26 July 2011production update● Neutral
Golden Gate's release repeating that D&L #3 is producing over 4,000 mcfd plus 30-35 bbl/d of oil. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 July 2011capital raising announcement▲ GoodMajor
GGE buys 15.5% of the West Klondike prospect (spud expected October, ~US$660k initial cost) and launches a fully underwritten 1-for-5 rights issue at 0.4c to raise ~A$2.5m. D&L #3 is now at 2.6 mmcfd. 105m incentive options are proposed, subject to shareholder approval.
19 July 2011drilling result▲ GoodMajor
Thibodeaux #1 is called a significant discovery: 232 ft gross (176 ft net) of resistive sand logged, with 37 ft of net commercial pay confirmed where porosity data was obtained. Stuck pipe limited logging; the well is being sidetracked. Production is expected in the December 2011 quarter. GGE holds 4.75%.
19 July 2011production update● Neutral
Golden Gate's release repeating that D&L #3 began production at 1,500 mcfd from the Stray B sand. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
19 July 2011production update▲ GoodMajor
D&L #3 started production at 1,500 mcfd from the 10 ft Stray B sand, ending the wait for sales that followed the June test. Rates may rise to 4,000-5,000 mcfd. GGE holds 39.4%. The M sand estimate is unchanged at 400,000 bbl and 1.2 BCF.
19 July 2011admin correction● Neutral
Replacement of the 19 July D&L #3 production announcement. The content appears the same, 1,500 mcfd from the Stray B sand, with only minor changes to the partner table; the operator label is dropped.
13 July 2011joint venture update● Neutral
Thibodeaux #1 reached 18,500 ft and the drill string parted while pulling out; fishing is under way, with the well said to be under budget and ahead of time. D&L #3 pipe delays are resolved, with production due within 2-3 days. Abita completion is likely to start mid-August.
28 June 2011drilling result▲ GoodMajor
Abita #1 is cased to TD and thin-bed logs lift net pay to 171 ft in 9 intervals. Likely resource is 7.9 BCF and 350,000-700,000 bbl. GGE also secured an $800,000 six-month loan from a director-related entity at 12% a year to cover overruns and completion.
21 June 2011drilling progress report● Neutral
Thibodeaux #1 is drilling ahead at 16,250 ft toward 19,300 ft, with secondary targets next before casing at 17,650 ft. TD is now expected in about 50 days, versus roughly 85 days stated in May. Target is unchanged at 10.3 MMBL and 302 BCF; GGE holds 4.75%.
15 June 2011drilling result▲ GoodMajor
Abita #1 is called a significant discovery: logs show 112 ft of net gas pay in 7 intervals plus a possible 21 ft of oil pay. GGE's preliminary estimate is 7.9 BCF and possibly 350,000-500,000 bbl. The operator will complete the well; GGE's share of well cost is now ~US$750k.
14 June 2011drilling progress report● Neutral
Abita #1 logging tool stuck at 11,300 ft but was recovered; logs are to be re-run, likely within 24 hours, without resistivity. The resistivity data already taken is described as encouraging quality data. No pay confirmed yet; the six shows stand.
14 June 2011admin correction● Neutral
Golden Gate corrects its 9 June D&L update, which wrongly showed a 39.4% interest; its correct interest is 15%. Re-attaches the same text. GGE's 39.4% interest is unchanged.
9 June 2011resource reserve update● NeutralMajor
D&L #3 re-tested the Stray B sand at 2,108 mcfd, with sales expected within 2 weeks. M sand recoverable is revised to 400,000 bbl and 1.2 BCF. D&L #2 is now expected to serve only as a salt water disposal well after an obstruction, with D&L #3 recovering its M sand reserves.
9 June 2011resource reserve update● Neutral
Golden Gate's copy of the 9 June D&L #3 update: Stray B re-test 2,108 mcfd, sales expected within 2 weeks, M sand 400,000 bbl and 1.2 BCF, D&L #2 to be salt water disposal only. It mislabels GGE's 39.4% as Golden Gate's interest; corrected in ref 3.
7 June 2011drilling result▲ GoodMajor
Abita #1 reached its 10,700 ft TD with a sixth oil and gas show, in the 32 sand. Primary objectives are 40-50 ft high to the best Coquillo Bay well. Electric logs are due within 24 hours, so pay is unconfirmed.
6 June 2011drilling progress report▲ Good
Abita #1 is at 10,100 ft with oil and gas shows in five intervals, including the primary objectives, which are 40-50 ft high to the best Coquillo Bay well. TD is expected within 24 hours; shows are not a flow test.
3 June 2011drilling progress report▲ Good
Abita #1 is at 8,936 ft with gas shows in the likely 15 sand, which appears 35 ft high to the water line. The company calls this encouraging. Most likely resource is lowered to 800,000 bbl and 4.25 BCF.
30 May 2011well test result▲ Good
Golden Gate Petroleum's release repeating that D&L #3 flowed 1,000 mcfd from the Stray B sand, with sales expected in 2-3 weeks. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
30 May 2011drilling progress report● Neutral
Abita #1 is drilling ahead at 6,500 ft toward 10,700 ft, with first objectives expected near 8,100 ft. No results yet. GGE holds 20% (15% after payout), with Clayton Williams Energy operating.
30 May 2011well test result▲ GoodMajor
D&L #3 tested 1,000 mcfd from a 10 ft Stray B sand, with sales expected in 2-3 weeks. Logs show the well crossed a fault in the M sand, and reserves in the new Stray B sand are unknown. GGE's interest is now stated as 39.4%.
23 May 2011drilling result● Neutral
Golden Gate Petroleum's release repeating that D&L #3 logs show 31 ft of gas and 33 ft of oil pay, and that the S sand mud-log indication was incorrect. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
23 May 2011drilling progress report● Neutral
Thibodeaux #1 is drilling at 14,629 ft toward a 19,300 ft target, with the next casing point near 15,400 ft. TD is now expected in about 85 days. GGE holds 4.75%; target resource is unchanged at 10.3 MMBL and 302 BCF.
23 May 2011drilling progress report● NeutralMajor
Abita #1, the 20% GGE prospect, is reported as spudded on 20 April and setting casing at 2,500 ft. The company had said spud was expected around 15 May. Target depth is 10,700 ft and resource 1-2.3 MMBL and 4.5-9.4 BCF.
23 May 2011drilling result● NeutralMajor
Logs on D&L #3 show 31 ft of gas and 33 ft of oil net pay in the M, Stray and N sands. The earlier mud-log sign of a new S sand was wrong. The O sand is still to be logged, and resource estimates will be revised.
16 May 2011drilling progress report▲ Good
Golden Gate Petroleum's release repeating that D&L #3 was cased to 8,503 ft, with logs next and testing within a week. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
16 May 2011drilling progress report▲ Good
Casing was run and cemented in D&L #3 to 8,503 ft, with logs due within 24 hours and a test starting within a week. The company says the well can reach production quickly given its proximity to D&L #2. Not yet a test result.
13 May 2011drilling progress report▼ Bad
Logging at D&L #3 failed because of wellbore obstructions, and the pipe stuck again before being freed. The operator is making a final attempt to reach bottom, then will try to run casing. A setback after the 9 May fix; GGE holds 39.5%.
10 May 2011drilling progress report▲ Good
The stuck drill pipe at D&L #3 was freed on 9 May, so cleaning and logging can proceed within 24 hours. This resolves the setback and removes the need for a sidetrack. GGE holds 39.5%; the field potential is still stated as 7 BCF and 305,000 bbl.
10 May 2011drilling progress report● Neutral
Thibodeaux #1 has run casing to 13,150 ft and is doing a cement squeeze after minor delays checking the cement job. Total depth of 19,300 ft is expected in about 100 days; the next casing point is near 15,400 ft. GGE holds 4.75%.
10 May 2011drilling progress report▲ Good
Golden Gate Petroleum's release repeating that the stuck D&L #3 pipe was freed on 9 May and logging is next. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.