Groundstar Resources Limited

Groundstar Resources Limited

September 09, 2010 20:17 ET

Groundstar Resources Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2010) - Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is pleased to provide the following operations update.

Kurdistan region of Iraq
Qara Dagh-1 well is drilling 12 1/4 inch hole at about 2,200 meters. The well was spud on 12 May 2010 with a planned total depth of 4,000 meters. As previously reported, the well has encountered a thick Aliiji section with strong indications of hydrocarbons.

Several reservoir quality sandstones have been penetrated. Petrophysical analysis of the sandstones has confirmed possible presence of hydrocarbons. These horizons will be further evaluated after completion of the drilling. 13 3/8 inch intermediate casing string was set at 1,650 meters on August 8, 2010. Qara Dagh-1 drilling operation is expected to be completed in November 2010.

Apoteri K2 pre-drill operations continue. The Company is pleased to announce that the majority of the drilling rig has arrived on Apoteri K2 drilling location, while the remainder is currently in the process of clearing customs in Manaus, Brazil prior to being mobilized to the location. The Corporation expects to spud Apoteri K2 well in mid October, and anticipates that the well will take 50 days to drill.

Operations to drill an exploration well on the West Kom Ombo (WKO) Block are in progress. The access road to the proposed drilling sites in Area A of the block is 70% complete. A drilling contract has been awarded for 2 firm exploratory wells and 2 additional optional wells. Anticipated spud date for the first well is middle of November 2010.

Groundstar is extremely pleased and excited to have reached this stage. A high-potential well is currently drilling in Kurdistan. An exploratory well will be drilled this year on two other high impact blocks, the Takutu PPL in Guyana and the WKO block in Upper Egypt, at no cost to the Company. Regardless of this year's drilling results, additional exploration wells will be drilled in 2011 in Guyana and Egypt at no cost to Groundstar.

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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