Groundstar Resources Limited

Groundstar Resources Limited

July 15, 2010 05:00 ET

Groundstar Resources Limited Provides Operational Update for the Qara Dagh #1 Exploration Well, Kurdistan, Iraq

CALGARY, ALBERTA--(Marketwire - July 15, 2010) - Groundstar Resources Limited (TSX VENTURE:GSA) provides the following update for the Qara Dagh #1 exploration well in Kurdistan, Iraq.

Further to Groundstar's press release of June 14, 2010, the 8.5 inch pilot hole was drilled to 1,650 meters.

A thick Tertiary Aalizi section was encountered below the Kolosh formation that was not predicted in the original drilling prognosis. The Aalizi interval is comprised of interbedded sandstones and shales. Several Aalizi sandstones have displayed oil shows and elevated gas readings confirming the presence of hydrocarbons. Several open hole logs have been run. The pilot hole is being enlarged to 17.5 inches to current total depth after which the logging will be completed. The drilled section will be cased and drilling will continue to the Cretaceous section.

The unexpected thick Aalizi sandstones will be the subject of further evaluation. The primary Cretaceous reservoirs have yet to be penetrated.

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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