CALGARY, Alberta, March 1, 2005 (PRIMEZONE) -- Goldnev Resources Inc. (Other OTC:GDNXF) (TSX Venture Exchange:GNZ), wishes to announce that it is negotiating with International Petroleum LLC, a privately held company headquartered in Utah, to participate in a 14,500 foot well to test the reserve potential of the Upper Cretaceous age sandstones in western Wyoming. The prospect is located in the northeastern portion of the Greater Green River Basin on a line between Crooks Gap and Lost Soldier/Wertz fields. International Petroleum LLC owns approximately 16,800 acres of fairly contiguous BLM and State leases in four townships surrounding the proposed well. The BLM (Federal Bureau of Land Management) has tentatively agreed to give International Petroleum until July 1, 2005 to spud the test well to validate any expiring acreage, and a productive well will thereafter "hold by production" all leases in the project. Adjacent lease holders are Encana Oil and Gas, Ansbro (Anschutz) Oil and Gas, and Kerr McGee (NYSE).
As described in a recent report by Michael L. Pinnell (Wyoming Professional Geologist #1090), the primary objective of the test well is a seismically defined anticline with some 800 feet of closure, covering an estimated 2,700 acres at the top of the Cody (Steel) horizon with as much as 1,500 feet of pay potential. Additional prospective deeper zones appear to have closure and thick potential pay zones. These deeper zones are the same reservoir rocks that are productive at nearby Crooks Gap, Happy Springs, Lost Soldier, Wertz and several smaller fields, which have combined cumulative production volumes of 364 million barrels of oil and over 150 billion cubic feet of gas. Volumetric reserve calculations indicate that if the test well encounters hydrocarbons in the postulated anticlinal structure, the upper zone reservoir could potentially hold up to 600 billion cubic feet of gas over 20,000 productive acres. The reservoir volume of the deeper zones would potentially contain as much as 3.9 trillion cubic feet of gas over some 20,000 productive acres. A pipeline with up to 10 million cubic feet per day of spare capacity is located about 5 miles west of the proposed location.
Goldnev Resources Inc. has an opportunity to earn in the remaining 50% available gross interest in the project at an estimated cost of $3.0 million U.S. dollars. Goldnev is investigating several potential sources of funding to participate in this and other substantial ventures.
ON BEHALF OF THE BOARD "George Isfan" George Isfan, President and Chief Executive Officer
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