VANCOUVER, British Columbia, Dec. 10, 2004 (PRIMEZONE) -- Goldnev Resources, Inc. (TSX Venture Exchange:GNZ)(PinkSheets:GDNXF) is pleased to announce the signing of Agreements to purchase two major oil and gas projects in Alberta, subject to acceptance for filing by the TSX Venture Exchange and completion of the appropriate due diligence by Goldnev Officers and Directors.
The first project is the acquisition by Goldnev of 100% of the issued and outstanding shares of Trophy Petroleum Corporation, a privately held Alberta registered corporation that is approved by the Alberta Energy and Utilities Board to operate oil and gas projects in Alberta. This mandate requires that the corporation have all appropriate licenses and available personnel that are approved to operate oil and gas projects in Alberta.
Trophy Petroleums has two main assets:
-- A 100% working Interest in an oil well -- Kitty 8-35-85-11-W5M. This well is completed in the Slave Point Formation over an 8 meter (26 foot) oil pay interval. The well was swab tested at 75 BOPD without stimulation, and is currently shut-in with oil to surface in the tubing. Oil Reserves are estimated at 1.5 to 2.0 Million barrels per well spacing unit. The oil is light gravity, and a second offsetting development well on the Trophy lands is under review. Goldnev plans to immediately stimulate the well to substantially increase the production rate and place the well on production.
-- A 10.3 % Working Interest in the operating 11-24-41-21-W4M Buffalo Lake North Gas Plant. The plant has a design capacity for 10 million cubic feet per day of gas throughput, and although Trophy Petroleum has no gas production in the immediate area, negotiations are underway to acquire several potential gas prospects in the area that could be serviced by the gas plant.
The second project is the purchase from Nearshore Petroleum Corporation of a 3D Seismic and geologically mapped prospect covering 16 sections of land in the Kitty area which includes the Kitty 8-35 oil well. The mapping on preliminary examination indicates a Slave Point Prospect that could contain some 5 million barrels of oil in place. There are also some indications of potential oil prospects in the deeper Keg River Zone that is normally more prolific than the Slave Point Formation.
Total consideration for both projects is $325,000.00 dollars.
A 2.5% finders fee (payable in cash or stock) is payable to Dynamo Drilling Services Inc. of Calgary upon closing of the transaction.
ON BEHALF OF THE BOARD 'George Isfan' President and Chief Operating Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the News Release.