Gold Point Energy Corp.
TSX VENTURE : GPE

Gold Point Energy Corp.

December 07, 2006 10:33 ET

GP Energy Reports New Gas Field Discovery in South Dakota

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - Gold Point Energy Corp. ("GP Energy") (TSX VENTURE:GPE)(FWB:WKN # A0HGQ1) is pleased to announce a new gas field discovery in the Shannon sandstone at the Spyglass State #3-30 well located in Harding County, South Dakota. The well was drilled to a total depth of 1950 feet and cased by Elenburg Rig #8. The casing decision was made on the basis of Schlumberger logs which indicate a Shannon pay zone at approximately 1600 feet comparable to that found at the West Short Pine Hills Field located twelve miles to the west of the well. West Short Pine Hills field has had cumulative gas production of 23 BCF according to statistics maintained by the State of South Dakota. This well is the fourth obligation well of five that Spyglass Cedar Creek, LP of San Antonio, Texas ("Spyglass") has committed to drill. Spyglass is the operator. The Company has a 30% interest in the first five obligation wells, and a 47.5% working interest in the balance of the South Cedar Creek Anticline Project that consists of 63,532 acres in Harding County, South Dakota.

"This well confirms the validity of our seismically-based exploration methodology. We still have to establish commerciality of the well through perforation and testing which is expected to occur prior to year end," stated Jack Steinhauser, President of GP Energy.

Elenburg Rig #8 has also drilled the GPE State #32-1 well to a total depth of 2831 feet in search of gas in the Cretaceous Niobrara. The main objective zone appears to be tight and non-productive. A secondary objective in the Eagle had significant oil shows. The well has been cased for further study of the productive potential of the Eagle. The well is the second obligation well of two that Spyglass NSPH LLC has committed to participate in. The Company is the Operator and has a 70% working interest in the North Short Pine Hills Prospect that consists of 54,626 acres in Harding County, South Dakota.

GP Energy also reports that Champion Drilling has moved their rig to the GPE Tribal #27-10 well location and drilling operations have commenced. GP Energy has a 70% working interest in the Woody Creek Dome Prospect, located in Big Horn County, Montana. The initial test well will test potential oil accumulations in the Tensleep formation at approximately 2,250 feet and the Amsden formation at approximately 2,370 feet. 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