Worth a repeatGroundstar to spud Qara Dagh well in March
2010-01-18 10:05 ET- News Release
Mr. Kam Fard reports
GROUNDSTAR RESOURCES LIMITED PROVIDES INITIAL RESOURCEASSESSMENT FOR THE QARADAGH BLOCK IN THE KURDISTAN REGION OF IRAQ
Groundstar Resources Ltd.'s AJM Petroleum Consultantshas completed an initial resource assessment of the company's Qara Daghblock, in the Kurdistan region of Iraq. AJM has estimated an unrisked"best estimate" of 2.7 billion barrels of petroleum initially in placeas of Dec. 31, 2009. This assessment was requested by the operator onbehalf of the consortium members.
The first exploration well inthis block is scheduled to spud in March 2010 and drill to a total depthof about 4,000 meters targeting seven prospective formations inCretaceous and Jurassic periods.
Groundstar believes the proximityof the Qara Dag block to the recent discoveries of Taq Taq and Miran inaddition to the result of recently acquired seismic and well data fromthe adjacent block, makes the structure a low risk prospect with thepotential for the discovery of large oil reserves.
The table below sets out the gross volumetric estimates, as prepared by AJM, independent petroleum consultants.
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Petroleum Initially-In-Place (PIIP) and Prospective Resources
(Unrisked)(1)(5)(6)(7)
Qara Dagh Block
As of December 31, 2009
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Oil (millions of Barrels)
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Low Best High
Category Estimate Estimate Estimate
P90(2) P50(3) P10(4)
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Petroleum Initially in Place 1,674 2,742 4,896
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Prospective Gross Ultimate Recovery 269 450 849
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Notes:
(1) These are the gross volumes estimated for the Qara Dagh Block, without
any adjustments for working interest or encumbrances. Groundstar holds
a 6% beneficial interest in this resource accumulation.
(2) Low Estimate is considered to be a conservative estimate of the
quantity that will actually be recovered. P90 means that there is a
90-percent chance that an estimated quantity, such as a prospective
resources volume or associated value, will be equalled or exceeded.
(3) Best Estimate is considered to be the best estimate of the quantity
that actually will be recovered. P50 means that there is a 50-percent
chance or that it is equally likely that the actual remaining
quantities recovered or associated value will be greater or less than
the best estimate.
(4) High Estimate is considered to be an optimistic estimate of the
quantity that will be recovered. P10 means that there is a 10-percent
chance that an estimated quantity, such as a prospective resource
volume or associated value, will be equalled or exceeded.
(5) While the above quantities have not been adjusted for risk, AJM has
assigned reserves to 7 formations. The Cretaceous which currently
contains 3 target reservoirs has been estimated to have an average
chance of success of 30%. The Jurassic currently contains 3 target
reservoirs and has been estimated to have an average success chance
of 21% and the Triassic has 1 target reservoir with an estimated
chance of success of 17%.
(6) Undiscovered petroleum and prospective resources were estimated for
the main Qara Dagh structure, which consists of the Sagirma and Qara
Dagh areas, and the Golan structure. These estimates have been
combined in the above table.
Groundstar has a 6% beneficial interest in the Qara DaghBlock. A 354-kilometer 2D seismic program was completed in June 2009and plans have been finalized to spud the first exploration well inMarch 2010. The block covers 846 square kilometers and has a largelinear surface anticline, which is on a similar trend as the existingoil fields in northern Iraq and the more recent discoveries in Kurdistanat Taq Taq and Miran. Data processing and interpretations have beencompleted and integrated with regional and surface geological models.Three main prospects, which correspond to the three domes on the surfacestructure, have been confirmed by seismic mapping.
The Qara DaghBlock is located in the prolific Zagros foldbelt which extends fromsouthern Turkey across northern Iraq and into southwest Iran, whichcontain giant and supergiant accumulations of oil. The large surfacestructure on the block known as Qara Dagh is a prominent anticline whichrises as high as 600 meters above adjacent valley floors. This block,which is 65 kilometers by 5 kilometers, is located 60 kilometerssoutheast of the Taq Taq oilfield and 60 kilometers east of the giantKirkuk oilfield, and is adjacent to a Heritage block with a recent oildiscovery.