Gold Point Energy Announces Farm-in on Polish Oil and Gas Project
NEWS RELEASE - August 5, 2008
Gold Point Energy Announces Farm-in on Polish Oil and Gas Project
VANCOUVER, CANADA (TSX Venture: GPE - Frankfurt WKN # A0HGQ1) Gold
Point Energy Corp. (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 licences 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 SpA 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 Brzozówka-1 wells. The
Brzozówka 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
For Additional Information
Val Donovan - Manager, Corporate Communications
(877) 741-1217 (604) 681-1250
vdonovan@goldpointenergy.com
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.
