GGP - Golden Gate Petroleum

[Tommo_Aus]

Has anyone received notice of SPP in the mail? Should probably be arriving at some stage this week. I'm guessing it'll offer several placement levels such as $2 500, $7 500 and $15 000.

 

[dan-o]

the current SP is 3.9c, but we have the opportunity to buy shares again at 3.1c
am i correct in assuming we can sell now at this price and then re-buy at
3.1c? or does it depend on what the levels of subscription are at, and whether we infact will get the shares we want that would prevent people from doing this??

 

[Tommo_Aus]

The SPP will be available to all holders on the registry as at 19/03/2010, so if everyone was to go for the maximum allocation of $15 000 there would be far too much money raised. Most likely for GGP to allow holders to express interest in the SPP and some method of distribution will be used amongst holders (probably not the full requested allocation).

For example if you request $15 000 you might receive an allocation of 'up to' $8000. As I understand it you could sell your entire holding now (lets say 384 615 shares @ 3.9c, giving you exactly $15 000) then hope to receive the full allocation of $15 000 @ 3.1c, giving you 483 870 shares. Each holder should have equal weighting, so those with millions of shares shouldn't have extra pull over those with tens of thousands. Same goes for maximum allocation, even if you have 10 million shares you can still only buy a maximum of $15 000.

That's my understanding, but then again I could be wrong so don't take this as gospel!

Anyone care to extrapolate or clarify?

 

[Miner]

Hi Folks

Just a stupid question and seeking intelligent answer,

If one holds GGPO while the rights are declared what rights that cofer to the option holder ? Is it nil because the option holder should have converted its option into shares before the record date ?

Hypothetically that is so then should the option holders will have any right on the diluted shares ?

Cheers

 

[Tommo_Aus]

Correct, its nil. An option is simply a privilege to buy an ordinary share at a set price, you don't actually own any of the company.

 

[Tommo_Aus]

Reading through the SPP details there's a correction I should make to my previous post regarding scaling.

The Company reserves the right to
allot fewer Shares than an eligible shareholder applies for under the Offer, or no Shares and any determination by
the Directors in respect of any scaling back will be final. If a scale back occurs, the Company will refund any excess
application money to eligible shareholders (without interest).

So those with more shares may in fact receive a larger allocation than those with fewer shares.

Important to note that this SPP will be within the 30% maximum shares issued per year for GGP so with the 'sophisticated investors' cap raising included this gives ~$3.9 million max for this SPP. With 4600 shareholders on the registry if everyone was to apply for the SPP that would mean ~$850 worth of shares per shareholder. It seems likely the full allocation will be reached.

 

[Miner]

Correct, its nil. An option is simply a privilege to buy an ordinary share at a set price, you don't actually own any of the company.

Thanks a lot Tommo_Aus for the clarificaiton.
Now please do not read the following as I am going to write a poem to complete the 100 character restriction.

Topaz = 1 and Diamond = 10 in the Mohr's scale of hardness. 100 completed.

 

[condog]

SPP letters should have arrived. Intelligently GGP have reminded investors today they have 6 projects, 5 identified, the 6th is a guess, that are to be done in the next 6 months. 4 of which are potential company makers.

GGP is set to take off now with CR behind it and ready to rock and roll imo.
DYOR.

 

[dan-o]

A successful capital raising, oversubscribed by nearly 50%, a big increase in trade volumes the last 2 days.. the speculator continuing to show this stock plenty of love.
All has gone quiet on here.. Everyone just biding their time until we get some announcements?

 

[Tommo_Aus]

With the current pipeline we should be seeing more movement in the coming months as the drilling plan swings into action and development advances at Fausse Point. Yes, I think its fair to say many of us are waiting quietly for next month to begin.

 

[late_start]

on the asx website yesterday, ggp is looking into merging with pass petroleum? if it is, this should be good, isn't it? any comment?

 

[dan6169]

would love to know when the so called drilling is ment to start on those wells.
I thought they were ment to be starting at the start of this month no news on this at all yet. the merger is interesting dont know much about pass petroleum.

 

[condog]

Fp should be connected to sales by mid may, other drilling commences towards late may.

Plenty of news will be flowing in coming weeks.

 

[nunthewiser]

FWIW.

I have taken a position in this penny doggy dreadful purely on a technical basis only .

I could not care for the spiel that goes with it , it is merely a position trade based on MY view of the chart at the present time.

Bring on the rampers

 

[nunthewiser]

A couple of nice annnouncements, a nice technical pattern, and still no comments from previous holders or rampers..

whats goin on people?

sold out?

 

[J&M]

In have a small holding in this and have brought a few more with the share price lower

reading this i gather there is still some upside with this stock

Below is from the David H


PORTFOLIO POINT: Two of our offshore gold stocks deliver encouraging reports which should be reflected in their share prices, now heavily discounted from their 12-month highs … plus more success for Golden Gate Petroleum.


Two weeks ago (May 26) this column predicted Golden Gate Petroleum (GGP) and many other “small cap” stocks would see lower prices as punters realised tax losses before June 30.

Last week, another 25.68 million GGP shares were dumped at prices down to 2.3 ¢ a share. That matches their year’s low and represents a 34% discount to a placement completed in April to “sophisticated and professional” investors at 3.5 ¢ a share.

The selloff continues, although a few bargain hunters moved in to lift prices to 2.6–2.7 ¢ in early trades today after the company announced some positive news on Tuesday: that commercial production had begun from its Fausse Point #1 well in Louisiana.

Initial gas production over the first 24 hours was 750,000 cubic feet a day plus about 20 barrels of condensate coming out of the “rich gas” as pressures were reduced at surface.

Gas is worth about $US4 per 1000 cubic feet and condensate around the premium end of the oil price. Through its various interests in projects in both Louisiana and Texas, GGP reported its total gross share of production in the last March quarter was 10,600 barrels of oil and 8 million cubic feet of gas.

No water was being produced during the testing phase of Fausse Point #1and flow rates are yet to stabilise. For the rest of this week, various choke sizes and flow rates will be tested to determine optimal production levels from this lowest of six potential hydrocarbon-bearing zones identified in the well.

GGP is the operator with a 20% working interesting the well. Another listed Australian company, Verus Investments (VIL), has a 50% working interest in the well.

Yesterday’s announcement confirmed further geoscience work was being conducted on the Fausse Point salt dome to provide a better indication of the potential size of the discovery. The company added: “Analysis to date indicates that the lowest zone (8,370 feet) is possibly connected to a much larger hydrocarbon accumulation and that this well has only just penetrated the edge of this larger accumulation.

“While this zone now being completed for production was not an initial target of the well, it has the potential to represent a new play type. The two primary target objectives of the well that were intersected at shallower depths were both hydrocarbon bearing and will also be evaluated from added seismic data and tested in due course.”

GGP’s managing director, Steve Graves, confirmed yesterday the company was about to spud wells “in the next couple of weeks” on both:

•The Napoleonville salt dome (GGP’s working interest 39% and operator) to test two strata targeting 1.2 million barrels of oil plus 3 billion cubic feet of gas; and
•The Silverwood oil and gas project (30% working interest and operator) with potential to contain 7.4 million barrels of oil and 13 billion cubic feet of gas.

At Napoleonville, GGP’s share of drill hole and completion costs are estimated at $US465,000 and $US320,000 respectively. At Silverwood, GGP’s share of total dry hole costs is estimated at $US110,000.

At the end of April, GGP had almost $10 million in cash after raising a gross $8.5 million in share issues and is now debt free. At 2.7 ¢, the company’s 975.8 million shares carry a market capitalisation of $26.4 million.


James



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[nunthewiser]

Looks like its just you and me mr hendrix.

Amazing really tho . for such an active thread not so long ago here it sure has gone quiet

Hit any chartists radars yet ?

 

[manyon22]

I expect, dear Nun, that interest will increase fairly soon.

We should have some good news in the beginning of August.

Also by that stage the quarterly will be out, so we will hopefully be better informed about all GGP's projects.

 

[nunthewiser]

I expect, dear Nun, that interest will increase fairly soon.

We should have some good news in the beginning of August.

Also by that stage the quarterly will be out, so we will hopefully be better informed about all GGP's projects.

currently only holding a small parcel left over from keeping stock instead of $ profits.

been trading the ranges a bit and also had longer term trades on it which have been rather eventful.

will be looking at another re- entry parcel fairly shortly just watching the 2.7 line at present.

Great lil trading stock and always at top of watch for trade/position hold opportunities.

 

[J&M]

Looks like its just you and me mr hendrix.

Amazing really tho . for such an active thread not so long ago here it sure has gone quiet

Hit any chartists radars yet ?

well jimi & the nun what a combination ???/

I am no chartist but the ones I have looked show sideways
I buy more with cap raising at .031

from the company updates

Following the announcement dated 9 July 2010 the Board
advises that the Dugas & Leblanc #1 well has been completed
to 7,802 ft, the Rig has been released and a completion rig is
expected to arrive on Monday, 26 July 2010.
Following detailed interpretation of the Paleo results of the well it
has been confirmed that the 3 zones of interest that were
identified whilst logging the well were Big Hum sands.
The Joint Venture has decided to deepen the well to determine
the presence of Operc sands. The Completion Rig will be able to
conduct this deepening exercise and it is expected to take 4 days to complete.
Once the well has reached its final depth electric logging will be undertaken to determine the commerciality of any
Operc sands identified. If these sands are determined to be commercial a development well will be required to
commercialise these lower sands as the reduced well bore size will be inadequate in this well.
Following this exercise testing of the identified 3 sands will commence. Electric Log results of the Dugas & Leblanc
#1 indicated over 120ft of net pay (both oil and gas) over three sands.
The Company has received right of way access for a pipeline and is in the process of completing a gas sales
agreement with Gulf South to commercialise this discovery.
The Big Hum and Operc Sands are an amplitude anomaly targeting 1.2 MMBO and 3 BCF gas. If the well is
successful initial flow rates are expected to be around the 200+ barrels of oil per day and 1,000 MCF per day.
Partners in the Dugas & Leblanc #1 Well are:
Grand Gulf Energy Ltd (ASX: GGE) 39.50% WI
Golden Gate Petroleum Ltd (ASX: GGP) 15.00% WI
Other partners 45.50% WI