Golden Gate Petroleum (GGP or the Company) has been active in its exploration, development, and production activities of its oil and gas assets across the onshore Gulf Coast region in the United States. Can you provide an update on the current key areas of strategic focus for the Company? Stephen Graves GGP’s key focus is on oil exploration and development onshore in Texas and Louisiana (USA), in unconventional as well as conventional oil and gas production. Our overall strategy is about managing risk and return whereby the Company is not dependent on any one project. GGP has made significant advances during the past year, both in terms of operational activity and in implementing a strategy of developing a balanced asset portfolio involving low risk development projects with new, high return exploration prospects.
GGP now has two strong unconventional oil development projects in the heart of the most prolific hydrocarbon areas in Texas – the Permian Basin and Eagle Ford Shale. These areas have a proven track record of producing major oil flows with major oil and gas companies such as Apache, Laredo, BHP Billiton, ConocoPhillips, EOG, El Paso and Chevron operating in neighbouring fields. In the Permian Project, GGP currently holds 8,800 acres under lease, of which 640 acres are held by production.
GGP’s portfolio is balanced by two already discovered conventional oil and gas producing properties as represented through the Bowtie West and Napoleonville projects. The Company is adding low risk, high return projects that provide further potential for early cash flows to balance out the longer term unconventional oil projects. GGP has managed to leverage its position by both entering new oil projects (such as the Acadia and Goliad Projects) on cost effective terms and selling or farming out less attractive interests (such as Bullseye and North Edna Projects) – an overall move to “high grade” the Company’s project portfolio.
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