Groundstar Resources Limited

Groundstar Resources Limited

April 21, 2010 05:58 ET

Groundstar Resources Limited Announces Execution of Drilling Rig Contract for Apoteri K-2 Exploration Well in Guyana

CALGARY, ALBERTA--(Marketwire - April 21, 2010) - Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is pleased to announce that a rig contract has been executed for the drilling of the Apoteri K-2 exploration well in Guyana. It is anticipated that the rig will arrive on location within 60 to 75 days, and that drilling will commence shortly thereafter. Groundstar, the operator has a 10% working interest in the Takutu Petroleum Prospecting Licence ("PPL"), which contains the Karanambo discovery drilled by Home Oil in 1982. Groundstar's interest is carried to commercial production by Canacol Energy Ltd. ("Canacol").

The joint venture plans to drill Apoteri K-2 well to a total measured depth of approximately 11,000 feet. Apoteri K-2 location is approximately 600 meters northwest of the Karanambo #1 discovery well. This well will be drilled directionally targeting fractures in the same productive reservoirs that tested 411 barrels of oil per day of 42o API light oil in 1982. Gaffney Cline and Associates attributed gross mean recoverable prospective resources of 128 million barrels of oil to the discovery in the December 2009 report compiled for Canacol. Groundstar to date has completed the construction of the drilling pad, access roads, and staging areas in preparation of drilling, and has purchased and mobilized tubular and wellheads sufficient for 3 wells which are now in country. The well is anticipated to take roughly 50 days to drill, and if successful will be put on a long-term production test to establish the deliverability and performance of the formations.

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

Certain information set forth in this press release contains forward-looking statements. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, reliance should not be placed on forward-looking statements. Groundstar's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Groundstar will derive therefrom. Groundstar disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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.

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