Gold Point Energy reports that initial testing from seven wells in its Shannon gas development program in the South Cedar Creek Anticline Project in South Dakota has established a combined natural flow rate of 1.8 million cubic feet of gas per day. It should be noted that these are initial test rates of natural flow capability prior to fracture stimulation. Fracture stimulation may enhance the production rates of the wells. Actual rates once the wells are placed on production may be different from initial test rates.
The Company reports that the Spyglass Hett #16-24, Gilbert #10-9, Gilbert #5-26, Peterson #6-5, Gilbert State #3-16, State #3-30 and State #4-35 wells have all established gas production from Shannon pay at an approximate drilling depth of 1600 feet. GP Energy has a 47.5% working interest in the South Cedar Creek Anticline Project. Spyglass Cedar Creek, LP of San Antonio, Texas holds the balance of the interest in the project and is the operator.
"Using our seismic methods, GP Energy and Spyglass have now chalked up an impressive record of seven hits for seven drills in the Shannon. Over twenty-one potential locations have been identified based on existing seismic data. We are currently planning additional 2D seismic acquisition and drilling activity during the remainder of 2007". Jack S. Steinhauser, President & CEO.