GGP - Golden Gate Petroleum
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Copied from GGP
Golden Gate Petroleum (ASX: GGP) is pleased to announce that it has entered into a binding agreement with
Arturus Capital Ltd (ASX: AKW) for the purchase of 100% of the assets held by Arturus through its whollyowned
subsidiary Arturus Energy LLC in a producing oil and gas field plus nearby leased acreage totalling
8,806 gross acres. The Assets are located in the prolific hydrocarbon producing Permian Basin in Reagan and
Irion County, Texas.
The primary benefits of this Asset purchase to GGP shareholders include:
• GGP will be reporting oil and gas proven reserves (P1). Based on a recent reserve report of the asset,
there are reserves of 4.358 million barrels of proven oil reserves (mostly proven undeveloped) and
11.542 billion cubic feet of proven gas reserves.
• The Oil and Gas Assets present low risk development wells and will provide a balanced portfolio
offsetting GGP’s current higher risk exploration projects. Ultimately this new Asset will provide an
ideal funding source for continuing high reward exploration plays and reducing the dependence on
share equity.
• The Asset’s reserve study identified 48 producing wells (not all presently on production) with potential
to increase production in an upper zone by re-completing each well. Currently, there is approximately
40 barrels per day of oil production and there is the potential to significantly increase production at
low cost from the existing well bores.
• In addition to the existing producing wells, the reserve study identified 69 new potential well
locations. Each well would cost approximately $1.5 million to drill and complete and is estimated to
recover over 100,000 barrels of oil equivalent. The oil is high quality and includes very rich gas that
also contains valuable gas liquids.
• By acquiring a 100% working interest with a 75% net revenue interest in the very large 8,806 acre
leasehold position, there is significant upside from probable resource recoveries well beyond the
reserve study. Estimates from existing drilling programs in the region indicate that each 640 acre
section (there are approximately 14 sections in the leaseholding) has the potential to recover up to
1.5 million barrels of oil equivalent.
• Each well bore is likely to exhibit multi-pay intervals already producing in and around the leasehold
position from 6 primary and secondary oil and gas bearing zones at shallow depths from 5,500 feet to
10,000 feet. Success rates from drilling in the area are over 99%.
• The onshore Permian Basin has a long history of oil and development and has received a renewed
interest from both capital providers and industry participants due to the current offshore drilling ban
in America. Holding a 100% working interest position provides GGP the opportunity to partner with
companies looking onshore for new reserves to offset the long expected delays in permitting newwells particularly in the Gulf of Mexico. Discussions have already begun with one potential industry
partner.
Transaction
Golden Gate Petroleum (ASX: GGP) is pleased to announce that it has entered into a binding agreement with
Arturus Capital Ltd (ASX: AKW) for the purchase of 100% of the assets held by Arturus through its whollyowned
subsidiary Arturus Energy LLC in a producing oil and gas field plus nearby leased acreage totalling
8,806 gross acres. The Assets are located in the prolific hydrocarbon producing Permian Basin in Reagan and
Irion County, Texas.
The primary benefits of this Asset purchase to GGP shareholders include:
• GGP will be reporting oil and gas proven reserves (P1). Based on a recent reserve report of the asset,
there are reserves of 4.358 million barrels of proven oil reserves (mostly proven undeveloped) and
11.542 billion cubic feet of proven gas reserves.
• The Oil and Gas Assets present low risk development wells and will provide a balanced portfolio
offsetting GGP’s current higher risk exploration projects. Ultimately this new Asset will provide an
ideal funding source for continuing high reward exploration plays and reducing the dependence on
share equity.
• The Asset’s reserve study identified 48 producing wells (not all presently on production) with potential
to increase production in an upper zone by re-completing each well. Currently, there is approximately
40 barrels per day of oil production and there is the potential to significantly increase production at
low cost from the existing well bores.
• In addition to the existing producing wells, the reserve study identified 69 new potential well
locations. Each well would cost approximately $1.5 million to drill and complete and is estimated to
recover over 100,000 barrels of oil equivalent. The oil is high quality and includes very rich gas that
also contains valuable gas liquids.
• By acquiring a 100% working interest with a 75% net revenue interest in the very large 8,806 acre
leasehold position, there is significant upside from probable resource recoveries well beyond the
reserve study. Estimates from existing drilling programs in the region indicate that each 640 acre
section (there are approximately 14 sections in the leaseholding) has the potential to recover up to
1.5 million barrels of oil equivalent.
• Each well bore is likely to exhibit multi-pay intervals already producing in and around the leasehold
position from 6 primary and secondary oil and gas bearing zones at shallow depths from 5,500 feet to
10,000 feet. Success rates from drilling in the area are over 99%.
• The onshore Permian Basin has a long history of oil and development and has received a renewed
interest from both capital providers and industry participants due to the current offshore drilling ban
in America. Holding a 100% working interest position provides GGP the opportunity to partner with
companies looking onshore for new reserves to offset the long expected delays in permitting newwells particularly in the Gulf of Mexico. Discussions have already begun with one potential industry
partner.
Transaction
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Realized today this and GGE - Grand Gulf Energy
are linked in their Dugas & Leblanc #1 Well
today they announced
Napoleonville-- Dugas & Leblanc #1 Well, Assumption Parish,
Louisiana, Operator 39.5% WI
Following the announcement dated 22 July 2010 the Board
advises that the Dugas & Leblanc #1 well has been deepened to
8,080 ft and has logged an additional 6ft of sand below the shoe
and an additional interval of a further 28ft of pay in the Operc
Sand.
This increases the total logged pay to over 160ft of pay over 4 pay
sands.
During the initial deepening and circulating, the well produced
significant oil to surface into the mud tank.
oh and GGE SP up 5%
and GGP SP up 3%
are linked in their Dugas & Leblanc #1 Well
Code:
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% WItoday they announced
Napoleonville-- Dugas & Leblanc #1 Well, Assumption Parish,
Louisiana, Operator 39.5% WI
Following the announcement dated 22 July 2010 the Board
advises that the Dugas & Leblanc #1 well has been deepened to
8,080 ft and has logged an additional 6ft of sand below the shoe
and an additional interval of a further 28ft of pay in the Operc
Sand.
This increases the total logged pay to over 160ft of pay over 4 pay
sands.
During the initial deepening and circulating, the well produced
significant oil to surface into the mud tank.
oh and GGE SP up 5%
and GGP SP up 3%
Oil Discovery at Silverwood
The Board of Golden Gate Petroleum Ltd (ASX: GGP) advises that the Richardson #1 Well has completed testing and analysis of the primary Vicksburg Sand target interval. Based on the mudlogs, electric logs, sidewalls cores and additional analysis from Schlumberger and others, it has been determined that there is approximately 18 feet of potential net oil pay. As a consequence, the partners have elected to complete the well for production testing and determine the commercial significance of the interval. Completion work has begun and a testing program will be developed over the next week in preparation for perforating and possibly stimulating the objective.
The Richardson # 1 Well was drilled to a depth of 9,500 feet. The mud log recorded a gas show in the primary Vicksburg Sand target interval covering approximately 26 feet which is slightly larger than original projections. The electric log responses in the Richardson # 1 well were very similar to an adjacent well that reached the Vicksburg Sand and flowed oil and gas to surface but mechanically was not prepared for the unique geo-pressured environment known to be found in the Vicksburg Sand at Silverwood. Some of the sidewall cores contained oil, although the retrieval rate was low due to the nature of the formation. A second logging run was performed by Schlumberger who recommended completion and testing.
The Board of Golden Gate Petroleum Ltd (ASX: GGP) advises that the Richardson #1 Well has completed testing and analysis of the primary Vicksburg Sand target interval. Based on the mudlogs, electric logs, sidewalls cores and additional analysis from Schlumberger and others, it has been determined that there is approximately 18 feet of potential net oil pay. As a consequence, the partners have elected to complete the well for production testing and determine the commercial significance of the interval. Completion work has begun and a testing program will be developed over the next week in preparation for perforating and possibly stimulating the objective.
The Richardson # 1 Well was drilled to a depth of 9,500 feet. The mud log recorded a gas show in the primary Vicksburg Sand target interval covering approximately 26 feet which is slightly larger than original projections. The electric log responses in the Richardson # 1 well were very similar to an adjacent well that reached the Vicksburg Sand and flowed oil and gas to surface but mechanically was not prepared for the unique geo-pressured environment known to be found in the Vicksburg Sand at Silverwood. Some of the sidewall cores contained oil, although the retrieval rate was low due to the nature of the formation. A second logging run was performed by Schlumberger who recommended completion and testing.
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GGP have shat themselves 
from what i've read the majority of the projects they were on have failed? Does anyone else have an opinion or information I may have missed?
from what i've read the majority of the projects they were on have failed? Does anyone else have an opinion or information I may have missed?
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It was very difficult for me to come out from this stock. I bought it at .052 and hold it for 6 months. Than I read a recommandadtion and valuaion of stock and came out at .030. It was a big loss but thanks god not that with BBI.I read that the share value of ggp is arround .010 two two months back. At present what it is dont know. DYOR
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GGP has had a string of duds because of this Napoleanville Salt Dome property. Salt domes can often be good indicators of hydrocarbons but so far it's been a big zero:
- Clifton lands #1: dud
- Sagers #1: dud
- Dugas & Leblanc #1: dud
Having said GGP has had some small successes. Going back a few months I see these wells in production:
- Richardson #1
- Fausse Point
- Jumonville #1
Coming up I could only find three wells mentioned by name:
- Sugar Valley #1
- Jumonville #2
- Dugas & Leblanc #2
Their annual report is a real nightmare:
As of EOFY 2010 they had
- $7.5 mill cash
- resource (non-current) assets of $9.96 mill
- No loan debt but total liabilities of $4.7 mill
They had a total loss of $8.7 mill for 2009
They had a total loss of $15.4 for 2010
The only reason they have any equity therefore is because they keep raising capital/ issuing shares and diluting everyone's holdings. Issued shares went from:
2009- 272.8 mill
2010- 975.83 mill
Unfortunately I only just recently started learning how to interpret annual reports to determine intrinsic value. I bought GGP on a tip from The Speculator in the Eureka Report before I knew what the hell I was doing in the market. It's going to be an expensive lesson because I'm stuck back at 4.6c
If you're like me (albi, you're luck you're not) then you can only hope and pray that Fausse Point does turn out much bigger as they kinda of suspect it will.
No point in getting out now. I might wait to see if GGP consolidates for a few months then buy a little to lower my average and hope for the best.
Then again if I sell now... a little of something is better than a lot of nothing...
- Clifton lands #1: dud
- Sagers #1: dud
- Dugas & Leblanc #1: dud
Having said GGP has had some small successes. Going back a few months I see these wells in production:
- Richardson #1
- Fausse Point
- Jumonville #1
Coming up I could only find three wells mentioned by name:
- Sugar Valley #1
- Jumonville #2
- Dugas & Leblanc #2
Their annual report is a real nightmare:
As of EOFY 2010 they had
- $7.5 mill cash
- resource (non-current) assets of $9.96 mill
- No loan debt but total liabilities of $4.7 mill
They had a total loss of $8.7 mill for 2009
They had a total loss of $15.4 for 2010
The only reason they have any equity therefore is because they keep raising capital/ issuing shares and diluting everyone's holdings. Issued shares went from:
2009- 272.8 mill
2010- 975.83 mill
Unfortunately I only just recently started learning how to interpret annual reports to determine intrinsic value. I bought GGP on a tip from The Speculator in the Eureka Report before I knew what the hell I was doing in the market. It's going to be an expensive lesson because I'm stuck back at 4.6c
If you're like me (albi, you're luck you're not) then you can only hope and pray that Fausse Point does turn out much bigger as they kinda of suspect it will.
No point in getting out now. I might wait to see if GGP consolidates for a few months then buy a little to lower my average and hope for the best.
Then again if I sell now... a little of something is better than a lot of nothing...
They are obviously expecting big things to happen once that well starts pumping oil onshore. Might be time to jump in ?
- Joined
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GGP Announcement today...
GGP has acquired a proven, high quality oil and gas development opportunity with over a 100 well
potential which provides an estimated 14 million barrels of oil equivalent in potential recoverables.
This low risk hydrocarbon producing leasehold is part of the Permian Basin, Texas and is now owned
100% by GGP.
● Based on an earlier reserve report which will need to be updated, there are estimated reserves of
over 4.0 million barrels of proven undeveloped oil reserves and over 10.0 billion cubic feet of proven
undeveloped gas reserves. Development of the newly acquired leasehold is to begin as soon as practical. Newly proven fracture
stimulation technologies already providing good economic results in the surrounding areas will be
used in each well’s completion. Eight wells will initially be permitted.
● Each well is expected to cost approximately $1.5 million to drill and complete and is estimated to
recover over 100,000 barrels of oil equivalent over a 30 year production life. The oil is high quality
and includes very rich gas that also contains valuable gas liquids, both providing a premium to WTI
and Henry Hub pricing.
Anyone know of any well results from other plays in the Permian Basin - Texas?
GGP has acquired a proven, high quality oil and gas development opportunity with over a 100 well
potential which provides an estimated 14 million barrels of oil equivalent in potential recoverables.
This low risk hydrocarbon producing leasehold is part of the Permian Basin, Texas and is now owned
100% by GGP.
● Based on an earlier reserve report which will need to be updated, there are estimated reserves of
over 4.0 million barrels of proven undeveloped oil reserves and over 10.0 billion cubic feet of proven
undeveloped gas reserves. Development of the newly acquired leasehold is to begin as soon as practical. Newly proven fracture
stimulation technologies already providing good economic results in the surrounding areas will be
used in each well’s completion. Eight wells will initially be permitted.
● Each well is expected to cost approximately $1.5 million to drill and complete and is estimated to
recover over 100,000 barrels of oil equivalent over a 30 year production life. The oil is high quality
and includes very rich gas that also contains valuable gas liquids, both providing a premium to WTI
and Henry Hub pricing.
Anyone know of any well results from other plays in the Permian Basin - Texas?
- Joined
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100M shares traded yesterday, ten times normal activity & almost 10% of total...clearly renewed interest in this stock
Permian Basin is massive - http://www.oilshalegas.com/permianbasinoil.html - puts GGP's acquisiton of 9k acreas in perspective! Still, 14m probable reserves make for a promising spec play...
Permian Basin is massive - http://www.oilshalegas.com/permianbasinoil.html - puts GGP's acquisiton of 9k acreas in perspective! Still, 14m probable reserves make for a promising spec play...
- Joined
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Up 13% today on second day of strong buying...sp increase reflects the spread reversing in 3 days from 1:2 to 2:1 buyers to sellers...
This looks like a wake up call I was gonna sell at a loss
but decided to let it ride as its only a small amount I have
The stock was buy in the Eureka report last year by David H
I do have a few at 031 and just got in at .015
thanks for your posts buffalo66
but decided to let it ride as its only a small amount I have
The stock was buy in the Eureka report last year by David H
I do have a few at 031 and just got in at .015
thanks for your posts buffalo66
- Joined
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Ahh..some company on this thread at last! Bet you are a pleased holder J&M this morning (as am I)..a lot of action here - 22m shares traded already, dble last weeks normal daily activity in half an hour.
Already up 18% today, that's a 33% gain in 2 days...55% in a week...need to run the numbers on this as that's a huge change of fortunes for a stock that's been sliding into the gutter for 6 months..
Already up 18% today, that's a 33% gain in 2 days...55% in a week...need to run the numbers on this as that's a huge change of fortunes for a stock that's been sliding into the gutter for 6 months..
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Today doesn`t look as good with GGP, I thought there was someone trying to trigger some stoplosses on the oppies yesterday.
Maybe this is the case on the fully paids today? Just don`t know, but the buyers at .016 are gradually increasing and it could do with a little pull back.
What are peoples thoughts on the sellers on the ggpoa`s? Seems extra loaded today, traders wanting out?
Overall I can`t see any downside considering the others in the Permian basin. See TEX of late.
Maybe this is the case on the fully paids today? Just don`t know, but the buyers at .016 are gradually increasing and it could do with a little pull back.
What are peoples thoughts on the sellers on the ggpoa`s? Seems extra loaded today, traders wanting out?
Overall I can`t see any downside considering the others in the Permian basin. See TEX of late.
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Looks like there`s drilling in May this year.
The dusters have been canned, forward from here i`d reckon.
Big red day and GGP holding.
The dusters have been canned, forward from here i`d reckon.
Big red day and GGP holding.
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Quite impressive numbers- $87M raised in equity, 90% of that ($77M) since written off as accumulated losses
Bingin I do agree tho...Wolfberry Fairway acquisiton sounds positive, if they can get the gear & drill come mid year, 2nd half of 2011 could be big for GGP.
GGP looks the goods at this level. IMO its a screaming buy. SP will run hard once overrall market sentiment settles
I have been a follower of Golden Gate for some time now, Jumped in earlier this year at 1.2c... seems to have been some heavy interest in the past few days... and looks like its going to be an eventful day today!
Sit back......
(anyone know anything i dont?)
Sit back......
(anyone know anything i dont?)
