Gold Point Energy Corp.

Gold Point Energy Corp.

November 04, 2005 14:26 ET

GP Energy Signs Agreement with Spyglass on South Cedar Creek Oil & Gas Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 4, 2005) - Gold Point Energy Corp. (TSX VENTURE:GPE) ("GP Energy") is pleased to announce that it has entered into an Exploration Agreement with Spyglass Cedar Creek, LP of San Antonio, Texas to jointly develop the South Cedar Creek Anticline Project in Harding County, South Dakota. Spyglass has agreed to pay GP Energy $1.12 million in land costs, prospect fee and reimbursement for seismic on or before December 2nd, 2005. The South Cedar Creek project is strategically located in a region where historical production includes; Cedar Creek Anticline - 134 BCFG and 500 MMBO, Bell Creek Field - 130 MMBO, Buffalo Field - 29.3 MMBO and West Short Pine Hill - 23 BCFG. The Company also whishes to announce that its shares are now listed for trading on the Frankfurt Stock Exchange under the symbol G3Z and WKN number AOHGQ1.

Spyglass Cedar Creek, LP is run by veteran explorationist Karen Christensen. Ms. Christensen was formerly Exploration Manager for Venoco Inc. and Conoco's Deep Water Gulf of Mexico and Nigerian exploration programs and was instrumental in several giant (100MMBO plus) oil and gas discoveries including the King Kong and Ursa Fields in a joint venture with Shell.

"This agreement with Spyglass on the South Cedar Creek Anticline Project marks the beginning of the next chapter for GP Energy as an oil and gas exploration company. The Project covers almost 90 square miles of leasehold and includes 113 miles of proprietary 2D seismic data, 16 square miles of 3D seismic coverage, as well as geologic and geophysical studies that define up to 14 different zones that are prospective for oil and gas at depths of 1,500 to 9,000 feet," stated Jack S. Steinhauser, President of GP Energy.

The Project leasehold is 12 miles to the east of a 16-inch gas pipeline corridor that can provide access to North American gas markets. The nearest gas production is from the Shannon formation at the West Short Pine Hills Field located 10 miles to the southwest of the Project leasehold; the nearest oil production is from the Red River B at Buffalo Field two miles to the north.

Under the terms of the Exploration Agreement GP Energy and Spyglass will drill five exploratory test wells on the 56,500 acre Project leasehold. GP Energy will have a 30% working interest in these wells, which are expected to cost approximately $3.1 million, and Spyglass will have 70%. Drilling efforts on the first five wells are expected to take place in the first half of 2006. After project payout of the first five wells, and in any subsequent wells, GP Energy will have a 48.5% working interest and Spyglass will have 52.5%. Spyglass will be the operator of all wells drilled. Closing of this transaction is subject to ordinary conditions and precedent.

GP Energy is aggressively implementing its business strategy for 2005. Through the Company's alliance with The Grosso Group new opportunities in the oil and gas sector are continuously being presented and reviewed. Other members of the Grosso Group include IMA Exploration Inc., Amera Resources Corporation and Golden Arrow Resources.

On behalf of the Board,

Jack S. Steinhauser, President

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

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