CALGARY, ALBERTA–(Marketwired – June 15, 2015) – Groundstar Resources Limited (“Groundstar” or the “Company”) (TS XENTURE:GSA) is pleased to provide an update with respect to the ongoing restructuring of the Company. As previously announced, the Board of Directors now consists of Tyron Pfeifer, Dale Hammons and Murray Stodalka with Mr. Pfeifer acting as Chief Operating Officer. There are no other directors or officers of the Company at this time. The Company is currently looking to add a new team of technical and financial personnel who can move the Company forward and grow shareholder value. Further news releases will provide updates with respect to these mandates.
As a result of less than optimal accounting procedures and record keeping by prior management, the Company has had to expend considerable time and resources on various remedial accounting and regulatory issues in order to ensure the Company is up-to-date with all of its compliance and filing issues. The past several months have been challenging with members of the current management and Board addressing various legacy issues. At Neilburg, the operator of Groundstar’s main producing asset recently went into receivership. This has required significant collaboration with the receiver to ensure the Neilburg property continues to produce optimally and uninterrupted. Additionally, the Company is exploring all options and ramifications with respect to a shortfall of qualified spending pertaining to a historical flow-through equity financing. The Company is currently preparing its independent reserve report and audited financial statements for year ended April 30, 2015 with results expected to be announced shortly.
In spite of these noted challenges and the resultant delays, the Board views the future outlook for the Company as very bright as is evidenced by the continuing interest of numerous potential management teams to bring capital and projects into Groundstar. The Company has no debt, sufficient cash resources, an attractive share structure and a solid revenue stream with net production to the Company averaging 106 barrels of oil per day for the month of May at a time of exceptional Western Canada Select oil pricing.
In addition to interviewing and evaluating interested management parties, the Company is reviewing its’ existing inventory of drilling/acquisition opportunities and is in the process of creating a budget for an upcoming drilling program.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company’s current portfolio of resource assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol “GSA” on the TSX Venture Exchange.
This press release contains forward-looking statements within the meaning of applicable securities laws, including expectations regarding how various operational and financial issues are to be dealt with, the potential for a new management team to be added, the preparation of a budget for the upcoming drilling program and the associated timing thereof. 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 and resource 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, 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.
Groundstar Resources Limited
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4
www.groundstarresources.com
Groundstar Resources Limited
Tyron Pfeifer
403.614.9902
tpfeifer@groundstarresources.com
Groundstar Resources Limited
Murray Stodalka
403.532-6730
mstodalka@gmail.com