Golden Gate Petroleum (ASX: GGP) has been advised that the Hensarling-1 well in the Napoleonville Project, Louisiana, has started producing oil with at rates expected to reach up to 370 barrels per day.
This is expected to general net revenue of $27,000 per month for the company based on its 3.9% working interest.
Hensarling-1 had flowed 240 barrels of oil during the first 17 hours with the operator advising that this rate could be sustained.
This equates to production of between 330 and 370 barrels per day of oil from the Cris R III sands.
Post drill, gross reserves in the Cris R II and III sands are estimated to be 952,000 barrels of oil and 0.4 billion cubic feet of gas.
The well will produce the thicker Cris R III resources following which the overlying Cris R II will be completed for production.
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