The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to announce for the first time in GGP’s history, a reserve report with proved (P1) and probable (P2) reserves has been completed. The report attributes over 5.0 million barrels of oil equivalent (BOE) from P1 and P2 reserves to the Permian leasehold assets currently held in Reagan and Irion Counties, Texas. These reserves have been identified as part of the Spraberry- Dean Formation in the areas where GGP holds the rights to this formation.
The reserves report has been prepared by MHA Petroleum Consultants LLC (MHA), Denver, Colorado. In addition to the P1 and P2 reserves identified in the Spraberry-Dean formation, MHA also identified Contingent Resources of 10.8 million BOE from only one of three identified intervals/benches in the Wolfcamp Formation with each considered by GGP to have similar potential plus one interval in the Cline Formation.
The reserves report included projected income data from the estimated net reserve and contingent resources. On a 10% discounted net cash flow basis, US$69.1 million was attributed to Proved(P1) and Probable(P2) reserves and US$127.1 million from Contingent Resources. The economics used NYMEX oil and gas price projections plus cost estimates confirmed to be realistic by MHA.
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