CALGARY, AB / March 13, 2014 / Groundstar Resources Limited. ("Groundstar", "the "Company", "we", "us", or "our") (TSXV: GSA US: GRDSF) is pleased to announce the successful completion of the second well in Saskatchewan of a multi-well drilling program. The 4-13-45-26 ( 4-13 ) W4 Mannville producer which was a follow up well to the 3-13-45-26 W4 ( 3-13 ) location drilled in late 2013, is currently producing 80 barrels of oil per day. Based upon the performance of the 3-13 well, the 4-13 production volumes may be increased. With a recent pump upsize at the 3-13 well, it is anticipated Groundstar's combined net corporate production may be approximately 80 to 100 boed.
The company has also executed a one year secured debenture agreement with an eastern US based institution "Credit Fund" LP for up to a $10,000,000 debenture facility at 10 percent per annum. Closing of any facility remains subject to changes and certain conditions of the investor and borrower. There can be no assurances that any agreement will close. Recent work in the Western Canadian Sedimentary Basin is part of an orderly transition of Groundstar which includes a more balanced approach in actively pursuing production acquisitions and high netback lower risk drilling opportunities. The production acquisition opportunities are characterized by long life, large original oil and gas in place reservoirs with access to existing transportation, infrastructure and market points.
The recent acquisition and re-processing of a large 3D seismic program in Alberta has resulted in the identification of several high impact drilling targets which may be drilled after spring breakup. These conventional, light oil and gas targets represent multi-zone opportunities for high volume, high quality reserve development in areas of existing infrastructure and market access. Groundstar has approximately $2.0 million of working capital on hand and will file quarterly financial results at the end of March.
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.
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.
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 relating thereto and expectation regarding the closing of the credit facility and the quantum and availability of funds. 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.
Groundstar Resources Limited www.groundstarresources.com
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4
403.608.6505 or 403.265.2549
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
Release ID: 35992