GGP - Golden Gate Petroleum

[Miner]

Since I posted last the ASX published this report.
Now the comment came my message was too short.
I am thinking of writing a poem now

 

[Albi]

Inspite of today's announcement there is not big change in SP, it opened at .056 and then slip, now it is at .052 while VIL is in good move.
Holding ggp

 

[McCoy Pauley]

May have something to do with the fact that VIL has 50% stake in Fausse Point, compared to the 20% stake of GGP.

 

[condog]

Exactly Paully VIL has 250% the interest in the fause point that GGP has....
I wouldnt fret though with GGP nearby acquisition and its cash flow from Bullseye it looks fantastic...
In fact when i do sell some VIL...part proceeds will be going into GGP if it stays at these prices - relatively...

 

[dan-o]

huge volume of shares changing hands, 89 million so far today... i like the direction this is heading...

 

[subasurf]

A fairly large dump today, back down below 30million.

*post to short*
*post to short*
*post to short*
*post to short*

 

[KMW]

Positive signs in this one, 10 day Moving Average crossed the 30 Day MA on an uptrend, and both of them crossing the 200 day MA. Not holding any but thinking of them as a short term trade.
This time would obey the get out signals properly, came out of my first stock with $9.00 profit through holding 4 days to long Talking small $ trades here but one has to start somewhere

 

[KMW]

VIL looks interesting as well as GGP's partner in crime, seen your comments soooo, went and checked it out, a breakout on an uptrend.

sorry if my post seems amateurish but then of course I am ^_^

 

[condog]

GGP severely oversold on negative sentiment towards GGP. I suggest you dYOR and look into GGP's other projects. As well as upside potential for FP which GGP has the cash flow to sustain proper exploration in.

 

[rabbit59]

Nice simple announcement to let everyone know the EXACT facts of what is currently going on at Fausse Point

FAUSSE POINT and VERUS UPDATE
Key Points:
ϒ Fausse Point #1 Well - commercial production declared.
ϒ Flow testing to recommence as soon as production facilities commissioned.
ϒ Current test interval was not an anticipated target in the planned drilling.
ϒ The discovery is potentially part of a very large regional accumulation.
ϒ Additional adjacent land acquisition being reviewed.
Verus Investments Ltd (“Verus”) is pleased to provide this update and upcoming plans for its
activities at the recently drilled Fausse Point (FP) Well in Louisiana, USA.
As reported in an ASX announcement on 8 February, 2010, the joint venture (JV) partners in FP,
Golden Gate Petroleum Ltd (GGP) and Pass Petroleum, have declared commercial production of
the FP #1 Well.
While the reported flow rates from this 10’ section of the lower interval

 

[rabbit59]

Second ANNOUNCEMENT for the day...a little more detail this time...

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to provide the following update on the T.G.R.
Land Company, Inc #1 well at Fausse Point.
The T.G.R. # 1 well has concluded initial production testing from the lowest zone (8,370 feet) of six intervals
of interest across three separate gas and oil formations starting at 7,000 feet. The well has established a
commercial flow rate from a potentially very large hydrocarbon accumulation which could represent a new
play type not an original target in this well. Work continues on evaluating this potentially tremendous
accumulation and preparing the well for production.
Further analysis of the zone at 8,370 feet indicates that it could possibly be connected to a much larger
hydrocarbon accumulation, and that this well has only just penetrated the edge of this larger accumulation.
This zone was not an original target of this well and hence represents a significant new play type that will
need to be carefully evaluated with further analysis.
The following graph depicts the multiple hydrocarbon intervals penetrated by the T.R.G. # 1 well next to the
Fausse Point Salt Dome. Reservoir sandstones are shown thinning to zero onto the flank of the salt dome
truncated at the top by unconformity. These reservoir sandstones expand as you move away from the salt
dome and provide potential for large hydrocarbon accumulations.
~ 2 ~
The graph also shows the two primary target objectives of the well which include multiple zones of interest of
over 110 feet intercepted at the shallower depths and where hydrocarbon bearing. Given the significance of
the lowest zone and the very large potential upside consequences of a possible large discovery, the partners
agreed that the current focus must be on the lowest interval even though we still have primary target
objectives to test.
Moving up the well bore to test the primary objectives at this time could preclude us from returning to the
lowest interval. In the meantime, by bringing this deep zone into commercial production, the Joint Venture
will be able to generate early cash flow, as well as have more time to evaluate all the data from this zone as
well as the other zones located higher in the well bore
Fully understanding all these zones of interest across 120 feet and potentially other zones continues in order
to more precisely determine the geologic and petrophysics to assist with a full scale development of the
prospect. More acreage has been leased to comprehend the significant of the discovery.
A decision on the timing of testing of the shallower zones will be influenced by the production performance of
the deeper zone. Once all available data has been fully evaluated, the Joint Venture will decide to either test
the shallower zones from within this well bore or drill a new well as soon as possible.

 

[Atlas79]

Words like "could possibly" & "potential" as opposed to actual measurable facts don't look like detail to me.

 

[rabbit59]

Words like "could possibly" & "potential" as opposed to actual measurable facts don't look like detail to me.

I agree, but that at the end of the day is 'the way it is' in the resource game isn't it atlas

but in saying that, these little announcements are all just to stimulate the punters in the market.... that's my guess anyway...

 

[condog]

Check out the announcment on GGP today.

Steve has gone and bought a 15% progressive interest in an entire salt dome with an initial cost of only $180,000 due to spud in may. Most the inital targets are Proven undeveloped resources. Loving it. The siesmics are all done and payed for.

GGP now has 5 low cost high upside projects for 2010. 4 are potential company makers. 2 are producing. Its now they will begin to be taken seriously. FP is only one aspect of GGP.

 

[condog]

New investor presentation out today.

highlights all 6 projects, well worth a read for those interested or newbies.

 

[Miner]

About one week - no sign of posting since condog last posted in this thread

any way GGP has followed the path by allocating shares at 3.5 cents each to sophisticated and institutional investors alongwith some options attached

They had a right issue in Oct 09

See attached

 

[Tommo_Aus]

About one week - no sign of posting since condog last posted in this thread

Not a large amount happening as of late, some minor updates but nothing substantial enough to move the SP. However, interesting to see how Mr Graves has been positioning his finger in many pies

Not too much of a hit today with the SPP @ 3.1c being announced last night, though tomorrow could see more of a downwards trend. Have to say its not what I was expecting as I thought GGP did its CR's before drilling FP to avoid further CR's. SG knows what he's doing so hopefully this CR is in our best interests, perhaps an acquisition? May need cash in advance.

I'm expecting to see something solid come from this CR, there has to be a good reason for one at this time with ~$4 million in the bank. Otherwise I can't see it being anything more than 'mates rates'.

 

[condog]

1 well every month for the next 5 months is what novus capital are saying.

hmm sounds good to me. Cashed ap and ready to drill. Rediculously low sp.

LEts go from here the direction seems pretty clear.

 

[condog]

From: http://www.finnewsnetwork.com.au/archives/finance_news_network14105.html
ASF and i take no responsibility for external links.

Discovery program, Golden Gate Petroleum
March 18, 2010 02:44 PM



TRANSCRIPTION OF FINANCE NEWS NETWORK INTERVIEW WITH GOLDEN GATE PETROLEUM LIMITED (ASX:GGP) MANAGING DIRECTOR, STEPHEN GRAVES

Clive Tompkins: Hello Clive Tompkins reporting for the Finance News Network. Joining me for the first time from Golden Gate Petroleum is Managing Director, Stephen Graves. Stephen welcome to FNN, can you start by introducing the Company.

Stephen Graves: Golden Gate’s a company that’s been around eight years. It’s been focused in the Gulf Coast of North America, specifically in Texas and Louisiana. All the drilling activity has been there, it’s been onshore, it’s been primarily in shallow oil and gas of course, and projects that vary quite a bit.
All those projects, there’s six of them and those projects have tremendous upside potential for our share price in each one of them. And in most of them we are the operator and we control our project and the destiny that we have.

Clive Tompkins: Could you tell us about your announcement today, the Investor Presentation. What are the highlights?

Stephen Graves: Well the real emphasis of today’s Presentation is the fact that this Company now has got six major projects under development. Three of them are discoveries. We just recently announced the discovery at Fausse Point. We have production at our project called Bullseye and we also have some production still at Padre Island, which is the original project that the Company started eight years ago.
We’ve just announced two new projects, one called Silverwood and the other one called Napoleonville. Both of those are just fantastic upside projects for us and we’ve also got a project called Bowtie West.
The difference now for Golden Gate as in the past, is that we’re going to be drilling six wells or participating in at least six wells and the testing of two other wells that have already been drilled, over the next six months. So we have a tremendous amount of activity and all those projects have a significant upside potential to our share price.

Clive Tompkins: So where are your projects?

Stephen Graves: Well the good thing is that we’ve been able to again, stay focused in one area of the country but also be diversified across these projects. We have no more than 30 to 35% of any one project, some of them as low as 15%. That gives us a chance to have more projects and lower risk, and that’s what we’re doing with this type of strategy that we’re moving ahead with. It is different than most companies that have one or two projects and a much larger working interest position.

Clive Tompkins: Stephen, why have you chosen to focus on six projects when other companies focus on just one or two?

Stephen Graves: I think it’s because we’re an operator in the United States. We operate, we are the ones that develop the prospects, we’re the ones that drill the wells, we’re the ones that actually put the pipelines in and produce the oil and gas. That means that we have a better understanding of that particular area of the country and we’re not just an investment vehicle that invests in the projects.
So we’re staying focused, yet at the same time we’re developing those projects across a range of different type of geologic structures, again. But at the same time, we’re not getting too far ahead of ourselves, we’re trying to keep our working interest positions at a manageable level and also drill wells that are relatively shallow and stay again, focused on oil.

Clive Tompkins: Okay so how many barrels do you currently produce?

Stephen Graves: Well we have one well that has been producing for the last year and it’s accumed about 240,000 barrels of oil since the project started and that’s our primary producer. We’ve been producing gas from Padre Island for the last four or five years, so we’ve had numerous billion cubic feet of gas produce in Padre Island. Last week - two weeks ago I’m sorry - we announced a discovery at Fausse Point and that well is going to go on production, probably in about six weeks.

Clive Tompkins: So are you cash flow positive?

Stephen Graves: No we’re not positive yet because we’re still in development mode. We have all these opportunities to develop these projects that are coming up. They’re exciting projects and we want to take advantage of those projects, and that means we’re spending our equity capital to do that now. But we’ve got again, six wells to drill in the next six months, a couple of wells to test – with success in two or three of those, we will be cash positive - big time.

Clive Tompkins: Stephen last question, where’s your share price today and what’s your market cap?

Stephen Graves: Our share price is around the 4 cent mark per share and we have a market cap of about $26 million. A lot of the share price has been dictated by the most recent well we’ve just announced a discovery in. The discovery that we’ve announced is extremely exciting and has tremendous upside, but we don’t know the order of magnitude of how big it is at the moment, and the market’s pretty much discounted us a bit because of this one discovery. The good news is the discovery.
The further good news is that we’ve got five other projects that we’re still working on that have just as much or more upside potential. So we’re pleased about that but I don’t think the market’s reflecting that one - our total portfolio. As a consequence we’ve come out with this new Investor Presentation to remind the market that we’re not just a one project company, we’ve got six projects. And we think that will provide an opportunity over the next few months for the investor to come in and take a look at us at this stage, and take advantage and see if they want to participate as we go forward.

Clive Tompkins: Stephen Graves thanks for introducing Golden Gate Petroleum.

Stephen Graves: You’re welcome.

 

[dan6169]

currently hold shares.
Think this is a good punt, low price 6 wells to drill and only have to hit 2 or 3 of them to have a huge impact on share price.
Drill away.