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ASX/Media Release
26 June 2007
Alto Energy changes
name to Grand Gulf
Energy
Alto Energy International
Limited (ASX:AOI) is pleased to announce that it has today received shareholder
approval to change its name to Grand Gulf Energy Limited. It has reserved the
ASX code GGE. Subject to ASIC and ASX approvals this will be effective by about
1st July 2007.
Grand Gulf Energy Managing Director and Chief Executive
Officer James Trimble said the name change reflects the company’s new focus
on low risk, conventional oil and gas plays in Oklahoma
and Louisiana.
“Our primary focus at
the moment is on the aggressive exploration and development of the Foothills
Joint Venture in Oklahoma, and the Phase 3B
Drilling Program and Napoleonville Salt Dome 3D Seismic project in Louisiana, ” Mr
Trimble said.
“With our new focus, and the recent
success of our first three new wells, the name change is very timely,” Mr
Trimble said.
UPDATE ON PROJECTS:
The Foothills Joint Venture in LeFlore County, Oklahoma
Grand Gulf Energy
participated in the 24 square mile 3D seismic program with BP and has drilled
two wells this year, the Reed #4-8 and the Pate #5-18.
The Reed #4-8 well has been connected with the
sales gas pipeline network and is currently producing at approximately 750
thousand cubic feet per day (mcfd), although the well is still cleaning up with
the production of frac fluids.
The Pate #5-18 well was drilled with successful
results and sales gas contracts have been negotiated. A completion rig is on site
and perforation, fraccing and testing will start immediately.
Logs for the Pate #5-18
well show that there are two sands capable of production, the Panola and the
primary target Spiro sands. The Spiro sands will be perforated and fracced
first and within 30-60 days the Panola will be perforated and fracced and
the gas will be comingled to sales.
Interpretation of the 24
square miles of 3D seismic is nearly complete and locations for wells will
start being chosen shortly.
Grand Gulf Energy has an 8%
interest in the Reed #4-8 well and a 25% interest in the Pate #5-18 well.
The Napoleonville Salt Dome project in Assumption Parish, Louisiana
Grand Gulf Energy has a 25% interest in 33,000 acres over
the Napoleonville Salt Dome in Assumption Parish, Louisiana. Historically, the Napoleonville
Salt Dome has produced 188 billion cubic feet of gas and 20 million barrels of
oil.
After several months of
drilling more than 5,000 shot holes, the acquisition of 3D seismic data is
expected to be completed in mid July, with interpretation commencing in
September.
The Phase 3B Drilling Program in Louisiana
Grand Gulf Energy currently
has between 3.75% and 7.5% interest in the Phase 3B Drilling Program in
southern Louisiana, in a joint venture with Legend Petroleum, who identified
the Phase 3B five well drilling program from a large 3D seismic data set.
Demonstrating excellent technical correlation and amplitude analysis, the
drilling program is over small lease areas, targeting specific structures. The
area is known for high well productivity.
The ConocoPhillips #4 well
has been perforated and flowed 3.2 million cubic feet per day (mmcf/d) to
atmosphere on a choke of 12/64”at a tubing pressure of 3,800 psi on test.
Gas contracts and sales gas pipeline are being put in place prior to putting
the well on stream.
Shareholders meeting:
At the shareholders meeting
today, shareholders also approved and ratified a number of other matters
including the issue of shares in the recently announced placement, the issue of
shares and options to Macquarie Bank pursuant to its working capital facility
and an Employee Option Plan to attract, motivate and retain employees and
consultants and encourage their participation in the company through Share
ownership.
For further information
contact:
For more information visit www.altoenergy.com.au