Cypress Hills Resource Corp.

Cypress Hills Resource Corp.

May 31, 2006 13:30 ET

Cypress Hills Amends Exploration Agreement in Maverick and Zavala Counties, Texas

CALGARY, ALBERTA--(CCNMatthews - May 31, 2006) - Cypress Hills Resource Corp. (TSX VENTURE:CHS) ("Cypress") announces that it has reached an agreement with its partner Blue Star Oil & Gas, Ltd. ("Blue Star") of Dallas, Texas to amend the Exploration Agreement previously announced on June 30th, 2005.

The terms of the Exploration Agreement have been amended such that the original 10,000 acre block of land located in Maverick and Zavala Counties, Texas will be divided into two 5,000 acre blocks being the Northern and the Southern Blocks, and Cypress will now be required to drill three commitment wells on each block. The wells will be drilled, at Cypress' option, to either the Eagle Ford, Georgetown or Glen Rose formations and Cypress will earn a 50% interest in 320 acres for each well drilled from the base of the San Miguel to 100 feet below the base of the Sligo, except in the case of wells drilled to the Eagle Ford formation, where earned depth will be from the base of the San Miguel formation to 100 feet below the deepest zone penetrated. Cypress has drilled the first of its three commitment wells on the Northern Block and is now in a position to further evaluate the Eagle Ford formation identified in the Cypress 604-1 well. Cypress will be preparing the necessary AFE's and contracting a workover rig to begin this evaluation as soon as possible.

Additional information on Cypress and its projects can be found at

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Contact Information

  • Cypress Hills Resource Corp.
    Ted J. Fostey
    (403) 265-7663