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Golden Gate Petroleum Completes Cutlass Interest Sale; Extends Permian Leases

Golden Gate Petroleum (ASX:GGP) has successfully completed the sale of its 10% working interest in the Cutlass project and secured key lease extensions at its Permian project in Texas.

The sale of its interest in the Cutlass project has earned Golden Gate US$1.7 million.

Meanwhile, it has also secured specific lease extensions in the Permian project, where the company has recorded all reserves and has drilled five wells. The leases have been extended through to 30 June 2013.

Within the next three months, Golden Gate plans to drill a vertical well and a horizontal well on these leases and the drilling there will extend the lease term up to an additional 120 days.

Most of the leases that it chose not to renew were located in Irion County, where it has not conducted geologic or technical work, though it did retain 644 acres there and approximately 600 acres in the southern area of Reagan County.

Overall it retained 5,092 acres, which also contains all the booked reserves from the project.

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