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Golden Gate Petroleum Completes Funding For Permian Work Plan

Golden Gate Petroleum (ASX:GGP) is progressing its Permian project in Texas after completing its fund raising via a $3.2 million entitlement offer and a $7.5 million facility from The Lind Partners.

The next phase of the Permian project will start with the hydraulic fracturing of the 5H well (A bench) of the Wolfcamp interval.

The well has already been successfully drilled and designed for a multi stage frac programme.

The well's lateral length is expected to undergo a multi staged fracture stimulation program that will involve a new gel mixture, "PermStim LT", which is designed to enhance near well bore conditions for maximum hydrocarbon production.

It is likely to take about 10 days to complete the stimulation program for the 5H and prepare the site for production. Initial production will involve the normal return of the frac fluids for a two plus week period until the oil and gas break through has occurred.

The No.1 and No. 2 wells have now been scheduled to be put on production from the Wolfcamp/Cline intervals which have been fracced. A capillary tube will be installed in both wells to inject chemicals to inhibit the paraffin coming from the Cline interval.

Both wells will undergo frac completions in the Spraberry Dean intervals after sufficient production data has been gathered from the Wolfcamp/Cline.

Additional survey work is also planned to prepare the drilling of No.7 and No.8 vertical wells, likely in May/June period.

The company has also requested for an extension of 90 days beyond 31 March expiry on two leases from the Texas Scottish Rite Hospital.

These leases are located in the Northern section of the current leasehold where all the vertical and horizontal wells have been drilled. It also includes the lease where all the 1P and 2P reserves have been booked.

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