Winstar Releases Preliminary Test Results from Chouech Essaida No.9 Well in Southern Tunisia and Operational Updates for Various Activities in its Tunisian Concessions



    CALGARY, Oct. 23 /CNW/ - Winstar Resources Ltd. ("Winstar" or the
"Company") (WIX-TSX) today releases updates on the following operations:

    
    -   Production test results from the newly drilled well Chouech Essaida
        No.9 (CES 9);

    -   Dual completion of well Chouech Essaida No.8 (CES 8);

    -   Production update for the well Ech Chouech No.1 (EC 1);

    -   Update on the construction of the new gas sales line from Chouech
        Essaida and the repair of the existing oil sales line;

    -   Operational update on the Sabria N3H well re-entry within the Sabria
        Concession of West-Central Tunisia; and

    -   Update on the interpretation of the newly acquired and processed 3D
        seismic data over the Chouech Essaida and Ech Chouech concessions.

    In addition, the Company will release a financial update for the three and
nine month period ending September 30, 2008 during the week of November 10,
2008. Preliminary indications are that the Company will be reporting results
consistent with its previously released guidance.

    Chouech Essaida No.9 (100% working interest)
    --------------------------------------------
    Production Testing has now been completed on four distinct Triassic
hydrocarbon zones in the well CES 9 with the following highly encouraging
results:

    -------------------------------------------------------------------------
                                                                     Flowing
                                                                     -------
                                               Water      Total     Wellhead
                                               -----      -----     --------
    Test    Interval: Oil/Condensate Gas Rate   Rate   Hydrocarbon  Pressure
    ----    --------- -------------- --------  -----   -----------  --------
    Number    (m)       Rate (bbl/d)  (mcf/d) (bbls/d) Rate (boepd)   (psi)
    ------    ---       ------------  ------- -------- ------------   -----
    -------------------------------------------------------------------------
    1       2428.8 -         160        2790      98        620        2500
               2431m
    -------------------------------------------------------------------------
    2         2413 -         130         124     128        150         272
               2415m
    -------------------------------------------------------------------------
    3         2275 -         307         263       0        350         354
               2277m
    -------------------------------------------------------------------------
    4         2261 -         392         273       0        437         522
               2266m
    -------------------------------------------------------------------------
    Total                    989        3450     226       1557
    -------------------------------------------------------------------------
    

    Test number 3 and test number 4 are particularly significant as they
represent new zones that have never been tested or produced in the Upper TAGI
Triassic sandstone at Chouech Essaida. The quality of the oil in these upper
sands is 41 degree API sweet crude, identical to the other producing wells in
Chouech Essaida. These positive results have led to a re-examination of some
established petrophysical assumptions that should lead to new play types for
future drilling as well as recompletion potential in both producing and
currently suspended wells.
    Tests one and two are analogous to the lower zones tested and announced
for Chouech Essaida No.1 (CES 1) in March, 2008 and are actually better in CES
9 than in CES 1 with respect to net pay and productivity. All four tests are
expected to add significant new proved reserves to Winstar's books this year
at a very attractive cost.
    The CES 9 well is currently tied in and is expected to be producing to
the Chouech Essaida Production Facility (the CPF) at a rate of approximately
350 bbls/d from the uppermost zone tested in the upper Triassic (Test 4)
within the next several days. The plan in the near future is to mobilize the
service rig from the CES 8 well to recomplete the CES 9 well in a
configuration that will allow multiple zones to produce simultaneously. It is
anticipated that this recompletion will be conducted in November of this year.
The gas/condensate zone (Test 1) will likely not be produced until the
completion of the new gas sales line in the first quarter of 2009 (see update
below) and negotiation of a sales contract for non-associated gas.

    
    Chouech Essaida No.8 (CES 8) Well Dual Recompletion:
    ----------------------------------------------------
    

    Workover operations are nearing completion to allow simultaneous but
segregated production from both zones successfully tested in CES 8 earlier
this year (press release dated March 25, 2008). Following the recompletion,
the well is expected to produce at a combined rate of 450-500 bbl/d and should
be back in service in early November.

    
    Production Update for Ech Chouech No.1 (EC 1) Well (100% working
    ----------------------------------------------------------------
    interest):
    ----------
    

    Following a well recompletion operation and the installation of a
downhole pumping system, the EC 1 well has been producing from the Devonian
Ouan Kasa sandstone formation (approximately 3500m depth) since August, 2008
to the CPF fourteen kilometres away. The well's production has gradually
increased and is currently stable at a rate of 60 bbl/d of 41 degree API oil
with a very minor amount ((less than)5%) of water. Winstar is very pleased
with the establishment of stable production from its fifth concession in
Tunisia. The well EC 1 also represents the Company's first production from the
Devonian formation in Tunisia.

    
    Chouech Essaida Gas Sales Pipeline Project Update:
    --------------------------------------------------
    

    The construction of the 100% working interest, six inch diameter, eighty
kilometer gas pipeline from the CPF to the El Borma gas sales station is
proceeding on schedule. Welding and inspection of the new line is
approximately forty-five percent complete and is currently scheduled for full
commissioning and start-up in January, 2009. Two sales gas compressors have
been purchased and are currently being shipped to Tunisia from North America
for installation in late November.
    The existing six inch oil sales line was inspected earlier this year and
was found to have external corrosion issues in need of repair. Five short
sections of the line are currently being replaced. All of this repair work is
being conducted with the line still in service to minimize any loss or
interruption of production and oil sales. The repairs to the line are expected
to be completed in November, 2008.

    
    Sabria North 3H (Sab N3H) Well Re-Entry (45% Working Interest):
    ---------------------------------------------------------------
    

    Operations have commenced on the re-entry of this well using a newly
contracted 1500HP drilling rig (see press release dated August 14, 2008). To
date, the original completion equipment has been recovered from the well and
the physical integrity of the wellbore confirmed. Drilling of a 250-300m
extension to the existing 400m horizontal drain has commenced. Upon the
drilling of this extension, the Company plans to drill a second horizontal
lateral of 550-600m in length. Drilling operations are expected to be complete
by early December with production testing to the Sabria Production Facility to
commence by the end of this year.

    
    Update on the Chouech Essaida/Ech Chouech 3D Seismic Processing and
    -------------------------------------------------------------------
    Interpretation (100% Working Interest):
    ---------------------------------------
    

    Initial processing (by one of the two selected processing companies) of
the 3D seismic data acquired in the first half of this year over the Chouech
Essaida and Ech Chouech Concessions has been completed. The Company is very
pleased to confirm that the preliminary indications of seismic anomalies
announced in the September 17, 2008 press release have been confirmed and
indeed have increased in number and definition. Interpretation is underway
with preliminary drilling locations for the highly prospective Silurian Acacus
formation expected in November. These preliminary drilling locations will be
reviewed and confirmed upon receipt of the processing results from the second
processing company, expected by the end of this year. In addition to the
Acacus formation (that has been successfully explored for in the immediately
offsetting Exploration Permits operated by OMV, Pioneer and ENI), Winstar will
also be using this newly acquired seismic data set to define new drilling
prospects in the shallower Triassic and Devonian formations.

    
    Financial update for the third quarter of 2008
    ----------------------------------------------
    

    With the current turmoil in the global capital markets, the Company takes
the unprecedented move to give assurance to its shareholders that a
preliminary review of the Company's financial results for the three and nine
month period ending September 30, 2008 indicates that those results will be
consistent with previously released guidance. Financial results will be
formally released during the week of November 10, 2008, further to review and
approval of the Audit Committee and Board of Directors. The Company has no
debt, has unused lines of credit of $6 million (which may be increased to
$10 million on satisfaction of certain conditions), which have been recently
reaffirmed, and is expected to have a significant working capital surplus as
of September 30, 2008. Management and the Board have been reviewing the
capital expenditure budget and cash position under a wide range of
conservative commodity price and drilling success scenarios for the remainder
of 2008 and 2009. The Company has a number of options which allow it to
continue to focus first on its high potential Southern Tunisian assets
(Chouech Essaida, Ech Chouech and Sabria concessions), including commitments
made in respect of drilling rigs as described in the Company's press release
dated August 14, 2008, plus initiate its Romanian development as described in
the Company's press release dated April 10, 2008, while maintaining a prudent
and solid financial posture.

    
    About Winstar
    -------------
    

    Winstar Resources Ltd. is Calgary-based junior oil and gas company, which
explores for, develops, produces, and sells crude oil, natural gas liquids and
natural gas in (Alberta) Canada, Tunisia, Romania and Hungary. Winstar's
common shares trade on the TSX Exchange under the symbol WIX.

    
    BOE
    ---
    

    References herein to "boe" mean barrels of oil equivalent 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: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.

    
    Forward Looking Statements
    --------------------------
    

    This press release contains forward-looking statements. These statements
relate to future events or future performance of Winstar. 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 the Company'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 Winstar 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, 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, expect as required
by law.





For further information:

For further information: David Monachello, President, Phone: (403)
513-4200, Email dmonachello@winstar.ca; or Charles de Mestral, Chief Executive
Officer, Phones (from Canada or USA only), Toll free 1-800-875-1217, or +41 22
949 10 40 (Note: Mr. de Mestral is based in Europe, in a time zone eight hours
ahead of Calgary time), Email: cdemestral@winstar-resources.ch

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