Groundstar Resources Limited

Groundstar Resources Limited

December 29, 2010 06:29 ET

Groundstar Resources Limited Provides Operational Update for Exploration Drilling in the Takutu Basin, Guyana

CALGARY, ALBERTA--(Marketwire - Dec. 29, 2010) -


Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is pleased to announce the planned spud of the Apoteri K-2 ("K-2") exploration well on the Takutu Block in Guyana prior to December 31, 2010 on the Karanambo prospect in the Takutu Basin. This exploration well is a 600 meter offset to the Home Oil Karanambo-1 discovery well drilled in 1982 which tested at a rate of 411 bopd (42 degree API) in the Manari/Apoteri fractured reservoir. Groundstar is the operator of the K-2 well and is carried for a 10% net interest to commercial production. Partners are Canacol Energy and Sagres Energy. Based on a December 2009 report compiled for Canacol, Gaffney Cline and Associates attributed gross mean recoverable prospective resources of 128 million barrels (12.8 million barrels net to Groundstar) of oil to the prospect.

Plans are being formulated to drill a second exploration well on the block by May 2011 on either the Rewa or Pirara River prospects depending upon the outcome of the Apoteri K-2 drilling results. Canacol Energy will operate this well; Groundstar will be carried for a 10% net interest. Gaffney Cline and Associates attributed gross mean recoverable prospective resources of 171 million barrels (17.1 million barrels net) and 133 million barrels (13.3 million barrels net) to each prospect respectively in the December 2009 report compiled for Canacol Energy.

About Groundstar Resources Limited

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.

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