The Board of Grand Gulf Energy advise that the Calloway #1 is presently drilling ahead at 6,000ft after setting casing at 2,500ft. The well will be drilled to the planned TD of 7,500ft.

The Company has a 10.5%WI in this low risk development project with an estimated resource of 450,000 bbls of oil.

The S Welsh project is located in Jeff Davis Parish, Louisiana on the SW flank of Welsh Field (90 MMBO & 100 BCFG).

The well is targeting Marg Tex sands 250ft updip to a well that produced 335,000 bbls of oil. Including the adjacent fault blocks, the Marg Tex sands have produced over 1,000,000 bbls of oil from 4 wells. The proposed well is the highest location relative to these wells.

The project was generated from 3D seismic, reservoir study and subsurface mapping and is an up-thrown 3-way trap. The sand deposition is uniform in the area with the downdip well logging a combined 150ft of sand over three sands. The potential net resources to Grand Gulf are estimated at 45,000 bbls of oil representing a low risk development project. Gross flow rates are estimated at 200-300 bbls oil per day. The net revenue interest is 75%.

Tags: Grand Gulf Energy