(MENAFN- ProactiveInvestors - Australia) Golden Gate Petroleum (ASX: GGP) has recorded increases in production from three of its wells in Texas and Louisiana, bringing its average daily production up to 104.1 barrels of oil equivalent per day.
This flow rate in the second half of February compares to the production of 98boe per day for the two weeks from 1 February to 15 February 2013.
Both the SRH-3 and SRH-4 wells at its wholly owned Permian Project in Texas saw production increase to 28.1boe per day and 35.8boe per day from 25.7boe and 35.6boe respectively.
The two wells have been on and off production for extended periods since completion in order to run various testing programs, to conduct new fracture stimulation, to isolate intervals and to change out production equipment.
Golden Gate's 15% share of production from the Dugas LeBlanc-3 well in the Napoleonville Project in Assumption Parish, Louisiana, has also increased to 26.7boe per day from 23boe per day.
Further increases are expected once frac completions in the Spraberry Dean intervals for the SRH-1 and SRH-2 wells are completed and the wells brought back on stream and the company's first Permian horizontal well is brought into production.
Fracture stimulation of SRH-5H in the Upper Wolfcamp interval is pending.
Based on other horizontal well estimates by major operators in the area, the SRH-5H well could have estimated ultimate resource potential of about 400,000boe made up primarily of oil and gas liquids.
Golden Gate held A$1 million in cash as of 31 December 2012 and has recently completed an Entitlement Offer that was partially underwritten to $3.2 million.
In addition, it has reached non-binding agreements for $7.5 million in funding from a U.S. asset management firm for continued development of its Permian Project in Reagan and Irion Counties, Texas.
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