|GROUNDSTAR RESOURCES LIMITED ENTERS VIKING LIGHT OIL PROPERTY
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
CALGARY, November 20, 2013, Groundstar Resources Limited. ("Groundstar", "the "Company", "we", "us", or "our") (TSXV: GSA US: GRDSF symbol) is pleased to announce that it has executed a property agreement to enter a Viking light oil development in Alberta with a Canadian Exploration and Production company. This low risk, development drilling opportunity is bounded by an Enhanced Oil Recovery ("EOR") scheme and produces 40 API gravity oil. An independent evaluation report of the oil reserves prepared by Chapman Petroleum Engineering Ltd, effective January 1, 2013, attributes gross reserves to a 100% working interest as 29,000 barrels of proved developed producing reserves, an additional 33,000 barrels of undeveloped proved reserves and 313,000 barrels of probable reserves. The report also attributes a present value of future cash flow discounted at 10% and before taxes at $1.16 million for proved developed producing reserves and $10.66 million for proved plus probable reserves. The extracts from the reserve report for the company's net working interest attributed to the oil assets are set forth below:
(1) Chapman Petroleum Engineering Ltd. ("Chapman") independent NI -51-101 assessment, January 1, 2013.
(2) Columns may not add precisely due to accumulative rounding of values throughout report
As a result of proximity to the EOR scheme, recently drilled wells indicate the lands are receiving benefit from the scheme in terms of both production rates and incremental reserve recovery.
Offsetting vertical wells, which were produced to depletion under primary production, are displaying enhanced productivity 200-400 percent greater than original primary production rates with similar incremental reserve recoveries to date. Full development of the lands will include multiple horizontal wells and implementation of a complimentary EOR scheme. The first vertical well within the participation agreement area produced at rates in excess of 100 barrels of oil per day and has now produced 3800 barrels to date(3). The agreement described above allows participation increase and is subject to various conditions and certain regulatory approvals.
(3) IHS ACCUMAP. This is taken from an independent source. The Company cannot verify that an independent reserves evaluator prepared the information referenced above.
(4) Chapman Petroleum Engineering Ltd. ("Chapman") independent NI -51-101 assessment, January 1, 2013.
The reserve report was prepared has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook and the reserve definitions contained in National Instrument 51-101 -Standards of Disclosure for Oil and Gas Activities.
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.About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a diversified publicly traded oil and gas company with 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 resources 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.
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 company's drilling and exploration plans, estimates of reserves and potential future production from analogous wells as well as government and third party approvals relating thereto. 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.Contact Information:
Groundstar Resources Limited, Suite 2300, 144 4th Avenue SW, Calgary, Alberta T2P 3N4
Estimated values contained in this press release relating to net present value do not represent fair market value. In addition, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.