CALGARY / ACCESSWIRE / June 18, 2014 / Groundstar Resources Ltd ("Groundstar", the "Company", "we", "us", or "our") (TSXV: GSA US: GRDSF symbol) announces that it is preparing to commence the drilling of a high impact, Leduc light oil program in central Alberta?. Groundstar will be the registered Operator for the drilling program expected to commence this Summer. In Saskatchewan, current production based on gross field receipts for May 2014 was 270 barrels of oil per day. The Company has resumed joint venture drilling operations, post-Spring breakup, and has licensed the next two wells in its' multi-well, heavy oil joint venture program. The 6-13-45-26 W3 and 5-13-45-26 W3 wells are expected to spud imminently. The heavy oil development joint venture at 4 wells gross ( 1.7 net) 42.5 percent to Groundstar has seen an increase in revenue and cash flow from operations and is expected to continue drilling additional wells based on 100 percent drilling success.
Further to the Company plans to add significant light oil production volumes in the coming months, the Company ?has obtained a 100 percent working interest and operatorship in a high Impact, reef prone development near Morinville, Alberta. Approximately 12.5 square miles of the recently reprocessed 3D seismic has identified the first two oil development drilling locations. In addition to 3D seismic confirmation, the drill locations are further risk mitigated as a result of previous light oil production and an identified oil contact within the reef structure. The Mornville area is characterized by good production and transportation infrastructure. The Company is actively seeking a minority working interest partner and expects these two high impact light oil wells to be part of an up to four well program in the second and third quarter of 2014. The heavy oil joint venture and high impact light oil program in 2014 along with potential acquisitions by Groundstar is expected to result in record reserve and production growth this year. The Company will provide an update in the next few weeks. The Company also confirms that it has engaged CST Trust Company as Groundstar's transfer agent. Groundstar has 26.9 million basic shares outstanding.
This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a diversified publicly traded oil and gas company with oil production and exposure to 7.3 million gross acres of resource assets. The Company is actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" in Canada and "GRDSF" in the United States.
Forward Looking Disclaimer: This news release includes information that constitutes "forward-looking information" or "forward-looking statements". More particularly, this news release contains statements concerning expectations regarding the timing and successful completion of the Company's drilling plans, associated cash flows, business strategy, priorities and plans, expected production, the evaluation of certain prospects in which the Company holds an interest, estimated number of drilling locations, expected capital program (including its allocation), production growth, reserves growth, the receipt of and the timing of receipt of environmental licenses, the ability of the Company to sell its crude volume and other statements, expectations, beliefs, goals, objectives assumptions and information about possible future events, conditions, results of operations or performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Business priorities disclosed herein are objectives only and their achievement cannot be guaranteed.
Material risk factors include, but are not limited to: the inability to obtain regulatory approval for any operational activities, the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners and other factors, many of which are beyond the control of the Company. You can find an additional discussion of those assumptions, risks and uncertainties in the Company's Canadian securities filings.
Neither the Company nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
Readers should also note that even if the drilling program as proposed by the Company is successful, there are many factors that could result in production levels being less than anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors. Statements relating to "reserves" are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of reserves, including many factors beyond the control of the Company. The reserve data included herein represents estimates only. In general, estimates of economically recoverable oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved.
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:
Groundstar Resources Limited www.groundstarresources.com
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4
Chad Dust
403.265.2549 or 403.608.6505
Tyron Pfeifer
403.614.9902
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
SOURCE: Groundstar Resources Ltd