Gulf Stream Energy (ASX:GSE) Assigns Contingent Resource Estimates to Two Zydeco Oil Zones

Sonal Goyal

27 October 2026 12:13 PM AEDT

Gulf Stream Energy (ASX:GSE) Assigns Contingent Resource Estimates to Two Zydeco Oil Zones

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Key Highlights

Best estimate (2C) gross contingent resources are 48,000 barrels for the Borsum Sand and 40,000 barrels for Homeseeker B.
No flow tests or fluid samples are available from the Zydeco-1 well, and no reserves have been booked.
A completion plan for Homeseeker B has been prepared for a workover rig on the existing cased wellbore.
The primary Tweedel gas target remains undrilled about 380 feet below the casing shoe.

Gulf Stream Energy Limited (ASX:GSE) said on 27 October 2026 that an external evaluator has assigned maiden contingent resources to two oil zones found by the Zydeco-1 sidetrack at its 100%-owned Zydeco Oil & Gas Project in Acadia Parish, Louisiana.

Resource Estimates for the Two Oil Sands

The discoveries, first announced on 15 October 2026, are the Borsum Sand and Homeseeker B. Gross low, best and high estimates are 36,000, 48,000 and 60,000 barrels for the Borsum Sand, and 30,000, 40,000 and 50,000 barrels for Homeseeker B. Net best estimates are 33,600 and 28,000 barrels after a 30% royalty burden. No combined total is reported, and the estimates have an effective date of 19 October 2026.

These are contingent resources rather than reserves. The evaluator had no formation pressure data, fluid samples, flow tests or production data from Zydeco-1, so the interpretation relies on nearby wells. MacCabees B-1, about 300 feet away, tested Homeseeker B at 75 barrels of oil and 25 barrels of water per day, while F.N. Hayes 008 produced from the Borsum Sand until 1987. The company noted those results do not predict Zydeco-1 performance.

Reservoir Details and Next Steps

The Borsum Sand sits at about 3,364 feet true vertical depth with 12 feet of net pay at 32% average porosity. Homeseeker B was intersected at about 8,935 feet with 5 feet of net pay at 24% porosity. Both sit behind cemented 7-inch casing and can be completed from the existing wellbore without further drilling.

The immediate step is a completion and flow test of Homeseeker B using a workover rig, for which a completion authority for expenditure has been prepared. Flow testing and fluid sampling are needed to confirm producibility. The Tweedel gas target lies about 380 feet below the casing shoe, and reaching it would require roughly 620 feet of new hole, subject to engineering review, funding and approvals.

Why This Could Matter

The announcement moves two zones from drilling discoveries to quantified, though contingent, volumes. The classification is Development Unclarified, and the contingencies include the absence of flow tests and an approved development plan. The estimates were also not reduced by the reported 60% chance of development.

Closing View

Gulf Stream has put volume ranges on two oil zones and outlined a workover-based path to a flow test. Producibility has not been confirmed, and any drilling or completion decision depends on test results, economics, funding and approvals.

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