GulfSlope Energy Announces Insurance Claim
Underwriters acknowledge confirmation of coverage related to Tau well event
HOUSTON, TX / ACCESSWIRE / November 12, 2019 / GulfSlope Energy, Inc. (OTCQB:GSPE) (the "Company") today announced that underwriters (the "Underwriters") associated with the Company's Energy Package insurance policy (the "Policy") have acknowledged confirmation of coverage, subject to the Policy terms and conditions, related to a subsurface well occurrence that happened during the drilling of the Company's Tau well earlier this year. This occurrence transpired on May 5, 2019 during drilling operations at a measured depth of 15,254 feet. The Company subsequently controlled the occurrence and ceased drilling operations. Plugs were placed in the well to meet regulatory requirements prior to rig release.
Pursuant to the Policy terms and conditions, the Underwriters will reimburse GulfSlope for qualified actual costs and expenses incurred to (i) regain control of the well, and (ii) restore or re-drill the well to 15,254 feet. GulfSlope is working with the Underwriters to finalize details associated with the claim.
"GulfSlope was encouraged by what we saw in the geologic section penetrated below salt in the initial well bore. We are looking forward to drilling deeper and testing the large and very exciting exploration potential in the Tau Prospect," stated John Seitz, Chairman and CEO of GulfSlope. "We are conducting pre-drill activities, reviewing the Exploration Plan, and preparing, in coordination with the insurers, the Application for the Permit to Drill."
The Tau Prospect targets multiple Miocene sand levels trapped against a well-defined, angled flank of the large salt structure. The correlative target subsalt Miocene sand levels are oil productive at the nearby subsalt Mahogany Field, located approximately five miles to the southwest. The Company estimates that a projected 26,000 foot total vertical depth will test gross resource potential of 400 million barrels of oil equivalent for the Tau Prospect.
About GulfSlope Energy
GulfSlope Energy is an independent oil and natural gas company focused on exploring offshore U.S. Gulf of Mexico. To learn more, visit the GulfSlope Energy website at www.GulfSlope.com.
Al Petrie Advisors
John H. Malanga, CFO
SOURCE: GulfSlope Energy
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Released November 12, 2019