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Golden Gate Petroleum Has High Hydrocarbon Hopes From Permian Horizontal Well

Golden Gate Petroleum (ASX:GGP) has high hopes for hydrocarbon break through from its SRH-5H horizontal well at its Permian project in the US, as it continued to unload frac fluid without the use of pumping equipment for 12 days.

The company believes it is realising the benefit of Halliburton's Perm Stim frac fluid that has resulted in higher frac fluid recovery.

The use of Halliburton's frac fluid in other nearby wells has resulted in the recovery of up to 40-50% of the frac volume before hydrocarbon breakthrough and led to higher recovery of frac fluid for less blockage in the wellbore.

Golden Gate has since installed pumping equipment at the well and is moving off the frac water at the pump rate of 800 barrels per day.

Meanwhile, the SRH-1 well, which was recently put back on production, has shown initial daily flow rate of above 50 barrels per day and 100 million cubic feet of gas.

The workover rig has since moved to the SRH-2 well and has drilled out the plug separating the Cline interval in this well.

Permitting process for the SRH-6 well is underway and this well will drill down through the Wolfcamp interval.

Testing is also planned for the Clearfork interval, which is above the Sprayberry interval, with the objective to examine and test a zone in the Clearfork that could be a potential horizontal well candidate.

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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