Petrostar Petroleum Corp (C-PEP) - News Release
Petrostar testing shows 600% increase in production
2007-06-05 07:12 ET - News Release
Shares issued 59,692,761
PEP Close 2007-06-04 C$ 0.44
Mr. Robert Sim reports
PETROSTAR PETROLEUM REPORTS-600% PRODUCTION INCREASE USING PROPRIETARY OIL RECOVERY TECHNOLOGY
Petrostar Petroleum Corp. has successfully completed initial field testing of its enhanced oil recovery technology or as it is currently described as its downhole heating device (DHT). The test commenced May 2, 2007, and concluded May 25, 2007. The initial test well A9/16 was tested for approximately 10 to 14 days, at which time, the tool test data were reviewed and evaluated. The testing has produced a significant 600-per-cent increase in production from the original well production. Historical fluid production on test well 9/16 increased from 2.1 cubic metres (13.21 barrels per day) to 9 to 12 cubic metres (56.6 to 75.5 barrels per day). The company has decided that given the initial successful testing on well A9/6, that it will also test well 15/6, where it is expected that there will also be a significant increase in its daily production.
During initial testing, the DHT was tested under several different configurations and wellbore depth settings to determine the optimum placement in conjunction with well perforations, production zones, well fluid levels and wellhead pressure as well as testing the failsafe safety shutdown in case of electrical malfunctions. The failsafe tests passed with 100-per-cent efficiency. The testing has provided the company with information that will lead to modifications on its beta design that will increase downhole temperatures to approximately 225 degrees, while allowing it to achieve and maintain that temperature in shorter time frames.
With these promising results, the company is immediately proceeding with the manufacture of six of the new configuration DHT units, to be manufactured by Valex Industries of Richmond, B.C. The units will be used for additional tests to be conducted on both heavy and light oil formations. The tests will be supervised by B. Cabot, president of Western Petroleum Management, of Calgary, Alta., Canada.
The success of the downhole heating device test is viewed as a significant milestone achieved by Petrostar and it brings the company one step closer to ultimately commercializing this revolutionary enhanced oil recovery technology. The company believes it can deliver the DHT at a cost that can effectively and economically revitalize tens of thousands of proven North American medium and heavy oil wells. Needless to say, the opportunity of penetrating this market is substantial.
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