There is life!, page-20

$839K revenue and $426K net profit for September qtr only. Extrapolates to $3.4m revenue and $1.7m net operating profit for the 17-18 year.

Cash at 30/9 = $1.96m

All for a market cap of $4.6m = $2.6m EV! For $1.7m annual operating profit.


Plus a second well likely to be re-completed at Pleasant Home, along with a third to be drilled if the second goes well.

The 31-6 well is the best producer in the field with over 424,000 bbls of oil produced to date. This recompletion opportunity represents an excellent low cost/low risk opportunity to determine the remaining pay zones in the well and the field.

The JV is presently working up a program to drill a new well in the field and this re-completion will add significant knowledge to that process. GGE’s share of recompletion costs on the 31-6 well program is estimated at $US125,000 and due to commence within the next 30 days.

Plus x2 a new farm-in due to spud in Dec.

The primary objective of the well is the Cib Haz sand which is a substantial producer in the Lake Mongoilois Dome Field having yielded over 10 mmbo. In addition, a shallower secondary objective (10,850 sand) is also productive in the field. Likely flow rates, should the well be successful, are:

10,850ft - 5mmcfd/50bod
Cib Haz - 380bod/250mcfd

The well will be drilled in a geo-pressured environment from a barge location. The Company’s likely share of costs will be $440,000 to drill and an additional $400,000 to complete the well with facilities if successful. It is anticipated the well will spud in Q4 2017 once the project vendor completes the farmout process.

NRI (Cib Haz) = 15% = additional 64bod for GGE = additional ~5,750 bbls to quarterly production for GGE, which has been just over 10,000 bbls per quarter for the past year. So 50+% increase to production soon... plus any additional Pleasant Home production.


Hard not to like..