Grand Gulf Energy (ASX:GGE) has intersected oil and gas shows at its Templet-1 well at the Louise Prospect on the Napoleonville Salt Dome in Louisiana that targets between 600,000 to 800,000 barrels of oil.
The shows were encountered in the secondary objective Cris R II and III sands.
In addition, mud logs have indicated the well is running 40 fee to 50 feet higher than anticipated with the primary objective Cris R IV sand expected to be intersected about 300 feet below Cris R III.
The show in Cris R II was relatively weak with sample fluorescence of 10% but with little additional gas in the mud.
Meanwhile, the show in Cris R III is indicative of oil and comprises sample fluorescence at 50% accompanied by a significant increase in the mud.
Templet-1 is expected to penetrate an accumulation of oil in a 3D-defined, normally pressured block, updip from a productive well where an equivalent target interval has produced 2.2 million barrels of oil and 10.5 billion cubic feet of gas.
The well is targeting 600,000 to 800,000 barrels of oil.
Grand Gulf has a 22.57% working interest and will be paying 19.26% of the dry hole well costs.
Proactive Investors has forecast a 6-9 month price target of $0.035 per share based on success at Templet-1. Further success at the Napoleonville Salt Dome will add additional upside to the Grand Gulf Energy share price in 2015.
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