6 November 2012Permian Project Update – SRH 5H Well Commences...

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: