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| Groundstar Resources Provides Update On South Malak #1 Well: West Eshel Mallaha Block, Onshore Gulf Of Suez, Upper Egypt
GROUNDSTAR RESOURCES LIMITED Aminex Petroleum Egypt Ltd, operator of the South Malak #1 well, has released the following announcement on the operational status of the well. The South Malak #1 well reached a revised total depth of 11,200 feet (3,415 meters) on October 21, 2009. High gas readings were recorded over 950 feet (290 meters) of hole and mud logs indicated oil shows in Eocene Dolomite and Cretaceous Matulla sands as well in fractured basement rocks. Casing was set to approximately 170 feet (52 meters) above total depth with a view to running an open hole test in the fractured basement rocks but this was not successful, possibly because of cement contamination blocking the fractures. Subsequently, wireline logged oil-bearing intervals in the Eocene Dolomite and Matulla sands were perforated but the formations were found to be too tight to flow satisfactory. Currently the formations are in the process of being hydraulically fractured but this is turning out to be a lengthy process and definitive results may still not be received for several weeks while fluids used in the frac operation are recovered. The fracture treatment may or may not be successful in establishing commercial production but in a highly faulted formation the strong evidence of liquid hydrocarbons in close proximity is very encouraging. Partners are Aminex Petroleum Egypt Ltd (80%) and Groundstar Resources Ltd (20%). Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in the Middle East, North Africa and South America. FOR FURTHER INFORMATION CONTACT: Kam Fard Jason Krueger, CFA Neither the TSX Venture Exchange nor its Regulation Services Provider (as the 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. 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. |
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