MANDEVILLE, La., April 12, 2006 (PRIMEZONE) -- Crosspoint Group, Inc. (Pink Sheets:CPGP) today announced that it has entered into an agreement to acquire 50 percent working interest in Ebarb School Field/Converse Field in Sabine Parish, Louisiana. The Ebarb School Field/Converse Field covers over 1,650 acres. The agreement is pending financing and should close within 45 days. The gas production field will be a joint venture between Suncoast Technical Services (Dallas), Fremont (Oklahoma City), with Public Gas Company (NV), a subsidiary of Crosspoint Group, Inc.
The current owners/operators, Suncoast and Fremont jointly manage over 100 natural gas properties. The company is located in Texas, Oklahoma and Louisiana. Suncoast and Fremont have 16 active natural gas wells in the Ebarb School Field/Converse Field. Crosspoint Group, Inc. has agreed to rework the gas wells and additionally drill a minimum of 15 new (vertical and horizontal) gas wells. These new gas wells will increase the gas production by doubling the total production volume.
Independent Geological Firm Indicates 21 Bcf of Proven Reserves in Fredericksburg Field
According to the independent geological consulting firm of Pollin & Shaw, President Ron Shaw stated, "Our geological surveys coupled with our familiarity with the Fredericksburg Field over the past 20 years confirm that the 21 billion cubic feet of proven reserves could provide significant future production as the field is reworked and new wells are drilled." This area and formation documentation has also been confirmed by a third party geological consultant, with over 27 years of reservoir engineering experience, Robert Hamrick, PhD/Geologist of Oklahoma. Donald "Rex" Gay, Corporate President of Crosspoint Group, Inc., stated, "This is the first transaction of this type for Crosspoint Group, Inc. and we plan to continuously add similar projects to our energy portfolio. Currently we have identified additional properties and are in the process of review and will actively pursue those that are economically feasible for CPGP to acquire."
About Crosspoint Group, Inc.
Crosspoint Group, Inc. is a full service energy company with natural gas drilling, natural gas production, natural gas transmission, natural gas compression sub-booster stations, as well as solar energy photovoltaic power generation, portable power lighting systems and portable power generators.
Forward-looking statements in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of CPGP's product, increased levels of competition, new products and technological changes, and CPGP's dependence on third-party suppliers.
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