Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

March 07, 2011 06:20 ET

Groundstar Resources Provides Update on the Apoteri K-2 Exploration Well in Guyana

CALGARY, ALBERTA--(Marketwire - March 7, 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) is pleased to provide an update on the drilling of the Apoteri K-2 ("K-2") exploration well on the Takutu Block in Guyana. The K-2 well will be drilled to a measured depth of approximately 3,350 meters (11,000 feet) and will target the same productive reservoirs that tested over 400 barrels of oil per day of 42 degree API light oil from the Karanambo 1 well drilled in 1982 and located 600 meters to the east. Gaffney Cline and Associates attributed gross mean recoverable prospective resources of 128 million barrels of oil (12.8 million barrels net to Groundstar's final working interest) to the discovery in the December 2009 report compiled for the Corporation.

As of Friday morning, March 4, 2011 the K-2 well was drilling ahead at a depth of 2,245 meters (7,366 feet) measured depth ("ft md") within the Jurassic Pirara formation. Intermediate casing is planned to be set at approximately 2,735 meters (8,970 ft) md prior to drilling through the primary reservoir targets in the Manari and Apoteri formations. Drilling had been interrupted in early January 2011 due to the late arrival of some of the permanent camp facilities provided by Tuscany International Drilling Inc., which arrived on location in late January. The drilling operation since then has progressed according to plan.

Groundstar has a 10% working interest in the contract and is the operator of the Petroleum Prospecting License ("PPL"), with Canacol Energy Ltd. holding the remaining 90%. Sagres Energy Inc. is eligible to earn a 25% working interest in the PPL from Canacol by paying for 30% of the cost to drill the K-2 exploration well. Groundstar's interest is carried to commercial production.

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.

Contact Information