Mr. Andrew Rees reports

WELLSTAR ENERGY ANNOUNCES RESULTS FROM LEDUC AREA DEVELOPMENT

Wellstar Energy Corp. has released results and development plans from its successful re-entry program recently completed in the Leduc area of west-central Alberta.

On Jan. 16, 2015, the company re-entered its operated 35-per-cent working interest Mannville oil well. The purpose of the successful re-entry program was to test a potentially productive upper bypass zone in the Glauconitic Manville formation, and if proven productive, comingle this test formation with existing Manville production and develop a comprehensive horizontal drilling program for the newly tested zone.

The production testing has indicated virgin reservoir pressure with recovery of light oil and solution gas. The company is in the process of developing a comprehensive horizontal drilling plan. Production equipment has been run in order to establish a steady short-term production test. Test production rates from this vertical wellbore demonstrate that the test formation is an excellent candidate for horizontal drilling, and were approximately six barrels per day (2.1 barrels per day net company share) of emulsion, and approximately 150 cubic metres per day (1.8 barrels per day of oil equivalent using a 10:1 conversion factor) of solution gas. On March 13, 2014, a service rig was mobilized to comingle the test zone with the existing Manville zone, where the company expects a combined production rate of approximately 15 barrels of oil equivalent per day (5.25 barrels of oil equivalent per day net). The company may reactivate its currently shut-in Lower Manville natural gas zone in the same wellbore when commodity prices improve.

The gas zone was perforated and tested in 2008 at a rate of approximately 750,000 cubic feet per day (262,500 cubic feet per day net) and 75 barrels of oil equivalent per day (26.2 barrels of oil equivalent per day net) of gas using a 10:1 gas to oil ration. Due to the success and characteristics of the test formation, Wellstar's technical team is designing a multiwell horizontal development program that would allow the company to possibly drill up to four gross wells per section, extending over several sections, with working interests ranging from 35 per cent to 70 per cent. Leased mineral rights directly offsetting the producing well are prospective for the same zone completed and/or producing in the company's well.

Wellstar currently holds approximately 5,147 net acres of mineral rights (operated) in the Leduc area of west-central Alberta. The company's Mannville production is pipeline-connected to a regional gas gathering system for processing. Produced fluids are trucked to a nearby third party custom facility for processing and water disposal. This area exhibits multizone oil and gas production from the Leduc, Nisku, Wabamun, Mannville and Viking formations. Wellstar operates a second well in the area, which has been completed and tested in multiple formations, and is suspended while awaiting pipeline construction.

Wellstar's management also announces that it has moved its corporate headquarters to Calgary, Alta. The company's new address is suite 540, 734 Seventh Ave. SW, Calgary, Alta., Canada, T2P 3P8.

We seek Safe Harbor.