Eagle Star Petroleum Corp. reports the acquisition of a 30% working interest (WI) in block Rec-T-166 in the Reconcavo Basin, Brazil, together with its partners Starfish Oil & Gas S.A. (Starfish), an independent Brazilian company (40% WI), and SOMOIL INTERNACIONAL DE PETROLEO DO BRASIL LTDA. (Somoil), out of Angola (30% WI), in which Starfish will be the operator. The partners acquired the block following the competitive tender of the 9th Bid Round organized by the ANP, the Brazilian Petroleum state regulatory authority (ANP).

Located some 50kms north of Salvador, the block Rec-T-166 lies within the highly sought after Reconcavo Basin, which to date has produced 1.46 billion barrels of oil (BBL) and has an estimated recoverable reserves of 300 million BBL remaining. Current production in this on-shore basin is 44,000 BBL and 137 million cubic feet (MMCF) of gas per day (Source ANP bid round information 2007).

The Company's 30% WI is held by its 100% owned Brazilian subsidiary Eaglestar Petroleo do Brasil Ltda.; cost of the acquisition is a signature bonus of R$255,022 Reals (Canadian dollar equivalent $150,000 CAD), which has been paid, and requires work commitment of R$1,134,000 Reals (Canadian dollar equivalent $667,000 CAD) over two years, which has been secured by an insurance bond.

Dr. Martin Keeley, Chief Operating Officer of Eagle Star, stated, "We are very pleased with our first international acquisition, and the promise it holds for Eagle Star. The location presents us with good potential at relatively low risk and the opportunity to increase our involvement in other exciting international oil and gas opportunities with the help of our well established partners."

Eran Friedlander, President and Chief Executive Officer of Eagle Star, commented, "We look forward to working with our new partners on this first international prospect and into the future. We believe that having Starfish, a leading Brazilian oil and gas company as operator, and Somoil, a strong African oil and gas player as equal partner, will be beneficial in our quest to expand internationally. With the help of our new acquisition, Starfish aims to reach its production goal of 3,000 barrels of oil per day by 2009, and we look forward to being participants towards its realization."

Tags: Eagle Star Petroleum Corp., Starfish Oil & Gas S.A.