18 January 2010

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to advise the T.G.R.. Land Company, Inc #1 well at Fausse Point has been successfully completed and the well is now being prepared for an extensive testing operation which will include the testing of up to six intervals identified with potential hydrocarbons. Testing is expected to begin in approximately 10 days.

The well has encountered three separate gas and oil formations starting at 7,000 ft. There have been numerous zones of interest encountered across these formations. The lowest formation which extends over 300 feet has recently been logged and includes several zones of interest with some showing good permeability, porosity and oil/condensate in the sample cores.

Preliminary geologic analysis has identified six primary zones of interest across these formations and these have been selected for testing hydrocarbons. The intervals to be tested total approximately 120 ft.

Fully understanding these zones of interest to be tested across 120 feet and potentially other zones, requires further evaluation and analysis to more precisely determine the mineral composition, porosity, permeability, grain size and cementation of the zones of interests. Petrology is currently being done on sidewall cores and drill cuttings. This extensive evaluation will assist in the petrophysical analysis to help further refine the planned testing and completion programs.

The current proposed extensive testing program will start with the lowest interval and then sequentially test each interval on the way up the hole. If the first interval proves commercial, testing will in most likely hood cease and preparations will begin to bring the well onto commercial production. Other zones may then be evaluated as part of a future appraisal program which will include drilling other wells. 

Comments

The gas shows and oil indicators over the three formations are very encouraging.. As such, a testing operation has been planned which will help evaluate the commercial significance of the oil and gas encountered in this well.

To view the full announcement, as well as additional information on the Company, please click on the link below:

http://www.ggpl.com.au

On behalf of the Board of Directors

For further information contact:

Golden Gate is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. Its focus of operations is onshore Texas and Louisiana Gulf Coast region of the USA.

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