Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

April 25, 2011 07:00 ET

Groundstar Resources Provides Update on the Apoteri K-2 Exploration Well, Takutu Basin, Guyana

CALGARY, ALBERTA--(Marketwire - April 25, 2011) -

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Groundstar Resources Limited ("Groundstar" or the "Company")(TSX VENTURE:GSA) provides the following update on drilling and testing activities at the Apoteri K-2 exploration well located in the Takutu Basin of Guyana.

On April 20, 2011 the measured drill depth of the well reached 2,992 metres. The top of the Manari was encountered at 2,402 metres, 210 metres high to prognosis; the top of the Apoteri was encountered at 2,431 metres, 281 metres high to prognosis. At 2,517 metres an unexpected down to the southeast fault was encountered which significantly shortened the Manari section to a thickness of 29 metres compared to a thickness of 118 metres at the Karanambo-1 discovery well drilled by Home Oil in 1982. The fault also caused the Apoteri Volcanics to be encountered much higher than prognosed. Elevated gas readings (C1-C5) and oil shows were identified at various intervals in the Manari and Apoteri. A full suite of logs were run to 2,593 metres. The FMI (Formation Micro Image) log identified numerous fracture swarms in the Manari and Apoteri.

Based upon the gas and oil shows and log interpretation, drill stem tests (DSTs) have been conducted to date as follows in measured depths:

  • DST 1 (Manari-Apoteri): 2,445 to 2,571 metres, misrun;
  • DST 2 (Manari-Apoteri): 2,445 to 2,571 metres, recovered 20 metres drilling mud, reservoir was tight;
  • DST 3 (Apoteri): 2,656 to 2,799 metres, recovered 73 metres drilling mud from low permeability reservoir;
  • DST 4 (Apoteri): 2,897 to 2,991 metres, recovered 2,300 metres of formation salt water from a high permeability fracture zone at 2,976 metres.

Although excellent reservoir quality was encountered in this interval of the Apoteri Formation, the reservoir appears to have been penetrated below the oil – water contact, defined by the interval of good oil and gas shows between 2,515 and 2,841 metres.

Over the course of the next week the Apoteri K-2 well will be abandoned. The consortium is currently evaluating the next exploration drilling location on the 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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