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Golden Gate Petroleum Has Expectations For Permian Horizontal Well

Golden Gate Petroleum (ASX: GGP) continues to maintain high expectations for its SRH-5H horizontal well in the Permian Project, Texas, which has flowed back over 5,000 barrels of fracture stimulation fluid without pumping.

This is a good sign in regards to the energy of the A bench of the Wolfcamp interval and is an indicator of positive oil and gas production rates.

Applying the latest Halliburton frac design technology, which has achieved favourable results in other wells, is also expected to be a real plus for SRH-5H.

The well is expected to take several weeks to pump off enough frac fluid, of which 66,000 barrels were used, before hydrocarbon breakthrough occurs.

Golden Gate has placed the SRH-1 well back into production and is pumping off the water used during the workover.

Final installation of the capillary is waiting on new equipment to assist with the process. In the meantime, the workover rig has moved to the SRH-2 well and is expected to start drilling out the plug separating the Cline interval in this well.

Capillary tubes are being installed in both SRH-1 and SRH-2 to inject chemicals that will 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 interval.

Golden Gate has also staked and plated the location of the SRH-6 well with the permitting process to start shortly.

SRH-6 will be drilled through the Wolfcamp interval and will also test the Clearfork interval, which is above the Sprayberry interval, as a candidate for horizontal drilling.

Golden Gate's Permian Project hosts proved and probable reserves of about 5 million barrels of oil equivalent

The company 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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