Winstar Tests 860 bbl/d of oil from Chouech Essaida No.11 Well in Tunisia

CALGARY, June 4 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) is pleased to provide an update on the results of the testing operations at its 100% owned and operated Chouech Essaida No.11 well (CS No.11) in southern Tunisia.

    
    -   CS No.11 was spud at the end of March 2010 and reached the planned
        total depth by the end of April 2010.
    -   The well was drilled and completed at a cost of $5.9 million USD,
        which is significantly below budget.
    -   There are a total of six prospective zones in the well, but only the
        four best zones (according to open-hole log response) have been
        completed to date. In order to simplify the completion operation, the
        bottom two zones of the four were tested together and the production
        commingled.
    -   The well was tied into the 100% owned and operated Chouech Essaida
        central production facility (CPF) and all testing was conducted at
        the CPF after release of the drilling rig, resulting in lower testing
        costs and the sales of all test oil production.
    -   The following is a summary of the stabilized flow data for each of
        the test intervals for the CS No.11 well. The Company cautions that
        the initial test rates may not reflect the long term productive
        capacity of the well.

    -------------------------------------------------------------------------
                                                             Wellhead  Choke
    Test No.  Interval    Oil/cond    Gas    Total    Water  pressure   size
    -------------------------------------------------------------------------
              (meters)    (bbls/d)  (mcf/d) (boe/d) (bbls/d)   (psi) (inches)
    -------------------------------------------------------------------------
    1    2414.5 - 2416.0
         2410.0 - 2411.0    710       2650    1151       0      625     1/2"
    -------------------------------------------------------------------------
    2    2393.0 - 2395.0   trace     trace     0         0       0      1/2"
    -------------------------------------------------------------------------
    3    2280.0 - 2282.0    150        180     180      675     185     1/2"
    -------------------------------------------------------------------------
    Total                   860       2830    1331      675
    -------------------------------------------------------------------------
    

The Company's current operational plan is to place the bottom two zones (described above as Test No.1) on production at an anticipated production rate of approximately 700 bbl/d of oil. The upper zone (described above as Test No.3) will be produced in the future, likely with the mechanical assistance of a downhole pump.

Once again, the Company cautions that the initial production rates may not reflect the long term productive capability of the well and that the optimal rate of production may not be its full productive capacity. The Company further cautions that some facility modifications will be required including, but not limited to, the construction of additional oil tank storage and incremental gas compression at the Chouech Essaida CPF and additional oil storage capacity at the Company's oil sales terminal located at El Borma, prior to the Company being capable of producing all incremental oil and gas production without restriction.

BOE

Reference 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, Canada and Hungary. Winstar's common shares trade on the Toronto Stock Exchange under the symbol WIX.

SOURCE Winstar Resources Ltd.

For further information: For further information: Mr. David Monachello, President, Phone: (403) 513-4200, E-mail: dmonachello@winstar.ca Or Mr. Bradley Giblin, Chief Financial Officer, Phone: (403) 513-4207, E-mail: bgiblin@winstar.ca Or Mr. Charles de Mestral, Chief Executive Officer, Phone: +41 22 361 14 45, E-mail: cdemestral@winstar-resources.ch (Note: Mr. de Mestral is based in Europe, in a time zone eight hours ahead of Calgary time)

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