Golden Gate Petroleum (ASX: GGP) is about halfway through completing the hydraulic fracturing of the SRH-5H well in the "A" bench of the Wolfcamp interval.
The well is located within the Permian Project in the Reagan and Irion Counties, Texas.
A delay was experienced due to severe weather conditions with high winds, lightning and thunderstorms requiring work to be suspended during the early part of last week.
Potential for another storm watch also exists for this week and will be monitored closely. Barring any other unforeseen events, the frac program should be completed this week.
Meanwhile, a Nabors rig is at the SRH-1 well and work is continuing to bring the well back onto production from the Wolfcamp/Cline interval.
A capillary tube is to be installed in the well to inject chemicals to inhibit the paraffin coming from the Cline.
The SRH-2 well will also go through the same installation. Both wells will undergo frac completion in the Spraberry Dean intervals after sufficient production data has been gathered from the Wolfcamp/Cline interval.
Permian Project
Golden Gate's Permian Project hosts proved and probable reserves of about 5 million barrels of oil equivalent.
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.
Golden Gate recently reached agreements for A$7.5 million in funding from a U.S. asset management firm for continued development of the Permian Project.
The company previously raised $3.2 million through an entitlement offer and has successfully sold its 10% working interest in the Cutlass project in Texas for US$1.7 million.
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