I paid c$1.43-1.44 for 10,000 shares on Jan. 29. I got lucky and it kept going, closing up another 7-8 percent today, Jan. 30, at c$1.55.
Volume has been running heavy, 1,163,000 shares on Wednesday.
Bear in mind that normal volume for this stock is around 50,000 shares and you can sense the intense interest in the stock.
I was able to buy my stock at a price that was competitive with the Toronto Venture Exchange on this one, using the pink sheet symbol GDRSF. The real disadvante of buying this way is that if I needed to sell in a down market, I might not be able to catch a bid. This is what traders say when they say that a market has little liquidity. I always keep that in mind on these thin spec stocks. I only want to sell into strength, and that has to be factored in when deciding how much to buy in a given account.
Fully diluted shares out 67.1 mm
Market Cap, fully diluted $105 mm
Working Capital $c15 mm
Wellington Capital, while calling it a high risk stock, thinks it has the potential for hitting $20 a share.
Right now, the runup is occurring in anticipation of the first actual drilling to be done by the company in an Egyptian field in which it owns a 20 percent working interest, called West Esh El Mallala, or WEEM for short.
Check out the web site. That field is right next to one where another company has hit it big with oil.
http://www.groundstarresources.com/
here is a rundown from the groundstar website of the deals they have cooking.
In addition, they have first dibs on some prime oil land in syria, but that deal is not yet done.
Groundstar Resources Provides Operational Update Of International Activities
GROUNDSTAR RESOURCES LIMITED
Suite 1650, 717- 7th Ave. S.W., Calgary, Alberta, T2P 0Z3
Telephone: (403) 265-2549
Facsimile: (403) 265-2558
NEWS RELEASE
GSA-TSX Venture Exchange
May 29, 2007
GROUNDSTAR RESOURCES PROVIDES OPERATIONAL UPDATE OF INTERNATIONAL ACTIVITIES
EGYPT
(1) West Esh El-Mellaha (WEEM) BLOCK
Groundstar holds a 20% working interest in the WEEM block, located near the Egyptian city of Hurghada, onshore Gulf of Suez. The southeastern portion of the block is adjacent to a Lukoil operated block producing 10,500 BOPD.
Current exploration activity is the reprocessing of approximately 300 sq. km. of 3D seismic data expected to be completed in July. The primary objectives are to improve data quality, re-interpret the seismic and select the highest potential prospects for drilling.
In parallel with the exploration activity, tendering of services and supplies are in progress to prepare for a 2 well drilling program expected to start in the last quarter of 2007.
(2) West Kom Ombo (WKO) BLOCK
Groundstar holds a 60% working interest in the 42,290 sq. km. West Kom Ombo block located in the Western Desert of southern Egypt. The adjacent block to the east is operated by Dana/Centurion whom are currently preparing to conduct exploratory drilling operations.
The present exploration activity on the Block is to reprocess 830 km. of 2D seismic data acquired by the previous operator Repsol in 1997. Following the interpretation of the reprocessed seismic, Groundstar will conduct a new 2D seismic program on the block to identify potential drilling prospects.
KURDISH REGION OF IRAQ
Groundstar has recently formed a consortium with a Canadian E & P public Company with current market capitalization in excess of $4 billion to aggressively pursue exploration and development properties in the Kurdish region of Iraq. Several international operators including DNO and ADDAX have recently announced major oil discoveries in the Kurdish region.
Groundstar has a Calgary-based technical and logistical team with considerable experience in Iraq. Several exploration and development opportunities have been identified in the area.
A proposed Federal Oil & Gas Law is expected to be passed later this year paving the way for participation of international oil companies in the Iraqi petroleum sector. Groundstar believes that it has strongly positioned itself for upcoming opportunities in Iraq through the establishment of a strategic consortium and development of key contacts within the country.
GUYANA
Groundstar is nearing completion of the second phase (second year) of a four year Petroleum Prospecting Licence that will be presented to Guyana Geology and Mines Commission in June. The Company has 3 prospects and 6 leads in the Takutu basin. These prospects are being presented to prospective oil industry partners for participation.
KAZAKHSTAN
In Kazakhstan, Groundstar is participating with a local well-positioned company to post a high potential exploration block in the upcoming bid round.
