|GROUNDSTAR RESOURCES LIMITED FILES QUARTERLY RESULTS AND MANAGEMENT DISCUSSION & ANALYSIS AND UPDATE
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CALGARY, December 31, 2013; Groundstar Resources Limited. ("Groundstar", "the "Company", "we", "us", or "our") (TSXV: GSA) is pleased to announce that it has filed with the Canadian securities authorities its un-audited interim condensed consolidated financial statements and management's discussion and analysis for the period ended October 31, 2013. Copies of the filed documents may be obtained through the company's profile www.sedar.comHighlights and Update
Western Canadian Sedimentary Basin
Recent work in the Western Canadian Sedimentary Basin is part of an orderly transition of Groundstar which includes a more balanced approach actively pursuing production acquisitions and high netback lower risk drilling opportunities. The production opportunities are characterized by long life, large original oil in place reservoirs, crude oil and gas with access to existing production, transportation infrastructure and market points. Groundstar continues to develop it's drilling inventory of high quality, medium and light oil drilling prospects which can be exploited by conventional drilling and completion methods. In November 2013, the Corporation entered into an agreement with an unrelated third party whereby Groundstar will earn a 42.5% working interest in certain property that the Farmee may propose to drill on the optioned lands prior to December 31, 2014. Groundstar has added a prospect area in the Morinville area of Alberta, whereby thirteen square miles of 3D seismic coverage has provided analogous coverage for multiple high impact drillable targets identified within the 3D data set. In November 2013, the Corporation entered into an agreement with a third party whereby Groundstar can participate in a Viking light oil development in Alberta. This low risk, development drilling opportunity is bounded by an Enhanced OIL Recovery ("EOR") scheme that produces 40 API gravity oil.
In December 2013, the Corporation announced the appointment of Mr. Murray Stadolka to the Board of Directors of Groundstar. Mr. Stadolka is a Professional Engineer with extensive senior management experience in the oil and gas industry, he was VP Engineering and Operations at Compton Petroleum from 1996 to March 2009, and prior to that he worked with Pennzoil, Exxon USA and Texaco Canada.
Groundstar has closed on an additional tranche of its previously announced private placement financing of common shares in the capital of the Corporation issued on a "flow-through" basis ("Flow-Through Shares") pursuant to the provisions of the Income Tax Act (Canada) and units of the Corporation ("Units"), each Unit consisting of a common share in the capital of the Corporation ("Common Share") and one half of one common share purchase warrant ("Warrant"), each whole Warrant exercisable for a period of 18 months from the closing date at a price of $0.30 per share. The Company issued an additional approximately 0.6 million Units and an additional approximately 1 million Flow-Through Shares for additional aggregate gross proceeds of approximately $0.3 million, bringing the total aggregate gross proceeds raised pursuant to the offering to approximately $1.8 million. The Company received such additional demand by subscribers wishing to purchase Flow-Through Shares that it amended the allocation such that up to 8,500,000 Flow-Through Shares could be issued pursuant to the offering. The Company expects to use the net proceeds from the offering to further the exploration and development activities of its oil and gas properties. The proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur eligible Canadian Development Expenses ("CDE") and Canadian Exploration Expenses ("CEE") which will be renounced in favour of subscribers for the 2013 taxation year.
The securities were issued on a private placement basis and are subject to a statutory hold period of four months and a day from the closing date of the offering, such hold period to expire on April 27, 2014. A syndicate of agents, including PI Financial Corp. and Canaccord Genuity Corp. as co-lead agents, were involved with the offering.Selected Financial Data
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 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.
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 releating 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: Contact Information:
Groundstar Resources Limited, Suite 2300, 144 4th Avenue SW, Calgary, Alberta T2P 3N4