Groundstar Resources Limited Reports Increased Production, Revenues And Cash Flow For Quarter
01 Abril 2014 - 3:35PM
Access Wire
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
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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.
Contact Information:
Groundstar Resources Limited www.groundstarresources.com
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4
Chad Dust
403.265.2549 or 403.608.6505
cdust@groundstarresources.com
Tyron Pfeifer
403.614.9902
tpfeifer@groundstarresources.com
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR
FOR DISSEMINATION TO THE U.S.A.
Groundstar Resources Limited (TSXV:GSA)
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