Grand Gulf Energy (ASX:GGE) has secured leases over the Yellowfin Project in Assumption Parish, Louisiana, that has received substantial interest from larger companies.
Yellowfin is a significantly large feature of similar size to the adjacent Freeport McMoran’s (NYSE:FCX) Highlander Jeanerette-1 Discovery.
The Freeport McMoran well was recently tested with expanded facilities at 75 million cubic feet of gas per day and nearing finalised facilities prior to sales.
Both Yellowfin and Freeport’ well are characterised by and analogous to the sub-salt, compressional structural style and sand depositional setting as the ultra-deep offshore deep water sub-salt play and discoveries being developed by the major oil companies.
GGE has estimated Yellowfin to host 1.4 trillion cubic feet of gas assuming an average of 2,000ft relief over 5,200 acres.
The location offers significant cost reduction and surface infrastructure to facilitate bringing the project to market.
With success, the project offers long life reserves, high rate deliverability and significant oil and natural gas liquid potential to provide substantial impact on the company.
The prospect is currently being marketed to industry and will likely be operated by a large US Gulf of Mexico oil and gas Company.
It was developed in house using the company’s proprietary 52 square mile 3D seismic survey.
GGE had net production of 18,075 barrels of oil and 18.8 million cubic feet of gas in the December Quarter 2014 from its producing projects.
This generated gross revenue of $1.94 million.
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.