fausse point announcement dated 02/12/2009

Check out the production rates guys

Details of the Fausse Point project are summarised below.
Highlights
· The project known as Fausse Point is 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 from its other projects.
· The prospect is located on the flank of a producing salt dome where two high quality targets have been
identified. The primary target is shallow oil (7,000-8,000 ft) and deeper secondary target is gas (7,500-
9,000 ft). Total dry hole cost to drill the initial well is approximately US$1 million.
· Salt domes in Louisiana have been proven to be highly prospective and prolific producers hence GGP views
this as a particularly exciting exploration opportunity. The Fausse Point salt dome has already produced
over 44 millions barrels of oil and 141 billion cubic feet of gas.
· The potential oil resource is estimated at 7.4 million barrels of recoverable oil at P50 level and potential gas
resource of 24.2 billion cubic feet of gas. With potential upside in the event the anticipated pay zones are
larger.
· Potential production rates could exceed 1,500 barrels of oil per day as initial production rates are estimated
at 300-500 barrels of oil per day per sand and there are multiple sands. Production could be supported by
nearby infrastructure.
· The Fausee Point exploration project adds another high impact exploration opportunity with near term
upside to its current planned Bowtie West project. These high impact exploration wells which are relatively
low cost provide good upside for GGP when combined with the current strong cashflow from Bullseye.
FAUSSE POINT
Fausse Point is a highly prospective and inexpensive onshore oil and gas exploration prospect which is
situated on an undeveloped segment of oil and gas reservoirs flanking the Fausse Point salt dome offering
high impact.
The Fausse Point Field was discovered in 1926 and is a piercement salt dome producing from the Miocene
and Oligocene age sands. The Fausse Point salt dome surrounding fields have produced to date over 44
millions barrels of oil, 2 million barrels of condensate and 141 billion cubic ft of gas.
The prospect area has almost 280 acres under lease with both oil and gas targets at less than 9,000 feet. The
targets are in a trap that is a pinch out of reservoirs onto the flank of the salt dome which is typically an
effective trap-seal combination. Target reservoirs are Lower Miocene sandstones with good porosity and
permeability, with the total thickness experienced in nearby wells of up to 150 ft in shallower oil interval and
up to 120 ft in slightly deeper gas interval.
Good potential oil rates of 300 to 500 barrels of oil per day per sand is typical. With multiple sands per well,
the possible production rates could be up to 1,500 barrels of oil per day. The exploration well and subsequent
development wells would be relatively inexpensive (less than 9,000 ft).
Partners in the Project are:
Golden Gate Petroleum Ltd (ASX code: GGP) 20.00% WI
Verus Investments Limited (ASX code: VIL) 50.00% WI
Pass Petroleum L.L.C. 30.00% WI