Groundstar Resources Limited

Groundstar Resources Limited

January 15, 2008 17:50 ET

Groundstar Awarded Exclusive Negotiation Rights for Two Blocks in Syria Totalling Approximately 3.35 Million Acres

CALGARY, ALBERTA--(Marketwire - Jan. 15, 2008) - Groundstar Resources Limited (TSX VENTURE:GSA) is pleased to announce that the Ministry of Petroleum and Mineral Resources of the Syrian Arab Republic has awarded Groundstar the exclusive right to negotiate Production Sharing Contracts with respect to Blocks 14 and 16.

Both blocks contain potential for oil and gas/condensate in Paleozoic and Mesozoic structures. Block 14, located on the Rutba Uplift, measures 6624 square kilometers (1.64 million acres) in area. Two dry wells were drilled on the block in 1991. Three un-drilled prospects and leads have been identified from the existing seismic control. The block is thought to be in the same geological setting as the Akkas Silurian oil field to the southeast in Iraq.

Block 16, also located on the Rutba Uplift, measures 6880 square kilometers (1.71 million acres) and has one previously drilled dry well. Five un-drilled prospects and leads are identified from the existing seismic data.

Shell Petroleum operates Block 13 immediately to the east of Block 14 and Block 15 immediately east of Block 16. Shell has undertaken extensive exploration activity in their operated blocks which supports Groundstar's view that there is significant potential for hydrocarbon discoveries in this area of southern Syria. Canadian E & P operators in Syria include PetroCanada, Tanganyika Oil, Stratic Energy and Loon Energy.

Groundstar believes both blocks are extremely under-explored as the last drilling was completed 17 years ago and the last seismic survey was completed in the mid 1990's. The Company is extremely motivated to negotiate the PSC's and add these highly prospective blocks to our portfolio.

Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, North Africa and the Middle East.


All statements in this news release that are forward looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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