Groundstar Resources has
been informed by Niko Resources, the operator of the Qara Dagh - 1 exploration
well in Kurdistan, Iraq that the go-forward plan
previously announced on November 12, 2010 to install intermediate 11 3/4 inch expendable
liner in the Tanjero formation has been successfully completed. The liner was
set at 2,088 meters,
expanded and cemented in place. An extremely unstable zone encountered while
drilling in the Tanjero has significantly impeded drilling progress. It is
believed that the liner will prevent or eliminate rock cavings that caused the
drilling delays. The operational forecast is to drill ahead to evaluate the
three primary Cretaceous targets; Shiranish, Kometan and Qamchuga.
The Qara Dagh Block is located
in the prolific Zagros foldbelt that extends from southern Turkey across northern Iraq
and into southwest Iran,
which contain giant and supergiant accumulations of oil. The large surface
structure on the block known as Qara Dagh is a prominent anticline which rises
as high as 600 meters
above adjacent valley floors. This block, which is 65 kilometers by 5 kilometers, is
located 60 kilometers
southeast of the Taq Taq oilfield and 60 kilometers east of
the giant Kirkuk
oilfield, and is adjacent to a Heritage block with a recent oil discovery. Groundstar
has a 6% beneficial interest in the Qara Dagh Block.