I urge all new investors to please READ CAREFULLY part 6 of GGE...

I urge all new investors to please READ CAREFULLY part 6 of GGE interim report. This may explain why over the past week or so the market has dumped over 75mil shares or more into 0.003 something seriously bad may be going on. Please dyor

I'm not down ramping, just stating facts from the report. Its higly unlikly any of the up rsmpers would discuss this. I think its important for new investors to know about GGE's past and not just all the pump up and ramping by about 3 or so posters.

I was a holder but was lucky enough to sell my shares at 0.004 there are now over 80mil shares (57) sellers trying to off load at 0.004 :-(( please read and research this stock very carefully before buying.




"NAPOLEONVILLE WELL CONTROL AND CONTINGENCIES"

Grand Gulf advised on 11 August 2010 that the Operator, Mantle Oil & Gas LLC of the Dugas & Leblanc # 1 well the well was flowing uncontrollably to the atmosphere. The well was brought under control on 24 August 2010.
Since 12 August 2010, the Company has made a series of important announcements on the ASX in relation to efforts to control the blowout of the Dugas & Leblanc #1 Well (“#1 Well”) at its Napoleonville Project in Louisiana, United States (U.S.), and the subsequent effects on the Company.

The Company confirms the Operator’s insurance has paid out a total of USD$11,000,000, whilst the Company’s insurance has paid out ~USD$3,329,097. The current costs in excess of this to the Company’s account are estimated at USD$820,000 which are expected to be covered by the Company’s umbrella policy.

A class action was filed in the U.S. against the Operator of the #1 Well in State Court for damages by certain residents of the Napoleonville area.
On 13 March 2011, the Company, together with a number of other parties, were joined in a new legal action brought about by the landowner and a neighbouring business operating within close proximity to the Company’s operations seeking damages relating to the #1 Well event.


On 8 July 2011, the Company, together with a number of other parties, were joined in a new legal action brought about by a separate landowner within close proximity to the Company’s operations seeking damages relating to the #1 Well event.

On 11 January 2012, the Company, together with a number of partners, sought damages from Lexington, the control of well insurer, in respect of non payment of care custody and control costs in relation to the blowout.
The Company undertakes to vigorously defend this action and any other action that might be brought against it by virtue of its joint venture interest in the Napoleonville Salt Dome Project. The Board is mindful of its obligations to investors and will immediately update ASX as and when more information becomes available.

The company currently believes that insurance will substantially cover the costs of the #1 Well clean up operations and any court cases or settlements that occur. The Company considers a potential outflow for a possible cost to it, net of insurance, of US$1,000,000. If the insurance does not cover these costs associated with the environmental clean-up, and/or current or future class actions result in an adverse finding against the Company, this would have a material adverse effect on the Company and could adversely affect the value of Shares held in the Company.
Subsequent to year end the company received partial insurance payment of US$523,869 and expects full recovery of the remaining $733,686, however, this can’t be guaranteed.

Apart from the potential contingent liability noted above, there are no further contingent assets or liabilities existing at 31 December 2011.