Padre Island Project ("PI Project")
Golden Gate recently increased its interest in the Padre Island exploration assets from 10% to 37.5% in the high impact exploration ground.
The PI Project comprises multiple play types including smaller, low risk, shallow prospects and larger, deeper prospects which have seen little drilling attention. The agreements governing the PI Project were recently restructured so that the project now comprises a number of separate joint ventures in the different depth zones. The various joint ventures comprising the PI Project and the participant's respective interests in those joint ventures are set out in the table below:
Successful Drilling
and Production
| Well Name | Year Drilled | Result | Status |
| LaPlaya Shallow- 1 | 2002 | Completed as a gas producer | Production ceased |
| Dunn-Murdock - 1 | 2002 | Completed as a gas producer | Abandoned |
| West Bird Shallow - 1 | 2002 | Completed as a gas producer | Abandoned |
| Jack Frost - 1 | 2003 | Dry hole | Abandoned |
| Dunn Deep - 1 | 2004 | Completed as a gas producer | Producing |
| Homerun - 1 | 2004 | Discovery well | Abandoned |
| Dunn Peach #6 | 2005 | Completed as a gas producer | Production ceased |
| Plum | 2006 | Under evaluation | Evaluating |
| Wilson | 2007 | Completed as a gas producer | Abandoned |
| Dunn Deep - 2 | 2007 | Completed as a gas producer | Evaluating |
| La Playa 2 | 2007 | Completed as a gas producer | Evaluating |
| Manzano | 2008 | Completed as a gas producer | Production ceased |
| DM11A | 2008 | Completed as a gas producer | Producing |
Annual Sales (net to Golden Gate)
| 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |
| Gas: mcf | 1,218,000 | 734,000 | 377,000 | 73,300 | 78,997 | 63,678 |
| Oil/Condensate: Barrels | 8,067 | 7,825 | 3,424 | 498 | 405 | 183 |
3D Seismic
The Project's principal targets are new, previously unexplored prospects within the project area with the potential for significant additional reserves and early cash flow. The 3D seismic data invariably images the reservoir section much better than the 2D seismic data that was available when the fields were first exploited. Experience elsewhere in Texas indicates that modern technology, such as 3D seismic, directional drilling and stratigraphic techniques can substantially increase the original reserves of undrilled fault blocks, attic gas and other previously unrecognised development prospects.
To date, the project area has produced 1.7 tcf (cumulative) of gas from the development of more than 20 fields. The gas is connected into the gas grid of Southern Texas through a working gas-gathering pipeline system on Padre Island, which is accessible throughout the project area. The pipeline system, which has significant unused capacity, is a common carrier available to all gas producers.