High Point Resources Inc.

High Point Resources Inc.

January 11, 2005 16:00 ET

High Point Resources Operations Update




JANUARY 11, 2005 - 16:00 ET

High Point Resources Operations Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 11, 2005) - High Point Resources
Inc. (TSX:HPR) is pleased to announce operational results for 2004 and
the commencement of 2005 drilling program. Key operating highlights for
2004 are:

- Drilling resulted in an average annual production increase of
approximately 43% in 2004 over 2003.

- Current production is approximately 3500 boe per day with over 500 boe
per day completed and waiting on tie-in at Ferrier and Ricinus.

- Four drilling rigs were active at report time; two at Ferrier and two
at Desan. Three of the wells are being cased for production with the
fourth well at Desan drilling ahead. By the end of January 2005, 5 gross
wells (3.8 net wells) will be completed and awaiting tie-in from the
2005 drilling program. Twenty five gross (17 net wells) are planned in

- A total of 34 gross wells (17.4 net wells) were drilled in 2004 at a
success rate of 95%. Wells placed on production in 2004 averaged over 90
boe per day net to High Point.

- Over 20,000 net acres of land were added to the core areas. Recent
land acquisitions included 100% interests in 9 sections at Ferrier and
10 sections at Ricinus.

Organic growth from the drilling program posted excellent results in
2004. The drilling program in Desan, Ferrier and Ricinus added
production at an average rate of over 90 boepd per well. The drilling
program increased the average annual production by over 43% offsetting
production declines and dispositions. No acquisitions were completed in
2004 and dispositions of non-core assets resulted in the sale of
approximately 230 boepd of production.

Operations on the Kotcho B-67-K wildcat exploration well were suspended
on December 11, 2004. The well was junked and abandoned prior to
reaching the Keg River zone due to severe lost circulation problems.
Individual Keg River wells in the area have produced over 50 bcf from
similar seismic anomalies. High Point plans a re-drill of the Kotcho
B-67-K well in the first quarter of 2005 and will maintain its 45%
interest in the well. The re-drilling of the B-67-K well combined with a
scarcity of drilling and service equipment curtailed plans to drill a
second Keg River exploration well in the area in 2005. The Kotcho
b-B68-H Keg River well is winter access only and will be deferred until

High Point has significantly increased its core land holdings in its
focus areas in 2004. Over 20,000 net acres have been added at
Desan/Peggo, Ricinus and Ferrier. In the fourth quarter of 2004
additional lands were added at Ferrier and Ricinus increasing selective
land blocks to 100 per cent working interest. Third party exploration
discoveries at Tay River (Ricinus West) and in the Elkton and Banff
formations on trend with Ferrier have added significant exploration
potential to High Point's West Central Alberta core development areas.
High Point recently shot 12 square miles of 3D seismic and 7 miles of 2D
seismic in Ferrier. An extensive 3D seismic base has been acquired at
Ricinus which now encompasses 46 sections of land at an average working
interest of 63 percent.

High Point reconfirms its 2005 guidance provided in its third quarter
2004 report to shareholders. High Point plans capital investment of
approximately $50 million on drilling, seismic and land in 2005. The
investment is forecast to increase average production levels to the
4500-5000 boe per day range. Planned financing for the program is from
cash flow; available bank lines and a bridge financing facility if
required. As production increases in 2005, cash flow is projected to
rise to $40-45 million, dropping debt to cash flow ratios and bringing
the Company to a level where cash flows can sustain the ongoing capital
expenditure program looking forward in 2006.

High Point is making steady progress in achieving its long term business
plan. High Point plans growth of over 30% per year from the development
program, which targets low risk, long life, and high netback production
in the deeper part of the Western Canadian Basin. The development
programs at Desan, Ferrier and Ricinus are complemented with exploration
programs at Kotcho, Mackenzie, Ferrier and Ricinus designed to provide
step-rate growth if successful. The ultimate goal is to achieve superior
returns for shareholders by providing the appropriate balance between
development and exploration projects.

High Point is a junior oil and gas company engaged in the exploration
for, and development and production of natural gas and light oil in
Alberta and NE British Columbia.

This news release may contain forward-looking information. Actual
results may differ materially from those contemplated. The risks,
uncertainties and other factors that could influence actual results are
described in documents filed with regulatory authorities.


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