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Golden Gate Petroleum Prepares Hydraulic Fracturing Of First Permian Horizontal Well

Golden Gate Petroleum (ASX: GGP) is preparing to carry out hydraulic fracturing of its first horizontal well, SRH-5H, at its Permian Project in the Reagan and Irion Counties, Texas.

Services provider Halliburton will carry out the frac work over the horizontal section in the Upper Wolfcamp interval, which is referred to as the A Bench, at the end of this month.

Funding for the frac is being provided by the underwritten $3.5 million Entitlement Program that closed earlier this month.

Based on other horizontal well estimates by major operators in the area, the SRH-5H well could have estimated ultimate resource potential of about 400,000 barrels of oil equivalent (boe) made up primarily of oil and gas liquids.

It will also provide important information for this year's drilling program.

Looking ahead

Golden Gate plans to drill further horizontal Wolfcamp wells and vertical Sprayberry/Dean/Wolfcamp wells over its leasehold in 2013 to maintain leases via the continuous drilling requirements.

Surveying and permit work continues for subsequent drilling. The SRH-6H well has been surveyed and is going through the approval process with the mineral holder before going to the Texas Railroad Commission.

The SRH-7 and SRH-8 wells are also being surveyed and drilling permit applications prepared for filing.

Permian Project

Golden Gate's Permian Project hosts proved and probable reserves of about 5 million boe.

While the current focus is on drilling Wolfcamp horizontal wells, the company believes there are three and possibly four intervals that could be candidates for horizontal drilling in its leasehold.

With about 24 locations identified for each interval, Golden Gate could drill between 72 to 92 horizontal wells in the project.

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