Petrostar Signs Letter of Intent with Private Alberta Company

27.09.2012  |  The Newswire

(via Thenewswire.ca)

September 27, 2012, Vancouver, BC - Petrostar Petroleum Corp. (TSX-Venture: PEP, "Petrostar" or "the Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with a private, Alberta-based oil and gas company.

The LOI is to affect the transfer of 640 acres of mineral rights that complement Petrostar's holdings in the Forestburg field located northeast of Red Deer, Alberta. In consideration of 100% ownership of the mineral rights, Petrostar will issue 333,000 shares to the principles of the private company at a deemed price of $0.18 per share. The shares will be subject to a four-month hold period.

As part of the terms of the LOI, Petrostar has the right to production test the existing wellbore to determine its production capabilities. The geographical location of the assets strongly suggests the capability of the future development of a micro power generation facility. Petrostar is going to utilize the Booster technology on the inline testing and will make the results available once this process is completed.

About Petrostar Petroleum Corp.

Petrostar is a Tier 2 Canadian-based oil and gas exploration company trading on the TSX Venture Exchange. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders' risk exposure to various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.

For further information, please contact Bruce Scafe, IR and Communications Officer, at 1-877-737-8864 or bscafe@petrostarpetroleum.com.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.

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