Gulf Petroleum GFPE Strikes Oil

Gulf Petroleum Exchange has struck oil in the Cypress Formation, the first of the three formations encountered in the Sterett Miles #1A located in the Illinois Basin. The Cypress formation gave up approximately 6 barrels of oil during setup. Gulf expects the initial production from this formation to be 50 to 60 barrels per day with similar results in each of the three formations.

The Sterett Miles #1A represents the first of five wells that Gulf will drill in this area. The Sterett Miles #1A was logged and production casing was set and cemented. The Cypress formation was logged at 1932-1945, the Aux Vases at 2170-2185 and the McClosky at 2360-2370; all had good porosity and a strong show of oil.

The Illinois Basin has produced over 3.2 billion barrels of oil and recent calculations indicate that remaining recoverable reserves in the Basin may be as much as 4.1 billion barrels. Thus, large quantities of oil, potentially recoverable using current technology, remain in the Illinois Basin oil fields.

Warren (Skip) Wheeler President of Gulf Petroleum Exchange, Inc. stated that he expects this well to be the first of several successful oil producing wells in this project and we look forward to starting the drilling on more wells to maximize production.

Don Smith, President of Smith Oil Co., Gulf Petroleum's strategic partner, stated, "We are pleased that the initial well in our five well package is having such positive results and we look forward to continued success."