17-October-2011 PERMIAN BASIN UPDATE OIL SHOWS REPORTED – DRILLING AHEAD Permian Basin, SRH-C #6 well, Reagan County, Texas, Operator, 100% WI The Board of Golden Gate Petroleum Limited (ASX:GGP) is pleased to announce that the SRH-C#6 well has to date encountered at least three oil shows on the mudlogs. 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. The well is presently drilling ahead at 7,794 feet with a planned target depth of 9,200 feet. The most prospective intervals where the primary targets are located remain to be drilled.
13-October-2011 Permian Basin, SRH-C #6 well, Reagan County, Texas, Operator, 100% WI The SRH-C #6 well spudded on October 7, 2011. The well is presently drilling ahead at 5,310 feet and will be drilled to a depth of 9,200 feet. This is the first well of a back to back two well program. It will be followed by many more wells planned over the 8,800 acre leasehold position in order to develop this highly regarded unconventional oil and gas resource representing the largest single project of known hydrocarbon development in the Company’s history. Both mud logs and electric logs will be run to assist with the hydraulic fracturing program and the design of future wells including horizontal wells across the leasehold. GGP’s experienced technical team will be closely examining various intervals in this well including the Upper and Middle Sprayberry, multiple Wolfcamp intervals and Strawn. All these intervals are oil and gas producers in the immediate area surrounding the leasehold.
12-October-2011 Dugas & Leblanc #3 – Workover Rig on Location Napoleonville- Dugas & Leblanc #3 Well, Assumption Parish, Louisiana, Non Operator 15.0% WI The Board is pleased to advise that a 24hr workover rig has commenced operations to perforate and place on production the primary “M” sand objective at the Dugas & LeBlanc # 3 development well. The operation is expected to be completed within 7 days. The Company has been advised by Grand Gulf Energy Ltd that their estimate of hydrocarbon potential in the M sand as follows: Oil (BBL) Gas (MCF) Projected Recoverable Reserve 400,000 1,200,000 The reserve potential of the M sand is expected to increase with reservoir performance data. Grand Gulf is expecting flow rates in the order of 200 - 400 bbls per day with around 600- 1,000 mcfd. Following further seismic and analogue interpretational work Grand Gulf believes that the M sand may have further up-dip potential of an additional 10-12 BCF of gas which if confirmed will need to be recovered from either a development well or side track to the D&L#3.
10-October-2011 PERMIAN BASIN PROJECT UPDATE — COMMENCED DRILLING OPERATIONS OF FIRST WELL Golden Gate Petroleum Ltd (ASX: GGP) is pleased to announce the commencement of drilling operations at the SRH-C # 6H well located in Reagan County, Texas. Drilling began at 6 pm on October 7, 2011 (US Central Time) and is currently at 741 feet after setting surface casing. This is the first well of a back to back two well program. It will be followed by many more wells planned over the 8,800 acre leasehold position in order to develop this highly regarded unconventional oil and gas resource representing the largest single project of known hydrocarbon development in the Company’s history. The SRH-C # 6H well is planned to be drilled to a depth of 9,200 feet and is expected to take 8+ days to reach total depth. Both mud logs and electric logs will be run to assist with the hydraulic fracturing program and the design of future wells including horizontal wells across the leasehold. GGP’s experienced technical team will be closely examining various intervals in this well including the Upper and Middle Sprayberry, multiple Wolfcamp intervals and Strawn. All these intervals are oil and gas producers in the immediate area surrounding the leasehold. The Union Drilling Inc rig # 205 is contracted to drill both wells. Permitting has been completed on the next 10 well drilling program. These wells will mostly be straight holes with fracture stimulation across the intervals which are expected to be the most productive. At least 4 of the next 10 drilling permits are expected to be horizontal wells. 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. Stephen Graves, Executive Chairman, said; “GGP is about to embark on a new chapter in the Company’s history. Our new role involves the development of known oil and gas producing intervals with a resource potential proven in the area. Successful extraction of the hydrocarbon wealth will begin to prove up valuations that are many multiplies our current market size.”
30-September-2011 JUMONVILLE # 4 UPDATE PLAN TO COMMENCE DRILLING OPERATIONS ON OCTOBER 18TH Golden Gate Petroleum Ltd (ASX: GGP) is pleased to provide a market update on activities involving the commencement of drilling operations for the Jumonville # 4 well. All permits are in place, location prepared and the Justiss Drilling Company Rig # 61 is scheduled to arrive at the Jumonville location around October 18th. SHALLOW LAUREL RIDGE (HUTH) PROSPECT AT BULLSEYE—JUMONVILLE # 4 The Huth Prospect is comprised of the mineral rights down to 11,000 ft which contains the producing zone at 10,100 ft (the Huth Sand). The Huth Sand has produced over 2.3 million barrels of oil and in excess of 2.5 billion cubic ft of gas. Based on 3D seismic review and recent log indicators, there may be significant amounts of recoverable oil remaining in the Huth Sand with 4 locations to be drilled. The Huth Sand has averaged 291,000 barrels of oil from the 8 wells produced from the interval.
GGP Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
