Gold Point Energy Corp.
TSX VENTURE : GPE
FRANKFURT : A0HGQ1

Gold Point Energy Corp.

February 02, 2006 16:36 ET

Gold Point Energy Corp.: $600,000 Drill Program Planned for GP Energy's North Short Pine Hills Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(Frankfurt WKN# AOHGQ1) is pleased to announce that the Company's U.S. subsidiary GPE Energy Inc. ("GPE") has reached final agreement for Spyglass NSPH, LLC and Silver Tip Energy, LLC to participate in a US$600,000 two-well drilling program this spring in its North Short Pine Hills Project in Harding County, South Dakota. This work is expected to run concurrently with a five-well drill program costing approximately US$3,100,000 on the Company's adjacent South Cedar Creek Anticline project (see Dec. 3, 2005 news release).

The Company's acreage position is strategically located in close proximity to existing gas production, just to the south and west of the Project is the West Short Pine Hills Field that has produced 23 BCFG from the Shannon formation at depths of 1,000 to 1,500 feet. The North Short Pine Hills Prospect is located to the west of the South Cedar Creek Anticline Project, which may also have potential for shallow gas production from the Shannon. The North Short Pine Hills Prospect covers 56,458 gross and 54,626 net acres in Harding County, South Dakota.

To evaluate this potential GPE has closed an Exploration Agreement with Spyglass NSPH, LLC of San Antonio, Texas ("Spyglass") and Silver Tip Energy, LLC of Red Lodge, Montana ("Silver Tip") to jointly develop the North Short Pine Hills Prospect. A two-well drill program costing approximately US$600,000 is planned for the first Half of 2006 on the Prospect leasehold.

GPE will have a 61.667% working interest in these two wells; Spyglass will have 33.333%; and Silver Tip will have 5%. After project payout of the first two wells, GPE will have a 70% working interest, Spyglass will have 25%, and Silver Tip will have 5%. GPE will be the operator of all wells drilled for North Short Pine Hills Prospect.

GP Energy is aggressively implementing its business strategy for 2006. Through the Company's alliance with The Grosso Group, new opportunities in the oil and gas sector are continuously being presented and reviewed. Other members of The Grosso Group include IMA Exploration Inc., Amera Resources Corporation and Golden Arrow Resources.

ON BEHALF OF THE BOARD

Mr. Jack Steinhauser, President & CEO

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

2006

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Gold Point Energy Corp.
    Mr. Jack Steinhauser
    President & CEO
    (604) 687-1828
    (604) 687-1858 (FAX)
    www.goldpointenergy.com