Groundstar Resources Begins Drilling Malak #1

Groundstar Resources Limited provided the following operational update for its West Esh El Mallaha (WEEM) Block (non-operated, 20% working interest, 1,328 square kilometers) in Egypt.

Rigging up of a new 2,000 h.p. drilling rig was completed earlier last week and drilling commenced on the Malak #1 well on February 22. The Malak #1 well will be drilled to a total depth of 12,500 feet over a period of approximately 30 days and is the first exploration well of a two well back-to-back drilling program. Each well will be tested over an approximate two-week period.

Depending on well results, additional wells could be drilled immediately after completion and testing of the first two wells. The operator of the block, Aminex Egypt, and Groundstar Resources Limited have contracted the drilling rig for 18 months on a call-out basis to drill on the WEEM and WKO blocks.

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