(MENAFN - ProactiveInvestors - Australia) Golden Gate Petroleum (ASX: GGP) has spudded its first horizontal well at the Permian project, Texas, that will provide important information for next year's drilling program as well as being a producer.
The horizontal interval of the SRH-5H well, which is being drilled by Western Drilling Rig 6, will be located in the Wolfcamp A interval.
A full suite of electric logs will then be run to assist with the planning process for the fracture stimulation program.
Based on other horizontal well estimates by major operators in the area, SRH-5H well could have an estimated ultimate resource potential of approximately 400,000 barrels of oil equivalent made up of primarily oil and gas liquids.
Golden Gate noted there were three and possibly four intervals which could be candidates for horizontal drilling over its leasehold position.
About 24 horizontal well locations have been identified for each interval and up to 92 horizontal wells could be drilled in the area.
The current plan is to drill Wolfcamp horizontal wells over the leasehold position in 2013 in order to maintain all leases via the continuous drilling requirements.
Golden Gate has a 100% interest in the project, which stretches across Reagan and Irion Counties.