Eagle Star Establishes Commercial Gas Production at Peace River Well
Eagle Star Petroleum Corp. has successfully tested the well located in North Western Alberta in the Peace River Area. Following receipt of the test results and data provided by the Farmee from the recent drilling on its property, a positive report has been prepared by independent engineers DeGoyler and MacNaughton Canada Limited ("DGM") indicating a commercial well which is scheduled for production early spring of 2008.
The Company currently owns a 40% Working interest in the 633 acre Crown lease after payout, with an overriding royalty of 5% to 15%, which together with a 100% interest in two additional Crown leases in the area, gives the Company a gross holding of 1,900 acres.
Eran Friedlander, President and Chief Executive Officer of Eagle Star, said, "The tie in of this well is a positive stride for Eagle Star towards commercialization. We are pleased with the results and expect soon to be further developing this and other prospects. The economic feasibility of this lease gives Eagle Star more options to increase cash flow as we proceed now in a producer's role."
The Qualified Person, with responsibility for the accuracy of the technical information contained herein, is the Chief Operating Officer Martin Keeley, PhD (Geology), BSc. Hons, FGS, with 27 years of industrial experience.