6 May 2013 Permian Project Operational Update — SRH -5H Producing Oil Golden Gate Petroleum Limited (“GGP”) (ASX: GGP) is pleased to provide the market an update on the Permian Project including the SRH -5H well in Texas, USA. SRH-5H Well Update The SRH -5H well was put on a bottom hole pump and set to run at a 990 bbls of fluid per day rate after the well continued to return frac fluid without pump assistance, for two weeks. Initial pumping rates achieved the 990 bbls per day total fluid rate and the well experienced oil break-through plus gas at a very early stage of pumping. Once oil and gas began production, the pump rate was slowed to approximately 550 barrels per day so as to run the production through the temporary production facilities. After two days of production at the lower pump rate, the oil cut has increased from 11.5% to 21.1% of total fluid production or 52 bbls to 118 bbls of oil plus gas based on a 24 hour operating period. We are very encouraged by the results so far and will continue to monitor the well and begin to adjust flow rates as conditions warrant. The start of hydrocarbon break-through is not considered a measure of initial production levels at which the well will establish its long term producing base. Higher percentages of oil and gas are expected as more total frac fluid is recovered and further changes are made to pumping rates. Halliburton had reported recoveries of up to 40-50% of frac fluid volumes prior to hydrocarbon break through with the use of Perm Stim frac fluid. The early start to oil and gas production is testimony to every well being different and sometimes hard to know what to expect from the data we have been able to gather from other wells.
Looks good LWR
GGP Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
