED FOR PRODUCTION

Petrostar Petroleum Corp. has located a new discovery well (A3) in an area of southeast Saskatchewan not being currently drilled by other producers.

The well encountered 19 metres of pay locked in a sandstone formation with excellent porosity and good permeability. A3 is expected to flow on its own (light oil), and may not require stimulation. The importance of this discovery is that it was found in a sandstone formation, and the company is confident that no water issues will need to be addressed, which is the case with other Bakken discoveries. The company has now moved the drilling rig to its next location and will announce details shortly. Petrostar will test A3 and bring it on production over the next few weeks.

The leases are located in the southeast Saskatchewan extension of the prolific Bakken oil play that covers Southern Alberta, Saskatchewan and Manitoba in Canada, and Montana and North Dakota in the United States.

The company is continuing to locate and has acquired substantial petroleum and natural gas rights to additional lands within the general area of the Bakken play and Petrostar's general area of interest.