Groundstar Resources Limited (TSX VENTURE:GSA) is
pleased to announce that the Egyptian Ministry of Petroleum has approved the
deed of assignment which transfers a 60% net interest in the West Kom Ombo
block to Aegean Energy. This approval completes one of the main conditions of
the Sale Agreement between the two companies announced in June 2010. Several
additional conditions of the
Sale
agreement await
approval by the appropriate authorities which is anticipated shortly. Groundstar has a 10%
net carried interest in the block.
Substantial progress has been achieved towards the
objective of drilling the first exploration well on the block. An access road
to the drilling site and the drill site pad have been completed. Casing and
wellheads have been acquired. The drilling contract for two firm and two option
wells has been awarded to Sino Tharwa Drilling Company. The exploration well
will likely spud by the end of November.
The first exploration well will be located in Area A
on a fault closed structure with 3 way dip closure. If the well is a successful
discovery, several other structures in the immediate area would warrant
drilling. Area A is in the central eastern part of the block near the boundary
of the Kom Ombo block operated by Dana Gas
Egypt
on which the Al Baraka oil discovery is in the development and early production
stage.
Groundstar
wishes to acknowledge the continued support of Energean Oil & Gas to
complete the pre-drill task and move the joint project closer to the drilling
stage.