Groundstar Resources Limited

Groundstar Resources Limited

May 07, 2009 08:00 ET

Groundstar Resources Comments on Heritage's Discovery on Block Neighbouring Qara Dagh Block

CALGARY, ALBERTA--(Marketwire - May 7, 2009) - Kam Fard, Chief Executive Officer and Chairman of the Board of Directors of Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA)has noted Heritage Oil Ltd.'s news of May 6, 2009 regarding a major oil discovery on its Miran West-1 well in the Kurdistan region of Iraq. Groundstar's Qara Dagh block is directly adjacent to Heritage's Miran block.

In its press release, Heritage summarized the results of the Miran West-1 well as:

- Miran West structure estimated oil in place of between 2.3 billion to 4.2 billion barrels;

- Recovery factor expected to be between 50 per cent to 70 per cent due to the highly fractured nature of the reservoirs;

- From the pressure data recorded during testing management estimates flow rates of between 10,000 to 15,000 barrels of oil per day per well;

- Miran West-1 well has an estimated gross oil-bearing interval of 710 metres;

- Oil produced during testing was medium gravity (approximately 27 degree API), with low sulphur, a low gas-oil ratio and with no water;

- Miran West field development will be low cost and straightforward to fast-track;

- Potential for trucking production for sale by year-end 2009;

Groundstar holds a 6% participating interest in a Production Sharing Contract with the Kurdistan Regional Government in the 846 square kilometre Qara Dagh block in Sulaymaniyah governorate of the Federal Region of Kurdistan - Iraq. Groundstar and its partners Niko Resources Ltd. (as operator) and Vast Exploration are currently conducting a 2-D seismic survey of the Qara Dagh block. The first phase of the survey is underway on the northwest portion of the reservoir closest to Heritage's Miran block.

Kam Fard, Chief Executive Officer and Chairman of the Board of Directors of Groundstar stated: "Groundstar is very encouraged with Heritage's announcement of a major oil discovery. We and our partners at Qara Dagh anticipate targeting the similar reservoirs when the first well location has been determined."

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

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

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.

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