announcement received, page-2

PERMIAN BASIN PROJECT UPDATE

Golden Gate Petroleum Ltd (ASX: GGP) is pleased to provide an update of operational activities in our
Permian Basin Project located in Reagan County, Texas.
SRH-1 well is having a new down hole pump installed to accommodate the rich gas being produced. It is expected to return to production this week.

SRH-2 well is unloading frac fluid along with oil, gas and formation water. A gas pipeline has been
installed. The well is currently averaging a little over 100 BBL of oil per day and 125 MCF of Gas for
the last week. The gas is selling for over US$7 per MCF and the oil is sold at WTI less transportation.
We are also planning a pump change out on this well to enhance production and deal with the high
gas content in the oil, so as to increase the fluid production.

SRH-3 well is currently undergoing a seven stage hydraulic fracture stimulation program. We are
including two additional intervals in this well versus the first two wells in order to test their productive
capabilities. The actual fracturing has now been successfully completed with drilling out plugs and
clean out commencing this week.

SRH-4 well has been successfully completed to a depth of 9,454 feet. A new bottom hole interval
(Strawn) has been drilled in this well and a separate hydraulic fracture program has been completed
in this lower interval as part of the SRH-3 well stimulation program. Flow testing this interval
separately will determine if it is a candidate for horizontal drilling similar to the Wolfcamp interval.
Other oil companies in the area are also testing the Strawn interval for possible horizontal drilling.
Once sufficient information is gathered on the Strawn, the remaining frac stages will be added over
the balance on the known productive intervals.

SRH-5H well, our first horizontal well is completing its planning phase. Locations have been identified
and surveys started. A “sleeve” fracture stimulation program is being reviewed with Haliburton.

The Company has been approached by another drilling company in the area who is in the process of
preparing for a 3-D seismic program that would encompass our leasehold in Reagan County where
most of our acreage is located. 3-D seismic would enhance our capabilities in designing an extended
horizontal drilling program especially over the new intervals outside the Wolfcamp. By participating in
a larger seismic shoot, the cost to the Company would be substantially less than if we initiated our
own

The Company also has been approached by other oil and industry related companies interested in
partnering with us in the development of our acreage position. A partner in this project would
provide added capital to take advantage of the multiple intervals that may have potential for
horizontal drilling. It would also accelerate the development program to our financial benefit.
In addition, the Company is examining other acreage positions in the Permian close to our existing
acreage, where we can diversify and leverage our position based on the knowledge acquired both
from a geologic and engineering standpoint.
There have been several acquisition proposals presented and acreage positions identified.