Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Golden Gate Petroleum Produces 29% More Oil And Gas At Permian Project

Golden Gate Petroleum (ASX: GGP) continues to ramp up Permian Project oil and gas production, with average daily production up almost 29% in the two week period ending 15 May 2013 over the previous period.

Production from the Permian Project in Texas is now 95.8 barrels of oil equivalent per day (boe/d) due in large part to the SRH-2 well returning to production.

Overall production from its U.S. projects was also up to 132.8boe/d from 110boe/d in the previous two week period.

The key SRH-5H horizontal well in the Permian Project has now been tied into the gas sales pipeline and has had experienced early initial oil breakthrough.

Oil cut was last reported on 13 May 2013 to have increase to 25% from 21.1% though experiences from other wells that had undergone similar early breakouts suggest that SRH-5H could produce for several weeks at these oil percentages before oil production reaches initial production levels.

Golden Gate is well capitalised for further drilling activity in the Permian, having recently secured A$7.5 million in funding from U.S asset management firm Lind Partners.

The company also previously raised $3.2 million through an entitlement offer and successfully sold its 10% working interest in the Cutlass project in Texas for US$1.7 million.

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.