Golden Gate Petroleum Limited (ASX:GGP) is pleased to provide the market an update on operational matters concerning its projects in Texas and Louisiana, USA.
Permian Project Leases, Reagan and Irion Counties, Texas, Operator
The SRH #1, #2, #3, #4 and #5 wells remain on production. Barring periods of maintenance and repairs, the vertical wells have continued to show improvement relative to the expected production decline curve. Further potential production from these wells by additional fracs and opening all known hydrocarbon intervals remains part of the Company’s future planning process. The SRH #5 horizontal well continues to produce oil but at disappointing levels. Bottom hole testing and changes to the compressor involved with gas lift have not provided any clear answer as to the low production level. We are examining the option of running coiled tubing in order to clear any blockage surrounding the perforations plus determine which intervals are producing.
Regarding legal actions on the Permian project, the Company, as previously announced, had requested the court to grant a summary judgment in favour of the Company on several matters in the ongoing litigation with Petro-Raider. The court had set our motion for hearing on 8 November, 2013. In a recent hearing via teleconference on other ancillary matters, the judge ordered that the Petro- Raider suit against subsidiaries of Arturus Capital Limited (“Arturus”) and the Company be stayed until the impact, if any, of the previously reported liquidation of Arturus on the Reagan County litigation can be determined. The judge has cancelled next month’s hearing.
The Company believes that the stay of the proceedings strengthens our position in the litigation. As the plaintiffs, it is the duty of Petro-Raider to prosecute the lawsuit. Without further action from the court removing the stay, Petro-Raider cannot take any action against the Company.
Napoleonville Project— Assumption Parish, Louisiana, Non-operator
The recent discovery well, Hensarling #1 continues to produce over 375 barrels of oil per day on average after the installation of a jet pump. The Company has a 3.99% working interest in this well.
A new well on the 14-54 prospect is being planned for drilling. Due to additional time required to finalize all participations, the operator, Petrodome Energy, has asked for an extension to drill the initial well until the first quarter of 2014. All lease maintenance, title and preliminary well preparations have continued. The Company has a 3.99% working interest in this well and is carried in the cost of drilling.
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