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GOLDEN GATE PETROLEUM LTD

ASX: GGP

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Golden Gate is a focused petroleum exploration and production company with an exploration portfolio in the Gulf of Mexico and the Permian Basin containing world-class prospects.

Bullseye Project

GGP owns a 42.25% working interest in the Bullseye prospect (an area of 1,700 acres) located in South Louisiana. The first well, Jumonville #1, was spudded on 28 April 2008 and reached its total depth of 12,440 feet on 28 August 2008. The well was put on production in September 2008 in the Miogyp resevoir. The JV is commencing preparations to test the Camerina Interval. The JV announced on June 30, 2009 the completion of Jumonville #2 in the Miogyp resevoir.

Both wells intersected and logged a 25 - 42 foot sand, Camerina, above the Miogyp resevoir, this resevior was cored and indicated the potential for hydrocarbons. In the Jumonville #2 well the well also logged pay in a shallower reservoir, Marg Vag. Both the Camerina and Marg Vag represent further productive potential and will be tested following production ceasing from the Miogyp interval.

The JV also re-entered the Acosta well and on 2 February 2009 announced that it had completed the first phase of testing in the Miogyp. Perforations of the Miogyp resevoir experienced apparent formation damage limiting well bore entry which is most likely caused by the close by original well bore. An acid treatment program was successfully completed and the well flowed formation fluid which contained no oil. A program was been prepared to test the Camerina formation which was not expected to be impaced by formation damage to the same degree as the Miogyp formation. Earlier sidewall cores of the Camerina indicated better oil saturations than the Miogyp. A treatment and testing program continues to be evaluated in conjunction with other alternatives in maximising the value of the well.

A Reserve Study is presently being undertaken to determine the reserve size of the Bullseye prospect.

Fausse Point Project

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to provide the following update on the T.G.R. Land Company, Inc #1 well at Fausse Point. The T.G.R. # 1 well has concluded initial production testing from the lowest zone (8,370 feet) of six intervals of interest across three separate gas and oil formations starting at 7,000 feet. The well has established a commercial flow rate from a potentially very large hydrocarbon accumulation which could represent a new play type not an original target in this well. Work continues on evaluating this potentially tremendous accumulation and preparing the well for production.

Silverwood Project

The Company announced on 3 March 2010 that it has entered into an agreement with Augustus Minerals Limited (ASX: AUJ) (“Augustus”) to participate in the Silverwood oil and gas prospect. Under the agreement Augustus will earn a 40% working interest in the prospect and GGP will retain a 30% working interest and operatorship in this high impact oil and gas exploration project located onshore south Louisiana . Preparations have begun to drill the initial well in June 2010.

Augustus will contribute an estimated US$880,000 towards the dry hole cost of drilling the first well with an additional estimated US$240,000 towards completion costs in the event of exploration success. Total dry hole costs for drilling the first well is approximately US$ 1.1 million.

Napoleonville salt dome Project

* The Napoleonville Salt Dome has the potential to contain 520 billion cubic feet (BCF) of gas and 4.5 million barrels of oil (MMBO) from over 60 prospects and leads which has been identified so far from Grand Gulf’s proprietary 50 square mile 3D seismic survey. The agreement with Grand Gulf includes access to the entire Napoleonville potential.

* Preparations have begun to drill the first three well program with the initial well expected to spud in May 2010. The first three wells are targeting a total of 9.2 BCF of gas and 1.6 MMBO of oil at shallow depths from 5,000 feet to 10,000 feet with over half the targeted potential classified as low risk proven undeveloped reserves (PUD’s).

* The Napoleonville Salt Dome has historically produced 188 billion cubic feet of gas and 20.2 million barrels of oil. Multiple high quality targets have been identified from the recent 50 sq mile 3D seismic survey and as the technical work continues, it is likely to generate significantly more prospect and PUD opportunities. The primary targeted sands are Tex W, Big Hum, Operc, Cris R II – VII, Marg Vag, Camerina and Miogyp with sands commencing at 4,000ft to 14,000ft.

* As of February 2010, approximately 5,700 acres of leases had been exercised from Grand Gulf and partners 35,300 optioned acres pertaining to the seismic shoot. Relationships with the various landowners previously under option have been maintained in preparation to lease newly developed prospects as they advance.

* Napoleonville forms part of GGP’s strategy to invest in low-cost, high impact, known hydrocarbon bearing areas which in the Company’s view are moderately low risk in onshore Louisiana or Texas where its knowledge base and operational experience has been established. By adding the Napoleonville prospect to our existing projects—Fausse Point, Bowtie, Silverwood and Bullseye, we have created a diversified mix of high quality prospects providing the best opportunity to achieve long term success.

* Subject to a mutually agreed Sale and Purchase agreement Golden Gate will pay 23% of costs to earn a 15% working interest with an entry fee of US$300,000 payable to earn an interest in the first three prospects. Golden Gate will contribute an estimated US$190,000 towards the dry hole cost of drilling the first well with an additional estimated US$130,000 towards completion costs in the event of exploration success, along with similar contributions for the second and third well. Golden Gate will have the option to participate in subsequent three well programs on the same terms and can ultimately earn a 15% working interest over the entire dome.

Padre Island Project ("PI Project")

Golden Gate recently increased its interest in the Padre Island exploration assets from 10% to 37.5% in the high impact exploration ground. The PI Project comprises multiple play types including smaller, low risk, shallow prospects and larger, deeper prospects which have seen little drilling attention. The agreements governing the PI Project were recently restructured so that the project now comprises a number of separate joint ventures in the different depth zones.

Bowtie Project

* Gross potential P50 is estimated at 50 BCF of gas
* Objective reservoir with high production rate potential delivering high rate of return
* The Company has acquired an initial participating working interest (“WI”) of 20% which will be reduced to a net 18% working interest after back-in on the initial well.
* Net revenue interest is approximately 72% after royalty’s and over-riding interests.
* The project adds another low-risk, high impact project to the Golden Gate portfolio.
* This new project is consistent with Golden Gate’s stated strategy to focus on hydrocarbon exploration onshore in the Gulf Coast region of the U.S. (Texas and Louisiana)

Mine For

oil, gas

Location of operation(s)

USA

Address

566 Elizabeth Street
MELBOURNE, VIC, AUSTRALIA

Phone

(61 3) 9349 1488

Email

Website


Last Updated

4/5/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.