Groundstar Announces Increase in Production and Operatorship
18 June 2014 - 10:12PM
Access Wire
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
cdust@groundstarresources.com
Tyron Pfeifer
403.614.9902
tpfeifer@groundstarresources.com
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR
DISSEMINATION TO THE U.S.A.
SOURCE: Groundstar Resources Ltd
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