ann analyst report, page-11

Hi all,

Below is a quick summary from the Strachan report that I thought was very accurate regarding the current state of the company. With long term cash cows flowing such as D&L3 and La Posada to come on line in the near future (with 40% increased payload than first estimates!), whats not to love about GGE ATM!? Especially at a share price of $0.004 with current value really @ $0.01. I am looking forward to watching this company grow in the years ahead.....along with the green on my portfolio screen!

Any thoughts?
S.W.O.T Analysis
Board
Charles Morgan Chairman
Charlie is an experienced corporate executive who has founded several petroleum exploration companies.
Mark Freeman CA, Executive Director
Mark is an experienced oil and gas executive, with over 16 years experience in the resources sector .
Stephen Keenihan Non Exec Director
Stephen is a geologist with more than 30 years experience in upstream oil and gas activities. He was previously exploration manager for Apache Australia and LASMO.
Allan Boss Non Exec Director
Allan is a Houston based banker and lawyer with 30 years of experience in the industry.
Jim Trimble Non Exec Director
Jim has more than 35 years of experience in the US and all aspects of the oil and gas industry.

Strengths
MANAGEMENT: The company has skilled local technical management in the USA and a supportive Board of seasoned investors.
PETROLEUM ASSETS: Grand Gulf has discovered oil & gas fields from which production will support ongoing activities over the medium to longer term.
LOCATION: Grand Gulf is operating in a relatively low cost & low risk jurisdiction, on conventional petroleum targets where the path to operating cash flow is short.

Opportunities
SHARE CONSOLIDATION: The company has an option to simplify its structure and consolidate its shares on issue.
PROJECT ACQUISITION: Grand Gulf is well placed to continue its path of organic growth by exploration success and incremental project acquisition.


Weaknesses
FUNDING: All smaller companies face challenges to secure funding for growth, but GGE has the prospect of sufficient funding from operations to maintain organic growth.
LARGE SHARE REGISTER: With 3.7 billon share on issue, liquidity is not an issue, but some inertia to growth may exist.
MATERIALITY: While Grand Gulf looks undervalued in comparison to the long term value of its underlying assets, the company remains small and may not present a material investment choice for some investors.
Threats
COMMODITY PRICES AND COSTS: The oil price outlook is favourable but the price of natural gas in the USA is likely to remain weak for several years.
COSTS & SKILLS: Currently, exploration and field development costs in the USA are inflated by the shale oil & gas boom. Conditions are likely to ease into 2012 as more equipment and trained staff are recruited.