Groundstar Executes Memorandum of Understanding with Kyrgyzneftegaz

Groundstar has executed a Memorandum of Understanding with Kyrgyzyneftegaz, the National Oil Company of the Republic of Kyrgyzstan. The MOU provides for the negotiation of a Production Sharing Agreement and Joint Venture Agreement between Groundstar and Kyrgyzneftegaz in respect to a producing oil field, as well as two exploration blocks (Exploration Block-1 and Exploration Block-2) in the Fergana Valley Basin, all of which lands are located in Kyrgyzstan.

Exploration Block-1 covers 120 square kilometers. The exploration target is the Jurassic formation at a depth of about 2,000 meters.

Exploration Block-2 is in the Kugart depression and covers 370 square kilometers in the Fergana valley Basin. This exploration block has multi-zone objectives, to a total depth of about 4,000 meters.