fausse point second gas show

FAUSSE POINT SECOND GAS SHOW

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to advise the T.G.R. Land Company, Inc #1
well at Fausse Point is presently at a depth of 8,100 ft and drilling ahead.
The well has recorded its second significant gas show at around 8,010 ft. The well circulated high levels of
gas cut mud and the mud weight has been increased on several occasions after 4,000 to 6,000 unit gas
shows were recorded in what appears to be the initial sections of the primary target interval. Drilling rates
have been slowed as the high levels of gas are being circulated to surface and mud weights increased to
control the well and safely keep drilling through this highly gas charged interval.
The well spudded on Saturday 5 December 2009. The well is expected to take up to another 3 to 4 days to
reach its targeted depth and electric logs will be run over the open hole.
The first gas show recorded and logged at 7,000 ft is now safely behind 7 inch casing set at 7,671 feet. The
casing was pressure tested and then the shoe was drilled out. A satisfactory formation integrity test at the
shoe was performed prior to drilling ahead.
Comments
While this second gas show is very encouraging, the significance cannot be determined until a full electric
logging operation is completed once the well reaches targeted depth, and if warranted, a production testing
operation is conducted.
Partners in the Fausse Point Project are:
Golden Gate Petroleum Ltd (ASX code: GGP) 20.00% WI
Verus Investments Limited (ASX code: VIL) 50.00% WI
Pass Petroleum L.L.C. 30.00% WI
Details of the Fausse Point project are summarised on the next page.
On behalf of the Board of Directors
For further information contact:
Steve Graves
Managing Director
Phone +1 805 469 4656
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Golden Gate is an independent oil and gas exploration and production company listed on the Australian Stock
Exchange. Its focus of operations is onshore Texas and Louisiana Gulf Coast region of the USA.
This report contains forward looking statements that are subject to risk factors associated with resources
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.
Fausse Point Highlights
Fausse Point is part of GGPs strategy to invest in low-cost, high impact, known hydrocarbon bearing areas
which in the Companys view are moderately low risk in onshore Louisiana or Texas where its knowledge
base and operational experience has been established from its other projects.
The prospect is located on the flank of a producing salt dome where two high quality targets have been
identified. The first target is shallow oil (7,000-8,000 ft) and the deeper target is gas (7,500-9,000 ft). Total
dry hole cost to drill the initial well is approximately US$1.5 million.
Salt domes in Louisiana have been proven to be highly prospective and prolific producers hence GGP views
this as a particularly exciting exploration opportunity. The Fausse Point salt dome has already produced
over 44 millions barrels of oil and 141 billion cubic feet of gas.
The potential oil resource is estimated at 7.4 million barrels of recoverable oil at P50 level and potential gas
resource of 24.2 billion cubic feet of gas. With potential upside in the event the anticipated pay zones are
larger.
The Fausse Point exploration project provides a high impact exploration opportunity with near term upside
to its current planned Bowtie West project. These high impact exploration wells which are relatively low cost
provide good upside for GGP when combined with the current strong cash flow from Bullseye.