Along with gas production of 21.4 million cubic feet, this delivered gross revenue of A$1.93 million.
This is little change from revenue of A$1.99 million in the previous quarter.
After royalties, production and development costs the company delivered $1.1 million to fund exploration and administration costs for the quarter.
The majority of the company's oil production came from its 35.6% owned Hensarling-1 well in the Desiree Project in Assumption Parish, Louisiana.
Hensarling-1 produced a total of 36,659 barrels of oil during the September quarter at an average rate of about 399 barrels per day.
This well generated net revenue of US$290,000 per month to GGE.
Net Proved Reserves to the company are estimated at 309,000 barrels as at 30 June 2014.
Other producing wells include:
- Dugas & Leblanc-3 (40% WI): This well is presently producing at gross production rates of 100bpd of oil and 585 barrels of water, through a 21/64 inch choke. The D&L-2 well was successfully converted into a salt water disposal which will significantly reduce water disposal costs. During the period, net revenue (after operating costs) averaged about $75,000 per month;
- West Klondike (11.7% WI): The well commenced production on 2 September 2014 and is presently producing about 1.5 million cubic feet of gas and 15 barrels of condensate per day through a 7/64 inch choke from the Lower Nod Blan. Based on current production rate, net revenue (after operating costs) is estimated at about $14,000 per month; and
- Abita (20% WI): The SL 19706-1 well choke was increased to 8/64 and the well is presently producing 1.5MMcf/d and 15bcd. Net revenue is estimated at about $27,000 per month.
The Templet-1 has been suspended and will be converted into a water disposal well for
Hensarling-1 after logs indicated that the well was uneconomic.
Grand Gulf Energy has continued building its geological and geophysical database over the September quarter.
This includes the identification and review of a number of new projects on the Napoleonville Dome, some with near term drilling potential.
The reprocessed data is proving to be very beneficial and together with the frequency attribute work a number of new project opportunities have been identified.
The strong oil production in the September 2014 quarter is a testament to the quality of Grand Gulf Energy's Desiree Project targeting the Napoleonville Dome.
Its revenue of A$1.93 million also places the company well on the way towards surpassing its FY2014 revenues of $7.5 million.
Proactive Investors maintains its share price target valuation of $0.035 within 6-12 months.
Grand Gulf Energy had A$2 million in cash at hand as at 30 September 2014.
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