Groundstar Resources Limited Reports Increased Production, Revenues And Cash Flow For Quarteradmin
CALGARY, AB / ACCESSWIRE / April 1, 2014 / Groundstar Resources Limited. (“Groundstar”, “the “Company”, “we”, “us”, or “our”) (TSXV: GSA US: GRDSF symbol) is pleased to announce that it has filed with the Canadian securities authorities its unaudited interim condensed consolidated financial statements and management’s discussion and analysis for the period ended January 31, 2014. Copies of the filed documents may be obtained through the company’s profile www.sedar.com .
During the quarter, the Corporation initiated a heavy oil program in Saskatchewan. The first successful Manville well produced at an average rate of 104 barrels per day in January. Subsequent to the quarter end, the Company drilled a second successful Mannville well, with current total net production to Groundstar from the development of approximately 100 barrels per day. Additional wells may be drilled on the property after spring breakup. During the quarter Groundstar entered a Viking light oil development play in Alberta, bound by an EOR (Enhanced Oil Recovery) scheme currently producing 40 degree API gravity oil and is now preparing for a late spring high impact light oil drilling operation in Alberta. In December 2013, the Company announced a $1.5 million financing of a combination of flow through shares at $0.20 per share and common units at $0.18 per unit. The Company subsequently increased the financing due to additional demand and closed on an issue of approximately 7.82 million flow-through shares and approximately 0.93 million Units. The company has had 100 percent drilling success to date and has arranged an up to $10.0 million debenture facility with a US based “Credit Fund” LP. Additionally, the Company continues to evaluate production acquisition opportunities which fit Groundstar’s go forward corporate growth strategy of actively growing a portfolio of working interests targeting oil and gas producing assets with appraisal and development opportunities and exploration upside.
Highlights and Update
Selected Financial Data
Subject to all company, exchange, and regulatory approvals, Groundstar intends to renew its normal course issuer bid (“NCIB“) on or about April 7, 2014 for a period of one year. Under the NCIB, Groundstar may purchase up to 2,000,000 of its issued and outstanding shares on the open market through the facilities of the TSX Venture Exchange (“TSXV“) and other alternative trading systems. The renewed NCIB would commence on or about April 7, 2014 or the date to be specified in the TSXV bulletin, and would continue for 12 months, or at such earlier date as the NCIB is completed or terminated. Groundstar has purchased 942,000 Shares under its current NCIB through the TSXV and other alternative trading systems. All Common Shares purchased under the NCIB conducted by the appointed broker will be returned to treasury and cancelled. Groundstar may enter into an Automatic Share Purchase Plan with a broker for the purpose of buying shares throughout Groundstar blackout periods. Such purchases would be determined by the broker in its sole discretion, based on parameters that are established prior to any blackout period. The Board of Directors of Groundstar believes that the shares at times may trade in a price range that does not adequately reflect the underlying value of Groundstar’s assets and operations. As a result, Groundstar believes that the purchase of its outstanding Shares is a sound business decision for the Company. The company has issued a total of 190,000 common shares of the company at a deemed price of 18 cents per share to three arm’s-length parties for consulting services and drilling and completion service rendered. The Company has also granted 0.5 million options to certain directors, officers, employees and consultants at an exercise price of $0.20 pursuant to the Company’s rolling Stock Option Plan.
This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a diversified publicly traded oil and gas company with oil production and exposure to 7.3 million gross acres of resource assets. The Company is actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company’s current portfolio of assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol “GSA” in Canada and “GRDSF” in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release may contain forward–looking statements within the meaning of applicable securities laws including expectations regarding the company’s drilling and exploration plans and the commencement of the renewed NCIB and government and third party approvals releating thereto thereto and expectation regarding the closing of the credit facility and the quantum and availability of funds. Forward–looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward–looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward–looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company’s forward–looking statements are expressly qualified in their entirety by this cautionary statement. The forward–looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward–looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Groundstar Resources Limited www.groundstarresources.com
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4
403.265.2549 or 403.608.6505
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
Posted: April 1st, 2014 under ACCESSWIRE.