That was completed earlier this year (see Speculator, June 15). Golden Gate now has 100% working interest and a 75% revenue interest in the ground acquired, which was then estimated to contain reserves of 4.3 million barrels proven oil (P1 – mostly proven and undeveloped) plus 11.54 billion cubic feet of gas. Combined P1 and P2 (50:50 probable reserves) were estimated at 10 million barrels of oil. Since the deal was conceived more than a year ago, the world oil price has nearly doubled.
Yesterday’s announcement also confirmed the company was planning for a 110-well full project development. Well payouts have been calculated at 10 months with a 100 barrels/day production rate at an oil price of just $US80 a barrel.
There will be plenty of news in the coming weeks to hopefully stimulate the share price.
Golden Gate now has on issue 1,761,952,688 shares, which at 2¢ give the company a market capitalisation of $35.2 million, backed by net book assets of $10.5 million including cash of $2.4 million.
I expect shareholders may be tapped for another capital issue in a month or so, particularly with continuing field success.
This week: Bought 90,000 Golden Gate (GGP) at $1.8¢ = $1640.
GGP Price at posting:
1.9¢ Sentiment: ST Buy Disclosure: Held
