Under the deal, the companies, partners in the Padre Island Joint Venture, agreed that Canadian group BNP would sink a well to a depth of 10,500 feet for a fee of $4.5 million from Golden Gate to test shallow gas targets.
If commercial gas was found above 10,500 feet, the well would be completed to produce from these. Golden Gate holds a 35% stake in the shallow prospects under the terms of the joint venture, it said.
Production
