Intern Information Technology Solutions C O M P A N Y I N F O R M A T I O N Golden Gate Petroleum Ltd ABN 34 090 074 785 COMPANY DIRECTORS Steve Graves – Executive Chairman Chris Porter – Director Rob Oliver - Director MANAGEMENT Chris Ritchie – CFO / Co Sec STOCK EXCHANGE LISTING Australian Stock Exchange ASX Code: GGP Current Shares on Issue: 4,353,316,468 Market Capitalization as at 23 May 2013 based on a share price of $0.002 AUD $ 8.7 million CURRENT PROJECTS Permian Project Eagle Ford Shale Bowtie West Napoleonville North Edna Acadia Goliad www.ggpl.com.au G O L D E N G A T E P E T R O L E U M L T D A S X / M E D I A A N N O U N C E M E N T 24 May 2013 Permian Project Operational Update—5H Gas Sales Commenced Golden Gate Petroleum Limited (“GGP”) (ASX: GGP) is pleased to provide the market a weekly update on the 5H well which is part of the Permian Project in Texas, USA. #5H Well Update The 5H well continues to produce frac fluid, oil an d gas through a bottom hole pump. Pump rates have varied during the last week as the well has be en shut-in at times to install a new gas pipeline, meter, capillary and to conduct performance testing . In addition, an emulsion reducing additive is now being used to chemically treat the oil and frac flu id emulsion that is making up part of the produced fluids stream. The most recent oil cut percent is approximately 35 %, up from the prior week and total fluid production is running around 135 bbl per day as we continue to adjust flow rates and adjust for gas production. Gas production is up to a 200 mcf per d ay rate. Pressure in the new gas pipeline will eventually be reduced to allow additional productio n once compressors are installed to maintain lower line pressures. We are also evaluating a replacem ent of the bottom hole pump as pump rates based on fluid levels and other factors suggest that a di fferent pump, such as a jet pump, may provide better performance. The addition of chemicals, high gas line pressures and changes to production equipment are often normal operational fine tuning for a new well. We continue to monitor the well and will adjust equ ipment and flow rates as conditions warrant. The current hydrocarbon break-through is not considered a measure of initial production levels at which the well will establish its long term producing bas e. Higher percentages of oil and gas are expected as more total frac fluid is recovered and further c hanges are made to the well’s operational parameters. Halliburton have reported recoveries of up to 40-50 % of frac fluid volumes prior to hydrocarbon break through when using Perm Stim frac fluid. The early start to oil and gas production in 5H is testimony to every well being different and sometimes hard to know what to expect. Other wells using Perm Stim fluid and having early breakthrough similar to 5H experience suggest that the 5H well could produce for several weeks at current oil percentage s before oil production reaches initial production levels. For and on behalf of the board Steve Graves Executive Chairman
GGP Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held