Gold Point Energy Corp.

Gold Point Energy Corp.

August 01, 2006 10:08 ET

GP Energy Announces Commencement of South Cedar Creek Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 1, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(FWB:A0HGQ1) announced today that drilling operations have commenced on the first well of a $4.1 million, four-well program scheduled for drilling during Q3-06 on the South Cedar Creek Project. The Spyglass Price #13-24R well located in Section 24, T19S-R4E, Harding County, South Dakota is the first of five exploratory wells to be drilled in the South Cedar Creek Project; the fifth well is scheduled for drilling in Q4-06. The Price #13-24R well is a 5,900 foot reentry of a well previously drilled by Summit Resources in 1997 and will target by-passed gas potential in the Cretaceous and by-passed oil potential in the Paleozoic. The Price #13-24R well has been designated a "tight hole" by the Operator, Spyglass Cedar Creek, LP, and will be drilled using Western Star Rig E25.

Immediately upon completion of drilling operations on the Price well, the Western Star rig will move to the next South Cedar Creek location: the Spyglass State #4-16 located in Section 16, T19S-R4E. This well will be drilled to 6,250 feet to evaluate oil potential in a Paleozoic structure identified on 3D seismic.

GP Energy will have a 30% working interest in the first five wells drilled in the South Cedar Creek Project and Spyglass will have 70%. After project payout of the first five wells, and in any subsequent wells, GP Energy will have a 47.5% working interest, and Spyglass will have 52.5%. Spyglass will be the operator of all wells drilled.

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.

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