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Wartbergeron Mar 13, 2014 9:25am
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News
News
Groundstar's 4-13 well producing 80 bbl of oil per day
2014-03-13 04:31 PT - News Release
Mr. Chad Dust reports
GROUNDSTAR RESOURCES CORPORATE UPDATE
Groundstar Resources Ltd. has successfully completed the second well in Saskatchewan of a multiwell drilling program. The 4-13-45-26 (4-13) W4 Mannville producer, which was a follow-up well to the 3-13-45-26 W4 (3-13) location drilled in late 2013, is currently producing 80 barrels of oil per day. Based upon the performance of the 3-13 well, the 4-13 production volumes may be increased. With a recent pump upsize at the 3-13 well, it is anticipated Groundstar's combined net corporate production may be approximately 80 barrels of oil equivalent per day to 100 barrels of oil equivalent per day. The company has also executed a one-year secured debenture agreement with an institution based in the eastern United States, Credit Fund LP, for up to a $10-million debenture facility at 10 per cent per annum. Closing of any facility remains subject to changes and certain conditions of the investor and borrower. There can be no assurances that any agreement will close. Recent work in the Western Canadian sedimentary basin is part of an orderly transition of Groundstar, which includes a more balanced approach in actively pursuing production acquisitions and high-netback lower-risk drilling opportunities. The production acquisition opportunities are characterized by long-life, large original oil-and-gas-in-place reservoirs with access to existing transportation, infrastructure and market points. The recent acquisition and reprocessing of a large 3-D seismic program in Alberta has resulted in the identification of several high-impact drilling targets, which may be drilled after spring breakup. These conventional light oil and gas targets represent multizone opportunities for high-volume, high-quality reserve development in areas of existing infrastructure and market access. Groundstar has approximately $2.0-million of working capital on hand and will file quarterly financial results at the end of March.
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