BULLSEYE PROSPECT – JUMONVILLE NO.1
SPUDDED
29 April 2008
ONG GAS FLOW AT MANZANO PROMPTS (3.1 MMCFD)
SECOND WELL
Jumonville #1 Bullseye Prospect, Iberville Parish, Louisiana,
Operator 50% WI
The Board of
Golden Gate Petroleum (ASX Code: GGP) is pleased to announce the following:
- The
Jumonville # 1 well commenced drilling on 28 April 2008 with a planned
total depth of 14,200 ft and is expected to take approximately 60 days to
reach total depth.
- The
total combined reserves in the three objective reservoirs are estimated at
12.5 million barrels of oil and 33 billion cubic feet of gas.
- GGP is
the Operator of the well and in the event of success, this project would
be a material event as at today’s oil and gas prices, GGP’s
share of the net revenue interest potential is over US$500 million based
on conservative reserve expectations.
- The
targeted reservoirs have high expected production levels given analogous
producing well rates in the region hence any discovery would yield almost
immediate strong cash flow due to nearby established infrastructure.
The Company has contracted a rig
from Helmrich & Payne, a premier drilling contractor to drill the
Jumonville # 1 well. Additional consulting expertise with a track record
for successfully drilling similar wells has been contracted to enhance the
company’s prudent operating philosophy.
The Jumonwille # 1 well targets three objectives (Camerina,
Miogyp and Cib Haz), with independent traps, defined by new, proprietary 3D
seismic data. Total reserves for these objectives were initially estimated
(P50) to be 12.5 million barrels of oil and 33 BCF of gas. Recent internal GGP
evaluation regarding probable pay thickness, reservoir extent as mapped by the
seismic data, and hydrocarbon column height demonstrated in analogous traps,
has indicated that the reserve potential could be considerably more for each of
these reservoirs.
The areal extent of the Miogyp and Cib Haz reservoir
sands are clearly delineated by the seismic at thicknesses in excess of 20
feet. The initial location offsets a previously drilled well which
demonstrated 50 feet of Miogyp sands on the logs but was not completed due to
mechanical difficulties in reaching a deeper objective.
Both the Miogyp and Cib Haz sands are high-quality
reservoirs with porosity ranging from 24-30% and permeability of
300-1000mD. This results in initial well rates observed in surrounding
fields in the range of 500-1000 barrels per day of oil and 4-10 million cubic
feet of gas per day. These high rate wells provide an excellent economic
return. A successful discovery will also benefit from high near-term US
oil and gas prices. The Company’s current oil sales contract for
the area has a $2.55 per barrel premium to West Texas Intermediate prices due
to the high quality of the liquids.
The Company has put in place a
permanent drilling pad suitable for multiple development wells with excellent
access. This will allow for accelerated development drilling and early cash
flow in the event of success.
A detailed summary of the Project is
located on the Company’s website please refer to
http://www.ggpl.com.au/operations_bullseye.html
Partners
in the Jumonville #1 well
are:
Golden
Gate Petroleum Ltd (ASX code: GGP) 50.00%
WI
Modena
Resources Limited (ASX code: MDA)
15.00% WI
Pantheon
Resources PLC 15.00%
WI
Eastern Advisors
20.00%
WI
Comments
The Bullseye Prospect initiates a
new strategic direction with larger and deeper targets that provide Golden Gate
with significant upside and diversification from the Padre Island Prospects.
The project has the potential to provide exponential growth for the Company and
its Shareholders. Bullseye is one on many high impact wells planned over the
coming months as GGP accelerates its drilling activities.
On behalf of the Board of Directors
For further information contact:
Steve Graves
|
Jeff Copley
VP Operations
Houston, Texas
Phone +1713-334-0986
|
Mark
Freeman
Director
Phone
+61 8 9324 1177
|
The information in this report has
been reviewed and signed off by both Mr Sam Russotti, Chairman, (BSc
Geology) and Mr. Jeff Copley, VP Operations (MSc. Geophysics), both with over
30 years relevant experience within oil and gas sector.
Forward Looking Statements
This announcement contains forward
looking statements that are subject to risk factors associated with oil and gas
businesses. It is believed that the expectations reflected in these statements
are reasonable but they may be affected by a variety of variables and changes
in underlying assumptions which could cause actual results or trends to differ
materially, including but not limited to: price fluctuations, actual demand,
currency fluctuations, drilling and production results, reserve estimates, loss
of market, industry competition, environmental risks, physical risks,
legislative, fiscal and regulatory developments, economic and financial market
conditions in various countries and regions, political risks, project delay or
advancement, approvals and cost estimates.