Groundstar Resources Limited

Groundstar Resources Limited

August 17, 2009 11:13 ET

Groundstar Resources Announces Spud of S. Malak-1 Well

CALGARY, ALBERTA--(Marketwire - Aug. 17, 2009) - Groundstar Resources Limited (TSX VENTURE:GSA) has been informed by the operator Aminex Petroleum Egypt Limited that the third commitment well on the West Esh El Malaha (WEEM) Block in the Gulf of Suez was spud on Sunday August 16, 2009. The well location is on the South Malak structure, 1.9 kilometers to the southeast of the Malak-1 well drilled in 2008.

There were two possible locations for the last commitment well in this block. Groundstar, with a 20 per cent working interest, proposed drilling a well in the northwest part of the block on a structure mapped by Groundstar's exploration staff. Aminex Petroleum Egypt, with an 80% working interest, elected to drill the S. Malak-1 location. In order to retain it's 20 per cent working interest in the block, Groundstar will participate in the S. Malak-1 drilling at a net cost of approximately US $200,000.

S. Malak-1 will be a vertical well and planned total depth is 9,100 feet, aimed at testing Pre-Miocene sands in the Nukhul, Matulla and Nubian formations, as well as fractured basement. The prospect is a pre-rift fault block structural trap.

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

FORWARD LOOKING STATEMENTS: 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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