CALGARY, AB / ACCESSWIRE / September 30, 2014 / Groundstar Resources Limited. ("Groundstar", "the "Company", "we", "us", or "our") (TSXV: GSA) is pleased to announce that it has filed with the Canadian securities authorities its financial statements and management's discussion and analysis for the quarter ended July 31, 2014. Copies of the filed documents may be obtained through the company's profile on www.sedar.com
Current Update and Highlights
The company earned revenue of $669,406 (C$736,345) and generated positive cash flow from operations for the quarter ended July 31, 2014. Groundstar ended the quarter with $1.6 million (C$1.75 million) of cash on hand. The Company initiated a multi-well drilling program and has now brought on four new oil wells currently producing approximately 250 net boe per day resulting in 100% drilling success rate.
The Company closed on a $400,000 Convertible Preferred share financing at a price of $1.00 per share. The Preferred shares will pay a 10% dividend and each preferred share is convertible to 4 common shares of the Company after 12 months and until 30 months from the closing date.
As at April 30, 2014 in the Western Canadian Sedimentary basin Groundstar added 27.5 mbbl net barrels of proven and 6.6 mbbl probable reserves in Saskatchewan as independently evaluated by Sproule Associates Ltd. In the Takutu basin where Groundstar has a carried interest work continues on additional seismic and drilling program. In the Western Desert Basin the operator continued its evaluation of geological, geophysical & aeromagnetic surveys. The Corporation's 10% interest will be carried by the Operator for the first $30.0 million in expenditures ($3.0 million net to Groundstar).
Selected Financial Data US$
-------------------------------------------------------------------------------------------------------------------- |The three month |2014 |2013 | | |periods ended July | | | % | |31 | | | | | | | | | |------------------------------------------------------------------------------------------------------------------| | |$669,406 | - | 100% | |Revenue | | | | |------------------------------------------------------------------------------------------------------------------| |Cash on hand |$1,596,116 | | 34% | | | | | | | | | $1,189,287 | | |------------------------------------------------------------------------------------------------------------------| |Share Capital |21,156,238 | $21,213,832 | (0.27%)| |------------------------------------------------------------------------------------------------------------------| |Contributed Surplus |$11,260,830 | $11,244,783 | 0.14% | |------------------------------------------------------------------------------------------------------------------| |Total assets |$3,929,724 | $3,340,504 | 18% | |------------------------------------------------------------------------------------------------------------------| |Net loss share– basic and diluted|(0.01) | (0.02) | 100%| |------------------------------------------------------------------------------------------------------------------| | | | | | --------------------------------------------------------------------------------------------------------------------
Outlook and Update Takutu Basin and Western Canadian Sedimentary Basin
In Guyana, Takutu Oil and Gas Inc., a wholly owned subsidiary of Groundstar, is a Licensee to the Takutu Basin Petroleum Prospecting License ("PPL") with the Guyana Geology and Mines Commission ("GGMC"). Takutu Oil and Gas Inc. holds the corporation's 10% interest in the Takutu Basin PPL comprising an area of approximately 7,800 sq km. Groundstar's 10% working interest is carried to commercial production. Work is ongoing to drill another well for petroleum in the Takutu Basin. In the Western Canadian Sedimentary Basin, the Company is adding production, drilling locations and acquisitions which fit Groundstar's corporate growth strategy. The company also announces that it has issued 400,000 share options to certain officers, directors, employees and consultants at an exercise price of $0.25 pursuant to the Company's rolling Stock Option Plan. These options vest over a 24-month period, with a five year term to expiry.
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.
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. This press release may contain forward-looking statements within the meaning of applicable securities laws including expectations regarding the receipt of the company's drilling and exploration plans and government and third party approvals releating thereto. 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. Throughout this press release, the calculation of barrels of oil equivalent ("boe") is at a conversion rate of 6,000 cubic feet ("cf") of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cf: 1 barrel is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. All amounts are in U.S. dollars unless stated as (C$ is Canadian Dollars).
Contact Information:
Groundstar Resources Limited www.groundstarresources.com
Chad Dust
403 265 2549 or 403 608 6505
Tyron Pfeifer
403 614 9902
Suite 2300, 144 4th Avenue SW Calgary, Alberta T2P 3N4
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
SOURCE: Groundstar Resources Limited