The company said production-tubing pressure was steady at 2100psi.

“This is a very good result considering the shallow depth of the reservoir – less than 9000 feet [2743m] – and is within Golden Gate’s maximum pre-drilling expectations for this structure,” managing director Sam Russotti said.

“The procedure adopted within these wells is to tie them into the sales pipeline and avoid any waste of gas due to flaring. This means that revenue is earned immediately, as all test gas is sold rather than flared.”

To date, Golden Gate has participated in drilling seven wells on the Padre Island leases. All wells encountered gas, with five of these – or 71% – resulting in field discoveries that were put on commercial production.

Three of these fields are currently producing, although the West Bird field is shut-in pending installation of compression facilities.

As a result of Golden Gate’s drilling success and its recent acquisition of the Novus and Mitsui interests, the company’s gross share of daily production now exceeds 2 million cubic feet of gas per day.

“The continued success of these shallow prospects, which can be tied in quickly with little development costs due to the existing under-utilised infrastructure on Padre Island, makes them very attractive drilling targets,” Russotti said.

“Golden Gate and its partner, BNP, have identified several of these shallow prospects and plans to drill a number of them during the course of 2006.”

The first of these is likely to be a follow-up well to Dunn Peach-6, and will be drilled in the leases in which the company holds a 35% interest, Golden Gate said.

Only 30% of the Plum Shallow structure, which straddles the lease line, is in the leases containing the Dunn Peach-6 well in which Golden Gate has a 10% stake. The remaining 70% of the structure lies west of the lease line, in an area in which the company has a 35% interest.

Other planned shallow drilling for 2006 includes exploration wells on the El Mar, Manzano Shallow and Wilson prospects, as well as development/appraisal wells on the La Playa Shallow and Dunn Deep Gas fields.

The shallow drilling is in addition to the planned deep wells on the Plum Deep, Manzano Deep and Murdock structures, Golden Gate said.

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