(MENAFN - ProactiveInvestors - Australia) Grand Gulf Energy (ASX: GGE) has intersected more oil shows at its Hensarling-1 well in Louisiana, raising the likelihood that it will provide long life reserves.
Mud logs indicated the well had intersected between 40 and 50 feet of oil shows at the Cris R III Sand, the second primary objective. The Cris R II sand was earlier interpreted to have oil shows across a 60 to 70 feet gross interval.
Wireline logs will now be run to determine the commerciality of the shows in the Cris R II and III.
Drilling will then resume towards the secondary objective Cris R IV and V sands.
Hensarling-1 is located in the 140 acre Desiree prospect in Assumption Parish. It is updip and 270 feet from the largest producer in the adjacent Napoleonville Field that was abandoned at low oil prices with split casing while still producing 100 barrels of oil per day.
Cris R II and III and estimated to up to 800,000 barrels of oil while the secondary targets could add anothern 200,000 barrels of oil and up to 30 billion cubic feet of gas.
Grand Gulf has a 35.6% working interest in the Desiree prospect with its net share of dry hole costs estimated at about US1.1 million. Fellow Australian Golden Gate Petroleum (ASX: GGP) has a 3.99% working interest.