Perth-based Golden Gate yesterday said it expected the Padre Island well to spud around July 25, targeting the world-class Plum Deep Structure with estimated gross P50 reserve potential of about 293 billion cubic feet of gas. The upside potential (P10) of the prospect is 952Bcf.

Golden Gate will operate the well with a 37.5% interest and, under arrangements with partners IB Daiwa and Pantheon Resources, will contribute 33.33% towards the drilling costs to casing point.

The well lies within the same fault trap as the Dunn-Peach-6 well, but will target deeper reservoirs, between 9500 and 16,500 feet (2905m and 5045m). Dunn-Peach-6 was confirmed as a discovery earlier this year and is flowing 1.9 million cubic feet per day of gas.

The company also said the Kindee well would be the first of eight shallow and deep wells drilled on Padre Island over the next two years.

Extensive evaluation had confirmed six mature, quality deep exploration targets of which Plum Deep, Manzano and Murdock South had been identified as the largest prospects. Each offered the potential for significant additional reserves and early cash flow.

Golden Gate planned to drill all currently defined prospects, except possibly Kingsway, from onshore, with the advantage of substantially reduced costs for exploration and development compared with offshore drilling. Onshore drilling would also significantly cut production lead times in the event of commercial successes.

Golden Gate also planned three wells targeting lower risk, smaller and shallower prospects – the Wilson Prospect and two development wells in the La Playa shallow fields. These were highly attractive targets, with any successes being able to be brought into production quickly using under-utilised infrastructure on the island.

The company has so far participated in the drilling of seven Padre Island wells –all of which encountered gas, with five being put into commercial production. As a result, the company’s present gross share of production is 2MMcf/d.

“This comprehensive drilling program has the potential to provide exponential growth for Golden Gate and promises to deliver a very exciting year for the company and its shareholders,” managing director Sam Russotti said.