northern equity research September northernequity.com 2009 page 1
PEP
Bakken Prospects
With new large discoveries in North
Dakota and the merger of Petrobank
and Tristar to form Petrobakken in
Canada interest in the Bakken area
of SE Saskatchewan and Manitoba
has increased dramatically. This
bodes very well for Petrostar as the
company holds over 7 sections of
land in various spots in the Bakken.
The Company’s A1-26 well, which
was drilled last fall, looks promising.
The Company has reviewed all information
and consulted with independent
advisors on re-entering the
well and making necessary adjustments
to enable the start of production.
With the new, increased
activity in the region Petrostar management
has been actively seeking
joint venture partners to start exploration
on some of the Company’s
many properties. When looking at
the maps, some of the Company’s
holdings are in between or surrounded
by activity of other companies
who are having success.
Management believes it won't take
too long to find and secure financing
or do a deal with a partner to further
explore these properties.
Lashburn and Maidstone Fields
Currently management is reviewing
both of the Company’s operations at
Lashburn and Maidstone,
Saskatchewan. Both fields were
hampered by low oil prices over the
fall and winter. Now with oil prices
back above $60.00 per barrel management
is looking at ways to enhance
productivity out of both these
fields. As announced earlier we partner
with Five 0 Oil a small private
company to re-enter the Company’s
A7-15 well at Lashburn to open up a
new zone called the Sparky which
had not been exploited from this
well. This effort has been successful
and we are now testing flow and
cleaning out any sand buildup in
order to put on production. At the
Company’s Maidstone field the same
review is being carried out, other
companies just to the south of the
Company’s field have been having
success exploiting new higher zones.
Petrostar will review all of the Company’s
wells and select wells, which
show this same zone and look to
permitting the opening of these
zones. This could significantly increase
production at a reasonable
cost to the company.
ETH Electric Tank Heater and
DHT Down Hole Heating Tool
ETH-Petrostar as announced earlier
has received CSA approval for its
ETH Electric Tank Heater Technology.
Since then management has
been actively seeking out distributors
and tank manufacturers to distribute
and implement the
Company’s product into the market
place. Talks are ongoing with two
such companies. The plus for the
Petrostar, Atocha update
Petrostar Petroleum Corp.
Price: 0.08
TSX-V: PEP
Shares O/S 91.5 milion
contact: Bruce Scafe
877 737-8854
petrostarpetroleum.ca
Atocha Resources Inc
Price: 0.12.5
TSX-V: ATT
Shares O/S 14.3 million
contact: Salman Jamal
604 696-1111
atocharesources.com
Bulletin ALERT
northern equity research September northernequity.com 2009 page 2
Company’s customers will be lower
operating cost than natural gas with
no CO2 emissions from the unit.
Management believes that in time
Petrostar can capture a substantial
portion of this large market with the
Company’s technology.
DHT-Petrostar made its first commercial
sale of the DHT Down Hole
Heating Tool to Oilsands Quest on
May 12 2009. Petrostar continues to
work on modifications to the DHT
for use in heavy oil deposits and
other possible uses including waxing
issues in light waxy oil. Many inquiries
have come in from all over
the world regarding the DHT with
each one requiring specific needs
under different conditions.
Other Progress
Petrostar is currently in final stages
of negotiations to hire under contract
a Petroleum Engineer. As part
of an ongoing review process of the
Company’s oil operations management
feels it critical to have this expertise
on staff at this time. In the
past Petrostar has used professional
consultants as needed. Now management
would like to have this person
available to the company on a
regular basis.
ATT
Atocha Resources Inc.(ATT: TSX
Venture) made news as one of only
a handful of junior resource companies
to complete an initial public offering
on the TSX Venture Exchange
this year. As such, it represents a rare
ground floor investment opportunity,
with fewer than 15 million
shares outstanding and a prospective
gold/copper/silver property under
exploration. Moreover, with share
prices currently in the 0.15 range,
ATT offers the kind of upside that
ought to attract junior resource investor
attention.
Atocha has announced an initial
work program on the McGillivray
property located 34 kilometers
southeast of Lillooet, British Columbia—
a property well served by roads
and power. The McGillivray consists
of 235 claim cells totaling 4,646
hectares, acquired by staking in
2005 and later, to cover an historical
copper porphyry target property
with a large gossanous alteration
zone to explore for its precious
metal potential.
The property is located near the recently
discovered epithermal precious
metal Skoonka Creek
property. The McGillivray claims
cover ground originally staked in the
1940s.
Previous work in the area covered by
the property outlined large zones of
hydrothermal alteration and anomalous
copper in soil geochemistry at
the time when the focus of much exploration
was toward porphyry copper
targets.
Management has considerable experience
in developing junior exploration
companies, and Atocha has
recently added two new additional
gold projects (one in northern
British Columbia and the other in
Ontario within the Detour Mine
Camp (DGC: TSX Exchange))
under advantageous terms at this
time in the market cycle. These very
recently acquired projects are still
subject to TSX Venture Exchange
approval and more information is expected
in the coming weeks.
Bulletin ALERT
northern equity research September northernequity.com 2009 page 3
Given the fact that it remains one of
the few new listings on the TSX
Venture Exchange this year, Atocha
will remain a story to follow. ¶
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