Groundstar Resources Limited

Groundstar Resources Limited

December 13, 2010 06:00 ET

Groundstar Resources Provides Operational Update: Qara Dagh- 1 Exploration Well, Kurdistan, Iraq

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2010) -


Groundstar Resources (TSX VENTURE:GSA) has been informed by Niko Resources, the operator of the Qara Dagh - 1 exploration well in Kurdistan, Iraq that the go-forward plan previously announced on November 12, 2010 to install intermediate 11 3/4 inch expendable liner in the Tanjero formation has been successfully completed. The liner was set at 2,088 meters, expanded and cemented in place. An extremely unstable zone encountered while drilling in the Tanjero has significantly impeded drilling progress. It is believed that the liner will prevent or eliminate rock cavings that caused the drilling delays. The operational forecast is to drill ahead to evaluate the three primary Cretaceous targets; Shiranish, Kometan and Qamchuga.

The Qara Dagh Block is located in the prolific Zagros foldbelt that extends from southern Turkey across northern Iraq and into southwest Iran, which contain giant and supergiant accumulations of oil. The large surface structure on the block known as Qara Dagh is a prominent anticline which rises as high as 600 meters above adjacent valley floors. This block, which is 65 kilometers by 5 kilometers, is located 60 kilometers southeast of the Taq Taq oilfield and 60 kilometers east of the giant Kirkuk oilfield, and is adjacent to a Heritage block with a recent oil discovery. Groundstar has a 6% beneficial interest in the Qara Dagh Block.

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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