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 production without the heat and pressure losses realized by surface steam generation equipment.
The DHT is placed underground through existing vertical and/or horizontal well holes. From an energy source connected from the surface by an encased coil cable, the DHT is heated while it is underground to a temperature that will be significant enough to generate significant downhole heat, steam and pressure.
Testing on the first generation DHT (Gen-1 DHT) has taken place on the Company's Maidstone wells A9-6 and A15-6 (summer/autumn 2007) resulting in 600% and 598% increasein production from the respective wells.
The VRS® for Improved Hydrocarbon Recovery is an innovative method to recover fluids from underground reservoir formations. In a VRS, one or more horizontal wells are drilled such that the newly drilled horizontal wellbore(s) are oriented in the reservoir formation to intersect or terminate in close proximity of an existing or newly drilled vertical well, or, a vertical well is drilled so that the vertical wellbore penetrates the reservoir formation in close proximity of the wellbore of a newly drilled or existing horizontal well. The Vertizontal System involving the placement in combination of one or more horizontal wells and a vertical well has been patented in the United States (Patent No. 5,402,851); and patented in Canada (Patent No. 2,125,355) and trade marked in Canada by Vertizontal Energy Resources Inc., of Calgary, Canada. The inventor of the VRS® and President of Vertizontal Energy Resources Corp. is Mr. Nick Baiton, P. Eng.
Although the VRS® is not conducive to all reservoir formations, it is ideal for application to the Maidstone Oil Field and with 8 existing Vertical wells already in place and an estimated 5.5 Million barrels of oil in the reservoir, it is expected VRS® will enhance the life of the reservoir, will substantially increase daily production and cut the overall operating costs of the field creating a much more efficient recovery procedure and a higher level of profit.
Petrostar Petroleum Corporation (TSX-Venture: PEP and Frankfurt Exchange: LMQ) is a Canadian-based oil and gas producer committed to providing sustainable growth and value to the shareholders through progressive production of heavy and medium oil properties and development, implementation and commercialization of enhanced oil recovery systems and processes.
The long term objective of the Company's management is to aggressively seek lower risk properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholder's risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that it can operate as the sole owner-operator.
Overview
By patiently developing its properties and assets, Petrostar Petroleum has more than tripled its daily oil production from 30 barrels per day to 100 bopd (April 2005 to October 2007).
The Company's property assets include 100% interest in 320 acre production field in Maidstone, Saskatchewan, and 100% interest in 160 acre production field in Lashburn, Saskatchewan.In addition, the Company acquired in November 2007 a Joint-Venture whereby it received a 51% WI and assumed Operatorship of a 640 Acre lease in Wilkie, Saskatchewan.
Petrostar Petroleum, through its 10% equity ownership of Vertizontal Energy Resources Inc., maintains its share of ownership of the Vertizontal Recovery System® (for more information on the VRS®, please go to www.vertizontalenergy.com). The VRS® is a patented and innovative method of hydrocarbon recovery through the integration of vertical and horizontal wells.
As well, through a royalty agreement with its inventor Nick Baiton, P. Eng., Petrostar Petroleum holds 75% of the royalty rights for the patent-pending Down Hole Heating Device, a tool and system designed to generate heat within a reservoir, whereby downhole steam and pressure is created, stimulating enhanced flow of heavy oil. Under the terms of the royalty agreement, the Company has the right to patent, modify, test, commercialize and license the EOR technology and system.
Petrostar is 100% owner and operator of the 320-acre Maidstone Oil prospect that includes the petroleum and natural gas rights. The property is located in north western Saskatchewan 50 kilometers southeast of Lloydminster, SK. Located near the Company's Maidstone property is the Husky Upgrader Refinery, where the oil produced from the property is sent for processing. Adjacent to the Company's property are leases held by Shell Canada that they acquired through their acquisition of Blackrock Resources.Shell has subsequently sold the lease to Harvest Energy Inc.
Currently, there are 9 producing vertical wells on the Maidstone property, drilled to a depth of 500 meters in 1979, along with two producing horizontal wells drilled in 2006. Over the course of the past 18 months, the Company has completed an aggressive $4 Million work-over program to develop the prospect and increase recovery volumes of the oil reserves and enhance the value of the prospect.
Other prospective formations in the Maidstone property include two Waseca pay zones (Upper and Lower) that were encountered a few meters below the McLaren formation during Phase 1 of the drill program and has provided the impetus for the Company to verify its reserves.
Lashburn South – Eldon, SK
Petrostar has acquired from Brahma Resources Ltd. of Lloydminster, Alta., a 100% interest in a freehold leasehold located near its Maidstone, Saskatchewan, that closed in mid-October 2007. The lease contains a non-producing well in 101-07-15-48-24W3M with all production facilities in place.
The lease is 160 acres in size allowing for the drilling of three additional wells on the property. Drilling of the initial well is to be located in A8-15-48-24W3M offsetting a well owned and operated by Husky Oil. The current non-producing well will be the subject of Petrostar's Down Hole Tool (DHT) technology and will be re-entered and equipped with Petrostar's new GEN-2 DHT which will be more and efficient than its Gen-1 DHT.
Trigas Ventures J-V
Petrostar has entered into a joint venture with Trigas Ventures Inc. et al whereby Petrostar will assume the operatorship and a 51% interest in section C8-11-39-20W3M which contains a suspended oil well which Trigas et al has expended approximately $750,000 to drill and attempt to produce.The well is drilled to the McLaren formation but due to the heavy 9-12 API gravity of the oil it has failed to produce.Petrostar will use this well as a DHT test well which it is expected will result in viable daily production.A program is likely to be implemented during the second quarter of 2008.
