Groundstar Resource Limited provides the following update regarding its operations in Egypt. Recent political demonstrations have been restricted to major cities more than 500 kilometers from the Company’s drilling locations, which are located in remote locations in the western desert. Company field operations in the West Kom Ombo block in Upper Egypt have not been impacted.
Groundstar has been informed by the operator of the West Kom Ombo block, Energean Oil and Gas, that civil works are ongoing for the completion of the road to Prospect B, approximately 100 kilometers to the southwest of the first drilling location. The Sino Tharwa ST-2 drilling rig is currently on standby awaiting to be moved to the next drilling location.
While the populist street demonstrations in Egypt’s major cities should not be ignored, Egypt has a long and stable history in the petroleum industry. Groundstar and Energean are closely monitoring the situation on a continuous basis and will undertake whatever decisions may be necessary to protect their interests and ensure the safety of personnel. Groundstar wishes to thank Energean, the operator for their diligent response to the current situation in Egypt.