OilVoice - Groundstar Syrian Exploration Blocks Returned to Ministry

Groundstar Syrian Exploration Blocks Returned to Ministry

Thursday, September 10, 2009

Groundstar Resources Limited has received a request from the Ministry of Petroleum and Mineral Resources of the Syrian Arab Republic that Blocks XIV and XVI awarded to the Company on April 2008 be returned to the Ministry. Groundstar has agreed to the request. The two exploration blocks were selected by Groundstar from seven blocks offered in the Third Bid Round.

After the block awards, Groundstar collected and interpreted 4,600 kilometers of legacy 2D seismic data and related well information on and adjacent to the blocks. Several leads were identified on each block. These results were presented to a number of companies in order to secure a farm-in partner. Due to the large work program commitments required in a tight credit market and the underlying uncertainty in the global financial system, a farm-in partner could not be found.

All the exploration blocks awarded in the April 2008 Bid Round are expected to be re-tendered in the near future. Groundstar remains in good standing with the Ministry and will participate in upcoming bid rounds for exploration blocks and EOR projects.

Groundstar remains an active consortium member in the exploration, development and production of petroleum resources in the Qara Dagh Block in Federal Region of Kurdistan - Iraq, is participating in the drilling of a third well on its WEEM Block in Egypt, and has a carried interest for the drilling of the first two wells in the Takutu Basin of Guyana.