Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

April 04, 2011 19:29 ET

Groundstar Resources Provides Update on Egyptian Operations

CALGARY, ALBERTA--(Marketwire - April 4, 2011) -

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

Groundstar Resource Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) 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 the WKO-3X well that was spud on March 7, 2011, reached basement at 2,523 feet.

The main objective of the well was 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 results of the WKO-3X well will be used for defining and further optimizing the future exploration approach in the license area. A regional aeromagnetic survey is currently under review to better define the optimum location of future exploration wells in this vast unexplored block (31,520 km2).

The WKO-3X well was the second of two committed frontier exploration wells in the vast and highly unexplored West Kom Ombo License that fulfills the contractual obligation of first extension of the exploration phase.

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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