Groundstar Resources Limited has provided an operational update of its Egyptian activities. In the West Kom Ombo block licence re-processing of the previously acquired 2D seismic (1994 and 1998 vintage) on the block was awarded to Spectrum, and is expected to take 2 to 3 months to complete. The re-processing of several test lines on the southern part of the block has shown that the sedimentary section could be much thicker than previously thought which would significantly enhance the exploration potential of that area.
Following re-processing, the seismic data will be re-interpreted prior to the acquisition of new seismic on the 42,291 sq km block expected to take place over the 2007/08 winter season. Groundstar will earn a 60% working interest by paying 100% of the first US$7 million of exploration expenses.
Also Transglobe is currently drilling the first of two exploration wells on the Nuqra block to the east of West Kom Ombo.
In the West Esh El Mallaha Block licence the re-processing of two 3D seismic surveys (1994 and 1997 vintages) over the southern area of the block will take place in the 2nd quarter of 2007. Current seismic mapping by Aminex Petroleum Egypt has identified 5 prospects with a resource potential ranging from 63 to 177 MMBO recoverable. In addition, 13 leads have been identified.
The re-interpretation of the re-processed 3D seismic will provide the basis to prioritize the prospects for the drilling of at least 2 exploratory wells in the second half of 2007 and discussions are currently in progress with three drilling contractors to obtain a suitable drilling window.
Groundstar will earn a 20% working interest in the block by paying 40% of the first US$7 million dollars of exploration expenses.
The West Esh El Mallaha block is adjacent to a block operated by Lukoil currently producing 10,500 BOPD from the Rabeh and East Rabeh fields. Lukoil plans to drill several exploratory and appraisal wells in 2007.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, Central Asia and North Africa and the Middle East.
(Groundstar Resources)