TriStar announces closing of private company acquisition; announces fourth quarter drilling results; confirms 2008 guidance



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    Toronto Stock Exchange Symbol "TOG"

    CALGARY, Jan. 8 /CNW/ - TriStar Oil & Gas Ltd. ("TriStar" or the
"Company") announces that it has successfully closed the previously announced
acquisition of Kinwest Corporation (the "Private Company") and has issued
8.0 million common shares of TriStar to shareholders of the Private Company.
    The assets acquired are primarily located in TriStar's Southeast
Saskatchewan core area, where approximately half of the production originates
from a large, operated, 65 million barrel oil in place light oil pool with a
low recovery factor to date. In addition, TriStar gains exposure to an
additional 25 net sections (100 percent working interest) of Bakken prone
acreage. TriStar has identified 97 net Bakken drilling locations on the
acquired acreage based on four wells per section representing unrisked upside
potential of over 10 million barrels of reserves net to TriStar.
    In total, TriStar has identified 151 (126 net) drilling locations on the
assets acquired, all located in Southeast Saskatchewan, and therefore,
unaffected by the proposed changes in Alberta's royalty regime.
    TriStar continued to have success with the drill bit in the fourth
quarter drilling 34 (22.2 net) wells with a 97 percent success rate. In 2007,
TriStar drilled 87 (60.8 net) wells resulting in 73 (48.7 net) crude oil
wells, 7 (6.1 net) natural gas wells and 1 (1.0 net) stratigraphic test well
for an overall success rate of 93 percent. TriStar's 2007 drilling program was
primarily focused on high quality, long life light oil targets located in
TriStar's key operating areas in Southeast Saskatchewan, West Central Alberta,
Central Alberta, and Southern Alberta. TriStar has a development drilling
inventory in these core areas of over 1,500 locations.
    As a result of this drilling success, TriStar management confirms that it
has exceeded the Company's 2007 exit rate target of 14,500 boepd (greater than
65 percent light oil).
    Brett Herman, President and Chief Executive Officer of TriStar commented,
"2007 has been a year of substantial growth for TriStar, both through
acquisitions and the drill bit. Our success through the drill bit has once
again resulted in TriStar exceeding our previously announced guidance. We are
excited about our 2008 drilling program which is more than 90 percent focused
on light oil prospects. These projects are very attractive in the current
crude oil price environment and we have commenced our program with a number of
wells currently drilling in Southeast Saskatchewan."

    CORPORATE OVERVIEW; 2008 GUIDANCE
    ---------------------------------
    With the completion of the Private Company acquisition, and the
anticipated closings of both the previously announced proposed acquisitions of
Bulldog Resources Inc. and Arista Energy Limited (the "Proposed
Transactions"), TriStar confirms that it anticipates 2008 average daily
production of more than 20,250 boepd, comprised of greater than 75 percent
high quality, long life, light oil, with a 2008 production exit rate of more
than 21,750 boepd.
    Upon closing of the Proposed Transactions, TriStar estimates it will have
the following corporate characteristics:

    
    High Quality Assets:           Top-decile netbacks, greater than
                                   85 percent operated, light oil and natural
                                   gas reserves and production focused in
                                   four core operating areas

    Long Life Reserves:            Greater than 63 mmboe (P+P); RLI of
                                   over 8.5 years

    High Quality Production:       Average Rate 2008 (E): greater than
                                   20,250 boepd (greater than 75% light oil)

                                   Exit Rate 2008 (E): greater than
                                   21,750 boepd (greater than 75% light oil)

    Estimated Net Debt:            Less than $300MM; less than 1.2 times cash
                                   flow
                                   (US$75 WTI, $6.75 AECO)

    Shares Outstanding:            109.9 MM (B); 114.2 MM (FD)

    Significant Upside Potential:  Greater than 1,500 development locations
                                   Greater than 780,000 net acres of
                                   undeveloped land
    

    TriStar Oil & Gas Ltd. is a Calgary based company active in the
acquisition, exploration, development and production of crude oil and natural
gas in Western Canada.

    -------------------------------------------------------------------------
    Warning about Forward-Looking Statements

    This press release contains forward-looking statements. More
particularly, this press release contains statements concerning the potential
reserves, oil in place, netbacks, production and drilling locations associated
with the announced acquisitions, TriStar's projected average annual and exit
rates of production of oil and natural gas for 2008 and estimated net debt and
cash flow following closing of the announced acquisitions.
    The forward-looking statements are based on certain key expectations and
assumptions made by TriStar, including expectations and assumptions concerning
prevailing commodity prices and exchange rates, availability and cost of
labour and services, the timing of receipt of regulatory approvals, the
performance of existing wells, the success obtained in drilling new wells, the
performance of new wells and the sufficiency of budgeted capital expenditures
in carrying out TriStar's planned activities.
    Although TriStar believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance should
not be placed on the forward-looking statements because TriStar can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. These
include, but are not limited to, the risks associated with the oil and gas
industry in general (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
commodity price and exchange rate fluctuations and uncertainties resulting
from potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. These risks are set out in more
detail in TriStar's annual information form for the year ended
December 31, 2006, which can be accessed at www.sedar.com.
    The forward-looking statements contained in this press release are made
as of the date hereof and TriStar undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required by
applicable securities laws.

    Meaning of Certain Terms

    When used in this press release, boe means a barrel of oil equivalent on
the basis of 1 boe to 6 thousand cubic feet of natural gas. Boepd means a
barrel of oil equivalent per day.
    Boe's may be misleading, particularly if used in isolation. A boe
conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The common
shares offered have not and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and many not be offered or sold in the United States except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable states securities laws.
    -------------------------------------------------------------------------

    THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    %SEDAR: 00025796E




For further information:

For further information: Brett Herman, President and Chief Executive
Officer, TriStar Oil & Gas Ltd., Telephone: (403) 268-7800, Fax: (403)
218-6075; Jason J. Zabinsky, Vice President, Finance and Chief Financial
Officer, TriStar Oil & Gas Ltd., Telephone: (403) 268-7800, Fax: (403)
218-6075

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TriStar Oil & Gas Ltd.

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