Gold Point Energy reports that drilling has commenced on the first of two exploratory wells on the Capricorn License in Salta Province of Northern Argentina. The wells will be drilled back-to-back during October and November 2007.
The Capricorn License is strategically located along an oil producing trend of five existing fields in the Puesto Guardian block that have estimated ultimate reserves of 22.0 million barrels of oil according to the Instituto Argentino del Petróleo y del Gas.
"Using high quality seismic data, three structures have been identified that have the potential to trap significant recoverable reserves. The current drill program will test two of the structures. We expect to have the results from these prospects by the end of November." Jack Steinhauser, President & CEO.
GP Energy, Antrim Argentina S.A. ("Antrim") and APCO Argentina Inc. ("APCO"), the Project Operator, have agreed to drill the Peña Azul x-1 well on the Estacion Pizarro Oeste Prospect and the Lomas de Guayacán x-1 well on the Martinez del Tineo Oeste Prospect under a farm-in agreement dated October 4, 2006. GPE Energy will earn a 25% working interest in these wells and associated prospects by paying 50% of the cost of specified seismic acquisition and drilling costs.