Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

March 08, 2011 07:00 ET

Groundstar Resources Provides Update on Egyptian Operations

CALGARY, ALBERTA--(Marketwire - March 8, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Groundstar Resource Limited (TSX VENTURE:GSA) ("Groundstar" or the "Company") provides the following update regarding its operations in Egypt. Groundstar has been informed by the operator of the West Kom Ombo block, Energean Oil & Gas, that a second well in the West Kom Ombo block, the WKO-3X well was spud on March 7, 2011.

The WKO-3X well is the second of two committed frontier exploration wells in the vast and highly unexplored West Kom Ombo License (31,520 km2).

The main objective of the well is to provide a second stratigraphic control point, approximately 100 km southwest of the WKO-1X well location, in an area with very sparse geological and geophysical data coverage. The findings of the WKO-3X well will be used for defining and further optimizing the future exploration approach in the license area.

The Corporation's 10% net interest is carried by Energean for the first $30.0 million in gross expenditures.

Although the Company's operations in Egypt have not been directly affected by recent political events, Groundstar and Energean are closely monitoring the situation on a continuous basis.

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 www.energean.com.

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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