Groundstar Resources Limited (TSX
VENTURE:GSA - News) -
West Kom Ombo Block, Upper Egypt
Groundstar Resources Limited
("Groundstar" or the "Company") is pleased to announce
that it has completed the sale of 60% of its interest in the West Kom Ombo
block to Aegean Energy.
Substantial progress has been achieved
towards the objective of drilling the first exploration well on the block. An access road to the drilling site and the drill site pad have
been completed. Casing and wellheads have been acquired. The drilling
contract for two firm and two option wells has been awarded to Sino Tharwa
Drilling Company. The exploration well will likely spud by the end of
November.
Through a series of transactions,
expected to be approved by Egyptian authorities, Groundstar will retain a 10%
net interest that will be carried for a minimum of four exploration wells
with a capital expenditure of up to US$30 million gross. Aegean Energy Egypt
(a subsidiary of Energean Oil & Gas) will ultimately have an 80% working
interest and will be the operator of the block.
The funds received from these
transactions place Groundstar in a very favourable financial position to meet
all its corporate and exploration obligations for the remainder of 2010 and
through 2011.
Qara Dagh Block, Kurdistan, Iraq
The Qara Dagh -1 exploration well,
operated by Niko, experienced operational difficulties in the Tanjero
formation near the current measured depth of 2,239 meters. These difficulties
have been resolved. The go forward plan is to install intermediate 11 3/4
inch casing string and drill ahead to evaluate the three primary Cretaceous targets;
Shiranish, Kometan and Qamchuga. Drilling for the Qara Dagh-1 well is
anticipated to be completed in January 2011.
Groundstar is extremely pleased and
excited to have reached this stage. A high-potential well is currently
drilling in Kurdistan. An exploratory well will be drilled this year on two
other high impact blocks, the WKO block in Upper Egypt and the Takutu PPL in
Guyana, at no cost to the Company. Regardless of this year's drilling
results, additional exploration wells will be drilled in 2011 in Guyana and
Egypt at no cost to Groundstar.
Groundstar is a publicly traded Canadian
junior oil and gas company actively pursuing exploration opportunities in
Guyana, North Africa and the Middle East.
This press release may contain
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, anticipations,
expectations, opinions, forecasts, projections, guidance or other similar
statements that are not statements of fact. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to be
correct. These statements are subject to certain risks and uncertainties and
may be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. These risks include, but are not limited to: the risks associated
with the oil and gas industry (e.g. operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating
to production, costs and expenses and health, safety and environmental
risks), commodity price and exchange rate fluctuation and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements contained in this press
release are made as of the date hereof and the Company undertakes no
obligations to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Kam Fard
Groundstar Resources Limited
President
(403) 265-2549
(403) 265-2558 (FAX)
kfard@groundstarresources.com |