CALGARY, Alberta, Jan. 13, 2005 (PRIMEZONE) -- Goldnev Resources Inc. (Other OTC:GDNXF) (TSX Venture Exchange:GNZ) wishes to announce that it is entering into a Farm-in Agreement with CHEBAR FOUNDATION INC. of Calgary Alberta to drill a 7,500 foot deep well in Carter County Oklahoma. The Agreement is subject to acceptance for filing by the TSX Venture Exchange; appropriate due diligence by Goldnev's Geological and Engineering staff, and the availability of adequate financing to the Company to compete the project.
The selected drilling location is only several hundred feet from a well drilled in 1988 that encountered insurmountable mechanical problems during the final phase of the completion work and was subsequently abandoned. During the completion work, the productive oil zones were swab tested and produced in excess of 250 barrels of oil during a 7.5 hour swab test. Analysis of well logs indicates that the lowermost zone, the Arbuckle Brown Dolomite is oil bearing over a 70 foot gross interval with the oil reservoir containing an estimated 290,000 barrels of recoverable oil from a 20 acre drainage area.
The overlying Upper and Lower Viola Limestone formations also appear to be prospective for oil production and are estimated could ultimately yield in excess of an additional 100,000 barrels of light gravity oil from a 20 acre drainage area. The well location is accessible all year from high grade roads in the area, and if the initial offsetting well proves to be commercially productive, at least 2 additional wells could be drilled on the farmout lands. The estimated drilling and completion costs are in the order of $750,000 USD per well. At current oil prices a payout of each well is expected within one year.
GOLDNEV RESOURCES INC. is also pleased to announce that its oil and gas operations will be conducted from the Calgary office, and that Mr. A.E. (Al) Sivertson, C.A. will be in charge of all accounting and certain administrative functions for the Calgary office. Mr. Sivertson is a Member of the Institute of Chartered Accountants of Alberta and has supplied accounting services and administration duties primarily to the petroleum industry for 40 years.
Mr. Sivertson will be granted stock options for 250,000 shares at the next annual meeting.
ON BEHALF OF THE BOARD
'George Isfan'
George Isfan
President and Chief Executive Officer
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