Grand Gulf Energy US drilling program successful

Grand Gulf Energy has reported on recent successes with three new wells in "low-risk conventional oil and gas plays" in Oklahoma and Louisiana, the company said.

Jun 29th, 2007

By OGJ editors
HOUSTON, June 29 -- Perth-based Grand Gulf Energy Ltd., which recently changed its name from Alto Energy International Ltd., has reported on recent successes with three new wells in "low-risk conventional oil and gas plays" in Oklahoma and Louisiana.

"Our primary focus at the moment is on the aggressive exploration and development of the Foothills Joint Venture in Oklahoma and the Phase 3B drilling program and Napoleonville Salt Dome 3D seismic project in Louisiana," said Gulf Energy Chief Executive and Managing Director James Trimble.

In the Foothills Joint Venture in Oklahoma's LeFlore County Grand Gulf Energy, earlier this year, participated in a 24-sq-mile 3D seismic program with BP PLC and has drilled two wells—Reed No. 4-8 and Pate No. 5-18. Interpretation of the 3D seismic is nearly complete, and Grand Gulf said it will begin choosing locations for wells shortly.

The Reed No. 4-8 well is producing at about 750 Mcfd. The well, still in the cleaning up phase with the production of frac fluids, has been connected with the sales gas pipeline network.

For the Pate No. 5-18 well, a completion rig is on site to begin immediately perforation, fraccing, and testing. Logs for this well show two sands capable of production—Spiro, the primary target, and Panola. The Spiro sand will be perforated and fracced first. The Panola will follow in the next 30-60 days. The gas will be comingled to sales. Sales gas contracts have been negotiated.

Grand Gulf Energy has an 8% interest in the Reed No. 4-8 well and a 25% interest in the Pate No. 5-18 well.

In the ConocoPhillips No. 4 well in Terrebonne Parish, La., Gulf Energy has a 7.5% interest. This well has been perforated and, on test, flowed at a rate of 3.2 MMcfd on a choke of 12/64 in. with a tubing pressure of 3,800 psi. Gas contracts and sales gas pipelines are being put in place prior to putting the well on stream.

In Assumption Parish, La., Grand Gulf is expected to complete in mid July shooting of 3D seismic data over the Napoleonville Salt Dome, in which it has 25% interest in 33,000 acres. The company already has drilled more than 5,000 shot holes in the area over the past several months, and it is scheduled to start seismic data interpretation in September.

Historically, the Napoleonville Salt Dome has produced 188 bcf of gas and 20 million bbl of oil.

In southern Louisiana, Grand Gulf Energy currently has between 3.75% and 7.5% interest in the Phase 3B drilling program through a joint venture with Legend Petroleum, which identified the five well locations from a large 3D seismic data set. The drilling program is over small lease areas, targeting specific structures. The area is known for high well productivity.

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