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  • Golden Gate Petroleum To Start Production From Texas Horizontal Well Soon  0 comments
    May 1, 2013 12:13 AM

    Golden Gate Petroleum (ASX: GGP) expects to place its SRH-5H horizontal well at its Permian project, Texas, on production in May or June this year.

    The company's use of Halliburton's Perm Stim frac fluid is believed to have resulted in higher frac fluid recovery with the well continuing to unload frac fluid without the use of pumping equipment.

    Perm Stim allows for figher recovery of frac fluid for less blockage in the wellbore with Halliburton reporting recoveries of up to 40-50% of frac volume prior to hydrocarbon break.

    Pumping equipment is being installed that will increase flow rates to 800 barrels of fluids per day from the current 40 barrels per day.

    Besides the ongoing permitting for SRH-6 well, Golden Gate has also undertaken survey work to drill the SRH-7 and SRH-8 vertical wells on its primary lease.

    These wells are expected to be drilled, completed and fracture stimulated using the data compiled from the first four vertical wells.

    This is designed to achieve the highest production levels while establishing the parameters to be used in the more than 40 well locations identified in the MHA Reserves report.

    Golden Gate's share of gas production in the March 2013 quarter was 31.2 million cubic feet, up from the 22.8MMcf it produced in the December 2012 quarter. Oil production for the quarter was 6,113 barrels.

    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 and secured $3.2 million through an underwritten entitlement offer.

    It had $1.17 million in cash as of 31 March 2013.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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