Golden Gate Petroleum Ltd (ASX:GGP) (“Golden Gate” or the “Company”) is pleased to provide an operational update on activities in our Permian Project, Texas, USA.
Permian Project, Reagan and Irion Counties, Texas, Operator 100% WI
SRH #5H Well
The SRH #5H well, Golden Gate’s first horizontal well is being prepared to commence drilling operations in October 2012. The current work schedule has the rig on site around the 28th October. A rig has been contracted with Western Drilling for the use of their Rig No. 6. It will take approximately three (3) weeks to drill the horizontal well. The well plan calls for a full suite of electric logs to be run in order to assist with the planning process for the fracture stimulation program.
In preparation for the fracture stimulation of this well, a 100 x 100 meter frac pond has been constructed The pond has been lined with plastic and is being filled with water from two already drilled water wells. It will take another 2 weeks to accumulate sufficient water for the well’s fracture stimulation program.
In addition, initial permitting for a salt water disposal well has been approved. Further work on completing the permitting process is underway. The cost of trucking large volumes of frac water and production fluid to a water disposal facility is quite high. The cost savings from having an injector well just for the frac fluid will more than cover the cost of drilling the well.
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