Ann: Eagle Ford Update, page-6

Geez, talk about negativity lol
Oil and Gas Producer, Grand Gulf Energy (ASX: GGE), is pleased to provide an update on its 1,232 gross /
1,117 net acres Eagle Ford position in Burleson County, Texas as part of a 50/50 joint venture with a Texas
oil and gas private company.
Wildhorse Resource Development has recently drilled and completed Eagle Ford wells with initial flowing
rates of up to 840 BOPD within one mile from GGE’s proposed oil units. Wildhorse is the Eagle Ford play
leader in Burleson, Lee and Brazos Counties with over 418,000 net acres. In September 2018, Chesapeake
Energy announced a US$4 billion acquisition of Wildhorse.
Wildhorse drilled its first horizontal wells in the area in 2016. Its more recent “Gen 3” wells, are predicted
to achieve significantly improved estimated ultimate recoveries (based on initial flow rates) of 620,000
boe/well, and with significantly reduced drilling costs, result in a NPV10 of $7.4 - $8m per welli. All the
Wildhorse wells drilled in a 5 mile radius of the GGE’s acreage during 2018 are shown below. The map
indicates the IP rates and cumulative 10 month oil and gas production. Using the improvements in drilling
and completion techniques, 6 out of 7 of the “Gen 3” well’s initial production results exceed the recoveries
from older generation wells for the same period, irrespective of depth. Their decline rate is also less than
for the older wells (which average 154,000 BO over 27 months) and Wildhorse expects the “Gen 3” wells
to produce more oil over their lifetime.