Groundstar Issues Update on Egyptian Ops
Groundstar Resources Limited on Monday provided an operational update of its Egyptian activities.
West Kom Ombo Block
Re-processing of the previously acquired 2D seismic (1994 and 1998 vintage) on the block was awarded to Spectrum, Cairo on 25 February 2007 and is expected to take 2 to 3 months to complete. The re-processing of several test lines on the southern part of the block has shown that the sedimentary section could be much thicker than previously thought which would significantly enhance the exploration potential of that area. Following re-processing, the seismic data will be re-interpreted prior to the acquisition of new seismic on the 42,291 sq km block expected to take place over the 2007/08 winter season.
Groundstar will earn a 60% working interest by paying 100% of the first US$7 million of exploration expenses.
Transglobe is currently drilling the first of two exploratory wells on the Nuqra block to the east of West Kom Ombo.
West Esh El Mallaha Block
The re-processing of two 3D seismic surveys (1994 and 1997 vintages) over the southern area of the block will take place in the 2nd quarter of 2007. Current seismic mapping by Aminex Petroleum Egypt has identified 5 prospects with a resource potential ranging from 63 to 177 MMBO recoverable. In addition, 13 leads have been identified. The re-interpretation of the re-processed 3D seismic will provide the basis to prioritize the prospects for the drilling of at least 2 exploratory wells in the second half of 2007. Discussions are currently in progress with three drilling contractors to obtain a suitable drilling window.
Groundstar will earn a 20% working interest in the block by paying 40% of the first US$7 million dollars of exploration expenses.
The West Esh El Mallaha block is adjacent to a block operated by Lukoil currently producing 10,500 BOPD from the Rabeh and East Rabeh fields. Lukoil plans to drill several exploratory and appraisal wells in 2007.
Kam Fard, President and CEO of Groundstar, stated that the company is very pleased with the results of the re-processing of the test lines in the Kom Ombo block. This has significantly enhanced the exploration potential of this large block.
West Esh El Mallaha's close proximity to producing fields with excess production and pipe line capacity coupled with the presence of oil field services in the area, will positively impact the economic of exploration and development of prospects in the WEEM Block.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, Central Asia and North Africa and the Middle East.
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