Oklahoma
Foothills, LeFlore County
Grand Gulf Energy acquired an initial 12.5% interest in the Foothills Energy LLC lease position in 18 sections of land totaling more than 3,000 acres gross (about 300 net acres) with an option over a further 3,178 adjacent acres. It has since acquired further interests by participating in wells.
The area sits between the 2tcf Red Oak/Norris and Bokoshe Fields and has eight producing natural gas formations, production and development potential.
Through Foothills, Grand Gulf Energy is participating in the 24 square mile 3D seismic program in LeFlore County which has been acquired in an exclusive joint venture with BP. This is the first time BP has allowed another operator in this area to participate in a 3D seismic project.
The data was received in February 2007 and is being interpreted. Grand Gulf Energy expects to start drilling wells based on this data in the middle of 2007.
Drilling has commenced in the joint venture with two wells drilled in April/May, Reed #4-8 and Pate #5-18. Refer to ASX releases on the ASX Announcements page for updates.
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