6 November 2012 Permian Project Update – SRH 5H Well Commences Drilling Operations Golden Gate Petroleum Ltd (ASX: GGP) (“Golden Gate” or the “Company”) is pleased to provide an operational update on activities in our Permian Project, Texas, USA. VALLEY No 1 WELL DRILLING DATE Permian Project, Reagan and Irion Counties, Texas, Operator 100% WI SRH #5H Well The SRH #5H well, Golden Gate’s first horizontal well commenced drilling operations at 3.30pm, 5 November 2012 US Central time. The Western Drilling Rig No. 6 is currently drilling ahead. It will take approximately three (3) weeks to drill the horizontal well. The well plan calls for a full suite of electric logs to be run in order to assist with the planning process for the fracture stimulation program. The horizontal interval to be drilled is the Wolfcamp A interval. We believe there are three and possibly four intervals which could be candidates for horizontal drilling over our leasehold position. Approximately 24 horizontal well locations have been identified for each interval. 72 to 92 horizontal wells in total could be drilled over the leasehold. Based on other horizontal well estimates by major operators in the area, the SRH # 5H well could have an estimated ultimate resource potential of approximately 400,000 barrels of oil equivalent made up of primarily oil and gas liquids. The current plan is to drill Wolfcamp horizontal wells over the leasehold position in 2013 in order to maintain all leases via the continuous drilling requirements. The SRH #5H well will provide important information for next year’s drilling program as well as being a producing well. Besides Wolfcamp horizontal wells in the Permian, GGP plans to participate in the Eagle Ford Project where we have a 10% working interest over 3,400 acres. Horizontal Eagle Ford shale wells are to be drilled and completed over the same time. Both projects will be subject to financial capabilities. Part of the on-going legal dispute with Petro-Raider, LLC (“PR”) over the Permian leasehold position, a complaint has been filed with the Texas Railroad Commission challenging our drilling permit for the SRH #5H. We believe PR’s claims are without merit and will vigorously defend against this challenge. For further information contact:
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0.7¢ Sentiment: Buy Disclosure: Held