Golden Gate managing director Sam Russotti said Zone 2 had been perforated and was being flow tested. The well started to flow gas on initial perforation and the flow rate has ranged between 400 and 500, 000 cf per day. Light oil has also started to flow at between 17 and 25 barrels per day. These flows have been achieved without any stimulation.

The well will now be shut to obtain pressure information for a fracture stimulation program aimed at significantly boosting these flow rates.

Russotti said even without fracture stimulation these production rates were economic and the zone was a candidate for being completed and tied into the Texas gas grid. These results also increased the probability that the next zone in the well would also flow at commercial rates.

The results from both deep wells (LaPlaya Deep-1 and Homerun-1) show the sequence contains permeable gas-bearing reservoirs. This has positive implications for the prospects to the south (Manzano, Plum and Murdock) where depositional models predict a thickening of the reservoir sequence and an improvement in quality, according to Russotti.

Interests in Homerun-1 are Golden Gate 10%, Mitsui 20% and Medco Energie 70%.