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

Gold Point Energy Corp.

November 02, 2006 11:51 ET

GP Energy Provides U.S. Operations Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(FWB:WKN #A0HGQ1) 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. Under an Exploration Agreement with Spyglass Cedar Creek, LP of San Antonio, Texas ("Spyglass") a program of four exploratory wells and one reentry is underway in which GP Energy has a 30% interest until payout and 47.5% thereafter. Spyglass is the Operator.

To date three wells have been drilled and cased. Testing is proceeding on the wells with an immediate focus on establishing the commerciality of gas pay in the Niobrara formation at approximately 2,500 feet which, based on gas shows encountered while drilling and subsequent analysis of the geophysical logs, is believed to have significant development potential. The first well to be tested in the Niobrara is the Spyglass State #10-27 well in Section 27, T19N-R4E. A similar potential pay interval in the Niobrara has been observed in the other two wells that have been drilled and cased. Fracture stimulation of the State #10-27, which is required to properly evaluate the commercial potential of the Niobrara, is scheduled for December. If the State #10-27 flow rate after frac is successful in demonstrating commercial potential in the Niobrara, the other two wells will also be fracture stimulated and tested.

Two more wells are scheduled to be drilled prior to year end on the South Cedar Creek leasehold 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. Under an Exploration Agreement with Spyglass NSPH, LLC of San Antonio, Texas ("Spyglass") and Silver Tip Energy, LLC of Red Lodge, Montana ("Silver Tip") a two-well drill program is underway to test the Shannon and Niobrara intervals in which GP Energy has a 61.667% interest until payout and 70% thereafter.

The initial test well drilled only to the Shannon encountered non-commercial oil and gas shows. A second well with a primary objective of the Niobrara at approximately 2,400 feet is planned for December. GP Energy is the Operator. A grid of 2D seismic shows a potential gas accumulation in the Niobrara covering an area greater than 20 square miles.

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. Previously drilled wells combined with newly reprocessed seismic have defined potential oil accumulations in the Tensleep formation at approximately 2,250 feet and the Amsden formation at approximately 2,370 feet. An initial test well is scheduled for drilling during the month of November; GP Energy is the Operator.

Kaycee Dome Prospect, Johnson County, Wyoming

GP Energy has a 35% working interest in the Kaycee Dome Prospect. The Prospect is located on a surface-expressed anticline called Kaycee Dome that is situated just west of the town of Kaycee, Wyoming. The Prospect is defined by three seismic lines and seven previous wells, six of which had oil shows. The primary objective is the Tensleep formation, which is expected to be 75-100 feet thick at approximately 1,600 feet of drilling depth. The Cellars Ranch and North Fork field complex, which has produced 26 million barrels from 26 wells in the Tensleep formation, is located four miles to the east of the Prospect. An initial test well is scheduled for drilling during the month of November; 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.

ON BEHALF OF THE BOARD

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

  • Gold Point Energy Corp.
    Sean Hurd
    Director
    (604) 687-1828 or Toll Free: 1-800-901-0058
    (604) 687-1858 (FAX)
    Email: shurd@goldpointenergy.com
    Website: www. goldpointenergy.com