Groundstar (GSA) will be drilling for oil in EgyptGroundstar Resources (GSA) will be drilling for oil in Egypt in January, news out next week, still under a dollar.
Groundstar Resources Limited Provides a Brief Update of Egyptian ActivitiesMarketwire
Groundstar Resources Limited
November 2, 2007 - 09:00:26 AM
Groundstar Resources Limited Provides a Brief Update of Egyptian Activities
CALGARY, ALBERTA--(Marketwire - Nov. 2, 2007) - Groundstar Resources Limited
(TSX VENTURE:GSA) -
West Esh El Mallala (WEEM) Block (1,328 sq. km.; 20% Working Interest)
The operator of the block, Aminex Egypt and Groundstar have contracted a brand
new drilling rig for 18 months on a call out basis to drill on the WEEM block
beginning in mid January 2008. The new rig rated at 2,000 hp is currently
being inspected in China and scheduled to arrive in Egypt in December 2007.
Two seismically defined prospects in the south part of the block near Lukoil's
production area are to be drilled. The operator had a drilling window starting
in late November for 2 wells with a local contactor that was later withdrawn.
The drilling contract with Shingli Bohai Drilling Company is very attractive
and is expected to meet all of the company's drilling requirements in Egypt.
West Kom Ombo (WKO) Block (42,291 sq. km.; 60% Working Interest)
Groundstar is the operator of this block. As a result, the Company has opened
a branch office in Cairo. A General Manager and a local Deputy General Manager
have been retained to manage the project. Technical work completed to date
includes the re-processing of 835 km. of 2D seismic, acquired by Repsol in
1997. A preliminary interpretation of this data shows the presence of several
very large Cretaceous structures. A new 2D seismic program has been laid out
over five high potential structures and field work will take place in early
2008. As result of our recent interpretation the company has more than doubled
its seismic acquisition program.
On September 4 2007, Centurion Energy announced the discovery of the first
commercial oil field in Upper Egypt. The well tested light crude oil (37
degree API) from a Cretaceous reservoir at about 4,000 feet. Significant oil
shows were reported at both the Repsol KO #1 well and the Centurion KO #4 well
from potential sandstone reservoirs below 8,000 feet. Centurion has announced
a US$30 million development program, which will include early production by
truck and rail tanker to a refinery at Asyut. This commercial discovery has
great significance to Groundstar, as the WKO block is located immediately to
the west of the Centurion Kom Ombo block. The WKO block has similar subsurface
geology with a thicker sedimentary section. Groundstar looks forward to an
exciting future with respect to its WEEM and West Kom Ombo exploration
activities.
Groundstar is a publicly traded Canadian junior oil and gas company actively
pursuing exploration opportunities in Guyana, North Africa and the Middle
East.