Groundstar Resources Limited Files Quarterly Results and Management Discussion & Analysis and Update
December 31 2013 - 10:47AM
Access Wire
CALGARY, December 31,
2013; Groundstar Resources Limited. ("Groundstar", "the "Company",
"we", "us", or "our") (TSXV: GSA) is pleased to announce that it
has filed with the Canadian securities authorities its un-audited
interim condensed consolidated financial statements and
management's discussion and analysis for the period ended October
31, 2013. Copies of the filed documents may be obtained through the
company's profile www.sedar.com
Highlights and
Update
Western Canadian
Sedimentary Basin
Recent work in the Western Canadian
Sedimentary Basin is part of an orderly transition of Groundstar
which includes a more balanced approach actively pursuing
production acquisitions and high netback lower risk drilling
opportunities. The production opportunities are characterized by
long life, large original oil in place reservoirs, crude oil and
gas with access to existing production, transportation
infrastructure and market points. Groundstar continues to develop
it's drilling inventory of high quality, medium and light oil
drilling prospects which can be exploited by conventional drilling
and completion methods. In
November 2013, the Corporation entered into an agreement with an
unrelated third party whereby Groundstar will earn a 42.5% working
interest in certain property that the Farmee may propose to drill
on the optioned lands prior to December 31, 2014.
Groundstar has added a prospect area in the
Morinville area of Alberta, whereby thirteen square miles of 3D
seismic coverage has provided analogous coverage for multiple high
impact drillable targets identified within the 3D data set.
In November 2013, the Corporation entered into an
agreement with a third party whereby Groundstar can participate in
a Viking light oil development in Alberta.
This low risk, development drilling opportunity is bounded by an
Enhanced OIL Recovery ("EOR") scheme that produces 40 API gravity
oil.
In December 2013, the
Corporation announced the appointment of Mr. Murray Stadolka to the
Board of Directors of Groundstar. Mr. Stadolka is a Professional
Engineer with extensive senior management experience in the oil and
gas industry, he was VP Engineering and Operations at Compton
Petroleum from 1996 to March 2009, and prior to that he worked with
Pennzoil, Exxon USA and Texaco Canada.
Groundstar has closed
on an additional tranche of its previously announced private
placement financing of common shares in the capital of the
Corporation issued on a "flow-through" basis ("Flow-Through Shares")
pursuant to the provisions of the Income Tax Act (Canada)
and units of the Corporation ("Units"), each Unit
consisting of a common share in the capital of the Corporation
("Common
Share") and one half of one common share
purchase warrant ("Warrant"), each whole
Warrant exercisable for a period of 18 months from the closing date
at a price of $0.30 per share. The Company issued an additional
approximately 0.6 million Units and an additional approximately 1
million Flow-Through Shares for additional
aggregate gross proceeds of approximately $0.3 million, bringing
the total aggregate gross proceeds raised pursuant to the offering
to approximately $1.8 million. The Company received such additional
demand by subscribers wishing to purchase Flow-Through Shares that
it amended the allocation such that up to 8,500,000 Flow-Through
Shares could be issued pursuant to the offering. The Company
expects to use the net proceeds from the offering to further the
exploration and development activities of its oil and gas
properties. The proceeds received by the Company from the
sale of the Flow-Through Shares will be used
to incur eligible Canadian Development Expenses
("CDE") and Canadian Exploration Expenses ("CEE") which will be
renounced in favour of subscribers for the 2013 taxation
year.
The securities were issued on a
private placement basis and are subject to a statutory hold period
of four months and a day from the closing date of the offering,
such hold period to expire on April 27, 2014. A syndicate of
agents, including PI Financial Corp. and Canaccord Genuity Corp. as
co-lead agents, were involved with the offering.
Selected Financial Data
---------------------------------------------------------
|The six month periods ended|2013 |2012 |
|October 31st | | |
| | | |
| | | |
|-------------------------------------------------------|
|Increase (decrease) in cash| | |
| | | |
| | $ | $ |
| | 487,458 |(252,009) |
|-------------------------------------------------------|
|Cash on hand | 1,700,416 | |
| | |$448,448 |
| | | |
| | | |
|-------------------------------------------------------|
|Share Capital |20,134,593 | |
| | |19,950,145 |
|-------------------------------------------------------|
|Contributed Surplus |11,143,658 | |
| | |11,100,182 |
|-------------------------------------------------------|
|Net loss |(563,056) | |
| | |(4,756,407) |
|-------------------------------------------------------|
|Net loss per share – basic |(0.03) | (0.86)|
|and diluted | | |
|-------------------------------------------------------|
| | | |
---------------------------------------------------------
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
receipt of the company's drilling and exploration plans and
government and third party approvals releating thereto.
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
Tyron Pfeifer
403.614.9902
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