After royalties, production, development and 12 month hedge protection costs the company delivered over US$550,000 to fund exploration and administration costs for the quarter.
The company sells its oil each month based on a formula which is linked to the monthly average NYMEX WTI Price.
In January, the company purchased a series of NYMEX WTI put options for 2,400 barrels per month at a strike price of US$49.20 per barrel over the period to June 2015 to mitigate downside price risk.
It also secured in March a series of NYMEX WTT put options for 3,600 barrels per month at a strike price of US$50 per barrel over the period July to December 2015.
Grand Gulf will continue to monitor the NYMEX WTI price with a view to adding further protection using similar products as appropriate.
In addition, while it already has tight budget controls in place and low overheads, it will take further steps to reduce costs as required.
Over the last 9 months the company has secured leases over the Yellowfin Project in Assumption Parish, Louisiana.
The Project has been developed in house using the company's proprietary 52 square miles seismic survey and targets Cretaceous Tuscaloosa sands over a 2,000 foot interval on a structural closure covering an area of 8,000 acres.
Grand Gulf said it is drawing continued interest in the Yellowfin Project from the US Gulf Coast market. An initial test well will be drilled to a total depth of 27,900 feet.
Yellowfin follows Freeport McMoran's "Highlander" Jeanerette #1 Discovery to establish sand, pay and significant column height and multi-TCF potential in the new trend.
Freeport's discovery is reported to host 3 trillion cubic feet with 50,000+ acres under lease and two additional wells permitted in the area.
The well was recently tested with expanded facilities at 75 million cubic feet per day and nearing finalised facilities prior to sales.
Yellowfin is a similar sized feature situated on the adjacent structure to the discovery.
Most likely resource potential of the Yellowfin Prospect assuming an average of 2,000ft relief over 5,200 acres is estimated to be 1.7Tcf.
The land surface location offers significant cost reduction and surface infrastructure to facilitate bringing the project to market.
With success, the project offers long life reserves, high rate deliverability and significant oil and natural gas liquid potential to provide substantial impact on the company.
Desiree Field (Grand Gulf 39.45% working interest)
The Hensarling-1 well commenced production on 3 July 2013 and has produced over 240,000 barrels of oil.
The operator anticipates the well will sustain production rates at an average of 420 bopd with no water production
Production is sourced from the thicker Cris R III (49ft pay) formation and at the presently depressed oil price of US$62 per barrel will generate revenues of US$200,000 per month (after royalties and operative costs), or US$2.4 million per annum.
Production will continue through a 25/64 inch choke until depletion takes place, or water production becomes excessive, and will then switch to the thinner Cris R II (31ft pay) formation.
Dugas & Leblanc Field (Grand Gulf 55.8% working interest)
The D&L#3 "M" sand was successfully perforated and placed on production on 18 October 2011.
The well is presently producing 67 barrels of oil, 38,000 cubic feet of gas and 380 barrels of water per day from a 21/64 inch choke.
Production is sourced from the Big Hum "M" sand and will generate revenues of US$53,000 per month (after royalties and operative costs), or US$640,000pa.
West Klondike Development (Grand Gulf 11.7% working interest)
The Wilbert Sons LLC #1 well commenced producing from the lower Nod Blan on 4 September 2014 and is presently producing at 1 million cubic feet of gas and 10 barrels of condensate per day through a 7/64 inch choke from the lower Nod Blan.
Following depletion in the L Nod Blan the well will be completed and produced from the upper Nod Blan.
These two intervals represent a small component of the ultimate reserves of West Klondike and the third most substantial interval to be produced following the depletion of the Nod Blan sands is the Lorio interval which has the potential for up to 500,000 barrels of oil.
Grand Gulf Energy had $1.75 million in cash as of 31st March 2015. A payment of US$718,000 is also expected following a court ratifying a settlement.
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