Sign up Australia
Proactive Investors - Run By Investors For Investors

Grand Gulf Energy has gas production from Louisiana well

Grand Gulf Energy has gas production from Louisiana well
Grand Gulf Energy has gas production from Louisiana well

Grand Gulf Energy (ASX:GGE) has increased its oil and gas production with the Abita well in Louisiana cleaning up and producing 1 million cubic feet of gas and 5 barrels of oil per day.

The company has a 20% working interest in the Abita Project and will report again on this operation once stabilised rates have been achieved.

The gas and oil flow comes from the 17 sand, which is estimated to contain 485.4 million cubic feet of gas and 10,000 barrels of oil.

Following depletion of the 17 Sand the company can move to produce from the 15 Sand.

The 15 Sand is estimated to contain 1.5 billion cubic feet of gas and 30,500 barrels of condensate.

The recompletion that was undertaken on the 17 Sand was structured to enable an easier and cheaper recompletion on the 15 Sand. 

Recent Activity

Grand Gulf Energy recorded revenue of $1.4 million in the March 2015 Quarter on net production of 17,421 barrels of oil and 15.36 million cubic feet of gas.

In January, the company purchased a series of NYMEX WTI put options for 2,400 barrels per month at a strike price of US$49.20 per barrel over the period to June 2015 to mitigate downside price risk.

It also secured in March a series of NYMEX WTT put options for 3,600 barrels per month at a strike price of US$50 per barrel over the period July to December 2015.

The company has also secured leases over the Yellowfin Project in Assumption Parish, Louisiana.

This was developed in house using the company’s proprietary 52 square miles seismic survey and targets Cretaceous Tuscaloosa sands over a 2,000 foot interval on a structural closure covering an area of 8,000 acres.

Yellowfin follows Freeport McMoran’s “Highlander” Jeanerette #1 Discovery to establish sand, pay and significant column height and multi-TCF potential in the new trend.

Freeport’s discovery is reported to host 3 trillion cubic feet with 50,000+ acres under lease and two additional wells permitted in the area.

An initial test well will be drilled to a total depth of 27,900 feet.


While the Abita well continues to clean-up, the gross current flow of 1 million cubic feet of gas per day hints at its potential to provide a boost to the company’s oil and gas production.

This could in turn drive cash flow growth.

Grand Gulf Energy had $1.75 million in cash as of 31st March 2015. A payment of US$718,000 is also expected following a court ratifying a settlement.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

View full GGE profile View Profile

Grand Gulf Energy Timeline

Related Articles

New prospect areas near the Dorado-1 oil discovery
October 15 2018
Three additional prospects are estimated to contain significant quantities of oil, gas and condensate.
October 12 2018
Efforts in future will be directed toward the Chennai power plant and OPG’s growing solar capacity
oil rig
The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery, a share of production from the Keddington oil field and a raft of drill-ready exploration and appraisal targets

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use