18 Sept 2012drilling progress report● Neutral
Leduc's Dickens #1 is drilling at 8,091 ft toward a planned total depth of 8,500 ft, said to be on time and on budget. The main target is expected shortly. No result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
17 Sept 2012farm in farm out agreement▲ GoodMajor
GGE restructured its Napoleonville terms: interest in future wells rises from 17.5% to 21.9%, while Desiree is cut by 5.25% to 35.6%, lowering GGE's well cost to about US$1.1m from US$1.4m. Desiree spud now early October; first new prospect Louise targets 600,000 bbl.
7 Sept 2012production update▼ Bad
Operator confirms Hurricane Isaac damaged Abita's platform facilities. No timing for resuming production is given, and the operator is assessing insurance cover. This follows the seal repair, so the well stays offline longer.
27 Aug 2012drilling spud● NeutralMajor
Dickens #1 at Leduc Reef, Arkansas, spud 26 August 2012, expected to take 21 days to reach 8,600 ft. GGE holds 22% (paying 26.66%); its share of well cost is about US$335,000, up from the earlier US$280,000 estimate. Most likely 1.2 MMBO, upside 12 MMBO.
13 Aug 2012drilling result▼ BadMajor
Austin Bayou HRI #1 reached 11,330 ft and is to be plugged and abandoned as logs showed commercial recovery unlikely; the fault was steeper than mapped. Another dry hole, though management says the program is fully funded.
9 Aug 2012drilling progress report● Neutral
Austin Bayou HRI #1 had a first oil show at 10,527-10,561 ft, apparently in the Tex Miss 1 sand above the Andrau target. Logs after reaching total depth will show whether it is commercial.
6 Aug 2012drilling progress report▼ Bad
Austin Bayou HRI #1 is at 10,234 ft after a milling delay, with the first target expected in 350-400 ft. GGE's stated well cost has risen to US$600,000 from US$385,000, which was previously said to be prepaid.
31 July 2012asset acquisition disposition▲ GoodMajor
GGE acquires 15% of the Port Hudson project in Louisiana, targeting up to 500,000 bbl of oil. GGE's dry-hole share is about US$160,000, with spud expected early November 2012. Another small, low-cost addition to the program.
31 July 2012asset acquisition disposition▲ GoodMajor
GGE acquires 10.5% of the S Welsh project in Louisiana, a development well targeting up to 450,000 bbl of oil. GGE's dry-hole cost is about US$145,000, with spud expected October 2012. A new small, low-cost prospect.
30 July 2012drilling progress report● Neutral
Austin Bayou HRI #1 is at 9,309 ft, drilling at about 20 ft per hour, with the first target still expected near 10,500 ft. The program table now shows Desiree and Leduc slipping to September.
23 July 2012drilling progress report● Neutral
Austin Bayou HRI #1 is drilling at 8,129 ft; the first primary objective, the Andrau sand, is expected around 10,500 ft. No result yet.
13 July 2012drilling progress report● Neutral
Austin Bayou HRI #1 is drilling ahead at 5,503 ft, with no results yet. Target depth remains 11,400 ft.
3 July 2012drilling spud● Neutral
Austin Bayou HRI #1 spud on 2 July 2012, to drill to 11,400 ft in about three weeks. GGE holds 23.25% and targets net 2.7-4 BCF gas and 40-60k bbl condensate. A modest low-cost well.
27 June 2012drilling scheduled● Neutral
Rig for Austin Bayou HRI #1 is being moved to site, with spud expected within seven days, after earlier delays. GGE's 23.25% share of well cost is US$385,000, already prepaid. No new result.
18 June 2012farm in farm out agreement▲ GoodMajor
GGE buys a further 8% of the Leduc Reef prospect in Arkansas, lifting its interest from 14% to 22% (inference: prior 14% from earlier 10.5% LOI is not stated). Spud now late July/early August; GGE's share of initial well cost is about US$280,000.
12 June 2012drilling result▼ BadMajor
Vermilion River drilled a further 300 ft to a TD of 17,320 ft without finding more sands of interest. Logs showed no commercially interesting pay, and the operator was preparing to plug and abandon the well; Austin Bayou was next.
4 June 2012drilling progress report▼ Bad
Preliminary logs from 12,779-16,975 ft suggest the pay found so far may not be commercially significant. The operator will drill about 300 ft more to planned TD before a full evaluation. This tempers the earlier gas shows.
30 May 2012drilling progress report▲ Good
A second gas show of about 60 ft was recorded at 16,660-16,720 ft in the lower primary Het sands, with the well at 16,734 ft. Pay is not confirmed until logs are run. About 770 ft of target sands remain.
28 May 2012drilling progress report▼ BadMajor
At 16,535 ft Vermilion River appears to have missed the Het 1A sand, a main target. GGE cuts its net estimate to 170,000 bbl condensate and 7 BCF gas, from 260-430k bbl and 8.5-14.5 BCF. Lower targets remain.
25 May 2012drilling progress report▲ Good
Vermilion River recorded a gas show at 16,095-16,136 ft in what is believed to be a secondary objective, while drilling at 16,144 ft. Logs are needed to confirm pay. The main Het 1A target is still to be reached.
21 May 2012drilling progress report● Neutral
Vermilion River is drilling ahead at 15,707 ft; the operator may drill through the Het 1A target without setting a liner. Primary targets are still ahead. No result yet.
16 May 2012farm in farm out agreement● NeutralMajor
GGE farms out 15% of Desiree after well costs rose, leaving 41% and a carry for 5% of drilling costs. A large US operator takes over, spud moves to July 2012, and GGE's dry-hole exposure is about US$1.4m. Leduc slips to June; Austin Bayou rig is delayed.
14 May 2012drilling progress report● Neutral
Vermilion River is drilling ahead at 15,000 ft after getting through a difficult zone. TD is expected within 25 days. The operator's insurance is expected to recoup part of the cost of the earlier flow back. No result yet.
23 Apr 2012drilling progress report▼ Bad
Vermilion River well is setting casing at 14,300 ft, with delays now about US$400,000 net to GGE over budget (up from US$275,000). TD is said to be within 35 days. Primary targets begin at 16,250 ft. No result yet.
3 Apr 2012investor presentation● Neutral
Updated April 2012 presentation is largely a re-issue of the previous one, with the share price now 0.5c and market cap A$18.5m. Desiree timing is now April/May 2012. Claims of a fully funded program and A$5.0m cash are repeated.
30 Mar 2012investor presentation● Neutral
April 2012 presentation restates six 2012 exploration wells, production of 110 BOE/day and current cash of A$5.0m. It says the program is fully funded with no need to raise funds. Market cap is A$15m at 0.4c. No new results.
27 Mar 2012asset acquisition disposition▲ GoodMajor
GGE signs a letter of intent for a 5% interest in the Pintail prospect, St Martin Parish, Louisiana. Target is 152 BCF and 2.3 MMBC (up to 350 BCF); GGE's dry-hole share is about US$1.2m. Spud is expected in Q4 2012.
23 Mar 2012drilling progress report▼ Bad
Vermilion River well suffered a flow back, now controlled by the operator, and is preparing to side track. Delay costs have risen to about US$275,000 net to GGE over budget, from US$150,000. Primary objectives are still said to be within 35 days.
21 Mar 2012director officer appointment● NeutralMajor
Mark Freeman, an executive director since October 2010, becomes Managing Director with no change to his salary package. Charles Morgan remains Executive Chairman.
20 Mar 2012production update▲ GoodMajor
Abita began producing on 18 March 2012 from the 30 sand at about 900 mcfd and 25 bcpd with no water. This is first production from the June 2011 discovery, in which GGE holds 20%. The operator will ramp rates up gradually.