Gold Point Energy Corp.

Gold Point Energy Corp.

October 31, 2006 12:57 ET

Gold Point Energy Corp.: Update on Capricorn Licence Farm-Out in Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(Frankfurt WKN # A0HGQ1) announced today that it has advanced $500,000 to fulfill the first stage of its obligations under a farm-out agreement with APCO Argentina Inc. ("APCO") and Antrim Energy Inc. ("Antrim"). The farm-out agreement allows GP Energy to earn a 25% interest in the Capricorn Licence (Yacimiento Norte 1/B Block) in Salta Province, Argentina. Under the terms of the farm-out agreement GP Energy has committed to pay 50% of a $1 million, 60 square kilometer 3D seismic program plus 50% of a $2 million, 2300 meter exploration well to earn a 25% working interest in the Martinez del Tineo Oeste Prospect. The Martinez del Tineo Prospect covers approximately 54 km2 of the 4008 km2 that comprise the total Capricorn Licence.

"Field acquisition of the 3D seismic data for the Martinez del Tineo Oeste Prospect is now complete. The data will be processed and interpreted in the fourth quarter of 2006. The 3D seismic will allow us to get a clearer picture of a structural trap previously identified on 2D seismic in preparation for drilling scheduled during the first half of 2007. Our main objective in the Prospect is the Yacoraite formation. The Prospect and the Capricorn Licence are situated adjacent to the Puesto Guardian Block which, according to statistics provided by the Argentine Secretariat of Energy, has had cumulative production of 14.7 million barrels of oil from the Yacoraite," stated Jack Steinhauser, President and CEO.

Following the drilling of the Martinez del Tineo Oeste Prospect, GP Energy shall have the option to earn a 25% interest in the entire Capricorn Licence by funding 50% of the acquisition of up to 300 square kilometers of 3D seismic and 50% of the costs of two additional exploration wells. Previous 2D seismic surveys have identified three additional prospects on the Block.

Certain statements contained in this press release may be considered as "forward looking". Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.


Mr. Jack Steinhauser, President & CEO

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

Contact Information