CALGARY, December 3, 2013, Groundstar Resources Limited. (“Groundstar”, “the “Company”, “we”, “us”, or “our”) (TSXV: GSA US: GRDSF symbol) is pleased to announce that, pursuant to its previously announced strategy to add production volumes domestically, it is for the first time since incorporation now operating and producing hydrocarbons in North America. Groundstar has drilled a successful oil well in Saskatchewan and continuous oil production has commenced at the 3-13-45-26W3M well (the “3-13 well”) which was directionally drilled to a total depth of 740 meters into the Mannville formation. The well encountered approximately 4 meters of pay with approximately 32% porosity. In terms of net pay thickness, production and optimization plan, and wellbore fluid levels, the 3-13 well compares favorably to the best producer drilled to date in the pool. The off-setting producer has cumulative production in excess of 32,000(1) barrels during its first 14 months of production. Further to Groundstar’s press release dated November 13, 2013 and its agreement with a mid-sized Canadian exploration and production company to partner on a high-netback, multi-well program in the Western Canadian sedimentary basin, Groundstar has now participated in the drilling of a shallow heavy oil well (0.425 net) to date in 2013 as part of the program. Given the encouraging results, the Company will continue to evaluate ongoing development and resumption of drilling operations.
Groundstar also announces the appointment of Mr. Murray Stodalka as a director of the Company. Mr. Stodalka is a Professional Engineer with extensive senior management experience in the oil and natural gas industry, and is Waldron Energy’s Executive Vice President, Engineering and Operations. Prior thereto, he was the Vice President of Engineering and Operations of Compton Petroleum Corporation and led a corporate strategy that built that firm from a small private start-up to a founder of the NYSE listed company with 32,500 boe/d. Previously, Mr. Stodalka held senior technical positions with Pennzoil, Exxon USA and with Texaco Canada. Mr. Stodalka holds a B.Sc. in Mechanical Engineering from the University of Saskatchewan and has been a member of the Association of Professional Engineers and Geoscientists of Alberta since 1982.
(1) IHS ACCUMAP. This is taken from an independent source. The Company cannot verify that an independent reserves evaluator prepared the information referenced above.
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 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 resour