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The Board of Golden Gate Petroleum Ltd. is pleased to announce that Kindee Oil and Gas Louisiana, GGP’s wholly owned subsidiary, has entered into an agreement to take a 20% working interest and operatorship in a new high impact oil and gas exploration project located onshore in south Louisiana, just a short drive from its Bullseye Project.

Highlights

- The project known as Fausse Point is part of GGP’s strategy to invest in low-cost, high impact, known hydrocarbon bearing areas which in the Company’s view are moderately low risk in onshore Louisiana or Texas where its knowledge base and operational experience has been established from its other projects.

- The prospect is located on the flank of a producing salt dome where two high quality targets have been identified. The primary target is shallow oil (7,000-8,000 ft) and deeper secondary target is gas (7,500-9,000 ft). Total dry hole cost to drill the initial well is approximately US$1 million.

- Salt domes in Louisiana have been proven to be highly prospective and prolific producers hence GGP views this as a particularly exciting exploration opportunity. The Fausse Point salt dome has already produced over 44 millions barrels of oil and 141 billion cubic feet of gas.

- The potential oil resource is estimated at 7.4 million barrels of recoverable oil at P50 level and potential gas resource of 24.2 billion cubic feet of gas. With potential upside in the event the anticipated pay zones are larger.

- Potential production rates could exceed 1,500 barrels of oil per day as initial production rates are estimated at 300-500 barrels of oil per day per sand and there are multiple sands. Production could be supported by nearby infrastructure.

- The initial well has been permitted, site work commissioned and is planned to be drilled in the 4th quarter
of 2009.
- The Fausee Point exploration project adds another high impact exploration opportunity with near term upside to its current planned Bowtie West project. These high impact exploration wells which are relatively low cost provide good upside for GGP when combined with the current strong cashflow from Bullseye.

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