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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	GGP
Latest Price:	0.01 (-7.14% )
52-week High:	0.03
52-week Low:	0.01
Market Cap:	28.70M

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Golden Gate Petroleum

Golden Gate Petroleum (ASX: GGP) is an exploration and production company with a portfolio in the Gulf of Mexico.

The company has built a substantial operating capability on the Texas/Louisiana Gulf Coast and is expanding to the Wolfberry Trend in the Permian Basin in Texas.

Golden Gate Petroleum gets farm-in offers, could speed up Texas oil development

Monday, February 06, 2012 by Bevis Yeo

Golden Gate Petroleum (ASX:GGP) could accelerate development of its Permian Basin acreage in Reagan County, Texas, after being approached by several potential partners.

The company said bringing a partner into the project would provide additional capital to take advantage of the multiple intervals that have potential for horizontal drilling.

These would accelerate development of its development program.

Several acquisition proposals and acreage positions have been identified so far.

Golden Gate added it would be participating in a larger 3D seismic program that covers its leases in Reagan Country.

Besides the benefits of 3D seismic in designing a horizontal drilling program, especially over the new intervals outside the target Wolfcamp, the cost of participating in this program will also be lower than if the company had shot its own seismic.

The company has also brought its SRH-2 well on stream though it plans to change the pump to increase fluid production and deal with the high gas content.

SRH-2 is currently flowing just over 100 barrels of oil and 125,000 cubic feet of gas per day along with frac fluid and formation water.

The oil is being sold at West Texas Intermediate prices – currently trading at US$97.64 (A$90.83) – less transportation costs while the gas is selling for over US$7 per 1000 cubic feet.

SRH-1 is currently having a new downhole pump installed to accommodate the rich gas being produced while SRH-3 is undergoing a 7-stage fracture stimulation program.

SRH-3 is testing 2 additional intervals for their productive capabilities compared to the 2 previous wells.

Golden Gate has also completed SRH-4 and flow testing will be carried out on the Strawn bottom hole interval, which has been fracced, to determine if it is a candidate for horizontal drilling.

Other companies are also testing the Strawn with Pioneer Natural Resources (NYSE:PXD) already producing from the interval.

Once enough information on the Strawn is gathered, the remaining frac stages will be added over the balance of the known productive intervals.

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