FAUSSE POINT Project
The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to provide the following update on the T.G.R. Land Company, Inc #1 well at Fausse Point.
The T.G.R. # 1 well has concluded initial production testing from the lowest zone (8,370 feet) of six intervals of interest across three separate gas and oil formations starting at 7,000 feet. The well has established a commercial flow rate from a potentially very large hydrocarbon accumulation which could represent a new play type not an original target in this well. Work continues on evaluating this potentially tremendous accumulation and preparing the well for production.
Further analysis of the zone at 8,370 feet indicates that it could possibly be connected to a much larger hydrocarbon accumulation, and that this well has only just penetrated the edge of this larger accumulation. This zone was not an original target of this well and hence represents a significant new play type that will need to be carefully evaluated with further analysis.
The following graph depicts the multiple hydrocarbon intervals penetrated by the T.R.G. # 1 well next to the Fausse Point Salt Dome. Reservoir sandstones are shown thinning to zero onto the flank of the salt dome truncated at the top by unconformity. These reservoir sandstones expand as you move away from the salt dome and provide potential for large hydrocarbon accumulations.
The graph also shows the two primary target objectives of the well which include multiple zones of interest of over 110 feet intercepted at the shallower depths and where hydrocarbon bearing. Given the significance of the lowest zone and the very large potential upside consequences of a possible large discovery, the partners agreed that the current focus must be on the lowest interval even though we still have primary target objectives to test.
Moving up the well bore to test the primary objectives at this time could preclude us from returning to the lowest interval. In the meantime, by bringing this deep zone into commercial production, the Joint Venture will be able to generate early cash flow, as well as have more time to evaluate all the data from this zone as well as the other zones located higher in the well bore
Fully understanding all these zones of interest across 120 feet and potentially other zones continues in order to more precisely determine the geologic and petrophysics to assist with a full scale development of the prospect. More acreage has been leased to comprehend the significant of the discovery.
A decision on the timing of testing of the shallower zones will be influenced by the production performance of the deeper zone. Once all available data has been fully evaluated, the Joint Venture will decide to either test the shallower zones from within this well bore or drill a new well as soon as possible.
Partners in the Fausse Point Project are:
Golden Gate Petroleum Ltd (ASX code: GGP) 20.00% WI
Verus Investments Limited (ASX code: VIL) 50.00% WI
Pass Petroleum L.L.C. 30.00% WI
Fausse Point Highlights
- Fausse Point is part of GGP’s strategy to invest in low-cost, high impact, known hydrocarbon bearing areas which in the Company’s view are moderately low risk in onshore Louisiana or Texas where its knowledge base and operational experience has been established from its other projects.
- The Fausse Point prospect is located on the flank of a producing salt dome where several potential hydrocarbon bearing targets have been identified. The first target is around 7,000 with the deepest target is close to 9,000 ft.
- Salt domes in Louisiana have been proven to be highly prospective and prolific producers hence GGP views this as a particularly exciting exploration opportunity. The Fausse Point salt dome has already produced over 44 millions barrels of oil and 141 billion cubic feet of gas.
- The Fausse Point exploration project provides a high impact exploration opportunity with near term upside to its current planned Bowtie West project. GGP has also recently announced a new project at Silverwood which may be drilled by mid-year. These high impact exploration wells which are relatively low cost provide good upside for GGP when combined with the current strong cash flow from Bullseye.