seems to be getting a lot of media att:GGP farms out Silverwood...

seems to be getting a lot of media att:

GGP farms out Silverwood stake

Perth-based junior Golden Gate Petroleum (GGP) said it had farmed out a 40% stake in the Silverwood onshore oil and gas project in Louisiana to fellow Australian player Augustus Minerals.

Upstream staff 03 March 2010 03:09 GMT

Under the deal, GGP will retain a 30% stake in the project, which it will continue to operate. Partner Pass Petroleum will continue to hold 30%.

Augustus will pay about $880,000 in dry hole costs for an initial well to be drilled on the property in June, plus a further $240,000 in completion costs in the event of a discovery. Total dry hole costs are estimated at $1.1 million.

The project is targeting potential reserves of 7.4 million barrels of oil and 13 billion cubic feet of gas in highly pressured deposits in the Vicksburg Sand and underlying Cockfield levels.

The reserves lay under existing Lower Frio oil and gas deposit that had been producing since the 1950s.

Last month, GGP said it had signed an option agreement to take a stake of up to 50% in the Silverwood project by paying up to $600,000 in costs for the first well.

http://www.upstreamonline.com/live/article207791.ece