GGE alert ..... astrostuff .....

[yogi-in-oz]

:)

Hi folks,

GGE ... let's run with another oiler this week (previously Alto Energy?),
with a new well going down in USA.

A positive time cycle suggests some good news early in the week, with
another minor and positive cycle to come into play next Friday, too.

Two significant cycles should put a positive spotlight on GGE,
about 19-20092007, as well ..... :)

For GGE news, go to:

http://stocknessmonster.com/news-item?S=GGE&E=ASX&N=374099

happy days

paul

:)

=====

[yogi-in-oz]

:)

Hi folks,

GGE ... let's run with another oiler this week (previously Alto Energy?),
with a new well going down in USA.

A positive time cycle suggests some good news early in the week, with
another minor and positive cycle to come into play next Friday, too.

Two significant cycles should put a positive spotlight on GGE,
about 19-20092007, as well ..... :)

For GGE news, go to:

http://stocknessmonster.com/news-item?S=GGE&E=ASX&N=374099

happy days

paul

:)

=====

Hi folks,

GGE ... trading according to the script, so far ..... :)

happy days

paul

:)

=====

[esprit]

Mate how do you know these things are going to happen? I find it a bit spooky :P

[yogi-in-oz]

Mate how do you know these things are going to happen? I find it a bit spooky :P

:)

... just google "Gann" and "Sepharial" to find a mountain of stuff,
about Gann's trading methods ..... :)

happy days

paul

:)

=====

[Ponda]

Hey guys,
Just after some information in relation to 'spud' and price activity around that date.
GGE is due to spud some time this week.
My understanding now is that the drill bit gets into the ground and starts drilling down. Thats 'spudding'
What effect does that news have on the share price?
They then have a total depth (TD) that they go to. Obviously depending on how deep they are going will determine how many days that it takes to get there. In this case they are talking about 5,000-10,000. How long does that take to do. Again I assume that that depends on how hard the ground is.
What generally happens once they get to TD?
Often you hear that whilst on the way to TD there is oil 'shows' but that results need to analysed before there is confirmation of commercial oil.
GGE are also talking about it being 'proven undeveloped reserves" (PUD's) is this a good thing. (it appears to be so, I would have thought)

Next question in my quest of knowledge is: Why is there the comment of Buy the rumour, sell the fact? If the fact is good, why would you want to sell?

Thanks in advance
Disclosure: Holding GGE

[Ponda]

Hellooooo, anyone able to help with the above?

[Crypto Crude]

My understanding now is that the drill bit gets into the ground and starts drilling down. Thats 'spudding'
What effect does that news have on the share price?


hey ponda,
every situation is different... sometimes the market runs up strong and prices drilling action into the share price, other times the market waits for spud before pricing it in...
for example, If management arent trusted, then waiting for spud could be a time for many to start buying...

but, In most situations the market will rerate the company steadily at each stage as it progresses from prospect target, to farmin partner, to drill rig, to timetable, to spud...



Next question in my quest of knowledge is: Why is there the comment of Buy the rumour, sell the fact? If the fact is good, why would you want to sell?



nothing beats taking profits...
after discovery there is huge uncertainty over the economics of the field, and just how the market is pricing the discovery for the given level of risk and time to production...
usually when there is a whole of excitement around discoveries it messes with peoples emotions and the stock runs too hard... what can happen is market players run the market value up to the value as at future production date, even though the stock is only at development stage... EG NZO...

depending on who your partners are, usually the risks of development stage are just the beginning of the risks... I would be scared to bits if some of the ASX oilers discovered oil... They wouldnt know what to do with it...

I HAD a small look into gge, I really dont like these sorts of companies...
The cashflows are never there to support higher market values...
if any of these wells strike, take profit and run...
no matter what outcome on these exploration wells, the company will forever be running to shareholders for funds as these sorts of wells never produce at high enough flow rates to grow a cash backing/cashflow positive position...
:cool:
.^sc

[asc4]

Napoleonville‐‐ Dugas & Leblanc #1 Well, Assumption
Parish, Louisiana, Operator 39.5% WI
The Board of Grand Gulf Energy Ltd (ASX: GGE) is pleased to
advise the Dugas & Leblanc #1 well is presently at 7,640 ft.
The well has recorded 4,700 unit gas shows at around 7,150
ft in the primary target interval, the Big Hum and 2,300 unit
gas shows in the secondary target, Operc at 7,570 ft.
The gas shows are encouraging and their significance will be
determined after a full electric logging operation is
completed once the well reaches targeted depth of 7,900ft,
and if warranted, a production testing operation is
conducted.
The Big Hum and Operc Sands are an amplitude anomaly
targeting 1.2 MMBO and 3 BCF gas. If the well is successful
initial flow rates are expected to be around the 200+ barrels
of oil per day and 1,000 MCF per day. The Company’s share
of drill hole and completion costs are US$465,000 and
$320,000 respectively.
Partners in the Dugas & Leblanc #1 Well are:
Grand Gulf Energy Ltd (ASX: GGE) 39.50% WI
Golden Gate Petroleum Ltd (ASX: GGP) 15.00% WI
Other partners 45.50% WI
Well # 2
Spud date is anticipated to be mid to late July. The Company
will have a 39.50% working interest. The second well is
testing the Operc and Cris R III Sands as primary objectives
with 300,000 barrels and 1.2 BCF of gas classified as a PUD
with further upside in secondary exploration objectives in
the Marg A and Cris R I of 300,000 barrels of oil and 1.2 BCF
of gas. If the well is successful initial flow rates are expected
to be around the 200+ barrels of oil per day and 500 MCF per
day. The Company’s share of drill hole and completion costs
are US$502,000 and US$212,000 respectively.
Well #3
The third well is testing a primary objective in the Big Hum
sand with 5 BCF classified as a PUD and targeting further
exploration upside objectives in the Tex W of 100,000 barrels
oil. If the well is successful initial flow rates are expected to
be around the 5,000 MCF per day and 100+ barrels of oil per
day. Total dry hole costs are estimated at US$800,000.

Anyone interested??

Disc. Hold

Can this make up for my slow action on SSN :p

[skeet]

Im in, been playing GGE for a while now, good positive indicators yesterday in the market, making up for the total destruction of my portfolio when JPROA bombed, no Im not still sour on this.... :)

Looking at the future well #2 and #3 will keep giving this company life over the rest of the year,

[asc4]

yep, exciting times over the coming months, should find out whether well #1 is commercial (it should be!!), well 2 is supposed to be spudded before the end of july. All 3 are financed and PUD wells. Nice run yesterday...hoping to see it continue a nice rise over the duration of the drilling programme.

Disc. Hold

[asc4]

brought some more this morning at 1.9c today, touched 2.1c already, hoping for a close at 2 or above :) . Should get news on how commercially viable well #1 is. Hope to spud well 2 in the coming weeks. All 3 wells are in PUD regions!!!

Hoping to see more action when SSN finishes up soon, and they come over to gge!

[asc4]

http://asx.com.au/asxpdf/20100722/pdf/31rftz8w5k3pjk.pdf

Good ann, must be something BIG down below...they are going to drill deeper after having already finding gas shows.
Well 2 start delayed

Happy to hold this for a while, with 2 more wells paid for and well 1 already commercial...sweeett!

[asc4]

http://www.asx.com.au/asxpdf/20100802/pdf/31rp28mwz4qyzx.pdf

Napoleonville-- Dugas & Leblanc #1 Well, Assumption Parish,
Louisiana, Operator 39.5% WI
Following the announcement dated 22 July 2010 the Board
advises that the Dugas & Leblanc #1 well has been deepened to
8,080 ft and has logged an additional 6ft of sand below the shoe
and an additional interval of a further 28ft of pay in the Operc
Sand.
This increases the total logged pay to over 160ft of pay over 4 pay
sands.
During the initial deepening and circulating, the well produced
significant oil to surface into the mud tank.
The rig will commence testing the three Big Hum sands up the
hole commencing Monday Houston time.
The Big Hum and Operc Sands are an amplitude anomaly targeting
1.2 MMBO and 3 BCF gas. If the well is successful initial flow rates
are expected to be around the 200+ barrels of oil per day and
2,000 MCF per day.

Well # 2, Operator 39.5%WI
The JV has made advancements in commencing site works on
location and due to limited rig availability expects to spud late
August.

Well 1. Another 40ft of pay zone, waiting on flow rates.
Well 2 to be spudded in a couple of weeks

Excited to the max! Great area to be in.

[asc4]

well 1 looking like a goer!! HAHAHA!

http://www.youtube.com/watch?v=oG36ABVs11c

[trackers]

Classic, saw that today and had a lol

[sudds]

Any comments today on this?

[asc4]

oh dear...out a while ago. Co. is running out of coin.

[sudds]

Ok. What happens now? Any comments?

[asc4]

Debt an issue.
Maybe the managers other co.s will put up a loan.
SPP will be lowered...again

Need to get DL2 flow rates..the only thing that can save it IMHO.

Could they go under? Maybe?

Glad to be out in the 1s, had to bite the bullet on this one, but it is a total speccy. My play money took a hit.

[sudds]

Thank you.

[sudds]

I still have my play money and will use some on this at this price. Never underestimate management:)

[sudds]

Testing #2 any comments on this.

[asc4]

The flow results are taking forever to get from DL2, which could be cause for concern. 118ft of net pay, which from memory is mostly gas, not too much oil, but the flow rates are yet to be seen. 200+ bopd is the high end guesstimate in the anns. They need revenue/equity to continue forward $ wise.

GL

[sudds]

Thank you.