golden gate petroleum limited investor presentation november 2011 steve graves, executive chairman...

Golden Gate Petroleum LimitedInvestor Presentation November 2011Steve Graves, Executive Chairman

Exploration

Development

Production

Golden Gate Petroleum Limited is an independent oil and gas exploration and production company listed on the Australian Securities Exchange (ASX:GGP) with its corporate office in Melbourne, Australia and its operations centre in Houston, Texas.

Strategy: To develop a portfolio of oil and gas exploration and development projects, balancing its exploration activities with low cost, low risk development opportunities via acquisition or farm in of proven reserves.

Focus of Operations: Onshore Gulf Coast region and Permian Basin of the USA

Golden Gate Petroleum LimitedInvestor Presentation – November 2011

Permian Basin

Gulf Coast region

Investor Shares Held %

Alimold Pty Ltd 61,500,000 3.49

Sacha Investments Pty Ltd 24,000,000 1.36

Dr T Kolimackovski 22,000,000 1.25

Four P Investments Co P/L 21,450,000 1.22

Lawnbet Pty Ltd 20,000,000 1.14

Date 23 November 2011

Share Price (A$) 0.02

52 Week High / Low (A$) 0.22 / 0.008

Shares on Issue (ASX: GGP) 1,761,952,688

Market Cap (A$) 35.2 million

Top 20 shareholders control 18%

Options on Issue (ASX: GGPO)Expire 31 Aug 2012, exercise price of $0.08

679,100,395

Debt (A$)18,200,000 Convertible notes with $0.05 face value, maturing 30 June 2013. May convert early at 85% of 10 day VWAP.

0.9 million

Top 5 Shareholders as at 23 Nov 2011


NSW (38.81%)VIC (20.82)QLD (15.63%)SA (10.05%)WA (9.47%)International (3.19%)NT (0.72%)ACT (0.70%)TAS (0.615)

Capital Structure

Location of Shareholders

Board & Management

Executive Chairman

Steve Graves

Director

Frank Petruzzelli

Director

Frank Brophy

CompanySecretary

Chris Bowyer

Chief Financial Officer

Chris Ritchie

Mr Graves has over 35 years in the oil and gas industry both in Australia and overseas. Most recently Mr Graves was Executive Chairman of Orchard Petroleum Ltd. Mr Graves worked for Mobil Corporation and affiliated companies 23 years and has been a consultant to the energy industry and a senior consultant to Ernst & Young.

Mr Petruzzelli is a principal of MDB & Co, an Australian accounting firm and has been a director of the company since 2003. He is an accounting and management services specialist and advises many ASX listed companies and large private organisations.

Mr Brophy is a geologist with more than 45 years experience in the oil and gas industry. Mr Brophy has an extensive background in petroleum exploration, development and production projects across the world with companies that became subsidiaries of Elf Aquitane and Maurel & Prom.

Mr Bowyer is a Chartered Accountant with 17 years public practice and private sector experience. Mr Bowyer has previously been Company Secretary for Orchard Petroleum Ltd. and is currently Secretary of Solimar Energy Ltd.

Mr Ritchie is a FCPA and FCIS with financial management experience of construction and engineering companies involved in major energy & resources projects as well as CFO / Co Sec experience with several small to medium size ASX listed companies.


2011AUD 000’s

2010AUD 000’s

Variance000’s Notes

Current assetsCash & cash equivalentsTrade & other receivablesInvestmentsPrepaymentsTotal current assets

Non-current assetsTrade & other payablesPlant & equipmentExploration & development assetsOil & gas propertiesTotal non-current assets

Total assets

Total current liabilitiesTotal non-current liabilities

Total liabilities

Net assets

2,388856

757

3,308

20327

8,8941,343

10,467

13,775

1,6691,603

3,272

10,503

7,5841,158

-59

8,801

28347

3,7545,8779,961

18,762

3,881814

4,695

14,067

(5,196)(302)

7(2)

(5,493)

(80)(20)

5,140(4,534)

506

(4,987)

2,212(789)

1,423

(3,564)

Reduction in creditors 2.7m & overheads 1.8m

Permian Basin & Bullseye acquisitionsWrite down of Bullseye Project Assets

See note for cash movement above1.5m convertible notes issued

Consolidated Statement of Financial Position as at 30 June 2011



Permian Basin

Bowtie West

Bullseye

Napoleonville

North Edna

Fausse Point

Geographical location of Projects

Permian Basin Project

GGP has acquired 4 leaseholds totalling 8,806 acres in Reagan and Irion Counties in Texas. Total purchase price was AUD$4.9 million. The acreage covers most depths and intervals.

Leases have been paid through to March 2013 with the opportunity to hold the leases in perpetuity through continued production and continuous drilling.

GGP has successfully drilled the first two wells, hydraulic fractured one and readying the second, preparing to drill two new vertical wells in December plus commenced work on a valuation report.

Permian Basin



SRH-C #6H WellWell was drilled to a total depth of 9,235 feet.

Eight pay intervals ranging from 5,220 feet to 9,176 feet have been identified from the logs.

Over 130 feet of conventional sand and 1,600 feet of rich oil shales have been identified for testing and hydraulic fracturing.

Total recoverable oil estimated from log analysis is 260,000 barrels, which is approximately US $20 million in gross revenue, assuming an US$ 80 per barrel oil prices.

Estimate is based on total oil attributable to the conventional sands of 136,000 barrels assuming a 40 acre drainage area & a recovery factor of 25.85 barrels of oil per acre foot. Oil attributable to the rich oil shales is estimated to be 124,000 barrels of oil assuming a 1% recovery of the oil in place which works out to be 1.94 barrels of oil per acre foot.

Well has successfully undergone hydraulic fracturing.

Currently returning frac fluids along with oil and gas.

Initial production testing next week.



SRH-A #8A WellWell was drilled to a total depth of 9,500 feet.

Seven pay intervals ranging from 5,474 feet to 9,321 feet have been identified from the logs.

Over 60 feet of conventional sand and 1,250 feet of rich oil shales have been identified for testing and hydraulic fracturing.

Total recoverable oil estimated from log analysis is 202,000 barrels, which is approximately US $16 million in gross revenue, assuming an US$ 80 per barrel oil prices.

Estimate is based on total oil attributable to the conventional sands of 97,000 barrels assuming a 40 acre drainage area & a recovery factor of 40.4 barrels of oil per acre foot. Oil attributable to the rich oil shales is estimated to be 105,000 barrels of oil assuming a 1%to 1.5% recovery of the oil in place which works out to be between 1.3 and 2.9 barrels of oil per acre foot.

Well is being prepared for hydraulic fracturing by Halliburton in mid December.

Equipment and site preparation underway.


Indicative Permian Basin Drilling Program

Well Nov 2011 Dec 2011

Jan2012

Feb2012

Mar2012

Apr2012

May2012

Jun2012

Jul2012

Aug2012

Sep 2012

Oct2012

SRH-C6H V

SRH-A8A V

No 3 V

No 4 V

No 5 H

No 6 V

No 7 V

No 8 H

No 9 H

No 10 H

Drilling Fracture Stimulating On Production


H = Horizontal Well V= Vertical Well

Indicative Permian Basin Project FinancingOf 10 Well Drilling Program

Description Amount USD

Drilling, completion & fracing costs6 vertical wells @ 1.5m4 horizontal wells @ 3.0m

9,000,00012,000,000

Less amounts already paid (1,500,000)

Existing Cash (1,500,000)

Future Rights Issue / Placement

(9,000,000)

Revenues & Production Financing Facility

(9,000,000)


Bullseye Project

Jumonville #1 & #2

Total production for the 2011 financial year was:

Total OilBBL

GGP ShareBBL

Total GasMCF

GGP ShareMCF

Jumonville #1 11,799 5,839 39,118 19,358

Jumonville #2 32,714 16,000 43,187 21,122

Total 44,513 21,839 82,305 40,480

Plan is to test the Camerina interval through the Jumonville #1 well when this well finishes commercial production in the first quarter of calendar 2012.

The Camerina interval is estimated to contain resources of between 2.2 – 7.1 million barrels of oil and between 2 – 7 BCF of gas, but extent of reservoir unknown.


Operator & 54.25% Working Interest

Huth Prospect

Jumonville #4 (Huth Prospect)

GGP has acquired the rights to a 21% working interest, after paying 25% before casing point in the first two wells.

The Huth prospect comprises the mineral rights down to 11,000 feet which contains the producing zone at 10,100 feet.

The Huth sand has produced over 2.3 million barrels of oil and in excess of 2.5 billion cubic feet of gas from the 8 wells previously producing from this interval.

Initial daily production rate is estimated at between 100 to 200 barrels of oil equivalent (mostly oil).

GGP’s net cost to participate in the initial well through completion is approximately US$ 250,000 after offsets for services provided.

Commence drilling operations in December 2011.


Operator and 21% Working Interest

Napoleonville Project

Dugas & Leblanc #3

Produced 1,050 barrels of condensate and 162 million cubic feet of gas before being temporarily shut in to complete the “M” sand.

Logged 40 feet net oil pay and 26 feet of net gas pay in the “M” sand.

Recently completed in the “M” sand with production at 210 barrels of oil per day & 1.7 million cubic feet of gas per day.

Estimated recoverable reserve of 400,000 barrels of oil and 1.2 billion cubic feet of gas.*

Potential for a further 10 – 15 billion cubic feet of gas updip

* Reserve review undertaken by Grand Gulf Energy Ltd

-6,900’

7,000’

7,100’

7,200’

7,300’

6,900’

7,000’

7,100’

7,200’

7,300’

D&L DISCOVERY

TOTAL DEPTH7,844

200’GROSS

-7,093’

42’ GROSS

22’ GROSS-7,071’

-7,135’

500’

D&LWell

#1

D&LWell

#2

400 000 BBLS1.2 BCFGRESERVE

D&LWell

#3

Msd

-7,081’

-7,105’

100’

279’


Non- Operator & 15% Working Interest

Fausse Point Project

TGR #1 Well – Side-track

A side-track to the TGR #1 well is to be drilled at Fausse Point targeting a potential 200 acre hydrocarbon accumulation over two primary intervals up-dip from the original well.

The fault block to be drilled has no previous penetrations of the targeted pay interval and is estimated to contain up to 20 billion cubic feet of gas (3.5 million barrel of oil equivalent) of recoverable gas on an un-risked basis.

The major partner in the project, Verus Investments Limited (ASX: VIL) is reviewing the option to farm out a portion of their 72.0% working interest. The project is on hold pending VIL’s decision.


Operator & 18% Working Interest

Fausse Point Project

New Shallow Oil Target

Utilising reprocessed 3D seismic covering 50 square miles of the Fausse Point Salt Dome, GGP has been able to identify a separate shallow oil target within the Area of Mutual Interest shared by the partners.

The new objective is an oil sand ~3,000 feet measured depth and covers approximately 200 acres.

The potential recoverable resource estimated at this early stage is 2.4 million barrels of oil in a 100 acre trap, assuming 30% recovery factors.

The sands are estimated to be 70 feet thick with good porosity. There are analogue wells which have produced from these sands located around the Fausse Point Salt Dome.

GGP is continuing to complete the leasing of the targeted area and examining potential drill sites within the wetland area. Permitting has commenced but will take time.


Operator & 18% Working Interest

Other Projects

North Edna Project – 85% Working Interest

The Richardson #1 Well was shut in during June 2011.

Partners have elected to exit this project.

GGP is assessing a number of options for this project.

3D Seismic Project

GGP owns 3D seismic licences covering Fausse Point (Louisiana), Magnet Withers (Texas) and Padre Island (Texas).

Intention is to build leasehold positions and promote prospects.

Bowtie West Project – 18% Working Interest

Bowtie West (Sugar Valley #1) is ready to drill and GGP has been advised that the Operator will drill this well in the first quarter of 2012 targeting the prolific Vicksburg sandstone reservoir.


Golden Gate Petroleum Ltd

DisclaimersReliance on Third Party InformationThe views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation of forecast by Golden Gate Petroleum.

Forward Looking StatementsThis presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to; price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition. Environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All references to dollars, cents or $ in this presentation are to AUD currency, unless otherwise stated.

Competent Persons’ StatementThe information in this report concerning projects in Louisiana has been reviewed and signed off by Mr Mark Decker, Geologist (BS Geology), with over 34 years relevant experience with the oil and gas sector.

The information in this report concerning the Permian Basin project has been reviewed and signed off by Mr Mickey McGhee a Geologist with over 30 years’ experience within the oil and gas sector and an extended background in the Permian Basin.

No Offer of SecuritiesNothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Golden Gate Petroleum securities in any jurisdiction.

golden gate petroleum limited investor presentation november 2011 steve graves, executive chairman...

Documents

petroleum exploration

mr bowyer

mr brophy

gas exploration

mr ritchie

mr petruzzelli

permian basin project

bullseye project assets