Winstar Provides Update on Tunisian Operations

CALGARY, Sept. 23 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) provides an update on the following Operations in Tunisia:

• well operations at Chouech Essaida 8S ("CS #8S");
• update on the Company's Tunisian drilling program;

Well Operations at CS # 8S 

Pursuant to the Press Release dated September 14, 2010 the Company reports that the installation of the jet pumping system has been unsuccessful in re-establishing production and the well has been temporarily suspended.

The Company is evaluating its operational and technical options and will provide an update when appropriate.

Tunisian Drilling Program

Winstar has commenced its latest drilling program on its 100% owned and operated Chouech Essaida Production Concession in Southern Tunisia:

Triassic development well, Chouech Essaida #13 (CS #13) - All site and road construction is complete and the drilling rig is being prepared to spud the well on or about September 27, 2010.   The 2,450 meter well defined by Winstar's new 3D seismic is forecast to be drilled and cased by the end of October with expectations that any incremental oil production would commence in December.  

Silurian exploration well, Chouech Essaida Silurian #1 (CS Sil #1) - The civil construction of the road and site is underway and expected to be complete within four weeks.  All required materials have been ordered and should be on site by the end of October.  CS Sil #1, located four kilometres north of the existing Triassic oilfield, is expected to spud in November and take approximately 55 days to drill to a programmed depth of 4,400 meters.   The well will test multiple zones in the Silurian Acacus and Tannezuft formations with an up-hole secondary exploration target in the Triassic formation. The Company has the option under the current rig contract to drill a third well in the program after CS Sil #1 and the Company will update the market should this option be exercised. 

BOE

References herein to "boe" mean barrels of oil equivalent and is derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil.  Boe may be misleading, particularly if used in isolation.  A boe conversion ratio of 6 Mcf to 1 bbl is based upon an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  References herein to "boepd" means barrels of oil equivalent per day.

Forward-Looking Statements

This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Winstar's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Winstar will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The risks to which the Company is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions to the effect that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.   

Winstar Resources Ltd. is a Calgary based junior oil and gas company, which explores for, develops, produces, and sells crude oil, natural gas liquids and natural gas in Tunisia, Romania and Hungary. Winstar's common shares trade on The Toronto Stock Exchange under the symbol WIX.

For further information:

Mr. Charles de Mestral
Chief Executive Officer
Phone: [phone]
E-mail: [email protected]
(Note: Mr. de Mestral is based in Europe, in a time zone eight hours ahead of Calgary time)

Or

Mr. David Monachello  
President 
Phone: [phone] 
E-mail : [email protected] 

Or

Mr. Bradley Giblin
Chief Financial Officer
Phone : [phone]
E-mail : [email protected]