ggp leases and acres currently holding

Is anyone able to clarify the number of acres GGP currently hold ? Just 4 weeks ago the market was told they retain 5,092 acres and today it's 1,000 acres. Do they hold any further acres on other leases ? Maybe that's where the discrepancy lies ??


Infact no, it states below that all 6 wells are on the same 2 leases so, why in the last 4 weeks have they lost 4,092 acres ?? I thought the expiry date was the end of September assuming the extension ?? Also, where are the "600 acres in the Southern area of Reagan County" There whole project is in the NE corner of Reagan County, is it not ??

So what is it ?



This statement just 4 weeks ago.


Permian Project

Reagan and Irion Counties, Texas, Operator 100% WI


On 5 April 2013, the Company announced that it would be extending the L-771 & L-772 leases where the Company has recorded all 1P and 2P reserves associated with the Permian project, through to 30 June 2013. Following this the
SRH-6 well was drilled prior to 30 June 2013, which extended the leases for an additional 120 days under the continuous drilling clause of the lease agreements.

The leases not renewed (L-773 and L-774) were primarily in Irion County where neither the geologic nor technical work had been conducted due to the higher priority placed on the Reagan County leases. The Company was able to keep 644 acres in Irion County and approximately 600 acres in the southern area of Reagan County which included some of the reserves. color="blue">Overall the Company retained 5,092 acres where we believe our most potential lies. The retained leases contain all of the booked reserves from the project.



Today's announcement,

has “earned” to date over 1,000 acres on the 771 and 772 leases by drilling six wells.







So, if they are successful in the legal debate and are able to continue drilling, they are going to "will produce similar results to other Operators in our area". ?? Why wait until then, lets get this show off the road now and produce similar to our neighbours now ?





In the meantime, as reported by Global Hunter Securities, one of the leading securities, brokerage and petroleum industry research firms in the US, the Permian’s current oil and gas development in the Midland (see following chart) and Delaware basins remains prime leasehold as delineation efforts are proving very successful in terms of both expanding the boundaries of existing oil plays in the Wolfcamp and Spraberry intervals, and achieving strong rates of return. GGP’s leasehold position is well located in the main fairway of the Midland
basin where successes continue to be reported.


Once the legal matters are addressed and determinations made, the Company remains optimistic that the acreage earned, and additional acreage that can be drilled, will produce similar results to other Operators in our area.


The Permian Project is considered a very valuable asset. Over 5 million barrels of P1 and P2 reserves have been independently confirmed in the Spraberry Dean intervals on the 771 lease. In addition, there are significant contingent resources identified in the Wolfcamp. GGP’s current market capitalization is considered only a small fraction of the present value of the Permian Project. Every
effort and avenue is being explored to achieve greater recognition of the true value of this resource which is GGP’s primary asset.