Groundstar Resources Limited

Groundstar Resources Limited

June 14, 2010 08:11 ET

Groundstar Resources Limited Provides Update on Exploration Well In Kurdistan Region-Iraq

CALGARY, ALBERTA--(Marketwire - June 14, 2010) - Groundstar Resources Limited (TSX VENTURE:GSA) is pleased to provide the following update on its operations in Kurdistan Region – Iraq. The Qara Dagh Well was spudded on 12 May 2010 with a planned TD of about 4,000 meters. An 8 ½" pilot hole was drilled to 686 meters. The well diameter was subsequently opened up to 26". According to the well plan, a 20" casing was set and cemented at 686 meters.

As of June 12, an 8 ½" pilot hole is being drilled at 1,313 meters which the operator believes to be the Tanjero horizon, above three prospective Cretaceous formations. In anticipation of complex drilling conditions encountered in the area, the 8 ½" pilot hole will subsequently be enlarged according to the well design.

The three prospective Cretaceous formations, namely Shiranish, Kometan and Qamchuga, are expected to be covered by multiple casings and will be Drill Stem Tested on penetration upon positive drilling and geological indications.

Drilling of Qara Dagh-1 is expected to take an additional three months to complete and will target up to seven potential reservoirs in the Cretaceous, Jurassic and Triassic formations.

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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