The Company reports that the Spyglass Hett #16-24, Gilbert #10-9, Gilbert #5-26, Peterson #6-5, and Gilbert State #3-16 wells have all found Shannon gas pay at an approximate drilling depth of 1600 feet. The Gilbert #10-9 well is a third new-field gas discovery within the Project. GP Energy has a 47.5% working interest in the US $1.8 million drilling program. Spyglass Cedar Creek, LP of San Antonio, Texas holds the balance of the interest in the project and is the operator.
"In late 2006 and early 2007 we made two new-field discoveries of gas in the Shannon with the Spyglass State #3-30 and State #4-35 wells," said Jack S. Steinhauser, GP Energy's President & CEO. "These wells were subsequently tested at a combined natural rate of 650 MCFD. The drilling program we have just completed was designed to appraise the extent and quality of the Shannon gas play, as well as test the accuracy of our proprietary seismic techniques.
"Using seismic methods developed by our operator, Spyglass, we have now chalked up an impressive record of seven hits for seven drills in the Shannon. We are currently planning additional 2D seismic acquisition for the Project to identify additional drilling locations. The project is 18 miles to the east of a 16-inch gas pipeline corridor that can provide access to North American gas markets. Our goal for 2007 is to establish the commerciality of the wells and identify a sufficiently large base of production and reserves to justify investments in pipeline and infrastructure needed to move the gas to market. With a pipeline in place, the existing Shannon wells can be brought into production creating cash flow for the Company."
GP Energy, a member of the Grosso Group, is engaged in the development of oil and gas projects in North and South America. The Company has experienced technical and management teams which, when combined with the business development and financial acumen of the Grosso Group, provides a high level of expertise and access to an outstanding network of contacts throughout the industry. GP Energy is poised to leverage this expertise and network into early exploration successes.
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