Gold Point Energy Corp. (GP Energy) said Thursday that it has signed a letter of intent ("LOI") with Petrolero del Comahue S.A. of Buenos Aires, Argentina ("Comahue") regarding the farm-in of interests in the General Roca Block located on the southeastern flank of the Neuquen Basin in Rio Negro Province, Argentina. The Company may earn a 50% interest in the 292 square kilometer (72,124 acre) General Roca Block outside of the Flor de Roca and Don Jose Fields by funding 100% of the cost of a $2.0 million program to drill, complete and equip two exploratory wells for production. In addition, the Company can earn a 12.5% interest in existing and future production of the Flor de Roca Field by paying 100% of an estimated $400,000 program to perform two workovers and to equip and construct production facilities for two existing wells.
Comahue has 191 square kilometers of 3D seismic and 238 kilometers of 2D seismic that have been used to delineate the two exploratory prospects. These exploratory prospects will target the Tordillo and Punta Rosada formations. Total depth for the proposed exploratory wells is 2,200 meters.
GP Energy is currently completing its evaluation of the existing well data plus 3D and 2D seismic located on the General Roca Block prior to entering into a formal farmin agreement.