ann: eagle ford project commences drilling.

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1 May 2012
The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to announce
the commencement of drilling operations at the Eagle Ford project. The
Pioneer Drilling rig #28 commenced drilling operations of the Cutlass West A
#1 well on 29 April 2012 (US Central Standard Time). Lightning Oil Company
is the operator.
The Cutlass West A #1 well is drilling ahead at 439 feet and will be drilled to
an approximate depth of 9,200 feet and is estimated to take 27 days to
reach total depth. This well will drill through the Eagle Ford and Edwards
formations. Whole cores will be taken in various horizons. Once all
prospective formations are evaluated, the well will be plugged back to the
Eagle Ford formation where the horizontal section will be drilled. The well
will then be cased followed by preparation for fracture stimulation which will
be subject to rig and equipment availability.
The Company has a 10% working interest in this 40+ horizontal development
well project in the Eagle Ford Trend, Texas. The new project covers
approximately 3,400 acres in the oil window of the Eagle Ford Trend (See
below).
The operator and prospect promoter estimate resource potential of 15
million barrels of oil equivalent (BOE) gross (net to the Company
approximately 1.5 million barrels) for the leasehold position. The leases
have a 5 year term and a 25% royalty burden.

The depth of the Eagle Ford shale in this area is around 8,200 feet with a shale thickness of
approximately 175 feet. There are around 42 potential drilling locations on 8o acre spacing. Well
costs are estimated at US$7.5 million with a drilling time of three weeks. The lateral length of the
horizontal wells is planned for 4,500 feet and is expected to contain 12 to 16 frac stages. Initial
production rates range from 600 BOE per day to 1,300 BOE per day. Estimated ultimate recovery per
well is in a 362M BOE to 500M BOE range.
The Company is paying US$800 per acre, 25% royalty with a five year term which is considered very
competitive in the current marketplace.
Comments
Next to the Permian Basin, the Eagle Ford Shale Play in the Western Gulf Basin is considered the
most exciting development opportunity in Texas. This acreage sandwiched between very large
drilling programs by Rosetta and Anadarko is viewed as prime Eagle Ford. The cost of added acreage
seen in the Permian Basin significantly exceeds the deal terms achieved with this Eagle Ford project.
In addition, the project provides the Company the opportunity to diversify its project base with a
second development program. It will lower the Company’s overall risks with more focus on cash
flows out of development versus exploration. It also allows us to fully understand both areas of
development so as to cross pollenate the latest technologies.
On behalf of the Board of Directors
Steve Graves
Executive Chairman
For further information contact:
Chris Ritchie