(ASX: GGE) is participating in the drilling of a well targeting up to 500,000 barrels of oil in the East Baton Rouge Parish, Louisiana.
The Port Hudson-1 well is designed to encounter several U Wilcox sands and is expected to produce at initial rates of about 250 barrels of oil per day.
Dry hole costs are estimated to be about $1.2 million with Grand Gulf?s 15% share fixed at $232,000. Completion and facilities costs are expected to add another $70,000 to this figure.
The Port Hudson project was generated from re-processed, proprietary seismic. The sand deposition is uniform in the area targeting multiple individual sands ranging in thickness from 10 to 25 feet.
Pipeline facilities are present in the area and the well is likely to be put on production within two months of completion.
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