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.
During the quarter, the Corporation initiated a heavy oil program in Saskatchewan. The first successful Manville well produced at an average rate of 104 barrels per day in January. Subsequent to the quarter end, the Company drilled a second successful Mannville well, with current total net production to Groundstar from the development of approximately 100 barrels per day. Additional wells may be drilled on the property after spring breakup.
During the quarter Groundstar entered a Viking light oil development play in Alberta, bound by an EOR (Enhanced Oil Recovery) scheme currently producing 40 degree API gravity oil and is now preparing for a late spring high impact light oil drilling operation in Alberta. In December 2013, the Company announced a $1.5 million financing of a combination of flow through shares at $0.20 per share and common units at $0.18 per unit. The Company subsequently increased the financing due to additional demand and closed on an issue of approximately 7.82 million flow-through shares and approximately 0.93 million Units.
The company has had 100 percent drilling success to date and has arranged an up to $10.0 million debenture facility with a US based “Credit Fund” LP. Additionally, the Company continues to evaluate production acquisition opportunities which fit Groundstar's go forward corporate growth strategy of actively growing a portfolio of working interests targeting oil and gas producing assets with appraisal and development opportunities and exploration upside.