Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

June 26, 2008 21:29 ET

Groundstar Resources Receives Resource Evaluation for West Kom Ombo Block, Egypt

CALGARY, ALBERTA--(Marketwire - June 26, 2008) - Groundstar Resources Limited (TSX VENTURE:GSA) is pleased to announce that an independent resource assessment (the "Report") has been completed by Gustavson Associates, LLC of Boulder, Colorado, USA ("Gustavson") for five prospects on the Company's West Kom Ombo Block located in Upper Egypt. Gustavson's probabilistic resource estimate of the five prospects yielded a best estimate (P50) prospective recoverable oil resource of 569 million barrels of oil (341 million net to Groundstar). Groundstar is the operator of the block with a 60% working interest.

Gustavson was retained by Groundstar to prepare the Report to estimate the potential undiscovered recoverable oil resources within the Lower Cretaceous-Abu Ballas reservoir that was proven to be oil bearing at the Al Baraka discovery announced by Centurion/Dana Gas in 2007. The Al Baraka discovery is located 75 kilometers to the east of the West Kom Ombo block; currently, Centurion is drilling an appraisal well (Kom Ombo #5) on the Al Baraka structure.

Gustavson conducted a re-evaluation of the subsurface data provided by Groundstar including re-interpretation of the 2D seismic coverage and petrophysical analysis of well logs from the Kom Ombo area. The oil resource estimate is for a single Lower Cretaceous reservoir. As the Lower Cretaceous is a thick sandstone/shale sequence, Gustavson states "multiple target horizons are possible given recent exploration results in this area". In addition, the seismic data contains evidence of large deeper structures below the Lower Cretaceous that could contain significant hydrocarbon reserves. The Centurion/Dana Gas Kom Ombo #4 well had significant oil shows in the Jurassic section over several hundred feet beginning at 8,000 feet.

No wells have been drilled on the West Kom Ombo block and there have been no reserves found to date. A commercial oil discovery (Al Baraka) has been made by Centurion/Dana Gas 75 kilometers to the east in the adjacent block. A probabilistic resource estimate of the five prospects within the West Kom Ombo block are shown below:



Prospective Oil Resources,
Millions of Barrels
Prospect Low Best High
Estimate Estimate Estimate
A 37 76 156
B 107 258 543
C 36 74 143
D 67 138 266
E 9 23 50
Totals 256 569 1,158


Prospective resources are defined as "those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. They are technically viable and economic to recover."

Low Estimate - This is considered to be a conservative estimate of the quantity that would actually be recovered from the accumulation. This term reflect a P90 confidence level where there is 90% chance that a successful discovery will be more than this resource estimate.

Best Estimate - This is considered to be the best estimate of the quantity that would actually be recovered from the accumulation. This term is a measure of central tendency of the uncertainty distribution and in this case reflects a P50 confidence level where the successful discovery will have a 50% chance of being more than this resource estimate.

High Estimate - This is considered to be an optimistic estimate of quantity that will actually be recovered from the accumulation. This term reflects a P10 confidence level where there is a 10% chance that a successful discovery will be more than this resource estimate.

Kam Fard CEO & President of Groundstar stated, "The exploration potential of the West Kom Ombo Block shown by the independent evaluation report submitted by Gustavson is extremely supportive of Groundstar's work to date. We look forward to continuing our aggressive work program on the block."

Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, North Africa and the Middle East.

FORWARD LOOKING STATEMENTS: All statements in this news release that are forward looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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