Gold Point Energy Announces Farm-in on Polish Oil and Gas Project
VANCOUVER, Aug. 5, 2008 (PRIME NEWSWIRE) — Gold Point Energy Corp. (TSX-V:GPE) (Frankfurt:A0HGQ1) (the “Company” or “GPE”) reported today that it has entered into a letter agreement (“Agreement”) with Gas Plus International B.V. (“Gas Plus”) to farm-in to a fifty percent working interest in Block 106 (“the Block”) comprising 920 square kilometers (227,000 acres) located around the city of Szczecinekin in northwest Poland. GPE has agreed to pay approximately US$250,000 in back costs and US$135,000 in estimated exploration expenditures for the remainder of 2008, plus 100% of the cost of a US$2.5 million 3D seismic survey, to be acquired in early 2009, to earn a fifty percent working interest in the Block. GPE and Gas Plus will share 50:50 in any future costs of exploring and developing the Block including exploratory drilling on the Sylvia Prospect targeting 10 million barrels of potential oil reserves from the Zechstein Main Dolomite at approximately 3,500 meters (11,500 feet) and the previously-discovered Czarne gas field from the Rotliegend sandstone at approximately 3,100 meters (10,200 feet).
Gas Plus International B.V. is a company formed in 2006 for the purpose of managing the international assets of Gas Plus Italiana S.p.A outside of Italy. The company has interests in licenses in the U.K., Romania and the Netherlands, and is participating in tenders for exploration and production of hydrocarbons in other European countries. Gas Plus Italiana S.p.A is the operator of 25 onshore gas fields in Italy, and produces around 8.5 BCF of gas per year.
Gas Plus began its activity in Poland in the spring of 2007 and participated in the first-ever bid round in Poland. The company’s key employees each have more than 20 years industry experience and possess expert knowledge of Rotliegend and Zechstein geology acquired in southern North Sea exploration. The Permian Basin of NW Poland, where Block 106 is located, is an extension of the southern North Sea gas basin and has similar geology. To facilitate its exploration efforts in Poland, Gas Plus contracted with the Polish Geological Institute (PGI) to perform a country-wide prospectivity study of hydrocarbons in Poland. Based upon the results of this study, further talks with experts from PGI, and review of material provided by the Central Geological Archive of Poland, Gas Plus decided to focus on Block 106 as having the best exploration potential.
The most prospective intervals on Block 106 are the Permian Main Dolomite of the Zechstein Formation (Z2), and underlying Permian Rotliegend sandstone of Saxonian age. In and near the concession area the existence of hydrocarbons has been discovered in basinal facies of the Main Dolomite in the Debrzno-2 and Brzozowka-1 wells. The Brzozowka Field produced 206,414 barrels of oil and 0.234 BCF of gas from 1996 to 1999 (data from IHS Energy). Reservoir rocks of Rotliegend age are present in the north-eastern portion of block 106. These are sediments deposited on the flanks of the ancestral Rotliegend basin as fluvial sandstones. The depth of the top of the Rotliegend is approximately 3100 meters. Previous drilling at the Czarne-1 well discovered and tested 10.1 MMCFGD gas in the Rotliegend sandstone on a 10mm choke. This discovery was appraised with 2 more wells, but remains to be produced.
Based upon data obtained from the Polish Geological Institute, and former operator Calenergy, Gas Plus has identified a significant number of structures at the Zechstein Main Dolomite and Rotliegend levels. The largest and most attractive of these prospects is the Silvia Prospect, a Main Dolomite prospect situated east of the Czarne gas field and north of the depleted Brzozowka oil field. The recoverable reserves of the Silvia Prospect from the Zechstein Main Dolomite are estimated by Gas Plus at 10 million barrels of oil at a depth of approximately 3,500 meters (11,500 feet). Note: The foregoing reserve information is a historical estimate and GPE has not concluded its internal studies to verify this estimate. Accordingly, readers should use caution when considering this information and should not rely on the accuracy of such information. Future geological and geophysical work in Block 106 will be focused on supporting the drilling of an exploratory well on the Silvia Prospect, the development of the Czarne gas field if internal studies show a positive economic potential for this project, as well as developing additional prospects at both the Main Dolomite and Rotliegend levels.
Gold Point Energy Corp. is engaged in the development of oil and gas projects in the U.S., South America and Europe. The Company has experienced technical and management professionals, which provide a high level of expertise to oil and gas project development, as well as good access to industry contacts and quality projects. Gold Point Energy Corp. has recently announced three new projects including the farm-in to earn a 50% working interest in Block 106 in Poland with Gas Plus International B.V., a farm-in with JKX Oil & Gas PLC and Aurelian Oil & Gas PLC to earn a 20% working interest on portions of two licenses comprising 350,000 acres in eastern Bulgaria, and a farm-in with RTR Energy, LLC to earn a 37.5% working interest in the redevelopment of the Tepee Butte oil field in Hettinger County, North Dakota
ON BEHALF OF THE BOARD "Jack S. Steinhauser" Jack S. Steinhauser President & CEO
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. These forward-looking statements are identified by their use of terms and phases such as “believe,”"expect,”"plan,”"anticipate” and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from the Company’s expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following: the Company’s ability to obtain additional financing, geological, mechanical or difficulties affecting the Company’s planned geological work programs, uncertainty of estimates of mineralized material and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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