Groundsar Resources Ltd
International exploration and production of Oil & Gas.
Message: NR spud 1st well Dagh 1
Groundstar Resources Limited Announces Commencement of Drilling of the Qara Dagh-1 Exploratory Well in the Kurdistan Region of Iraq
CALGARY, ALBERTA--(Marketwire - May 12, 2010) - Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) has been advised by Niko Resources, operator of the Qara Dagh Consortium, that the Qara Dagh-1 well in the Kurdistan Region of Iraq commenced drilling on May 11, 2010. The well is programmed to reach a total depth of 4,000 meters in the Triassic Kura Chine formation. It is expected that up to seven potential reservoirs could be encountered. Sakson Drilling was awarded the contract for the drilling of one firm and three potential additional wells. Drilling of the Qara Dagh-1 well is anticipated to take 140 days with an additional 30 days allotted for testing.
Groundstar has a 6% beneficial interest in the Qara Dagh Block. A 354-kilometer 2D seismic program was completed in June 2009. The block covers 846 square kilometers and has a large linear surface anticline. Data processing and interpretations have been completed and integrated with regional and surface geological models. Three main prospects, which correspond to the three domes on the surface structure, have been confirmed by seismic mapping.
Groundstar is extremely pleased to have reached the drilling stage at Qara Dagh, a journey that began June 2006 with a small group of explorationists with the idea to identify a high potential area of interest in Kurdistan.
Groundstar believes the proximity of the Qara Dagh block to the recent discoveries of Taq Taq by Addax Petroleum and Miran by Heritage Oil, in addition to the interpretation of results of recently acquired seismic and well data from the adjacent block, gives the Qara Dagh structure potential for the discovery of large oil reserves. AJM Petroleum Consultants ("AJM"), at the request of Niko Resources, has completed an initial resource assessment of the Qara Dagh Block, in the Kurdistan Region of Iraq. AJM has estimated an unrisked "Best Estimate" of 2.7 billion barrels of Petroleum Initially in Place as of December 31, 2009.
The table below sets out the gross volumetric estimates, as prepared by AJM, independent petroleum consultants.
|Petroleum Initially-In-Place (PIIP) and Prospective Resources (Unrisked)(1)(5)(6)(7)Qara Dagh Block|
|As of December 31, 2009|
|Oil (millions of Barrels)|
|Category||Low Estimate||Best Estimate||High Estimate|
|Petroleum Initially in Place||1,674||2,742||4,896|
|Prospective Gross Ultimate Recovery||269||450||849|
- These are the gross volumes estimated for the Qara Dagh Block, without any adjustments for working interest or encumbrances. Groundstar holds a 6% beneficial interest in this resource accumulation.
- Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. P90 means that there is a 90-percent chance that an estimated quantity, such as a prospective resources volume or associated value, will be equalled or exceeded.
- Best Estimate is considered to be the best estimate of the quantity that actually will be recovered. P50 means that there is a 50-percent chance or that it is equally likely that the actual remaining quantities recovered or associated value will be greater or less than the best estimate.
- High Estimate is considered to be an optimistic estimate of the quantity that will be recovered. P10 means that there is a 10-percent chance that an estimated quantity, such as a prospective resource volume or associated value, will be equalled or exceeded.
- While the above quantities have not been adjusted for risk, AJM has assigned reserves to 7 formations. The Cretaceous which currently contains 3 target reservoirs has been estimated to have an average chance of success of 30%. The Jurassic currently contains 3 target reservoirs and has been estimated to have an average success chance of 21% and the Triassic has 1 target reservoir with an estimated chance of success of 17%.
- Undiscovered petroleum and prospective resources were estimated for the main Qara Dagh structure, which consists of the Sagirma and Qara Dagh areas, and the Golan structure. These estimates have been combined in the above table.
- The resource estimate was prepared in accordance with NI 51-101 and the COGE Handbook.
Prospective resources are those resources of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk components. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources. Prospective oil resources are undiscovered resources that indicate exploration opportunities and development potential in the event a commercial discovery is made and should not be construed as reserves or contingent resources.
The Qara Dagh Block is located in the prolific Zagros foldbelt which extends from southern Turkey across northern Iraq and into southwest Iran, which contain giant and supergiant accumulations of oil. The large surface structure on the block known as Qara Dagh is a prominent anticline which rises as high as 600 meters above adjacent valley floors. This block, which is 65 kilometers by 5 kilometers, is located 60 kilometers southeast of the Taq Taq oilfield and 60 kilometers east of the giant Kirkuk oilfield, and is adjacent to a Heritage block with a recent oil discovery.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in the Middle East, North Africa and South America.
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