NAPOLEONVILLE WELL SPUDDED........GGP is now...

NAPOLEONVILLE WELL SPUDDED........

GGP is now operator......:)

Hope not to see MANTLE again...........hurray!!!!

Napoleonville ] Sagers #1, Assumption Parish, Louisiana, Non
Operator 39.89% WI

The Board of Grand Gulf Energy Ltd (ASX: GGE) is pleased to advise the Sager #1 well spudded on Wednesday, 15 September 2010 and is expected to take approximately two weeks to drill.

Golden Gate Petroleum Ltd (gGolden Gateh) is the designated operator of the Sagers #1 well. Golden Gate
is an Operator of Record through its subsidiary Kindee Louisiana LLC. Golden Gate has been drilling wells in
onshore Gulf of Mexico for the last 5 years. Golden Gate has significant and relevant drilling experience
having recently drilled 3 deep geo]pressured and 3 shallow wells 30 miles to the north of Napoleonville in
the Bullseye project area and the Fausse point well which is 45 miles to the west of Napoleonville.

Partners in the Sagers #1 well is:
Company WI
Grand Gulf Energy Ltd * 39.89%
Golden Gate Petroleum Ltd (operator) 15.15%
Other Partners 44.96%
* GGE is liable for approximately 57.15% of dry hole costs.