GROUNDSTAR RESOURCES LIMITED
Suite 1650, 717 7th Ave. S.W., Calgary, Alberta, T2P 0Z3
Telephone: (403) 265-2549
Facsimile: (403) 265-2558
NEWS RELEASE
GSA-TSX Venture Exchange
October 26, 2009
SOUTH MALAK #1 WILDCAT REACHES TOTAL DEPTH
Kam Fard, President and Chief Executive Officer of Groundstar Resources Limited ("Groundstar") is pleased to announce that the South Malak #1 well, on the West Esh El Mellaha block onshore Gulf of Suez in Upper Egypt, has reached total depth at 11,200 feet. Oil shows were encountered in Pre-Miocene Matulla sand stringers from 10,858 to 10,900 feet and consistently high C1 to C5 gas readings were encountered from 10,300 feet through to total depth. The well was logged from the base of the last cased section at 2,725 feet to total depth.
The hydrocarbon shows plus log analysis of the logs support a testing program of four potential zones. The well will be cased to 11,030 feet leaving the bottom 170 feet uncased in order to conduct an open hole test of possible fractured Granite Wash and Basalt. The remaining proposed tests will be conducted over the cased portion of the well.
It is expected the casing and cementing program will be completed in 7 to 8 days after which the testing program will commence. Groundstar has a 20% net working interest in the West Esh El Mellaha block.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, North Africa and the Middle East.
FOR FURTHER INFORMATION CONTACT:
Kam Fard
President & CEO
(403) 265-2549
kfard@groundstarresources.com
Jason Krueger, CFA
Investor Relations
Telephone: (403) 374-1234
jason@redwood-capital.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
