prediction-a lot more oil to come from permian

We are one month late putting the first bit into The Permian but would anyone be concerned now about the delay with oil shows on the first drill, especially when there is at least three oil shows on the mudlogs.

From the ANN today
'The oil shows cover multiple intervals and extend for several hundred feet of formation with good to bright oil cut fluorescence and increased background gas.'

I would have thought this is the time to buy not sell, what are people waiting for....are they waiting for all the first 10 wells to hit before they dip in?

Funny market, years ago this would have flown high above the clouds on this news, especially the proven success rates in The Permian and being the first hole of many more to come, figure?



Since purchasing the four leaseholds totalling 8,806 gross acres in Reagan and Irion County, Texas; GGP through its wholly owned US subsidiary, Cathie Energy Texas LLC, has been focusing on a development program covering the leasehold where GGP holds all rights to all intervals from the surface through the Wolfcamp and Strawn. Progress to date includes:

· A rig contract has been executed with Union Drilling Inc. (UDI) to drill two wells in September. Rig # 205 has been contracted to drill both wells back to back. UDI is a public company with over 50 rigs in operation, many of which operate in the Permian Basin. UDI has drilled numerous wells on the adjacent acreage surrounding the GGP leasehold with tremendous success, both from a commercial and financial standpoint.

· The lessor, the Texas Scottish Rite Hospital, has given their consent to drill on the leasehold and approval has been given for the two wells to be drilled at the identified locations. All permits are in place and work has commenced on arranging surface locations.

· A new Drilling Manager has been hired with a successful four year history of drilling Permian wells on the adjacent acreage. Recent drilling programs have been able to drill wells to approximately 8,500 feet in less than 10 days at costs under US$ 600,000 which is below our original planning estimates. GGP has contracted the UDI rig at rates which are expected to result in these very competitive cost parameters.

· Plans are being put in place for a 10 well drilling program to begin before the end of 2011. New drilling locations are being selected and UDI is reviewing rig scheduling to support the new program.

· Further investigations into the drilling and completion success in our area have identified horizontal wells into the Wolfcamp intervals proving to be some of the most commercial and financially successful wells. Work has commenced on identifying drilling locations where 4,000 to 6,000 feet laterals can be drilled and completed at competitive rates with significantly higher production levels than straight holes. In the GGP leaseholds where not all intervals are available, horizontal drilling appears to be an excellent option to exploit the hydrocarbon riches. Several experts in drilling horizontal wells in the Wolfcamp have expressed interest in assisting our efforts.