our partner... takeover target????IMHO, is probably a takeover target and have elicited Jennings Capital 'to review strategic alternatives'.
The market has over-reacted to this news release and the price has been climbing after the shock of the news first coming out.
FACT: 2.7B bbls in Qara Dagh on initial reserves report (GSA owns 6%)
FACT: Drilling this month, no word of any delays
FACT: owns 60% interest in Egypt WKO block (operator) with recent discoveries close by
FACT: Own assets in Guyana (1982 discovery by Home Oil) - drilling by June?
FACT: Market cap at last trade = $21M
Until they have an offer in hand, GSA cannot come out and say they are being taken over. They have no financial problems, no debt. No way would they part with Black Mountain! Someone has been beating the SP down for the last few weeks.
Remember, VST paid 60M shares for their additional 10% interest, about now worth about $42 million. For GSA's 6% interest, that's equivalent to $25 million BEFORE THE 2.7 BILLION RESERVES REPORT.
Groundstar Resources Limited Announces Mandateto Evaluate Strategic Alternatives and Retention of Jennings Capital Inc. asFinancial Advisor
CALGARY, ALBERTA--(Marketwire - March 3, 2010) - Groundstar Resources Limited("Groundstar" or the "Company") (TSX VENTURE:GSA)announces that its Board of Directors has approved a mandate to undertake aprocess to evaluate the various strategic alternatives available to Groundstarwith the goal of maximizing shareholder value. These alternatives may include asale, merger or other business combination involving Groundstar, or the sale ofsome or all of the assets of the Company. In this regard, Groundstar hasretained Jennings Capital Inc. to act as its exclusive financial advisor toassist in the review process. There can be no assurances that any transactionwill occur or, if one is undertaken, any certainty with regard to its terms ortiming.
Groundstaris a publicly traded Canadian junior oil and gas company actively pursuingexploration opportunities in Guyana ,North Africa and the Middle East .
Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) accepts responsibility forthe adequacy or accuracy of this release.