Gold Point Energy Corp.

Gold Point Energy Corp.

November 14, 2006 09:30 ET

GP Energy Expands Argentina Operations and Provides U.S. Operations Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(FWB:WKN # A0HGQ1) is pleased to announce that it has concluded two farm-in agreements with Petrolera del Comahue S.A. of Buenos Aires, Argentina ("PDC") to earn up to a 50% interest in the General Roca and Blanco de los Olivos Blocks located on the southeastern flank of the Neuquen Basin in Rio Negro Province, Argentina.

Under the terms of the first agreement, the Company can earn a 12.5% interest in existing and future production of the Flor de Roca Field within the General Roca Block by funding a workover program. The expected cost of this workover program is US$400,000; the program is scheduled to commence immediately. Current production from the GR-X-6 and AN-X-1 wells total approximately 70 BOPD. The workover program should increase this production.

The General Roca and Blanco de los Olivos Blocks are seen by Management as holding significant potential for exploration success. The General Roca Block comprises 292 square kilometer (72,124 acres) and has 191 square kilometers of existing 3D and 238 kilometers of existing 2D seismic. The Blanco de los Olivos Block comprises 66.5 square kilometers (16,425 acres) and has 83 square kilometers of existing 3D seismic.

Accordingly, the Company has finalized a second farm-in and joint venture agreement with PDC whereby it can earn a 50% interest in both by completing a staged work program estimated to cost US$5.7 million. The first stage of the program is scheduled for Q1-07 and will include reprocessing and reinterpretation of 274 km2 of existing 3D seismic, one workover, and the drilling of one horizontal exploitation well. By drilling the proposed horizontal well into the Quintuco reservoir at the Flor de Roca field, the Company will also increase its ownership of production in the Flor de Roca Field from 12.5% to 50%.

The second stage of the program is scheduled for Q2 and Q3 of 2007 and will involve the drilling of three vertical exploration wells based upon the results of the seismic reinterpretation.

The interest that GP Energy will earn in the General Roca and Blanco de los Olivos blocks is subject to a proportionately-reduced net profits interest to EDHIPSA, the oil company of Rio Negro Province. The net profits interest ranges from 10% to 15%, depending on the level of production.

"These two agreements will allow GP Energy to achieve some very important goals in our Argentina exploration and development program." stated Jack Steinhauser, President and CEO.

- "First we will establish a production base for the Company from the Punta Rosada formation through low-risk workover activity.

- Second we can increase our ownership in the existing production from 12.5% to 50.0% by drilling a horizontal exploitation well into the Quintuco, a known producing formation. If the first horizontal exploitation well is successful, we expect up to nine development locations.

- Third we will have the opportunity to thoroughly evaluate 274 square kilometers of 3D seismic on two prime exploration blocks in the prolific Neuquen Basin located within 100 km of the Puesto Morales Block where Petrolifera has made recent discoveries and achieved significant production from the Sierras Blancas/Punta Rosada formation.

- And fourth, we will have the opportunity to drill some high potential exploration oil and gas wells which may lead to the discovery of new fields on the two blocks"

In addition the Company is pleased to provide an update of its U.S. operations in South Dakota, Montana and Wyoming.

South Cedar Creek Anticline Project, Harding County, South Dakota

GP Energy has 47.5% working interest in the South Cedar Creek Anticline Project that consists of 63,532 acres in Harding County, South Dakota. Spyglass Cedar Creek, LP of San Antonio, Texas ("Spyglass") is the operator. Testing of the Niobrara formation for gas potential is underway in the Spyglass State #10-27 well in Section 27, T19N-R4E. The initial perforation of the Niobrara interval has been performed and Spyglass is planning a fracture stimulation to properly evaluate the commercial potential of the Niobrara. Two more wells are scheduled to be drilled on the South Cedar Creek leasehold commencing in late November with primary objectives in the Shannon, Niobrara and Muddy.

North Short Pine Hills Project, Harding County, South Dakota

GP Energy has a 70% working interest in the North Short Pine Hills Prospect that consists of 54,626 acres in Harding County, South Dakota. A 2,400 foot gas test is scheduled for early December; GP Energy is the Operator.

Woody Creek Dome Prospect, Big Horn County, Montana

GP Energy has a 70% working interest in the Woody Creek Dome Prospect that consists of an 1,840 acre lease from the Crow Indian Tribe. An initial test well to test potential oil accumulations in the Tensleep formation at approximately 2,250 feet and the Amsden formation at approximately 2,370 feet is scheduled for drilling in late November; GP Energy is the Operator.

Kaycee Dome Prospect, Johnson County, Wyoming

GP Energy has a 35% working interest in the Kaycee Dome Prospect. An initial test well to test a potential oil accumulation at 1,600 feet in the Tensleep formation is scheduled for drilling in early December; GP Energy is the Operator.

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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