Groundstar Resources to invest US$7M in drilling new oil well

TIMES INT'L

Oil exploration company Groundstar Resources Limited is expected to invest US$ 7 million to drill a new well in Region Nine, which is expected to be completed by May 2014. Groundstar Resources Limited Chief Executive Officer and President Kam Fard said in a statement that the joint venture was between the company and Canacol, after a three-year extension was granted for the Takutu Petroleum Prospecting Licence which ends on May 21, 2015 by the Guyana Geology and Mines Commission (GGMC).
“The work commitment for the first phase of a two-phase agreement is drilling of an exploration well by May 2014, in the Takutu Basin with a financial commitment of US$ 7 million. The work programme for the second phase will be developed by GGMC and the joint venture partners, the statement added.
Groundstar, the operator, has a 10 per cent working interest that is carried by Canacol to first commercial production, but effective September 1, the operatorship will be transferred to Canacol. Groundstar has been incorporated in Guyana as Takutu Oil and Gas Inc.
According to the Government Information Agency (GINA), the company and government concluded a renewal agreement and as a result will recommence exploration for oil along the Takutu Basin, which had started two years ago. Takutu Oil and Gas Inc between December 2010 and April 2011 drilled a well with unfavourable results.
In April of last year, the company announced that it will abandon its Apoteri, Rupununi drilling sites after reaching the intended depth and seeing no signs of oil in commercial quantities.
The company had previously outlined plans to drill another well at one of two other locations.

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