Gastem Inc. announced that the Ross No. 1 well was successfully drilled in Otsego County. Total depth (4,950 feet) was reached and casing has been cemented to surface. Significant gas kicks were encountered at targeted intervals. The Devonian Marcellus Shale, the Silurian Oneida sands and the Utica Shale were intersected and core samples have been taken to evaluate the potential of the three resources. A completion program, including fracture stimulation, focusing on the Utica Shale will commence shortly and should be completed by the end of this month. Gastem is operator of the project and has an 80% working interest in 35,000 acres in this area.

Gastem Inc. announced that the La Présentation No. 1 well on the 37,247 hectares Canbriam Energy/Gastem St-Hyacinthe Property has been spud. This well is the second of a three vertical and consecutive well test program to evaluate the gas production potential of the Utica Shale. Planned total depth is 2,100 meters and should be reached in approximately four weeks. La Présentation No. 1 is a vertical well through the Ordovician shale formations with the Utica Shale as a primary target. This well follows the St-Hyacinthe No. 1 well that spud on August 20th and was drilled on time and on budget. The well produced significant gas shows and established substantially thicker Utica shale in the order of 30% as compared to Yamaska. The St-Hyacinthe No. 1 cores have been sent to the laboratory for analysis and initial results are expected in the coming weeks. The wells should be fracced following full analysis of core samples. Pipeline infrastructure is present on the property. The St-Hyacinthe Property is located immediately south of Gastem’s Yamaska Property, which is the subject of a substantial exploration program. Gastem considers the St-Hyacinthe Property to be within the prime Utica fairway as defined by recent exploration work. Canbriam Energy, the operator, and Gastem have an option to earn an interest of 68% and 17% respectively in the property, with the remainder (15%) being held by the farmor’s group. Gastem (61,044,000 shares outstanding) is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights to 3,135 km² in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and in Appalachia.

Gastem Inc. Announces Update on Ross No. 1 Well Spudded Near Maryland, Otsego County. The objective is to drill a vertical well to a depth of 1.5 kilometers (5,000 feet) to test the gas potential of the Utica Shale. This first well, one of three vertical wells that were permitted by the New York State authorities, is expected to reach target depth within one week. The Devonian Marcellus Shale and the Silurian Oneida sands will be evaluated as part of the drilling program in addition to the deeper Ordovician Utica Shale formation. The company intends to fracture stimulate the well following geochemical and geotechnical analysis of the core samples. The Ross No. 1 well is south of Covalent Energy's successful Scheckell's No.1 test well drilled in the summer of 2007. Gastem is operator of the project and has an 80% working interest in 35,000 acres in this area. Gastem (61,044,000 shares outstanding) is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights to 3,135 km2 in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and in Appalachia.