Groundstar Resources Limited

Groundstar Resources Limited

January 18, 2011 20:49 ET

Groundstar Resources Provides Update on Egyptian Operations

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2011) -


Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) provides the following operations update. The WKO - 1X exploration well operated by Energean Oil and Gas on the West Kom Ombo Block in Upper Egypt was drilled to 3,253 feet under budget and ahead of schedule. The well encountered thick Cretaceous shale and sandstone intervals, after drilling through Tertiary limestone. The bottom hole sample cuttings were identified to be granitic basement. Determination of the depth to basement in area A was one of the main objectives of this well.

Elevated C1-C3 gas readings were detected in the lower parts of the Cretaceous sedimentary section which confirms lateral migration of hydrocarbons from source rocks in a kitchen area. As no hydrocarbon bearing reservoirs were encountered, no tests were run. The well was plugged and abandoned after acquisition of a log suite and a vertical seismic profile (VSP).

As part of the exploration commitments, the Sino Tharwa ST-2 rig is being prepared to move to drill Prospect B, approximately 100 kilometers to the southwest of the WKO – 1X location. Groundstar has a 10% net interest that is carried by Energean Oil and Gas for up to $30.0 million of gross expenditures.

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.

About Energean Oil & Gas

Energean Oil & Gas is a private international upstream oil and gas exploration and production company with a Mediterranean and North African Basin focus with oil and gas operated assets in Greece and Egypt. Energean Oil & Gas operates the offshore East Magawish concession in the Gulf of Suez and is the operator of West Kom Ombo Block. For further information about Energean Oil & Gas please visit

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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