Winstar Updates on Tunisian Operations

Winstar has signed a long term contract with an international oilfield service equipment company for the provision of a 1500 horsepower rig to be used for the Company's various drilling projects in Tunisia. This new rig will be shipped from Houston in mid to late July and should be ready to spud its first well in Tunisia by late September of this year.

Also, Winstar, and its partner, l'Entreprise Tunisienne Petrolieres have also entered into a long term contract with a Tunisian based drilling contractor for a 1500 horsepower rig to be deployed for drilling multi-well horizontal drilling program in the Sabria field. Winstar expects that this rig will be available to spud its first well at Sabria by the end of 2008.

Winstar completed the acquisition of 401 square kilometers of 3D seismic data covering the entirety of the Chouech Essaida and Ech Chouech concessions. Some minor remaining field work is being completed and the final field data files are being assembled and transmitted to the selected seismic processing centers in Tunis, Paris and London for processing and subsequent interpretation. Preliminary interpretation results are expected for yearend 2008 with the first Triassic, Devonian and Silurian drilling locations to be selected in early 2009.

Winstar has also sourced and ordered 80 km of 152mm diameter pipe for a pipeline that will transport associated natural gas from the Company's Central Production Facility at Chouech Essaida to the sales and delivery point at El Borma in Southern Tunisia. Twenty kilometers of required pipe has already been delivered to the field site and the remaining sixty kilometers of pipe is scheduled to be delivered by the end of this July. The Company expects that welding and installation of the pipeline will commence in early July and the pipeline will be in service by January, 2009. The pipeline will have an estimated delivery capacity of approximately 1 million standard cubic feet per day (425 thousand cubic meters) of natural gas.

Drilling of Chouech Essaida No. 9 Development Well is a low risk development well is expected to spud in the first week of July, 2008. It directly offsets the Chouech Essaida No. 1 well that is currently flowing at a rate of 315 barrels of oil per day (bopd). Assuming a successful result, this well should come on production at the beginning of October, 2008. The well's objective is to produce zones identified in the adjacent Chouech Essaida No. 1 well. Chouech Essaida No. 8 Well Production is a well has been producing fromthe upper zone since late March, 2008.

Although the originally reported test results demonstrated a capability of 119 bopd, the Company is pleased to announce that the production from this well has steadily improved and is currently flowing at a rate of 260 bopd (41m(3)/d) of low sulfur, 41 degree API crude and as of June 18th, had produced a total of 19,000 barrels 3,020m(3)of oil. Current plans are to recomplete this well during the third quarter of this year by installing the necessary wellbore equipment that will permit the simultaneous production of the current zone and an additional productive zone that tested at a rate of 391 bopd (62m(3)/d) during the original completion and test in March of this year.