Looks good !Ground Floor1292 Hay StreetWest Perth WA 6005T +61...

Looks good !

Ground Floor
1292 Hay Street
West Perth WA 6005
T +61 (0) 8 9389 2000
F +61 (0) 8 9389 2099
E [email protected]
www.grandgulfenergy.com
ABN 22 073 653 175
ASX GGE
ASX/Media Release 21 June 2011
THIBODEAUX #1 DRILLING UPDATE
Highlights
? Thibodeaux #1 rig is presently drilling ahead at 16,250ft.
? La Posada prospect is targeting a resource of 10.3 million barrels and 302 BCF
? Targeting multiple objectives over 2,100 gross feet of potential sand
? Analogue discoveries include Davy Jones & Flat Rock > 1tcf
? Analogue production rates estimated at 30 + mmcf/d and 1,400 bc/d
? Well anticipated to drill to TD in ~50 days
Thibodeaux #1, La Posada Prospect, Non Operator 4.75%WI
The Board is pleased to advise that the Thibodeaux #1 well is presently drilling ahead at 16,250ft. The first
secondary objectives are expected to be drilled through as follows prior to the next casing (7? inch) run
being set at 17,650ft:
Target Depth Objectives
U Cris R sands 17,300‐17,485ft Secondary
M Cris R sands 17,550‐17,620ft Secondary
Stone Energy?s (stoneenergy.com) South Erath Discovery is in the U Cris Sands which is located north east
of La Posada within the same geological setting (see map below).
Grand Gulf Energy Limited Ground Floor 1292 Hay Street, West Perth WA 6005
T +61 (0) 8 9389 2000 F +61 (0) 8 9389 2099 E [email protected] www.grandgulfenergy.com
Following setting of the 7? inch casing the well will be drilled to 19,300ft and is expected to intercept the
primary objective, Lower Cris R Sands, between 17,750‐18,700ft. Followed by the secondary Basal Cris R
objective between 18,700‐19,300ft.
The Company has a 4.75% working interest in the La Posada Prospect which covers an area of 2,400 acres
in Vermilion Parish, Louisiana. The most likely resource potential being 10.3 MMBBL and 302 BCF gas, with
upside potential of up to 40 MMBBL and 1.1 TCF gas. The La Posada Prospect was generated from a
proprietary 3D shoot. The prospect is targeting a condensate rich gas pool in a large fault bounded
structure, located in a major proven hydrocarbon trend with nearby discoveries in the same objective. The
project offers substantial impact and long life resources. The well is targeting multiple objectives with over
2,100 gross feet of potential sand over a 2,000 acre closure with the primary targets being the L CrisR 1st
Massive sands (680ft sand of structure) and Secondary targets being the U & M CrisR sands (700ft sand of
structure).
Analog fields
Flat Rock / Davy Jones (2004‐10)
? Deeper Pool Discoveries
? On prolific Tigre Lagoon Regional N‐S Ridge
?
Etouffe S. Turtle Bayou (2000)
? Analogous structure, timing, depth and
deposition
? 20.8 MMBC & 96 BCF (active)
? Darcy permeability
Bayou Postillion (1970)
? On trend Large CrisR Fields
? Analogous structure, timing and deposition
? 266 BCF & 3.1 MMBC
Operational and Economic Upside
Resource Upside: Column height, Condensate yield, number of pays and sand thickness
Production rates: Deliverability & analog sustained rates 30+ mmcf/d and 1,400+ bc/d
Condensate yield: Higher yields on trend (45 and 75 bc/mmcfg)
BTU FACTOR: 1100btu/mcfg
Operating costs: SWD on property & access to Intracoastal Canal
Project costs: Pipeline tap on property, Shut in well available for re‐entry / development sidetrack
Gas markets: 2.5 miles from Henry Hub central facilities and multiple markets
Entry Terms: Very favorable with 5% carry to casing point and 10% back in after project payout
(APP) pro‐rata adjusted to the working interest. GGE?s will have a 4.275% WI APP.
For further information contact:
Mark Freeman
Executive Director
Phone +61 8 9324 1177
For more information visit www.grandgulfenergy.com and sign up for email news.
About Grand Gulf Energy: Grand Gulf is an ASX listed US based oil and gas exploration and production company
with management in Houston and assets in Louisiana.
Grand Gulf Energy Limited Ground Floor 1292 Hay Street, West Perth WA 6005
T +61 (0) 8 9389 2000 F +61 (0) 8 9389 2099 E [email protected] www.grandgulfenergy.com
COMPETENT PERSONS STATEMENT: The information in this report has been reviewed and signed off by Mr KC
Whittemore (Registered Geologist, Texas USA), with over 36 years respective relevant experience within oil and
gas sector.
This report contains forward looking statements that are subject to risk factors associated with oil and gas
businesses. It is believed that the expectations reflected in these statements are reasonable but they may be
affected by a variety of variables and changes in underlying assumptions which could cause actual results or
trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations,
drilling and production results, reserve estimates, loss of market, industry competition, environmental risks,
physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in
various countries and regions, political risks, project delay or advancement, approvals and cost estimates.