# GDN - Golden State Resources



## chris1983 (26 October 2006)

Any of you guys on this one?

· Paradox Basin #1 well is at 11,950 feet (3,642 m) and drilling on

· Strong formation gas pressures and gas influx to well upgrade
production potential

· Target potential 3 TCF gas

One of my mates brought it to my attention and I decided to jump on the train.

"The well is drilling on towards its main targets, which have been interpreted from seismic data to have the potential to contain up to 3 TCF of gas, the Barker Creek (estimated depth to base 12,730 feet) and the Leadville Limestone (estimated depth of top 13,700 feet). The Leadville Limestone hosts the Lisbon Oil & Gas Field, 80 km to the south. The Lisbon Field has produced 54 million barrels of oil and 750 BCF of gas, at current prices equivalent to a gross income of A$10 billion.

It is anticipated that the well will reach the primary objective Leadville Limestone within 7 days."


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## kevro (26 October 2006)

Hi Chris1983, yeah I'm in. Just 50k yesterday at .59c but has gone for a wild ride today and tomorrow looks interesting.


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## Sean K (26 October 2006)

Holy #$@% ^&*()&% !!!!!!!!!!!!!!!!!


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## kevro (26 October 2006)

Hi Kennas, you might need another notch in your Macd chart soon if they have what they are looking for.


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## chris1983 (26 October 2006)

Hey Kevro.  Welldone.  I am holding no where near that many shares.  If they do hit their targets though..my small holding will be very profitable.

Looking forward to tomorrow.  Still a good buy Kennes if they hit the potential gas targets they say they can.  Even if they get half of their potential gas target..we'll be in for a ride.


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## kevro (26 October 2006)

Chris, GDN have also proven in the past it seems that someone cannot keep a secret and usually good news has followed extra share activity. Wonder if the secrets out of the bag with news to follow. Hope so


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## pch (26 October 2006)

I've been holding this since 23c giggling at all the EXT ramping


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## imajica (26 October 2006)

do you guys think it would be worth buying in tomorrow?

has it got a few days left to run?

any thoughts would be appreciated

cheers


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## Sean K (27 October 2006)

imajica said:
			
		

> do you guys think it would be worth buying in tomorrow?
> 
> has it got a few days left to run?
> 
> ...




Just another day traders buy in and out quick atm. Be wary.


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## kevro (27 October 2006)

Thanks for the warning Kennas. Just may be a bit more in it this morning judging by the bid side and a shrinking offer side. Will watch closely.

Regards
Kevro


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## chris1983 (27 October 2006)

In response to the ASX query yesterday they seem pretty confident.  So i'll hold this one to see what happens.


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## tech/a (27 October 2006)

This is going to belt on open.

Look for a breakdown from the top when it eventually comes off.
It could fall as fast as it has risen.
From a short term technical view to maximise profit I would only allow a pull back of 25% from any high made. (Thats 25% of the RANGE).
So if it gaps and trades up 20c to a high thats 4c back from any high.

Just a technical view if any of you fundies are interested.


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## tech/a (27 October 2006)

tech/a said:
			
		

> This is going to belt on open.
> 
> Look for a breakdown from the top when it eventually comes off.
> It could fall as fast as it has risen.
> ...




This is now coming off need to be quick.


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## chris1983 (27 October 2006)

Hmm.  I'll hold.  You think they will come back Tech-A?


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## chris1983 (27 October 2006)

Ok I'll have an estimation.  We will finish at $1.10+ because people wont want to miss it..will want to be holding for monday


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## SevenFX (27 October 2006)

This reminds me of a young cdu...here comes 95c


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## tech/a (27 October 2006)

Its now hit resistance at 95-96 three times and tanked each time.

There are some big "punts" in the mix and if they get jittery they will sell at these levels until the sellers run out.

Needs to hold above 96c for at least 15 min to have a chance of not being sold off.

Under 87c and she will dive.
Those looking for a quick profit have had a few chances.
It wont rise vertically for ever!
A CDU comes around super rarely.Trading every trade like a potential CDU will have great profits disolving before your eyes.

Pick one was taken at the time of the first post.
pick 2 just then.


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## Sean K (27 October 2006)

chris1983 said:
			
		

> Ok I'll have an estimation.  We will finish at $1.10+ because people wont want to miss it..will want to be holding for monday




Careful Chris. Take some profits when you can mate.


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## chris1983 (27 October 2006)

Hey guys.  Thanks for the warnings.  I'm debating with myself on what to do.  I'm not holding heaps in this one.

Whats your view of their messages though?


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## kevro (27 October 2006)

Out at .88c for a nice $15k profit in a couple of days. Will watch for a while and wait for the 3rd wave.


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## tech/a (27 October 2006)

Aint that nice.

Gotta be happy with that.

well done!!!


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## kevro (27 October 2006)

Very Happy thanks Tech A. Read your advise especially re .87c and down she goes. I think it is being pushed down and may move when the big guys are ready. 

PS Thanks for the input


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## SevenFX (27 October 2006)

pch said:
			
		

> I've been holding this since 23c giggling at all the EXT ramping




I hope pch hans't forgotton to close his position...????

Nice one Kevro.....


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## SevenFX (27 October 2006)

Hey Tech/a,

So where you you beleive it will reverse, around the 80c mark or may 78c ...????

Certainly come of the boil.


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## chris1983 (27 October 2006)

Hey Tech-a.  Good pick. They did come back down..I could of sold..made 500 bucks extra and got back in.  I'm only holding just under 5000 shares..like I said all my money is tied up in other stocks..wish I had more of these though.


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## chris1983 (27 October 2006)

Ohh and to kevro..congrats mate.  Thats a huge profit in 2 days.


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## kevro (27 October 2006)

Thanks Chris, that was ulcer stuff for me. Bow for ADI & RDS, then its easy street and a bottle of mylanta.

Waiting for the next wave now, see if she get over a dollar


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## tech/a (27 October 2006)

SevenFX said:
			
		

> Hey Tech/a,
> 
> So where you you beleive it will reverse, around the 80c mark or may 78c ...????
> 
> Certainly come of the boil.




Have no idea.

But what I can say is that they "normally" re test the high in this case 96c.
Then if it cannot hold above 96c will drift into no mans land.

The harder it comes off the less likely a retest of the high and the longer it will wallow in the void.
I leave these alone and look for other runners rather than try to hop on again.

But thats me.


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## SevenFX (27 October 2006)

tech/a said:
			
		

> Have no idea.
> 
> But what I can say is that they "normally" re test the high in this case 96c.
> Then if it cannot hold above 96c will drift into no mans land.
> ...




Thanks T/A,

I guessing the R2R ratio is not in my favour, as it struggles back up again.

Anyway I am happy for the day...and hope their was some 4U2.


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## chris1983 (27 October 2006)

Looks to me as if its going to close with a surge.  Unless some big sellers come in.  People will scrambling to get in on this so they are holding a position over the weekend.


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## tech/a (27 October 2006)

SevenFX said:
			
		

> Thanks T/A,
> 
> I guessing the R2R ratio is not in my favour, as it struggles back up again.
> 
> Anyway I am happy for the day...and hope their was some 4U2.




Not on it.

Its doing exactly as I thought it would.Those who buy now expecting another surge on Monday will be disappointed.(Unless it closes above 97c)
Then it will take till 30 mins after market open for the disappointment to hit.

There you go Duck neck on chopping block.


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## chris1983 (27 October 2006)

I hope your wrong.  I want this baby to keep on powering.  It is falling back a bit again atm though.  I'll see how it goes.  Im willing to wait for the drilling to be complete.


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## SevenFX (27 October 2006)

tech/a said:
			
		

> There you go Duck neck on chopping block.




T/A

You always make reference to Ducks.....and all I can say in your defense is at least "You NO GOOSE"


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## tech/a (27 October 2006)

SevenFX said:
			
		

> T/A
> 
> You always make reference to Ducks.....and all I can say in your defense is at least "You NO GOOSE"




Check my Avatar

Daffy Duck.

Chris.
*Buy the rumor sell the fact!!*


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## kevro (27 October 2006)

Jeez that was close second time around. Got out just in time with a small profit. Getting a bit nasty towards the end.


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## pharaoh (27 October 2006)

Dt's exited before friday close
I think it is good, as steam off a bit for a monday run

I got in at 38c and happy to just sit it out
I have a stop at 77c

If they get this 3tcu of gas, who knows what the sp wil be worth, so dont care, happy to give it a go - these CDU style opportunities dont come along often!


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## Jackob (27 October 2006)

Today's turnover was 32.6m shares.  Given the total GDN number of issued shares is ~135.7 m, the average life span of shares is about only ~4 working days!

Well done, all the day traders!   Thank you all for making this stock the No 1 ASX stock for speculations!

I seriously bought some shares at the opening today, but suddenly realized this was only a game of pass-the-parcel and sold the lot during day.  

So, bye-bye GDN!  Wish you guys all the best and the music will stop soon!


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## juddy (28 October 2006)

Let me get this right. They are targeting a 3TCF field. What is missing here? Is this the biggest con of the year?


*
Developing Utah’s Wild Places Would Produce Only Insignificant Amounts of Natural Gas*

*According to the Department of Energy (DOE), over 13,500 wells have been drilled since oil and gas exploration and development first began in earnest in Utah in the 1940s, and as of October 2003 the total gas production had been 7.65 TCF (trillion cubic feet). *See Mark Lemkin, An Analysis of Utah Oil and Gas Production, Leasing, and Future Resources (2003) (Lemkin), at 1 (citing Utah Geologic Survey and DOE sources). Put in a broader context, the total gas extracted in Utah since the 1940s would supply the country with natural gas for just over four months at current national consumption levels. Id.
*
A closer look at DOE figures on Utah’s recent annual gas production – a level which is consistent with production from the past several years – indicates that the state produced 273 BCF (billion cubic feet) of natural gas. This is not even enough natural gas to supply the country for 5 days.*

An analysis of information compiled by DOE, the United States Geological Survey (USGS), and the State of Utah’s Division of Oil, Gas, and Mining (UDOGM) indicates that approximately 95% of gas and oil production in Utah both historically and more recently between 2001-03 has come from seven “hot spots.” See Exhibits 1 and 2 (Lemkin, Figure 3, Location of principal areas of oil and gas production in Utah and Figure 5, Location of principal areas of oil and gas production in Utah: 2001 to present).[1] None of these areas are proposed for wilderness designation in America’s Redrock Wilderness Act. See id. (illustrating areas of production and BLM lands proposed for wilderness).

*According to DOE, the entire state of Utah has proven gas reserves of 4.6 TCF (or 2.5% of U.S. proven gas reserves). *Using the USGS’s own methods for predicting Utah’s statewide inferred reserves (a figure that must be estimated because it is not publicly available), another 6.1 TCF of gas may be extracted from within or immediately adjacent to existing fields. Finally, according to USGS, Utah may have as much as 15,668 BCF of gas that is technically recoverable undiscovered resources.[2] 

source http://epw.senate.gov/hearing_statements.cfm?id=219654


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## chris1983 (28 October 2006)

Read the report below for a full run-down on what they are trying to achieve.

http://www.goldenstate.com.au/StockAnalysis-GDN.pdf

Below I am quoting their drilling status report taken on the 24th Oct 2006.

*"The well is drilling on towards its main targets, which have been interpreted from seismic data to have the potential to contain up to 3 TCF of gas, the Barker Creek (estimated depth to base 12,730 feet) and the Leadville Limestone (estimated depth of top 13,700 feet). The Leadville Limestone hosts the Lisbon Oil & Gas Field, 80 km to the south. The Lisbon Field has produced 54 million barrels of oil and 750 BCF of gas, at current prices equivalent to a gross income of A$10 billion."*

Juddy they are saying it has the potential to have 3 TCF..highly unlikely..if it did..my small investment will pay for half of my house.

I would be happy with 50 BCF because that would make the shares valued at around $1.50.  If they get 440 BCF then hey..I might get myself a new car or keep investing to get my house.

This is taken from the report I posted above for those who cant be bothered loading it.

*"Since it is earning a massive 83.3% in the project, GDN offers huge leverage to success.  Discovery of 440Bcf of gas by this A$10-12m well, would be worth about $10 per share, compared with a current price of 19 cents."*

So hey..your either in it..to see what they have..or your not.  I myself know they could fail..but I'll take that risk.

They had an asx query on the 26th of October.

The question that was asked was...see below

*"Does the company consider that the drilling results are material to the company"*

They came back with a very positive response..

_"The information received in Utah from site on Monday 23rd October 2006 (Utah time) is based on formation pressures and the amount of gas infiltrating the well (full assessment is to follow drill stem testing at the completion of the well.) The company regards the increasing levels of background gas as *significant and therefore material*."_

Now I have bolded the section I believe important and have gone this over with a few mates of mine.  We think its worth a go.  You got to be in it to win it.  How often do you get companies coming back with such positive responses to asx queries...hardly ever.  Thats when I decided..ok thats it..I have to hold some of these.  

Time will tell.  In their drilling status report on the 27th they said they would hit their primary target within 5 days.  I think quite a lot of people will lock in profits.  Will be an interesting day on monday.


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## Wysiwyg (29 October 2006)

Hi chris 83....firstly I very rarely  post (or knock) a company that I`m not in.Though it is good to warn people about the risks `cause no one wants to see people lose out.I`ve been on the wrong end too (the 100 mmbo hole).

The company draws comparison with the Lisbon field to the south which was discovered in 1960 from what I`ve found.I would have to believe that half the time up to present would have been a slow process of extraction.

Considering present technology and financing available I can`t believe that this project won`t be more efficient and accurate.The future will answer the questions for me.My brief thoughts end here. :goodnight


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## chris1983 (29 October 2006)

Hi Wysiwig,

Theres risk with any stock..If investors jumped in and bought this stock..they should know the risks involved.  Nothing is ever 100% safe when they are an explorer.

How many people bought Pasminco..there was supposed to be not much risk with that stock..what ab Sons of Gwalia..hmm risk in everything mate.

I even stated in my last post..

"So hey..your either in it..to see what they have..or your not. I myself know they could fail..but I'll take that risk."

If your not holding..I wouldnt jump the gun first thing Monday morning..They could retreat..I dont know whats going to happen but im going to wait it out untill they hit the primary target..


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## SevenFX (30 October 2006)

Trading Halt.... NEWS OUT.


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## chris1983 (30 October 2006)

Yep..news will be out on Wednesday when they hit their primary target..or earlier.


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## SevenFX (30 October 2006)

chris1983 said:
			
		

> Yep..news will be out on Wednesday when they hit their primary target..or earlier.




Thanks Chris,

I can't get the asx site up (or pdf links) for some reason, but commsec alerted me...


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## stiger (31 October 2006)

There should be an ann. today and if you read hc it will all be good news.regards


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## Dar_g (31 October 2006)

whats hc?


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## Wysiwyg (31 October 2006)

Since today may be a trading halt I found some stats. on Lisbon to draw a parallel with (don`t know where GDN pull the 3 trillion figure from...seismic or speculation I suppose).

Interesting to note that there was a well blow out at Green River (see map)which indicates a lot of pressure down there!

Article Last Updated:10/13/2006 02:03:22 AM MDT


Authorities near Green River are monitoring a natural gas well that has been venting since Monday. The well is about 4 miles southeast of Green River and was posing no danger on Thursday evening, said Grand County sheriff's Deputy Brent Pace, but the sheriff's office and state officials are keeping the public away from the well until work crews can fix the problem. On Monday, Delta Petroleum Corp. was drilling a well on state land. The corporation was prepared for well pressure of 5,000 pounds per square inch, but the pressure increased to 8,000 PSI, overtaking safety valves on the well, said Tammy Kikuchi, a spokeswoman for the Department of Natural Resources. Rig operators are allowing the gas to vent until a higher-capacity safety valve can be installed. Pace said crews hope to install that valve this afternoon. 

Field/Oil & Gas Characteristics (circa 2004)

Lisbon Field
• 23 Producing (or shut-in)
Wells
• 10 Abandoned Producers
• 5 Injection Wells
• 4 Dry Hole

Oil Characteristics
• Oil Gravity – 54-62.6 ° API (light oil)
• Sulfur – 0.2%
• Color – Yellow to Red

Discovery Well
• Pure Oil Company, #1 NW
Lisbon USA
• T.D. – 8440 ft
• Completed January 5, 1960
• IPF – 4376 MCFG, 179 BOPD
• Initial Pressure – 2713 psia
• GOR – 1417-3153:1

Reservoir Data
• Productive Area – 5120 acres
• Net Pay – 225 ft
• Porosity – 1-21%, average 5.5%
• Permeability – 0.01-1100 mD,
average 22 mD
• Water Saturation – 39%
• Bottom-hole Temperature – 53 °C
to 73 °C
• Type of Drive – Expanding Gas
Cap and Gravity Drainage


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## chris1983 (31 October 2006)

Its good news guys.  congrats to the holders


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## Agentm (31 October 2006)

spectacular.. you have to be happy if you hold this stock now!!!


well done..


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## chris1983 (31 October 2006)

Below is the drilling report announce today

• Paradox Basin #1 well is at 12,985 feet (3,958 m)
• Significant gas discovery in Alkali Gulch zone of Paradox Formation
• Drilling on to primary objective, the Leadville Limestone

Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah.

Paradox Basin #1 is at 12,985 feet (3,958 m), in the Alkali Gulch Member of the Pennsylvanian Paradox Formation (see table and graphic below). The Alkali Gulch Member comprises a cyclic sequence of sandstone, dolomite, black shale, salt and anhydrite.

The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units.
Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well.

The well is approximately 350 feet above the primary objective of the well, the Leadville Limestone Formation (estimated depth: 13,350 feet).
It is anticipated that the well will reach the top of the Leadville Limestone within 3 days.

Initial 100% Ownership and Operator
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the drilling of two wells by Golden State.


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## SevenFX (31 October 2006)

Hi Chris,

What your take on where this will go today....do you think it will hit it's high or close again as it looks little weak atm.

EDIT: Spoke to soon...


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## chris1983 (31 October 2006)

Profit takers coming in.  Wont last.  The buy strength is too strong.  I think it will keep going..too much upside now..They have allready announced a significant gas discovery..which is on top of all the other gas shows..and they are yet to hit the Leedville Limestone formation.


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## SevenFX (31 October 2006)

It's hard to beleive mox up 40% yesterday and now gdn up 28%........surely 30-40% must be the highs for the day...????   ...but who's complaining


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## chris1983 (31 October 2006)

Im holding on untill they do the full assessment for production capacity.  They allready know its a producing well.  Ill sit back and let the good times role now.  I topped up this morning actually..avg entry price is in the low to mid 90's.  I dont see it as much of a risk anymore now that they know it will be a producing well.

_"Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well."_


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## Wysiwyg (31 October 2006)

Interest @ $1.19-$  1.20


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## SevenFX (31 October 2006)

Are my eyes seeing thing on the buy orders 800,000 odd at 1.195 all of a sudden...

Had to take some profits just b4 that order came in   

EDIT: It's dissapeared as soon as it came in...


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## Wysiwyg (31 October 2006)

Interesting to note that if one side muscles up the other side counters.

 :shoot:  :bigun2:


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## chris1983 (31 October 2006)

I dont think the good results will stop..hence i'll hold


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## SevenFX (31 October 2006)

Chris

Do you think it will retrace back tommorow after such a BIG day, or could it gap up some...????

Thanks
SevenFX


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## chris1983 (31 October 2006)

hmm.

Im no professional..but I think they will keep going?  Tech-a or someone like that should be able to tell us chartwise...I think they would agree its definately due for a pull-back after such a sharp rise?

If they have a large discovery it will keep going though..I just like them and what they could have.  They are going to hit the primary target within 3 days and they seem to have a producing well allready.  I think more investors will want to jump onboard before they actually do reach their primary target.  Wont want to miss it..IMO there is more upside that can be gained than the downside.


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## chris1983 (31 October 2006)

If this is a large discovery it wont take them long to bring the gas onstream either.  Infrastructure is close..everything is in its favor atm.


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## chris1983 (31 October 2006)

There are a lot of day traders in here to make a few cents.  You can tell they are pulling their money out of it right now.  Id rather they pull their money out of the stock.


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## chris1983 (31 October 2006)

Wow.  Mad scramble at the end.  Day traders and profit takers wanting to get out..and investors scrambling to get in.  Will be interesting to see what it does tomorrow.  Hopefully it gets some media exposure.


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## SevenFX (31 October 2006)

Fooahhhh 

Another hard day at the Office... 

I need a drink


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## nizar (31 October 2006)

Chris just one question... Have u made a loss this year? Bought any dogs at all?

From bannerman, to PMH to GDN, i have to say, very well done, ur a TRUE CHAMPION....   

Keep up the good work...


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## chris1983 (31 October 2006)

nizar said:
			
		

> Chris just one question... Have u made a loss this year? Bought any dogs at all?
> 
> From bannerman, to PMH to GDN, i have to say, very well done, ur a TRUE CHAMPION....
> 
> Keep up the good work...





Naa..just had some good runs lately.  PMH wasnt a very successfull venture.  Broke even on that one.  Best returns have been BMN, SMO, AOE and now GDN.  Ive been lucky..but in this market lots of people are picking winners.

Kevro has been pointing out a share..I also think it has "potential"..LOU.  Have a good read of their latest activities report.  Very interesting.  Going to change their name to Erongo Energy Limited.

Biggest loss this year was FXR. sold at 65 and I was in at 81..just under 2 grand loss.   Sold in the panic when the market went down.  Wish i had of kept them 

Back onto GDN..i really wonder what this stock can do now.  Potential is endless..if it turns out to be a dog..i'll add it onto the list of break evens or small profits..because I wont stay in if it starts to fall..I really dont think it will though..buyer strength towards the end of trade suggests it will keep going?  Not that I know about all the technical stuff.


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## two40 (31 October 2006)

what's the prediction for tomorrow? still going up?


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## nizar (31 October 2006)

chris1983 said:
			
		

> Kevro has been pointing out a share..I also think it has "potential"..LOU.  Have a good read of their latest activities report.  Very interesting.  Going to change their name to Erongo Energy Limited.




They should change their name to Uranium Energy Limited
When Uran changed their name from WGM or wateva to it was, the stock immediately jumped 3-fold... gotta love the market


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## pharaoh (31 October 2006)

You guys thinking it will gap up in the morning when the word spreads?
A strong close when I feared it may drop the ball at the end...


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## stiger (31 October 2006)

two40 said:
			
		

> what's the prediction for tomorrow? still going up?



$2.40


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## Jackob (31 October 2006)

Jackob said:
			
		

> Today's turnover was 32.6m shares.  Given the total GDN number of issued shares is ~135.7 m, the average life span of shares is about only ~4 working days!
> 
> Well done, all the day traders!   Thank you all for making this stock the No 1 ASX stock for speculations!
> 
> ...




The music indeed stopped now!  

The director told 5+ million shares on market!

Wake up!  Wake up!! Wake up!!!


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## Jackob (31 October 2006)

Correction:

The director SOLD 5+ million shares during past a few days on market!


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## SBBH (31 October 2006)

Quoted from another forum:

For clarity~

Sciano(director) position held prior to today...

Shares:
16,300
3,000,000
1,775,500

Options:
2,700,000 class A
2,700,000 class B
2,700,000 class C
2,700,000 class D
2,700,000 class E

Position held now...

Shares:
16,300
1,170,000
575,500
4,600,000

Options:
2,300,000 class C
2,300,000 class C 
2,300,000 class C

Summary...
*
Net position change:
Shares = +1,570,000
Option = -6,600,000
*

No sign of hit and run here...just a smart move of exposure from options to shares to gain as much exposure as he can.

A positive sign.


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## two40 (1 November 2006)

So this is another push up then. good good.


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## Jackob (1 November 2006)

SBBH said:
			
		

> Quoted from another forum:
> 
> For clarity~
> 
> ...





What I understand is that director had sold 5,030,000 shares worth about $5m.

Don't fool yourselves!

Cheers!


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## chris1983 (1 November 2006)

He has put more money back into the company by exercising his options.  Then sold some on market afterwards right? Maybe he needed some cash! I dont know 

Anyway it doesnt change the facts that they allready have a significant discovery and are still yet to hit the primary target..I'm not going to sell based off the director selling some of his holding.  It definately has scared some investors to pull out their money.  Sentiment can change fast.  Have to wait for the next drill results now.


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## SevenFX (1 November 2006)

Certainly has put some doubt Jackob in the stock, as the price reflects, but it creates buying/topping up opps, as I tend to agree with Chris on holding for next drill results if your in profits  : and didn't buy at the top.


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## chris1983 (1 November 2006)

Its stabalised around 1.15-1.16

They reported a "SIGNIFICANT GAS DISCOVERY" in their last drilling reports.

I have to hold based on the facts so far..not on the directors actions..maybe he needed the cash.  Definately has changed momentum though.

A lot of guys are accumulating right now.


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## two40 (1 November 2006)

meh, i'm still holding.


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## SevenFX (1 November 2006)

Quick recovery. hey 
AND News...


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## chris1983 (1 November 2006)

Its in pre-open now.

Some guy sold out at 1.085

ahhh jeez..why oh why

well hopefully it is good news..I think it is more likely to be good news


----------



## MalteseBull (1 November 2006)

in their latest announcement it mentioned that results are expected in two days..

this means we will be getting news Friday or Monday..

hence good news - goes up

bad - goes down

simple, that's the risk you take..

at the moment i am holding with anticipation


----------



## chris1983 (1 November 2006)

Yeah its pretty simple isnt it.  Everything they have said thus far is pointing to good news.  Anything can happen though.  Cant wait.


----------



## MalteseBull (1 November 2006)

chris1983 said:
			
		

> Yeah its pretty simple isnt it.  Everything they have said thus far is pointing to good news.  Anything can happen though.  Cant wait.




close of trade is going to be interesting


----------



## SevenFX (1 November 2006)

MalteseBull said:
			
		

> close of trade is going to be interesting




Whats your take on where it will close MalteseBull.

Cheers


----------



## MalteseBull (1 November 2006)

SevenFX said:
			
		

> Whats your take on where it will close MalteseBull.
> 
> Cheers




obviously going to close in the red... maybe 1.05-1.14??g

but as it has been said .. a stock can't keep going up every day in huge percentages, it needs to "cool down" before it gains momentum for the next run..

reasons why its red today:

- director selling options?
- profit taking
- scared investors


----------



## MalteseBull (1 November 2006)

just bought some more to lower my average.. most certainly a snatch at this price 

couple days it will be a different picture


----------



## aobed (1 November 2006)

MalteseBull said:
			
		

> just bought some more to lower my average.. most certainly a snatch at this price
> 
> couple days it will be a different picture




After doing my own research I bought a small parcel as well.  At these prices it seems like a good buy (famous last words...)


----------



## MalteseBull (1 November 2006)

aobed said:
			
		

> After doing my own research I bought a small parcel as well.  At these prices it seems like a good buy (famous last words...)




do i sense sarcasm?

hopefully all the panic merchants are out of it now


----------



## maverick11 (2 November 2006)

is it just me, or was this good buying today after the retrace?  Wireline data due soon, and they are within 24-48hrs of hitting the primary target??!!


----------



## chris1983 (2 November 2006)

Yeah got smashed today.  Could of been good buying or good selling...depends on the wireline logging.  I'm predicting good results..unless the directors havnt been telling everyone the entire truth.

The have hit gas/oil all the way down through their drill.  Going to be interesting tomorrow.


----------



## constable (2 November 2006)

well i hope you guys are right it did come back a bit and after some earlier success (wed )ive gone back in at 98.5 .hoping to see you all on the otherside!


----------



## chris1983 (2 November 2006)

haha.

Well hey..im definately expecting good results.  I just hope they are out tomorrow morning.  Im expecting good results based off all their previous messages.  Weirder things have happened though.


----------



## tech/a (2 November 2006)

Hmm its pulled back for 2 days on Bugger all volume.
My feeling is that any "News" has been factored at this point.
There isnt currently any new buyers.

The further this pulls back the more protracted any resumption of trend.
Its risen vertically for a few days so has to take a breather.

I expect 65c to 80c area There is a chance it will retest the high again but will make a lower high.

If it does then that will be bad for any longterm resumption.
This will be a 3 or 5 wave correction and we have no idea where wave 1 will fall to yet.

I would have been happy with an early exit---not far from that even now.
I feel those that did will be happier as the days roll by.
Well done to those who made a good killing and happy trading to those still holding.


----------



## Sean K (2 November 2006)

Technically, there's no real support for this until $0.30. I hope I'm wrong. 

Checked their web site and there's some good news on it. One research company had a $1.00 - $1.50 12 month target on it when it was $0.22! Good darts.

Perhaps charts don't fit the profile for this.   

All the best. Don't get caught with your pants down.


----------



## Sean K (2 November 2006)

kennas said:
			
		

> Technically, there's no real support for this until $0.30. I hope I'm wrong.
> 
> Checked their web site and there's some good news on it. One research company had a $1.00 - $1.50 12 month target on it when it was $0.22! Good darts.
> 
> ...




PS, the article, titled 'The Next Eldorado' deserves reading. 

Perhaps I change my mind on where this _could _go.   

http://www.goldenstate.com.au/


----------



## stiger (2 November 2006)

Upside lots downside ah well ,Ill take the upside thanks.cheers


----------



## chris1983 (2 November 2006)

Hey Kennas,

Definately a bit of risk involved here.  Which Im not to fond of.  Ive been a lot more certain on some of my other picks.  One thing I cant ignore is throughout their drill they have continuously hit Gas intervals etc etc.

They know they allready have something commercial which is why they are carrying out the wireline logging survey.  BTW that article was a good read.

On the 31st of October they announced *"Significant gas discovery in Alkali Gulch zone of Paradox Formation"*  Now its something very positive when they use the word "significant"

The results below from the Paradox Basin Targets look pretty good.  Now all we need is a major gas interval on the Leadvill Limestone formtion.


Honaker Trail    Pennsylvanian Limestone 2,682 8,800 -
Upper Ismay     Pennsylvanian Limestone 2,987 9,800 *    Gas shows
Hovenweep      Pennsylvanian Limestone 3,045 9,989 -
Lower Ismay    Pennsylvanian Limestone 3,050 10,006      Minor gas show
Desert Creek    Pennsylvanian Limestone 3,126 10,256     Gas shows
Akah               Pennsylvanian Limestone 3,209 10,528 *  Gas shows
Barker Creek    Pennsylvanian Limestone 3,355 11,016 *   Gas show
Alkali Gulch      Pennsylvanian Sandstone 3.705 12,154 *   Major gas interval
Pinkerton Trail Fm Pennsylvanian Limestone 3,962 12,950
Leadville Fm Mississippian Limestone 4,084 13,350


----------



## chris1983 (3 November 2006)

Below is my summary on the recap of their drilling status reports.

So lets go back to the report on the 24 OCT. I consider the below statement important

_“Since last report background gas in the well has doubled and connection gas (methane, ethane and propane) is maintaining consistent levels.”_

They state as one of their key points

*“Strong formation gas pressures and gas influx to well upgrade production potential”*

Now the next report on the 27th states

_“Since last report the well has been drilling the Barker Creek Member with elevated background gas and consistent high levels of connection and trip gas. All factors are encouraging.”_

_“Full assessment of the production capacity of reported gas shows will follow drill stem testing at the completion of the well. At this stage, from formation pressures and the amount of gas bleeding into the well, it is likely that production will be obtained from the Upper Ismay, Akah and Barker Creek members that have already been drilled.”_

Now they already believed production would be obtained from the Upper Ismay, Akah and Barker Creek members before they even hit the Alkali Gulch Zone.

Then on the 31st Oct was the big hit thus far

*“Significant gas discovery in Alkali Gulch zone of Paradox Formation”*

_“The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units. Connection gas ranges from 2,000 to 3,300 units. *Background gas has increased 40-fold to consistent levels of 500-900 units*. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well. The well is approximately 350 feet above the primary objective of the well, the Leadville Limestone Formation (estimated depth: 13,350 feet).”_

Background Gas has increased 40-fold people! Um it has increased 40 fold and they already thought they had something commercial previously! How commercial will this well be! Pretty big if you ask me. They still need to hit the primary target.

Then on the 1st of November they decided to do the wireline logging survey. They are doing this because they are very confident on what they already have. This is a winner! I don’t know why people are selling. Facts stated so far IMO are definitely pointing to a buy.

I'll hold untill they confirm what I believe.


----------



## doctorj (3 November 2006)

These are all very 'big' numbers, but please don't go taking a mortgage out on your house tomorrow.  Really, they don't mean anything or in my book atleast, not near enough to warrent a 520% increase in market cap.  

Sure, finding an intersection of hydrocarbons helps you on the way to commerciality.  Finding more than you hoped is even better.  But 28 feet of gross pay isn't the next Prudhoe Bay.    Running wireline logs means very little.  Many many wells are logged, then plugged and abandoned.  The data they gather can be valuable to add to their understanding of the geology.

Working out whether or not it is commercial is the next step.  28ft of gross pay doesn't necessarily make for a commercial well.  Porosity, the size and type of the trap and ultimately the flow rate will decide whether or not its cased for production.

This is really irrational exhuberance.   I hope its commercial and I hope its a major find for a company of this size, but this is gas exploration.  Chances are weighted in favour of a lot of people losing a lot of money.

They're more than 12000 feet below ground.  Down there its hot and there is lots of pressure.  Drill strings break, things get stuck.  Sometimes, particularly where there is lots of gas, it can be difficult stabilising the well bore.  This is a long way off a sure thing, no matter how much you like to bold the impressive big sounding numbers.

Then there is the small fact of the amount of money that would be required to develop a field.  Each drill will will cost a couple of mill.  They might want to do a couple of step out wells.  There's pipelines and other facilities to build etc etc etc.  And this company has $5mill in the bank at the end of the last quarter.  There will be a big whack of dillution IF this is assessed as commercial.

So don't go putting your deposit on the new beamer just yet.  Treat this as you would any other trade and MANAGE YOUR RISK and PROTECT YOUR CAPITAL.   It may be commercial, it may not.  It may go up a long way from here or it may go down. But be weary, anything in oil and gas is far from certain.

Please don't read this as me being rude or downramping.  Just be careful.


----------



## tech/a (3 November 2006)

stiger said:
			
		

> Upside lots downside ah well ,Ill take the upside thanks.cheers





20c to $1.20 600% thats significant upside.
600% from here again would be $6 (GDN at $1.)

I have no problem with people buy and holding but watching a 600% profit drop to even 300% or 400% is plain stupid.

10% or in some cases 30% fine.

But what I see most people doing when trading these smalls is not realising the massive profits to be had by ACTUALLY TAKING the profit---infact they should be attempting to maximise it.


----------



## Agentm (3 November 2006)

without doubt the 2 most precise and correct posts i have ever read!


everyone should be extremely aware of risk and their reasons to invest on these smalls..  

IMHO GDN have made it abundantly clear to the market exactly what they are finding, and the market should be very weary of the numbers. They dont equate to success until after the well is properly assessed..

Again, the last two posts are brilliant..


----------



## Wysiwyg (3 November 2006)

Good morning.....All good and well for those with their feet already on the ground but what about those still in the air.It is typical that interpretation of the same information can change so much once we`re in. :silly: 

By the way I`m still holding @ 88-90 cents


----------



## stiger (3 November 2006)

When you invest in gdn and the like its Gambling pure and simple.Do the research,assess the risk and gamble.It is up to me when to enter and exit,take a profit or let it ride.Leave your opinions for the plebs.TO bet or not to bet that is the question.PS fence sitters go broke.


----------



## MichaelD (3 November 2006)

Agentm said:
			
		

> everyone should be extremely aware of risk and their reasons to invest on these smalls..



It's because they go up...and up...and up...and up....and....oops I've lost 90% of my money. Ah well, it isn't a loss until I sell.

My observations on the recent GDN activity (disclosure: I took a profitable chunk out of the rise);
1. Seems to be a classic "buy on rumour, sell on fact" play.
2. Heaps of irrational exuberance here.
3. Lots of pass the parcel with nigh on 1/3rd of the capitalization of the company being passed around for no good reason per day recently.
4. The pros will either already have exited or be very close to exiting with a very nice (and rare) multi-R win.
5. The amateurs will be the ones buying on the way down, the ones the pros will be selling to.
6. No one can predict what the price of GDN will do.
7. If GDN goes ballistic again, the pros will re-enter and the game will begin again.


----------



## MalteseBull (3 November 2006)

looks like people are willing to gamble for the upside potential to come


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## constable (3 November 2006)

yeh  take that all you doomsdayers!!!! tell you what tho it was a nervous open ive sold out at 101 fo $875 backing a way from this creature


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## MalteseBull (3 November 2006)

constable said:
			
		

> yeh  take that all you doomsdayers!!!! tell you what tho it was a nervous open ive sold out at 101 fo $875 backing a way from this creature




that was stupid to sell out... the announcement to come either day or on Monday will determine if i sell out or not... not the share price which is often manipulated


----------



## constable (3 November 2006)

Im hearing you but i cant afford to hold this share if it goes bad . But yeah skys the limit if goes well good luck!


----------



## doctorj (3 November 2006)

It wasn't a stupid sell out at all.

Why hold for news?


----------



## Wysiwyg (3 November 2006)

constable said:
			
		

> Im hearing you but i cant afford to hold this share if it goes bad . But yeah skys the limit if goes well good luck!





Good on ya c....business as usual today for all I hope.


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## tech/a (3 November 2006)

*Buy the rumor Sell the fact*

The "announcement potential" is being factored in trading now.
If its less than impressive then those who have held will plummet as traders fall over themselves to get out.

True at this point it is a gamble---but like the *doc* there are a few of us here that dont gamble!


----------



## stiger (3 November 2006)

tech/a said:
			
		

> *Buy the rumor Sell the fact*
> 
> The "announcement potential" is being factored in trading now.
> If its less than impressive then those who have held will plummet as traders fall over themselves to get out.
> ...



Well well I win you lose.670bcf I believe


----------



## doctorj (3 November 2006)

stiger said:
			
		

> Well well I win you lose.670bcf I believe




Dream on


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## chris1983 (3 November 2006)

I think its an educated gamble.  I expect to make a bit of money out of this one.  My educated gamble may be wrong.  I believe the odds are in my favor though   Good luck guys


----------



## SevenFX (3 November 2006)

R.I.P GDN.... next to MOX, PMH, and Others... For Now anyway.

I'm sure if I didn't take profits near the top, I would definetly been out late this morning after the second touch failed... just my opinion

Hope most have money in the bank, or can afford to loose some profit, and not initial capital.

SevenFX


----------



## constable (3 November 2006)

ouch! where's this going to stop. lot a people would be sweating now!


----------



## chris1983 (3 November 2006)

haha I say to all the holders if you cant take the heat bail 

Last chance to get on this stock.  Will likely go into a trading halt first thing Monday.


----------



## Wysiwyg (3 November 2006)

I`d pay money to know the thought processes of a seller.


----------



## SevenFX (3 November 2006)

Wysiwyg said:
			
		

> I`d pay money to know the thought processes of a seller.




Hi [What You See, Is What You Get]

How much are you offering, as I would prob offer this for FREE  

Cheers
SevenFX


----------



## tech/a (3 November 2006)

Wysiwyg said:
			
		

> I`d pay money to know the thought processes of a seller.




If I sell now I will have X profit in my account.
When and if it looks like another buy opportunity I will then re enter.

Send cheque to Joe as support of ASF.


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## MalteseBull (3 November 2006)

ok i agree.. this share is sh*t


----------



## SevenFX (3 November 2006)

MalteseBull said:
			
		

> ok i agree.. this share is sh*t





I wouldn't say that at all, and say that it's doing what it's mean't to do, and so do all other shares.... I think  

It has to retrace, sooner or later, and by the way this has gone up, it's due.

Don't forget it's also FRIDAY.


----------



## hypnotic (3 November 2006)

tech/a said:
			
		

> If I sell now I will have X profit in my account.
> When and if it looks like another buy opportunity I will then re enter.
> 
> Send cheque to Joe as support of ASF.




LOL at tech/a!!


----------



## nizar (3 November 2006)

MalteseBull said:
			
		

> that was stupid to sell out... the announcement to come either day or on Monday will determine if i sell out or not... not the share price which is often manipulated




Yes but unfortunately the share price does dictate whether or not you will be profitable.

Something i had to learn the hard way unfortunately...


----------



## Wysiwyg (3 November 2006)

tech/a said:
			
		

> If I sell now I will have X profit in my account.
> When and if it looks like another buy opportunity I will then re enter.
> 
> Send cheque to Joe as support of ASF.




You can`t tell me an avalanche of selling is averyone thinking `oh...I might take some profit now`

It is reaction to others selling off for no apparent reason and triggering fear of loss.

See...I knew the answer all along.


----------



## MalteseBull (3 November 2006)

Wysiwyg said:
			
		

> You can`t tell me an avalanche of selling is averyone thinking `oh...I might take some profit now`
> 
> It is reaction to others selling off for no apparent reason and triggering fear of loss.
> 
> See...I knew the answer all along.




many burnt fingers


----------



## chris1983 (3 November 2006)

It all depends on the result on Monday.  If your in the market be prepared to lose money.  Those who sold in the afternoon are not willing to wait for the results..its pretty simple.

The buyers arent going to pour into this when they know investors are running scared.


----------



## chris1983 (3 November 2006)

It could be up 40 cents on monday if the results are good.  Waiting game for me.  If I end up losing..so be it.  I have checked their drill status and I believe everything is pointing to good results.  Hence I will hold.


----------



## aobed (3 November 2006)

chris1983 said:
			
		

> It could be up 40 cents on monday if the results are good.  Waiting game for me.  If I end up losing..so be it.  I have checked their drill status and I believe everything is pointing to good results.  Hence I will hold.




I'm with you on this one Chris - this could go either way depending on those results.  I have my fingers crossed for all investors.  Early next week we'll know what the right decision would have been


----------



## tech/a (3 November 2006)

chris1983 said:
			
		

> It could be up 40 cents on monday if the results are good.  Waiting game for me.  If I end up losing..so be it.  I have checked their drill status and I believe everything is pointing to good results.  Hence I will hold.




Nothing wrong with your stance Chris--if it does that.
Question is how many times out of x number of announcements after the initial announcement that caused the rise in the first place--does that happen.
Id say sometimes rather than often.
I hope it does go through the roof.


----------



## maverick11 (3 November 2006)

yeah indicators point to a potential good run, but after a 600% increase buyer confidence is wearing a little thin.  I feel that hopefully it will be good on monday if the news is decent.  Hope you do well as I hate to see people lose money.  ps, i've never held gdn, just watched


----------



## chris1983 (3 November 2006)

maverick11 said:
			
		

> yeah indicators point to a potential good run, but after a 600% increase buyer confidence is wearing a little thin.  I feel that hopefully it will be good on monday if the news is decent.  Hope you do well as I hate to see people lose money.  ps, i've never held gdn, just watched




Hey guys its all banking on the news. Bit of a scary position? 

But in all honestly..I will be shocked if the news is bad.  As many people say..sometimes the directors etc talk up more than what they allready have..but it looks very good from the information they have released thus far.  Thats all the holders of GDN have to go by.  I dont get phased too much..I mean..if I lose..Tax loss..will help with some of the profits.  Then I'll move on.  I'm really hoping it doesnt come to that scenario..Monday will answer all of our questions.  What a weekend..I cant wait till its over haha


----------



## doctorj (3 November 2006)

Just out of curiosity, aside from the verbose description, can you interpret the announcement?


----------



## chris1983 (3 November 2006)

interpretations are always open to debate so I wont go there.  If you make your own interpretation on their messages you will either buy..or sell.  I'll let you make your own interpretation   Like I said.  Message out on Monday will confirm a lot of things.


----------



## doctorj (3 November 2006)

I guess the point is your comfortable.

Good luck.


----------



## stoxclimber (4 November 2006)

tech/a said:
			
		

> 20c to $1.20 600% thats significant upside.
> 600% from here again would be $6 (GDN at $1.)
> 
> I have no problem with people buy and holding but watching a 600% profit drop to even 300% or 400% is plain stupid.
> .




hey tech - i've seen you make this point before (i think in regards to ZFX) and just had a question.

How do you suggest a holder of a stock that does made 600% profit protect oneself from that profit falling to 300-400%, given that e.g. for a buyer of GDN at 20c a fall of 10c is would turn a 600% profit into a 550% and these small stocks are prone to big volatility. I presume one could set tight sell orders below market price to lock in a high %age of profit - but if one did that when the profit was 50%, or 100% then the orders probably would have been triggered and they wouldnt be in the 600% situation now today..

Thanks for any advice.


----------



## rosesny_1 (4 November 2006)

I'm a US investor. I'm invested in the E&P company whose drilling subsidiary is drilling GDN's Paradox Basin well - Delta Petroleum (DPTR) and I just invested in GDN (GSRCF at Stateside brokers). I believe the statements made by GDN on 10/27 and 10/31 require that this well is commercial (otherwise the GDN management needs to find a hole to hide in). So assuming this well is commercial, indeed probably very commercial, the best thing GDN could do now is get DPTR to buy in as a partner. There are several reasons why this is in GDN's interest. First, rigs are in short supply in the Rockies and DPTR controls its own fleet of rigs (16). Second, DPTR has significant interests in the Paradox Basin itself. It just drilled an 8000+ foot well there which blew out the 5000PSI shut off valve and had to be vented for 5 days until an 8000PSI valve was installed. This well vented at a rate of 12mmcfe/d from a 15% interval (of 100% of gas bearing intervals) that was being frac'd at the time. So don't imagine there are not monsters in the Paradox, there are. As a shareholder in both companies, it would be in CDN's interest to get DPTR to pay for the next well and perhaps a little more for a WI about like Elipse's. Getting money through dilution as compared to getting DPTR as a partner would be a mistake for CDN. They need DPTR's expertise as well as financing. DPTR knows what they're doing and would be a major asset to GDN realizing the potential of what may be a major find.


----------



## mahmoodf (4 November 2006)

Hi roses

Any idea of the size of the gas reserves being touted stateside? A lot of selling here in Australia over the past few days has seen GDN drop from AUS$1.20 to AUS$0.89.

We are expecting some kind of announcement next week, possibly even by Monday.

I agree with your comments that GDN's statement imply a commercial well and if they haven't got one, they are in serious trouble.

Do you have any other information (example media releases etc) that GDN have made in the US? Or do you just go by their stock exchange announcements?

Thanks a bunch.


----------



## bigdog (4 November 2006)

I have spent some time searching the internet and can not find newspaper reports on potential find,

Can you paste links if you can find


----------



## chris1983 (4 November 2006)

rosesny_1 said:
			
		

> DPTR knows what they're doing and would be a major asset to GDN realizing the potential of what may be a major find.




Well Delta Petroleum are the ones drilling the well.  They have a lot of experience and they would be the ones reporting back to GDN.

Time will tell.


----------



## rosesny_1 (4 November 2006)

G'day, Mahmoodf. 
We know nothing in the states about GDN's well other than what GDN has released, which in my opinion indicates a commercial find. I will tell you a little about Delta Petroleum's (DPTR) position in the Paradox Basin for what it may indicate about the GDN play. Delta has drilled three wells on two structures out of five structures on DPTR leases. All are commercial and are being completed with multi-stage fracs (one is the apparent monster I noted in my last post). I suspect the same frac'ing will need to be done to the GDN well. Delta has permitted 8 added Paradox wells and has announced that it will build a pipeline and gathering system to the two structures already drilled. DPTR's wells appear to have excellent economics. There is a major pipeline through the Paradox Basin, the 3.4 bcf/d Northwest Pipeline, which runs from natural gas fields in New Mexico to the states of Washington and Oregon with an extension about to be built into northern California. The Paradox Basin is a large area and I don't know how far the GDN well is from the pipeline. I also don't know what the Northwest Pipeline's open capacity is but I suspect there is available capacity, otherwise why would DPTR already be planning a gathering system and pipeline (to the pipeline)? 

Another poster here pointed out that, as a DPTR subsidiary is drilling the GDN well, GDN's statements may be based on what they'd learned from the DPTR crew/experts. I don't know if this is true, but if it is then the GDN well is commercial because DPTR management is very careful about what DPTR people say. GDN's statements, however, may also be the conclusions of GDN employees or experts. 

To sum up, if GDN has a good discovery, as it appears (and we don't even know about that bottom target zone yet) then fairly fast production and sales are a very good possibility.


----------



## bigdog (4 November 2006)

Rosesny,

You are up early!

It all sounds great.

The GDN announcements to Aust Stock Exchange issued by GDN can be viewed

http://www.asx.com.au/asx/research/...archBy=asxCode&allinfo=&asxCode=gdn#headlines

Reports have been regular:

03/11/2006  Drilling Status Report - 3 Nov 06 3 PDF 
01/11/2006   Appendix 3B - Exercise of Unlisted Options 10 PDF 
01/11/2006  Drilling Status Report 2 PDF 
31/10/2006   Change of Director's Interest Notice 3 PDF 
31/10/2006  First Quarter Cashflow Report 5 PDF 
31/10/2006  First Quarter Activities Report 5 PDF 
31/10/2006  Drilling Status Report - 31 October 2006 3 PDF 
30/10/2006   Request for Trading Halt 1 PDF 
30/10/2006  Trading Halt 1 PDF 
27/10/2006   2006 Annual Report 53 PDF


----------



## mahmoodf (4 November 2006)

Hi Roses

Thanks for that info mate. I am looking forward to (hopefully) big things from GDN. Unless they are talking BS, I also believe they have a commercial well on their hands. Just a matter of determining it's size.


----------



## tahpot (4 November 2006)

Bigdog - checkout newsalerts for the latest news on any ASX company. Heres the link for GDN: http://www.newsalerts.com.au/stock.php?code=GDN

You can see it hasn't registered in the papers yet -- if it does after monday then tuesday could be a great day


----------



## bigdog (4 November 2006)

Tahpot,

Thanks

I have subscribed to alerts for several months and had not set up GDN because I was not a shareholder

I got into GDN on late Friday afternoon at 0.875 

Can not wait until the next announcement

John


----------



## Wysiwyg (4 November 2006)

bigdog said:
			
		

> Tahpot,
> 
> Thanks
> 
> ...





Gee you must have been on the ball.They were at .875 for a few minutes. :aufreg:


----------



## tech/a (5 November 2006)

Another veiw.


----------



## chris1983 (5 November 2006)

punters didnt need to fall over themselves to jump onboard   You had investors running scared..so of course they wont try to fall over themselves.  They accumulated on friday and will be anticipating news on Monday.

I also dont see why good news would not be anticipated after hitting a major gas interval in the alkali gluch zone and also hitting gas throughout the entire drill.  Leadville is next and news should be announced Monday along with wireline log survey results.  Your graph will be right if the results are bad..or be very wrong if the results are good...pretty simple in my mind.

They have now hit Leadville if they are on target with their predictions..some people would know if it is good or bad..I expect it to go into a trading halt first thing Monday.  Good luck to the holders.


----------



## tech/a (5 November 2006)

Your *Analysis * will be right if the results are good..or be very wrong if the results are bad...pretty simple in my mind.

What Im addressing is Risk and quanyifying it.
You dont see ANY risk and as such quatify it as ZERO risk so you hold.

The Chart (or graph as you call it) indicates there is risk and people are voting with their money.It also indicates that new position holders are not as confident and as such sellers had to drop price to find buyers.

Goodluck on Monday/Tuesday


----------



## MichaelD (5 November 2006)

I'd suggest to all that GDN's behaviour over the next few days is completely unpredictable, but a very interesting case study.

If, however, I were to take a punt, I'm with tech. The pro traders are likely out. The amateur day traders are losing money hand over fist on the way down and will scramble to get out at the first sign of any strength from here on in.

My prediction anyway?

Bad news = price will fall because of the bad news
Good news = price will fall because of the mad scramble to get out at breakeven or a small profit

Bottom line, though, is that it is not necessary to have a correct opinion of what GDN will do in the future in order to profitably trade it, merely to react correctly to what its price action does.


----------



## tech/a (5 November 2006)

Chris/Michael.

I have been watching and taking part in a few of these Fundamental stock selections over the past few weeks.

what I see most commomly is decisions being made on 
(1) The next announcement.
(2) The possible next announcement.
(3) The whys and where fores of the Current announcement.

This is guess work.
Of about the 6 or so Ive watched closely I havent seen one go through the roof after the initial buying frenzie.

I have seen many great profits turn to avergae OR losses when 100%--500% profits have been staring people fair square in the face.

Its like the Pokie player who has $250 profit and ups his bet---looking for the $1000 and often when he Flukes that its not enough---next stop $5000.

Like these pokie winner wins are Loadly acclaimed---losses---*WHAT LOSSES?*


----------



## Wysiwyg (5 November 2006)

MichaelD said:
			
		

> Bottom line, though, is that it is not necessary to have a correct opinion of what GDN will do in the future in order to profitably trade it, merely to react correctly to what its price action does.




This sentence sums up the whole trading game.Even though I am confident of the company proving up a commercially viable acreage it is the majority that determine the price per share.

I see the company on track with their goals and remain optimistic for the future.


----------



## chris1983 (5 November 2006)

tech/a said:
			
		

> Your *Analysis * will be right if the results are good..or be very wrong if the results are bad...pretty simple in my mind.
> 
> What Im addressing is Risk and quanyifying it.
> You dont see ANY risk and as such quatify it as ZERO risk so you hold.




Thats not true Tech.  Course I know there is risk.  Like I said you would trade or sell your stock on any downswing.  Thats how I gather your trading style is.

If I did that then I wouldnt be sitting on some of the large profits that I allready am.  Different trading styles.  Once again the risk of losing money doesnt outweigh the opportunity I believe to make greater gains.  Hence I will hold.  If I lose..worst case scenario..Tax loss.

Anyway yeah Im looking forward to Monday.


----------



## chris1983 (5 November 2006)

MichaelD said:
			
		

> Bad news = price will fall because of the bad news
> Good news = price will fall because of the mad scramble to get out at breakeven or a small profit




Well you are right it is very unpredictable..I would be surprised if it fell off good news.  You guys all have Trading minds (day traders).  You dont look at the potential company maker this well could be.  If you lose..then you lose.

I have said over and over..you arent holders of a stock.  If they prove a commercial well which I am expecting I wont be selling because in the end the blue sky potential of the stock with they grounds they have could be endless.

If there is nothing commercial about the well..I will be out.


----------



## susbo (5 November 2006)

chris1983 said:
			
		

> Well you are right it is very unpredictable..I would be surprised if it fell off good news.  You guys all have Trading minds (day traders).  You dont look at the potential company maker this well could be.  If you lose..then you lose.
> 
> I have said over and over..you arent holders of a stock.  If they prove a commercial well which I am expecting I wont be selling because in the end the blue sky potential of the stock with they grounds they have could be endless.
> 
> If there is nothing commercial about the well..I will be out.




I agree with you.  I think it will prove to be a commercial well, and I feel GDN has great potential.  I will hold on for a bit longer yet, I am with you on this one.


----------



## Jackob (5 November 2006)

I wrote on 27/20/2006,


			
				Jackob said:
			
		

> Today's turnover was 32.6m shares.  Given the total GDN number of issued shares is ~135.7 m, the average life span of shares is about only ~4 working days!
> 
> Well done, all the day traders!   Thank you all for making this stock the No 1 ASX stock for speculations!
> 
> ...




I said in the above post, "(GDN trading is like) a game of pass-the-parcel … and the music will stop soon!"  Well, the music hasn’t completely stopped, but it has become clearer to me that it might be a typical "*pump-and-dump*" case.

*Pump*: Misleading information was distributed by the company to pump up the price, such as "... the *Leadville Limestone* (layer) ... have (sic) been interpreted from seismic data to have the *potential to contain up to 3 TCF of gas*." (GDN 27/10/2006 announcement).  This "3 TCF of gas" claim in the Leadville Limestone layer was completely false, and has been drooped since in later announcements. 

*Dump*: The director dumped 5+ million shares on market at an undisclosed price (~$1).

So I am very sorry for all present GDN shareholders …  The music may stop soon… take action now!


----------



## tech/a (5 November 2006)

> Thats not true Tech. Course I know there is risk. Like I said you would trade or sell your stock on any downswing. Thats how I gather your trading style is.




Chris I really do understand what your saying.
Infact if you followed techtrader the portfolio method posted live for 4 yrs on Reefcap,youd know Im an advocate of longterm holding.I have stock Ive held and still hold for years.

The point Im making here is that a 600% profit is in the taking---something that most stocks take years to achieve.
Its been and gone.
It maybe seen again and in a few years "Could" be another 600% or $6.

Longterm trading you do as you do.
Have less winners "Generally" buy far more return for every dollar risked.

You only need a few really big winners and your so far in front it doesnt matter.

Goodluck to all those holding for longer periods Im sure youll be winners in the end.
Your right in THIS instance Im trading (Commenting) short term,which most seem to be doing and its these that my comments and Michael's are directed.

In the Tech boom a friend bought DVT (Davenet) for 6c and sold for $3.60 something (It did reach $7.00 something) one of those and its beers all round.

Now while thats fantastic He actually lost $340,000 though!!
That WAS his!!

Goodluck.


----------



## bigdog (5 November 2006)

DPTR - Delta Petroleum are providing the drilling for GDN

There are two US forums/message boards below the cover GDN

The members are interested is in finds by Delta and how much will add to the value of Delta
-- postings include GDN opinions

Thought may be interested in reading what our US folk are saying about GDN

http://www1.investorvillage.com/smbd.asp?mb=969&pt=m

http://www.stockhouse.ca/bullboards/forum.asp?symbol=DPTR&table=LIST


----------



## Wysiwyg (5 November 2006)

Thanks so much for those links doggy.
The first hand experience/explanation by JimisJim and Bigoilers` interpretation were extremely enlightening.Say thanks to your American mates for us.
The ramp up on the Utah reserves is a bit over the top though don`t you think.

Tomorrow may be the day of reckoning for GDN and it`s immediate future as a serious player in the basin. :aus:


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## bigdog (6 November 2006)

The US guys are s clearly pushing Delta Petroleum with big find being "Saudi-Sized Oil Fields Found in Utah" for higher Delta SP

-- GDN's success will add to SP


----------



## MalteseBull (6 November 2006)

*Good News At Last*

Drilling Status Report – 6 November 2006

Paradox Basin #1 well is at 13,720 feet (4,182 m) New significant gas shows in Cane Creek member of Paradox Formation

Drilling on towards Leadville Limestone primary target
Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in
Grand County, Utah.

Paradox Basin #1 is at 13,720 feet (4,182 m), in the Cane Creek member of the
Pennsylvanian Paradox Formation (see table and graphic below). The Cane Creek Member
comprises a cyclic sequence of salt, dolomite and shale.

Two significant gas shows have been encountered, from 13096’ to 13104’, and from 13148’
to 13152’, in vuggy dolomite between salt horizons. The host dolomite is the best quality
reservoir rock so far seen in this well. The well continues to have consistent elevated levels of
background and connection gas.

The Cane Creek Member is thicker than originally expected and will result in the projected top
for the primary objective, the Leadville Limestone Formation, to be approximately 400
feet deeper than last projected.

The well is approximately 200 feet above the projected top the Leadville Limestone
(estimated depth: 13,900 feet). It is anticipated that the well will reach the top of the
Leadville, expected to be at least 500 feet thick, within 2 days.

The geophysical wireline logging survey completed last week is undergoing petrophysical
analysis, to be completed early this week. The results will aid in definition of zones to be
perforated and production tested at the completion of the well.


----------



## bigdog (6 November 2006)

GDN ANN just posted GDN 9:40 AM  Drilling Status Report


----------



## MalteseBull (6 November 2006)

bigdog said:
			
		

> GDN ANN just posted GDN 9:40 AM  Drilling Status Report




do you think it will re-test its previous high if this goes commercial?


----------



## bigdog (6 November 2006)

SP up 10 cents this morning

Drilling Status Report – 6 November 2006 

Paradox Basin #1 well is at 13,720 feet (4,182 m) New significant gas shows in Cane Creek member of Paradox Formation 

Drilling on towards Leadville Limestone primary target Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah. 

Paradox Basin #1 is at 13,720 feet (4,182 m), in the Cane Creek member of the Pennsylvanian Paradox Formation (see table and graphic below). The Cane Creek Member comprises a cyclic sequence of salt, dolomite and shale. 

Two significant gas shows have been encountered, from 13096’ to 13104’, and from 13148’ to 13152’, in vuggy dolomite between salt horizons. The host dolomite is the best quality reservoir rock so far seen in this well. The well continues to have consistent elevated levels of background and connection gas. 

The Cane Creek Member is thicker than originally expected and will result in the projected top for the primary objective, the Leadville Limestone Formation, to be approximately 400 feet deeper than last projected. 

The well is approximately 200 feet above the projected top the Leadville Limestone (estimated depth: 13,900 feet). It is anticipated that the well will reach the top of the Leadville, expected to be at least 500 feet thick, within 2 days. 

The geophysical wireline logging survey completed last week is undergoing petrophysical analysis, to be completed early this week. The results will aid in definition of zones to be perforated and production tested at the completion of the well.


----------



## MalteseBull (6 November 2006)

buyer depth on GDN looks amazing from .955-.965

seller side reducing fast


----------



## Wysiwyg (6 November 2006)

MalteseBull said:
			
		

> buyer depth on GDN looks amazing from .955-.965
> 
> seller side reducing fast




Warning.....BUYERS PULLING BIDS...


----------



## MalteseBull (6 November 2006)

Wysiwyg said:
			
		

> Warning.....BUYERS PULLING BIDS...



according to me they are not???

please explain


----------



## chris1983 (6 November 2006)

I wouldnt worry too much about todays action.  The news today is some positive signs.  We need them to hit leadville and see the results of the wireline logging results.

Everything is looking good though boys.  Thats my opinion.


----------



## rosesny_1 (6 November 2006)

bigdog said:
			
		

> The US guys are s clearly pushing Delta Petroleum with big find being "Saudi-Sized Oil Fields Found in Utah" for higher Delta SP
> 
> -- GDN's success will add to SP




The promo with this headline is somewhat exaggerated. Delta (DPTR) is now drilling it's first well on the Utah hingeline play. It has a large lease position there. It's partner in this one is Woolverine O&G (private firm) which firm is the 2004 discoverer of the Covenent Field that is close by. The Covenent Field now has proved reserves of 96 million barrels and it is believed likely that there are several billion barrels nearly. It's the biggest US land discovery in 30 years. DPTR however has an even bigger confirmed play - the Columbia River Basin in Washington state which is believed to have 218 T of gas - DPTR has 20% of the leases there. GDN's success won't add anything to DPTR unless DPTR decides to buy in and is able to make a deal with GDN.

Regarding GDN's Paradox well, those who worry that this well is not for real should go back and read GDN's own 2005 promotional material. The guy who runs Eclipse, who GDN got the prospect from, has been into this prospect for years & years. It's for real. I saw a copy of the material on fixx.co.nz the day before yesterday; if it's not on the GDN website it can be found in the few fixx.co.nz forum's GDN posts.


----------



## bigdog (6 November 2006)

Rose,

We will all value you input being closer to things in the US and look forward to your further updates


----------



## Broadside (6 November 2006)

I don't like to see it sold down on good news, suggests too many in this stock have unrealistic expectations and it could get smashed if Leadville disappoints.  Either that or today was a pump and dump.


----------



## bigdog (6 November 2006)

Rose

Today Nov 6, GDN SP opened at $A0.98, hit high of $1.015 and finished at $0.87 
-- the Friday close was $0.89


----------



## chris1983 (6 November 2006)

Lots of investors got in around 1-1.25.  They are worried.  Hence selling out.

"The geophysical wireline logging survey completed last week is undergoing petrophysical analysis, to be completed early this week. The results will aid in definition of zones to be perforated and production tested at the completion of the well."

Everything still looks positive to me?  Wireline logging results should be out tomorrow or wednesday.  Im expecting good news again.  We'll see how the SP reacts to that.  Overall the well continues to hit Gas.  Good signs?  Leadville is next.


----------



## Broadside (6 November 2006)

investors got in at 30c, gamblers got in over $1


----------



## maverick11 (6 November 2006)

To be honest, I am not impressed with GDN.  They have continually been pumping their stock and also been dishonest in their announcments (i feel delberately).  Very unprofessional IMO.  If you compare their original announcments with more recent ones, their probable gas plays are getting smaller and smaller.


----------



## constable (6 November 2006)

Broadside said:
			
		

> investors got in at 30c, gamblers got in over $1




If you got in at 87c does that make you a gamstor ?


----------



## bigdog (6 November 2006)

maverick11 was complaining about GDN reporting of affairs; what about directors selling shares?

http://www.wabusinessnews.com.au/en-story.php?/1/45070/Today-s-business-headlines-updated 

THE WEST AUSTRALIAN (BUSINESS NEWS HEADLINES)
Nov 1 2006

Explorer's boss cashes in

Golden State Resources executive director Richard Sciano has already cashed in on the stock's four-fold increase, yesterday revealing he had offloaded a chunk of his stake in the fast-flying gas explorer.


----------



## Agentm (6 November 2006)

i am no GDN investor, but if there are $111 million in shares traded and a loss of value of 28% since the 1st november, surely everyone cant be in front?

the directors selling shares is not something i look upon with any pleasure, i wont invest in anything that a director is dumping,  but i keep wondering about who is buying the stock and putting all those dollars in when its falling like it is at the moment?

each day i seem to see reports from the company, yet its selling down each day..  has there been too much upselling on the secondaries?


----------



## Mr Right (6 November 2006)

Agentm said:
			
		

> i am no GDN investor, but if there are $111 million in shares traded and a loss of value of 28% since the 1st november, surely everyone cant be in front?
> 
> the directors selling shares is not something i look upon with any pleasure, i wont invest in anything that a director is dumping,  but i keep wondering about who is buying the stock and putting all those dollars in when its falling like it is at the moment?
> 
> each day i seem to see reports from the company, yet its selling down each day..  has there been too much upselling on the secondaries?





I have some shares in it bought some more today. I know alot of people that bought it at 30 cents and they have bought quite a bit in the past few days. According to them and the company the well is a production well and at this stage the value is around 1.50 per share . This is the first well out of 11. They are confident of more gas to be hit. If everything do go well 20 -30 dollar share if not what you have to loose? i think is worth the gamble


----------



## Broadside (6 November 2006)

my concern Mr Right is we are really relying very heavily on what the directors tell us are economic gas shows, nothing has really been quantified...so if they are wrong it could be ugly....time will tell...thus far all their announcements have been very encouraging I just hope the cold hard data backs up GDN's initial evaluation, they are in the best position to judge at this point.


----------



## Agentm (6 November 2006)

i saw a post saying about a week ago that the company has $137 million in shares, if $111 mill was gone through in the last few days and similar last week then who is holding long term? 

If your a long termer like i am in stocks then sure,, wait for the final result,, but when i see the amount of hype the directors have put into the secondaries and then dump stock themselves at the best opportunity,, and guess what.. teh price still goes down,, then i begin to smell something..

hey if you sold and made some bucks then ok,, but look out if you a director and your playing the market and suck me in,, i get pretty nasty..  i dont invest my hard earned dollars on any single minded directors aspirations.. 

if you were a director and knew the things you just posted, then why would you sell??? wouldnt that be insane? just curious..

sometimes when it looks like a duck, quacks like a duck, then its a duck..

i want to know from someone who is making massive losses here and bought at $1.20 ish...  are they confident?


----------



## chris1983 (6 November 2006)

There is a very respected US company doing the drill though.  I am definately putting my trust in their reports.  I was hoping the wireline logging results would be out today.  Once again I am waiting for those results to make a decision.  I still think it will be a successful well.  There are many sceptics..thats fair enough..but based on what has been said everything seems to be going well.  Positive announcement out today...Things should be clearer by the end of the week.


----------



## maverick11 (6 November 2006)

Broadside said:
			
		

> my concern Mr Right is we are really relying very heavily on what the directors tell us are economic gas shows, nothing has really been quantified...so if they are wrong it could be ugly....time will ...thus far all their announcements have been very encouraging I just hope the cold hard data backs up GDN's initial evaluation, they are in the best position to judge at this point.




and there's the problem.  They have been pimping it so hard with no hard evidence and everytime more is revealed, the potential gas reserve is getting smaller and smaller.  And how could anyone have faith when the director himself doesn't??!  Wouldnt touch it.  I just hope she picks up, cause I hate to see people lose money.


----------



## Mr Right (6 November 2006)

Broadside said:
			
		

> my concern Mr Right is we are really relying very heavily on what the directors tell us are economic gas shows, nothing has really been quantified...so if they are wrong it could be ugly....time will ...thus far all their announcements have been very encouraging I just hope the cold hard data backs up GDN's initial evaluation, they are in the best position to judge at this point.




You got a point but people close to the company are very confident of the results. I have $10,000 just in case, people close to the company are in with alot of money so i think its a worth the gamble but yes the risk is there and i could lose $3,000 - 4,000.


----------



## chris1983 (6 November 2006)

maverick11 said:
			
		

> and there's the problem.  They have been pimping it so hard with no hard evidence and everytime more is revealed, the potential gas reserve is getting smaller and smaller.  And how could anyone have faith when the director himself doesn't??!  Wouldnt touch it.  I just hope she picks up, cause I hate to see people lose money.




What do you mean no evidence?  Im just curious what more they could report.  They are saying they are hitting gas at every interval...  It is a drill..all they can say is what they have been saying..such as 

_"The well intersected a major pressured gas interval, from 12,549’ to 12,577’ indolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units.

Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well."_

They have to complete the well first before they can confirm everything such as the production capacity..drilling a well is a process..but at the stage they are in right now..they look okay in my mind?


----------



## Mr Right (6 November 2006)

To be honest i am confused as well but ( director selling off) who knows and as Chris says its all been positive so far so worth the gamble.


----------



## Agentm (6 November 2006)

i firmly believe in my own research, and if you do the sums and its right for you then do what you have to..

i am staggered with the volumes, if the are many long term investors then the stock is obviously been traded into the sky by daytraders,, so let it fly, your not making any losses.. i worry about the investors getting ripped by buying at $1.20 ish and now smarting at paying for daytrading folly..

i want everyone to get infront in their investments,, i querie anything like this when theres no data to support the price..


----------



## maverick11 (6 November 2006)

chris1983 said:
			
		

> What do you mean no evidence?  Im just curious what more they could report.  They are saying they are hitting gas at every interval...  It is a drill..all they can say is what they have been saying..such as




sorry i should have been more specific.  They are constantly pumping the stock and haven't even released wireline data yet.  Which by the way, they keep mentioning they are doing in their regular pump reports, but still "show me the money"?!

I know for a fact that gas fph and units can greatly vary before, during and after drilling.  God knows which of the 3 they are telling us...if I could take a guess going off the 'professionalism' of this mob, i would put my money on the highest of the 3 numbers.

Mate, I aint arguing with you, just pointing out that something smells fishy - which is reflected in the drop of sp.  Still, if commercial, chances are this may pick up, but the way things have been handled, I would feel more comfortable with money elsewhere than gdn.


----------



## MalteseBull (6 November 2006)

maverick11 said:
			
		

> sorry i should have been more specific.  They are constantly pumping the stock and haven't even released wireline data yet.  Which by the way, they keep mentioning they are doing in their regular pump reports, but still "show me the money"?!
> 
> I know for a fact that gas fph and units can greatly vary before, during and after drilling.  God knows which of the 3 they are telling us...if I could take a guess going off the 'professionalism' of this mob, i would put my money on the highest of the 3 numbers.
> 
> Mate, I aint arguing with you, just pointing out that something smells fishy - which is reflected in the drop of sp.  Still, if commercial, chances are this may pick up, but the way things have been handled, I would feel more comfortable with money elsewhere than gdn.




true to some extent
GDN is a high risk, high reward stock put it simply..

i am holding to see what the outcome of all this is by the end of the week until i make my next move..


----------



## chris1983 (6 November 2006)

Fair enough.  They have informed the market time after time about the wireline logging results.  We have been kept up to date..they only did it last week.  All they can say is what they have released.  It takes time to analyse the data..

Im not arguing also.  Just trying to see where you were coming from..I can understand why people are edgy with the director selling.  Like I said all I can do is wait for the results.  Its less than a week away.  May lose..may win.  I still feel confident we will get positive results.


----------



## mahmoodf (6 November 2006)

Hi everyone

I would like to clear up the confusion that many people seem to be having regarding the director "selling" shares. This is quite basic math and doesn't take a rocket scientist to work out what actually happened.

Referring to the change of director's interest notice, Richard Sciano did the following:

- Exercised 6,600,000 options at a cost of $1.32 million. This is money that went directly to GDN from HIS pocket.

- Sold off 3.03 million shares at market price. If we assume an average price of $1.15 per share, this equates to approximately $3.5 million.

- Sciano's net proceeds were $3.5 million less the $1.32 million for the options exercise (approximately $2 million plus). So Sciano pocketed $2 million.

- Out of the 6.6 million options exercised, 4.4 millions were converted to ordinary shares.

- The net result was that Sciano actually INCREASED his shareholding in GDN by 1.57 million shares (4.4 million shares that were converted from the options less the 3.03 million sold on market).

I hope this helps. The West Australian's report on this matter was poor and showed how little the transaction was actually understood by the journalist covering the story.

I hold GDN shares and eagerly await the wireline logging results.

Good luck to everyone in their capitalist endeavors.  ;-)


----------



## MichaelD (6 November 2006)

mahmoodf said:
			
		

> - The net result was that Sciano actually INCREASED his shareholding in GDN by 1.57 million shares (4.4 million shares that were converted from the options less the 3.03 million sold on market).



The net result was that the director put $2 million into his own pocket.

Why?

If the shares have a lot more to run, why cash these options in now? Why not wait for the price to move further and make even more money?


----------



## bigdog (6 November 2006)

The West Australian's report did not provide details of the sales:

This will make the sale of shares situation viewed much better to all where Richard last sold Aug 25 when SP was 24 cents
http://au.finance.yahoo.com/q/ait?s=GDN.AX

Date----Insider----------Quantity-SecurityType--Trans----Post O'ship 
25/8/06 Richard Sciano 1,500,000 Options ---------Sell ----13,500,000 
02/6/06 Richard Sciano ---16,300 Direct Shares ----Buy ------- 16,300 
09/3/06 Richard Sciano --561,500 Indirect Shares --Buy -----4,190,500 
23/1/06 John Hasleby ----370,000 Options ---------Exercise -1,110,000 
23/1/06 John Hasleby --1,110,000 Options ---------Cancelled ------N/A 
23/1/06 John Hasleby ----370,000 Direct Shares ----Buy ---- 4,420,000 
23/1/06 John Hopkins --2,960,000 Options ----------Exercise 4,440,000 
23/1/06 John Hopkins --4,440,000 Options ----------Cancelled N/A 
23/1/06 John Hopkins --2,960,000 Direct Shares -----Buy ----2,960,000 
13/9/05 John Hasleby -----30,000 Direct Shares -----Buy ----4,040,000 
01/9/05 Richard Sciano -2,960,000 Indirect Shares -- Buy ---11,960,000 
01/9/05 John Hasleby ----370,000 Options ---------- Sell ----1,480,000 
01/9/05 John Hasleby ----510,000 Direct Shares ----  Buy --- 4,010,000

I need to find out how to present layout without dashes


----------



## bigdog (6 November 2006)

Richard sold 1.5 million "options" which would not have realized a significant amount

Richard last sold Aug 25 when SP was 24 cents

http://au.finance.yahoo.com/q/ait?s=GDN.AX

Date----Insider----------Quantity-SecurityType--Trans----Post O'ship 
25/8/06 Richard Sciano --1,500,000 Options -------Sell ----13,500,000


----------



## mahmoodf (6 November 2006)

MichaelD

Firstly, the options that Sciano exercised ARE NOT tradeable on the ASX. Secondly, they have a fixed exercise price of 20 cents. Please refer to the annual report for details.

So Sciano could only exercise them for a maximum of 20 cents, regardless if the SP was at $1 or $5. BUT, if the director does exercise his options, he gets more shares. And if those shares rise in value, HE CAN make more money. See where I am coming from? He is converting options to shares so that he can make more money if the SP rises. If the SP falls, he loses out too, unless he starts dumping shares before they reach 20 cents (the price he paid for the conversion). I don't see any mass dumping at this stage of shares by director's.

Also, by his exercising, the company has received $1.32 million to help with any further drilling costs etc. So this is a good sign to me.

I agree there is high risk/reward here but I am prepared to take that since the payoff could be very sweet.

If Sciano pocketed $2 million, good on him. Director's are allowed to make money too. And they are well aware of what signals this can send to the market.

But in my analysis, this director's transactions mean nothing and are irrelevant. All that matters is what results come out from that big hole being dug in Utah.


----------



## MichaelD (6 November 2006)

mahmoodf said:
			
		

> So Sciano could only exercise them for a maximum of 20 cents, regardless if the SP was at $1 or $5. BUT, if the director does exercise his options, he gets more shares. And if those shares rise in value, HE CAN make more money. See where I am coming from? He is converting options to shares so that he can make more money if the SP rises. If the SP falls, he loses out too, unless he starts dumping shares before they reach 20 cents (the price he paid for the conversion). I don't see any mass dumping at this stage of shares by director's.
> 
> Also, by his exercising, the company has received $1.32 million to help with any further drilling costs etc. So this is a good sign to me.
> 
> If Sciano pocketed $2 million, good on him. Director's are allowed to make money too. And they are well aware of what signals this can send to the market.



Hang on just a second.

What he exercised;
2,700,000 Class A Options
2,700,000 Class B Options
400,000 Class C Options
400,000 Class D Options
400,000 Class E Options

He exercised 6.6 million options (at 0.20) which cost him out of his own pocket 1.32 million dollars. Thus, he received 6.6 million shares for 1.32 million dollars from GDN.

He then sold 2,435,500 of these shares at market and kept 4,164,500 of them. He likely sold them at around $1.10-$1.20, so grossed around $2.7 million.

Net profit for this transaction for him was around $1.4 million.

These options were granted in May 2006 and expire in May 2009. These options cost him NOTHING. He's made $1.4 million dollars for NO initial outlay on his part.

Now, I do NOT begrudge any director such a gain. It is his undeniable right to take it.

What I wonder about, however, is WHY he chose to exercise the options NOW rather than some time in the next 2 1/2 years.

1. Perhaps he wanted the company to have another $1.3 million in cash right now.
2. Perhaps he needed the money to pay a debt.
3. Perhaps he recognized the madness of the then current pricing and wanted to take advantage of it while he could.

Yes, he can lose the value of the new shares he now holds...BUT THEY COST HIM NOTHING. They were conjured out of thin air and gobbled up by the punters in the market. He's better off by $1.4 million in cash. The company's better off by $1.4 million in cash. Who's the loser here?


----------



## mahmoodf (6 November 2006)

I think you answered your own question. The company benefited by receiving cash, the director benefited by receiving cash and the director increased his share holding.

At the end of the day, IMO, what the director did in this instance is irrelevant and not material enough to think that GDN is being hung out to dry by the director's.

What will kill this stock is if their wireline results are poor or if the gas they have found is not economically viable or they cannot get it to production etc etc.

What I am trying to say is that there are a host of other risk factors that we should focus on, not the director's share transactions.

GDN is still a high risk/reward play, but not because of one director's share transactions.

I won't be commenting on this particular issue anymore as perceive this to be an immaterial director transaction. If you don't see it that way, that's cool. Everyone is entitled to their opinions.


----------



## doctorj (6 November 2006)

MichaelD said:
			
		

> He's better off by $1.4 million in cash. The company's better off by $1.4 million in cash. Who's the loser here?



The other shareholders perhaps?  The money wasn't just created.  If the well isn't commercial or doesn't warrent the 600% increase, someone's going to out of pocket that 1.4mill.

I still question their announcements.  They are providing raw information with lots of exciting big numbers under the guise of being transparent.  In reality, they're giving the market information they're not able to interpret and I suspect they've been caught up in the questionable commentary the company has provided.  "Significant gas shows" and "40 fold gas increases" provides NO INDICATION of the wells commerciality.


----------



## MichaelD (6 November 2006)

doctorj said:
			
		

> The other shareholders perhaps?  The money wasn't just created.



Well, yes it was. Suddenly one day there were 6.6 million more shares in GDN which weren't there the day before which have now been sold at above $1 to other at the time seemingly irrationally exuberant shareholders. There's now a rather large number of shareholders in GDN in a loss position. That's not to say that they won't all be counting their riches in a few days/weeks/months/years, but right now, they're sitting on a loss.


			
				mahmoodf said:
			
		

> What I am trying to say is that there are a host of other risk factors that we should focus on, not the director's share transactions.



Indeed so. As a technical trader I am only concerned with one thing - price. Right now, GDN's price gives me no reason to own it and every reason to sell it. It did give me reason to buy a while back, but I'm out now.

Nonetheless, I find it interesting that on the very day that the share price hit its peak that a director feels the need to make some money. Coincidence? Altruism? Opportunism? Who knows. Does it matter? Who knows.


----------



## doctorj (7 November 2006)

MichaelD said:
			
		

> Well, yes it was. Suddenly one day there were 6.6 million more shares in GDN which weren't there the day before which have now been sold at above $1 to other at the time seemingly irrationally exuberant shareholders.



This is probably another discussion for another thread, but despite their irrational exhuberance, the people who bought these shares did so without knowing it was from the sale of directors options.  Now they're shareholders of the company and both these shareholders of the company and many others (given such a high % of the companies shares have been turned over recently) and it remains to be seen, but they may fall foul of questionable disclosure practices.


----------



## Jackob (7 November 2006)

mahmoodf said:
			
		

> ...
> 
> Referring to the change of director's interest notice, Richard Sciano did the following:
> 
> ...





"- Out of the 6.6 million options exercised, 4.4 millions were converted to ordinary shares."

So, why did the director only get 4.4 m shares instead of 6.6 m?  Where have the other 2 million shares gone?


----------



## bigdog (7 November 2006)

ANN just released for:

http://www.asx.com.au/asx/research/...archBy=asxCode&allinfo=&asxCode=gdn#headlines

Issue of shares on exercise of unlisted options - application for listing

3125000 ordinary shares @ 20 cents


----------



## SevenFX (7 November 2006)

Tech/A

Looks like it's in that range you picked 65-80c fall as currently trading at 74c (down 16%) and free falling.... No 80c support.


----------



## constable (7 November 2006)

At this rate if they do strike it big the share, at least  might go back up to $1.25 for those people to break even!


----------



## Jackob (7 November 2006)

Jackob said:
			
		

> I wrote on 5/11/2006,
> ...  it has become clearer to me that it might be a typical "*pump-and-dump*" case.
> 
> *Pump*: Misleading information was distributed by the company to pump up the price, such as "... the *Leadville Limestone* (layer) ... have (sic) been interpreted from seismic data to have the *potential to contain up to 3 TCF of gas*." (GDN 27/10/2006 announcement).  This "3 TCF of gas" claim in the Leadville Limestone layer was completely false, and has been drooped since in later announcements.
> ...




Lament!  Can't believe so many people is still being sucked into this "pump and dump" trick without knowing anything!

In the past 5 days, GDN price is clearly in a huge avalanche, but bloody hell still so many people are still keeping buying it hoping the next day all will change …  

All buyers should be aware: what you are betting is against the managing director who has just dumped 5.03 million shares to you (!).   What an uphill battle!


----------



## purehell (7 November 2006)

looks like alot of smoke and mirrors


----------



## juddy (7 November 2006)

watching this for a *trade* tomorrow after the hammer close today.


----------



## Wysiwyg (7 November 2006)

juddy said:
			
		

> watching this for a *trade* tomorrow after the hammer close today.




These ups and downs give me the willys.Seems that the price is at an acceptable risk level now going on todays rebound.Prolly the most valuable single sentence I have seen here is from Michael D. 


Bottom line, though, is that it is not necessary to have a correct opinion of what GDN will do in the future in order to profitably trade it, merely to react correctly to what its price action does.
 :2evil:


----------



## bigdog (8 November 2006)

GDN Update just ANN and two days more drilling - they forget to update this line

Drilling Status Report – 8 November 2006
• Paradox Basin #1 well is at 14,107 feet (4,230 m) in Cane Creek
member of Paradox Formation
• The well will drill on towards Leadville Limestone primary target,
following bit change

Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah.

Paradox Basin #1 is at 14,107 feet (4,230 m), in the Cane Creek member of the Pennsylvanian Paradox Formation (see table and graphic below). The Cane Creek Member comprises a cyclic sequence of salt, dolomite and shale.
The well maintains consistent elevated levels of background and connection gas.

As previously reported the Cane Creek Member is thicker than originally expected and has resulted in the projected top for the primary objective, the Leadville Limestone Formation, to be further extended below the last projected depth.

The depth of the top of the Leadville is now estimated at 14,500. It is anticipated that the well will reach the top of the Leadville, expected to be at least 500 feet thick, within 2 days.


----------



## tech/a (8 November 2006)

> As a technical trader I am only concerned with one thing - price.




And here in lies the vast cannyon between fundie and tech traders ability to react quick enough to take advantage of these *outlier moves*.
Particularly exit.


----------



## purehell (8 November 2006)

not much fundamentals or general belief in the stock eh.


----------



## tech/a (8 November 2006)

purehell said:
			
		

> not much fundamentals or general belief in the stock eh.




Dont have to.
If you trade pure price action its not necessaty *particularly short term*.

However long term holders,fundamental and tech Analysts would have more interest in the Fundamentals of the stock.


----------



## constable (8 November 2006)

Still no excuse for a stop loss!


----------



## Caliente (8 November 2006)

my god, this looks painful, yet tasty at the same time. Looks like a chance for a swing trade coming but right now I'm waiting on the sidelines while the snow keeps rolling down the mountain.


----------



## Agentm (8 November 2006)

must be pure hell for those buying at $1.20i guess if you bought the directors shares then, you cant expect him to give a hoot about your massive loss,, he is happy as a pig in mud to see the massive pump and dump..

doesnt the director work from the states???


----------



## SevenFX (8 November 2006)

Agentm said:
			
		

> must be pure hell for those buying at $1.20i ???




I imagine most if not all that bought at 1.20c would not still be holding at 73c and cut their losses by now....

Buy depth seems to have stagered weak support from 70-73c, but IMO couldn't expect that to hold if bad news comes out.

This stock has had 6 straight down days with nearly 50% retracement so one could ask where GDN's turning points is.

SevenFX


----------



## MichaelD (8 November 2006)

The trading in GDN and DYL lately has been fascinating to watch from a psychological point of view.

GDN has been hammered down for the last 5 days and is still getting a belting. And yet, it has made a couple of appearances on CommSec's Most Popular *BUYs* on the way down. Not bad for a company not even in the All Ordinaries index.

The obvious conclusion is;
1. It peaked at 1.265
2. Bargain at 1.15
3. Bargain! at 1.03
4. BARGAIN at 0.97
5. BARGAIN at 0.98
6. BARGAIN!!! at 0.87
7. MEGA BARGAIN at 0.78

Anyone wanna speculate on how many of the buyers at $1.20 plus are still holding? Anyone wanna speculate on how these buyers might be feeling right now?

Sadly, exactly the same scenario seems to be unfolding with DYL. People are buying it on the way down, all the way getting hammered.

WHY?


It's OK to arrive late for the party sometimes. Just have the nous to quickly excuse yourself and leave. There'll always be another party. (And don't pick your bottom on the way out.)


----------



## constable (8 November 2006)

certainly looks like gdn is calling all passengers! how many no where it's going?
ann must be just around the cnr now
looks very tempting but im still sitting on the fence.


----------



## tech/a (8 November 2006)

Michael.

(8) Are you crazy!! .71c

Dont worry people its only those who are spooked by the sell off!!
Hang in there It'll be back to square one soon.

DYL's/and USA are doing the same thing!! but hey what a bargain!


----------



## SevenFX (8 November 2006)

tech/a said:
			
		

> Michael.
> 
> It'll be back to square one soon.




(9) Strong Relation with Bank Manager!! .66c (Down 20%)

Define SOON for all those holding.


----------



## tech/a (8 November 2006)

SevenFX said:
			
		

> (9) Strong Relation with Bank Manager!! .66c (Down 20%)
> 
> Define SOON for all those holding.




*Soon*

Soon enough!

I wouldnt be suprised if it pulls up around 55-60c .618 fib level and old congestion area.Then sideways.(20c range.).

And the Melbourne Cup winner is--------- for 2007


----------



## purehell (8 November 2006)

tech/a said:
			
		

> Dont have to.
> If you trade pure price action its not necessaty *particularly short term*.
> 
> However long term holders,fundamental and tech Analysts would have more interest in the Fundamentals of the stock.




What you mean you dont have to fundamentals etc etc all have a direct effect on the price and guessing your not a long term investor maybe even a day trader.

Be interesting to see if they come with any solid results which i would be very suprised i mean is there anything that they're not telling us which is why the directors are dumping there stock ???? 

I dont hold this stock just my input.


----------



## chris1983 (8 November 2006)

I'm still in.  Thank god for my other stocks..my fund hasnt moved thanks to their rises.  Its not nice seeing a stock you have backed fall.  Quite a few people have called the director though.  This is quoted off another forum site.

_"I'll try and write this so no gets or can get into trouble.
Once I figured out the number to ring (different from NZ), I decide to call to assist me in protecting my investment.
1. I introduced myself
1a. Spoke with someone called John 
2. He was very much awake and friendly and polite throughout the entire call (about 10 mins).
3. Was unaware and surprised at todays shareprice close.
4. Is not aware of anyone selling.
5. Is happy (Adament) this hole in the ground is already commercial. Although not sure of total resource yet. 2 -3 mcf per day was all they needed and expected to get lots more than that.
6. Was impressed with this hole.....it was going to make the company rich and shareholders along with it.
7. Put down selling to impatient and trader action which was irrational. Things do take longer than a week....LOL
8. Will be drilling on site for a year, in which they can drill 4-5 holes a year.
9. This was only the first hole and is a great indicator of the full potential of the acreage.
10. Is not and is not planning to sell any shares even though he has a sizeable stake in the company. Wealth is to be had here.
11. Wirelogging is still actually being studied. Lots of hits to wade through. Will need further tests to confirm all with the deeper drillling. (obvious)
12. Will continue to drill to the bottom. (cobber-digger m8 was spot on earlier) they will be able to go down to 16000 feet.
13. They were better than a miner (this made me laugh) as they can go straight into production.
14. They are planning more holes. (I guess they might be considering more than two now)."_

Once again there will be critics..but I have always believed they have a commercial well.  Hopefully news on the wirelines will be out tomorrow.  Good luck to holders.

I took a tax loss and got back in for the same price. Smartest thing I could possibly do atm.  Hopefully tomorrow is a better day.


----------



## tech/a (8 November 2006)

Pure.

I trade both long term portfolio trading and shoter term which can be a day or up to a week depending on price action.

Both are vastly different trading styles.
Both I trade technically.
The longterm method is a designed system (My own) which is traded live on Reefcap.
Links are here.

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=74;t=000004;p=9

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=74;t=000024

As you'll see some trades are held for years.The Fundamentals are of no interest to me.
They either conform to the system rules or they dont.

Short term is the similar I buy breakouts and look for outlier moves.
You'll see a thread in the Trading section here at ASF outlining some of how I trade.


----------



## Agentm (8 November 2006)

2007 winner melb cup..  pure joy and maybe better


----------



## MichaelD (9 November 2006)

Hmmm, a close at 0.65 today from a peak of 1.265.

10. IT'S A TWO FOR ONE SALE. Buy tomorrow where you can buy two shares for the price you'd have paid for one last week. Hurry, hurry, hurry, the doors open just after 10:00am. First in first served. Goods as new - hardly used by last owner.


Note for the humour impaired: This is commentary on market psychology, not a ramp, and not financial advice. (Read my sig.)


----------



## Wysiwyg (9 November 2006)

MichaelD said:
			
		

> Hmmm, a close at 0.65 today from a peak of 1.265.
> 
> 10. IT'S A TWO FOR ONE SALE. Buy tomorrow where you can buy two shares for the price you'd have paid for one last week. Hurry, hurry, hurry, the doors open just after 10:00am. First in first served. Goods as new - hardly used by last owner.
> 
> ...




Very good Michael D....bet a scratch it rich ticket that they will be over $1 within 2 weeks  

Is that Alfred Hitchcock (picture) or you. :run:


----------



## tech/a (9 November 2006)

There is a good chance it will re test the recient high.
However the further it drops the less likely it is to take out the last high.
The longer it takes to retest the high the more likely it is to range in no mans land.

Continue on and bolt past all time highs from here is worth 10 scratchies.(Timeframe 3 mths).


----------



## bigdog (9 November 2006)

Good news for US forum posted today by rosesny

http://www1.investorvillage.com/smbd.asp?mb=969&mn=1041&pt=msg&mid=785825

http://www1.investorvillage.com/smbd.asp?mb=969&mn=1043&pt=msg&mid=786753

http://www1.investorvillage.com/smbd.asp?mb=969&mn=1047&pt=msg&mid=787441


----------



## SevenFX (9 November 2006)

What a time to release NEWS


----------



## bigdog (9 November 2006)

ANN posted at 10:04 today

SP has really dropped

Drilling Status Report – 9 November 2006
· Paradox Basin #1 well is at 14,107 feet (4,230 m) in Cane Creek
member of Paradox Formation
· Results of analysis of wireline survey received
· The drilling rig is currently running a new bit into the well

Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah.

Paradox Basin #1 is at 14,107 feet (4,230 m), in the Cane Creek member of the Pennsylvanian Paradox Formation (see table and graphic below). The Cane Creek Member comprises a cyclic sequence of salt, dolomite and shale.
Since the last report the rig has been running pipe to change the drilling bit and it is anticipated that drilling will re commence today.

Wireline Log Survey Analysis – preliminary results Wireline logs were run by Schlumberger over the previously announced gas shows associated with the well’s secondary objectives in the upper Paradox Formation, over the interval 9,500’- 12,974’, prior to drilling through the Cane Creek salt units.

The logs were submitted for computer petrophysical analysis, the preliminary results of which have been received. The interpretation process was lengthened by the complexity of well rock types, which include limestone, dolomite, sandstones, shales and anhydrites and hole conditions, which included washouts and extreme changes in salinity.

Porosity derived from the logs averaged 5% increasing to 10% in some zones (hydrocarbons are produced elsewhere in the Paradox Basin from reservoirs with similar porosities).

The sonic log has been used to establish effective porosity.

Fracture porosity could not be estimated by this method. Zones with fracture related gas shows in the Upper Ismay and elsewhere in the well will need to be assessed by other methods.

Gross sand over the log interval is approximately 860’ (247 m) with 69’ (21 m) of net gas saturated dolomitic sandstone with additional gas potential possible.


----------



## SevenFX (9 November 2006)

bigdog said:
			
		

> ANN posted at 10:04 today
> 
> SP has really dropped.




So did your opinion quickly bigdog, from Quote "VG News"


----------



## MalteseBull (9 November 2006)

**** glad i didn't hold too long on this one..now 55!!

sold at a MASSIVE loss at .87 *few* buying at 1.175-1.18 when it was skyrocketing


----------



## tech/a (9 November 2006)

ouch!!!


----------



## The Mint Man (9 November 2006)

Added this one to my watchlist yesterday, to do just that.....Watch. "I like to watch".
WOW!!! :horse:


----------



## constable (9 November 2006)

its a bottom feeding frenzy look at them go!


----------



## Snakey (9 November 2006)

constable said:
			
		

> its a bottom feeding frenzy look at them go!




Yes yes and i am as full as as i can get thank you very much panic merchants


----------



## chris1983 (9 November 2006)

yeah not good.  Im wondering if I should cut my losses and put it into something I think will double.

People are very dissapointed with the wireline logging.  Its not definitive..then they caused delays because of it.  What to do.


----------



## Agentm (9 November 2006)

i would seriously question the director about hos behaviour..

absolutely feel for anyone going through what they are..

btw if hosston sands are paying,, its worth $1 to the share pice of ARQ, as they hold 25% of adi..
not saying what you should do,, but maybe do your research and perhaps you may see what i see..  btw ADI AUT and EKA are in not trading pending an announcement


----------



## constable (9 November 2006)

chris1983 said:
			
		

> yeah not good.  Im wondering if I should cut my losses and put it into something I think will double.
> 
> People are very dissapointed with the wireline logging.  Its not definitive..then they caused delays because of it.  What to do.



finding something that will double is probably a harder decision, besides gdn is looking like it has less and less downside each day and probably worth a gamble at this price
pls note i am a chronic gambler!


----------



## SevenFX (9 November 2006)

Whats your thoughts and experience TECH/A....

have you seen this 7 day retrace before, with the 7th being the worst (-33%)

Don't know if this falls within any classic patterns....perhaps just emotional runnaway...???

EDIT: Has anyone bought, and wondering where this is going...???? I certainly am...????


----------



## purehell (9 November 2006)

These constant ann have done nothing positive for this stock at all besides maybe the opp for people to buy in who would buy in? um you would have to be pretty crazy with all the directors selling etc.

Looking like people are jumping from the top roof with the pianos.


----------



## nizar (9 November 2006)

Dont forget how much this stock has already run.
Alot of daytraders, any sign of weakness, and its a domino effect, stop losses get triggered, and every1 is racing for the exits.
I feel for those who were left holding these when the music stopped.
Highlights the importance of risk/money management.


----------



## Rogue_Trader (9 November 2006)

SevenFX said:
			
		

> Whats your thoughts and experience TECH/A....
> 
> have you seen this 7 day retrace before, with the 7th being the worst (-33%)
> 
> ...




Well I bought some today, have no idea where it is going, dont ask me what would i know  

I will be in it for the long haul though, am going to hold, just my opinion, I feel GDN still has potential, but then I am not alway right


----------



## nizar (9 November 2006)

Rogue Trade
Your brave, your brave. It takes balls to be buying on a day like today.


----------



## chris1983 (9 November 2006)

Well...ive been pretty much spot on the entire year.  This is my worst trade at current prices.  I havnt sold yet.  I remain optimistic they will rally.  Then I wont lose as much 

Na on a serious note..I really dont know how to analyse their results..it looks to me all the delays etc and the logs not being fully definitive have taken its toll on the market.  Then when you add the director sells which many people have been focussed on... It churns a negative sentiment.

I'm still hoping on the well being commercial.


----------



## Snakey (9 November 2006)

nizar said:
			
		

> Rogue Trade
> Your brave, your brave. It takes balls to be buying on a day like today.




No it takes brains...


----------



## constable (9 November 2006)

Rogue_Trader said:
			
		

> Well I bought some today, have no idea where it is going, dont ask me what would i know
> 
> I will be in it for the long haul though, am going to hold, just my opinion, I feel GDN still has potential, but then I am not alway right




same, i think people amongst all this panic selling and lack of immediate "great" news, have forgotten the reasons why this share may have potential, especially now its has plenty of room to move up again!
I jumped in a little quick but my average is under 50 but like yourself willing to hold and wait for drilling programme to reach its target!


----------



## Rogue_Trader (9 November 2006)

nizar said:
			
		

> Rogue Trade
> Your brave, your brave. It takes balls to be buying on a day like today.




Well in my opinion, and like I said what do I know   they are at such low, I couldnt help myself I love a bargain, but then again I have been known to be an impulse buyer! so just thought I would see how it all pans out. 

I am thinking, just what if this well turns out be commercial....?     And if not u win some and lose some.  That is the risk i am prepared to take, my kids will just have to go to a dodgy public school that is all lol.


----------



## Rogue_Trader (9 November 2006)

constable said:
			
		

> same, i think people amongst all this panic selling and lack of immediate "great" news, have forgotten the reasons why this share may have potential, especially now its has plenty of room to move up again!
> I jumped in a little quick but my average is under 50 but like yourself willing to hold and wait for drilling programme to reach its target!




Yes my sentiments exactly.


----------



## doctorj (9 November 2006)

> Na on a serious note..I really dont know how to analyse their results.



I've felt this has been the problem all along.  They've released information that Joe trader has not been able to analyse.  The 'big' numbers and emotive phrases like "40 fold increase" etc has triggered this run.

5-10% porosity in the upper formations is at the low end of the scale and while many wells do produce commercially at these levels it will mean they will need to do many more drills to produce at a rate that provides the cash flow they might have hoped for.  This ofcourse means more capex and a raising and the associated dillution.

The upper shows may be a handy little earner if they decide they can't produce from the lower target and feel it is commercial.  It wouldn't be much to write home about and certainly, in retrospect, wasn't enough to warrant the type of hype that was generated.  

Ofcourse, if their dubious disclosure practices continue when they reach the lower target we may be in for a DCB.  I can see it now - "80 fold increase in background gas!" - it might give the directors a chance to lighten their load a little more and mug punters to recover losses.  As for whether or not they will find anything exciting, only time will tell.


----------



## tech/a (9 November 2006)

Hold fine.

But those who bought at average below 50c have just watched a 120% profit come and go.

Now if thats good trading practice------

100% rises in a few days arent common.

Turning a 100% profit into a break even OR loss are very common.

There are times to Hold'em and times to Fold'em

So how many here averaging down?


----------



## Broadside (9 November 2006)

tech/a said:
			
		

> Hold fine.
> 
> But those who bought at average below 50c have just watched a 120% profit come and go.
> 
> ...





bought at 30, sold half b/w 88 and 97, let the rest free carry for a free hit at Leadville (sorry Hosston on my mind   ), in hindsight I would have sold the lot at 1.20 but I wanted the chance at a very big payout...anyway Leadville is still a long shot and still a chance

I won't buy more, no way


----------



## Caliente (9 November 2006)

hi tech/a, I'm interested in taking a position in GDN now, but am novice to this particular situation.

I know its unwise to buy into a falling stock, but are there any technical indicators that make you consider a turn around is approaching?


----------



## tech/a (9 November 2006)

Broadside said:
			
		

> bought at 30, sold half b/w 88 and 97, let the rest free carry for a free hit at Leadville (sorry Hosston on my mind   ), in hindsight I would have sold the lot at 1.20 but I wanted the chance at a very big payout...anyway Leadville is still a long shot and still a chance
> 
> I won't buy more, no way




Nothing wrong with this appraoch.

At least you had a sound plan and although it didnt pan out perfectly you placed yourself in a position to take advantage of it if it did and when it didnt came away with a good profit.

You have traded it!

Cal 
Ill have a look.


----------



## Snakey (9 November 2006)

Bought in at 38.5 sold at 1.16 bought in again at .50 
bring on leadville!!!!!


----------



## tech/a (9 November 2006)

Technically.

If you bought today then the stop is at 42c and the gap is likely to close in the next 2 days. I would expect trading to re bound to around 75c
So do the risk maths from there.---then flat unless news.


----------



## maverick11 (9 November 2006)

doctorj said:
			
		

> I've felt this has been the problem all along.  They've released information that Joe trader has not been able to analyse.  The 'big' numbers and emotive phrases like "40 fold increase" etc has triggered this run.
> 
> 5-10% porosity in the upper formations is at the low end of the scale and while many wells do produce commercially at these levels it will mean they will need to do many more drills to produce at a rate that provides the cash flow they might have hoped for.  This ofcourse means more capex and a raising and the associated dillution.
> 
> ...




5-10% porosity is actually quite good.  Typically porosity is closer to 3-4%


----------



## Caliente (9 November 2006)

cheers T/A, it's rebounding strongly, I might have lost the value here due to my indecision. 

Was considering the buy in at 43, now at 51, thats essentially a 20% rebound already, so I'll hold off this one for the moment, but its on radar.

PS - nice work Snakey, wish I had your trigger finger!


----------



## Snakey (9 November 2006)

tech/a said:
			
		

> Technically.
> 
> If you bought today then the stop is at 42c and the gap is likely to close in the next 2 days. I would expect trading to re bound to around 75c
> So do the risk maths from there.---then flat unless news.




I agree tech/a i say 75c also

As long as they stop their announcements their shares might go alright


----------



## tech/a (9 November 2006)

Gap will act as resistance.
If the low is taken out and the gap is NOT filled then this is in serious trouble.
If it is partially filled and returns to the low then it is also unlikely to perform.
Gap needs to close soon for this to have upside.


----------



## doctorj (9 November 2006)

maverick11 said:
			
		

> 5-10% porosity is actually quite good.  Typically porosity is closer to 3-4%




Interesting.  I've always thought that 5% would be considered rather tight.  Happy to be proven wrong.  Are you able to give me the names of wells that have been producing for a while with these kinds of porosities in the region?

For purposes of comparison, NW Shelf appears to have 15-25%+ porosity, drills in the Perth Basin producing gas have porosity of 8-32% and in the Cooper, 10-30%.


----------



## constable (9 November 2006)

For all those people who sold out this morning and havent slashed your wrists, the stocks still at a big discount from yesterday!
My attempt at showing a little sympathy


----------



## chris1983 (9 November 2006)

I'm not willing to take a loss yet.  I'm still holding.

Made my stomach cringe this morning..but I held firm.  I still think they have potential.


----------



## chris1983 (9 November 2006)

N tech..I did have a profit.  was reasonable too.  Maybe I just analysed everything To the best I possibly could and I thought they would keep going...thats why I didnt sell.  I still want to see what they have so i'll wait it out.


----------



## doctorj (9 November 2006)

chris1983 said:
			
		

> Maybe I just analysed everything To the best I possibly could



I'm looking at my napkin-valuation for GDN based on different reserves at this drill in light of mav's comment.  Just out of interest, what valuation did you come up with?


----------



## Snakey (9 November 2006)

chris1983 said:
			
		

> I'm not willing to take a loss yet.  I'm still holding.
> 
> Made my stomach cringe this morning..but I held firm.  I still think they have potential.




well done chris ....its not easy
smart move


----------



## doctorj (9 November 2006)

Snakey said:
			
		

> smart move



Really?


----------



## chris1983 (9 November 2006)

I pretty much thought they had a good chance of confirming 50bcf...I still do..thats why I didnt sell this morning in the low 40's.  Based off all the reading..reading through their reports etc etc.  They valued that from $1-1.50.  This is taken from the CK Locke report

"GDN consultants anticipate a high level of success in the first well with anticipated 80% success in achieving a minimum case of 50 BCF. 50 BCF is potentially economic."

I read Analyst's report - StockAnalysis and Analyst's report - CK Locke plus other articles.  I thought they were definately worth a go.  Thing is I know of people calling the director in Utah and he believes it to be commercial even without Leadville.  Question is why hasnt this been announced in asx reports.  Many questions..but Im sticking with them.


----------



## MalteseBull (9 November 2006)

don't wait for any fancy announcements sell out while you still can!!


----------



## Snakey (9 November 2006)

doctorj said:
			
		

> Really?




yes ...what would you have done this morning if you were holding ????


----------



## maverick11 (9 November 2006)

Well depth and rock type has a lot to do with it.  Most US deep wells are nowhere near the values you quoted for the aussie examples.

Here's some textbook info, but these don't take into account pressures and hydrocarbons, etc:

Quartzite 0.1 - 0.5%
Dolerite 0.1 - 0.5%
Granite 0.5 - 1.5%
Sandstone 5.0 - 25.0%
Shale 10 - 30%
Limestone 5 - 20%
Dolomite 1 - 5%

25% in sandstone and 30% in shale is EXTREME particularly under the pressures they are experiencing several km's underground.  To get approx 10% on ADI's sugarloaf well in the primary would be mindblowing, but possible for example


----------



## constable (9 November 2006)

holding firm could be a runner on the way home.
ive bought and sold this 4 times today! 3w 1L up 764


----------



## Caliente (9 November 2006)

hi constable, on the same token it could also be a loser, as people may not want to hold something so volatile overnight? just some thoughts.


----------



## constable (9 November 2006)

Caliente said:
			
		

> hi constable, on the same token it could also be a loser, as people may not want to hold something so volatile overnight? just some thoughts.



Yes i guess there was a little apprehension but plenty of volume down the buyers side. Tipping it wont capitulate again tommorow as everyones had a chance to bail today. The fact that bargain hunters showed plenty of interest today coupled with the fact that the only sellers at this price would be the people that picked it off today could result in a volume squeeze tommorow. I spose the fact that it still could be a commercial discovery may help it rebound off today as well ! I picked up 30k  at the close and look forward to the open tommorow - still prepared to sit on these evenif it goes pear shaped.


----------



## canny (9 November 2006)

On all available info - including what the directors have to say - I believe it is likely to gap up in the morning providing they learn to put the anns in simpler language for the large volume of followers they have 'acquired'.
Will be interesting to see how much depth they can get through in the 24hours from this morning.
The drill was scheduled to start again at 12 - but not sure if that's 12 midnight Utah - or 12 midday ASX. Need email clarification of that one.

Certainly looks oversold to me now - mainly because of lack of understanding, therefore a good clarifying ann could see it fill that gap back up in tech/a's post (I think it was tech?)
Interesting week ahead.
I hold.


----------



## chris1983 (9 November 2006)

Hi Canny,

How clear is your understanding of their message?  I know this part of the message sounds positive.

"Gross sand over the log interval is approximately 860’ (247 m) with 69’ (21 m) of net gas saturated dolomitic sandstone with additional gas potential possible."

Im no gas or oil expert.  Definately hard to fully understand the message.  I know about uranium/copper and nickel grades thats about it


----------



## rosesny_1 (9 November 2006)

*GDN - Porosity in Lisbon Fld., Paradox Bn., Utah*

The average porosity of the Leadville Reservoir at Lisbon Field, Paradox Basin, Utah (largest leadville producing field in Paradox) is 5.5 percent and varies from 1 percent to 21 percent. http://geology.utah.gov/emp/leadville/pdf/doloposter1.pdf


----------



## chris1983 (9 November 2006)

Well the porosity is very good then


----------



## chris1983 (9 November 2006)

Below is just my thoughts guys..anyone want to read into it..I may be wrong because i'm no expert.

I feel they havnt made the announcements clear..a lot of people have become confused. I'm no oiler..but when you look at the comparisons they look good. They also said they had 

"Gross sand over the log interval is approximately 860’ (247 m) with 69’ (21 m) of net gas saturated dolomitic sandstone with additional gas potential possible."

they also state 

"Potential exists in other sands with gas shows in the well but, due to hole conditions, logs were not definitive."

They have only confirmed 69' from their 860 possible feet. That is very interesting. There will be more..then when you look at Lisbons field below.

The net pay of the Lisbon field is "Net Pay – 225 ft"

Now arent they very cheap if they have 69 feet of net gas..where Lisbon have 225 feet of net gas..and Lisbons field is 225 feet of net gas combined from 23 producing wells.


----------



## MichaelD (9 November 2006)

Today's psychology musings.

11. I HATE THIS STOCK!!! IT'S RUBBISH. SELL IT. SELL IT. SELL IT AT ANY PRICE. I HATE THE STOCK MARKET. IT'S RIGGED.


You'd have to make a case for today's trading looking like a blow off bottom/exhaustion gap with the mug punters who got in at the top/on the way down finally giving up in disgust.

Perhaps today's bottom pickers may have finally got it right.


----------



## chris1983 (9 November 2006)

Jee Michael..do you even buy shares?

I try to find positive comparisons with my stocks..I think I highlighted one?

It has been oversold?  Any other opinions?


----------



## tech/a (9 November 2006)

Snakey said:
			
		

> yes ...what would you have done this morning if you were holding ????




I can tell you now he wouldnt have been holding. Nor would many of us.

However Chris may have the last laugh in a few years but without production its just valued by speculation.
Trading species based on price only can be fun and profitable.
No report reading, no interpretation, no care for ramping, if its going up then Ride it if its shows weakness sell it--then *LEAVE IT ALONE.*


----------



## stiger (9 November 2006)

aww shucks you guys may become buddies.had plenty sold 87 and 1.14.watched with bemusement on the last few days antics still holding some and they will rise again .[special tks to tech for good advice]dyor cheers.Patience.


----------



## giss (9 November 2006)

Jumped in today at 54 cents. I think its taken a solid beating and will start upward again.


----------



## MichaelD (9 November 2006)

chris1983 said:
			
		

> Jee Michael..do you even buy shares?



I certainly do. I trade a long term trend following portfolio and I trade a short term End Of Day system.

I have stated previously in this thread that I have traded GDN profitably through its recent price action by following my short term trading plan.

GDN is a fascinating study into the gulf between fundamental traders ("it's a good company with in all likelihood a producing well") and technical traders ("price goes up - buy. price goes down - sell").

The disconnect between reality and market price has been particularly strong and interesting with this stock. Hence, any announcement during the manic greed phase shot the price of the stock into the stratosphere as everyone bought the dream. The content of the announcement didn't matter, just so long as there was an announcement. Those that bought early rubbed their hands in glee and egged others onto the one way elevator.

Then, suddenly, in came doubt. Then fear. Out went the pros with huge wins to move onto the next pipe dream (DYL by the looks of it is where the money moved to). Fundies waited for announcements to make things OK again. They were much the same as the prior announcements and yet the price smashed down instead of up. The "it's a good company crowd" kept buying on the way down since it would surely reverse tomorrow...but it didn't.

Now there is despair amongst those that have lost a lot of money on this stock...and suddenly there seems to be strong buying support just as those that despair give up and sell in disgust...and once again the pros have unemotionally and systematically taken money from the amateurs.

Read this entire thread again with the benefit of hindsight - it's all laid out there - the greed, then the doubt, then the abject fear.

You know, if I had a pool of money allocated to "entertainment/gamble" trades, I'd be in GDN again tomorrow on the basis of today's price/volume action - it sure looks like an impressively oversold situation to me. Since I don't have such a pool nor a system based around such an entry signal, I'll simply content myself with waiting until if/when GDN signals a buy again to my system.

(That's assuming that I'll have funds available at the time the signal presents itself - uranium seems to be where the best party is at the moment...although that party is starting to look shaky, too).


----------



## chris1983 (10 November 2006)

tech/a said:
			
		

> I can tell you now he wouldnt have been holding. Nor would many of us.
> 
> However Chris may have the last laugh in a few years but without production its just valued by speculation.
> Trading species based on price only can be fun and profitable.
> No report reading, no interpretation, no care for ramping, if its going up then Ride it if its shows weakness sell it--then *LEAVE IT ALONE.*




I'll stay more optimistic than that.  Given me 6 months max.


----------



## tech/a (10 November 2006)

Pretty well spot on Michael.


----------



## rosesny_1 (10 November 2006)

bigdog said:
			
		

> Good news for US forum posted today by rosesny
> 
> http://www1.investorvillage.com/smbd.asp?mb=969&mn=1041&pt=msg&mid=785825
> 
> ...




These DPTR wells are very different from GDN well. They are 8000+ feet wells. The Paradox is a huge area. I am still in GDN. See my post from Utah geology above regarding leadville porosity.


----------



## mahmoodf (10 November 2006)

I think it's fair to say everyone has their trading style and as long as your style is successful and making you $$$, good on ya!  

My style is more like Chris's where I hold a stock if I believe in it's fundamentals and only sell if the fundamentals of the company have changed.

For me personally, nothing with GDN has changed except a few peolpe hit panic buttons because they could not interpret the report correctly.

I hold GDN shares and will try and top up with some more this morning as these are now in bargain territory IMHO.


----------



## tech/a (10 November 2006)

Mahmood.

Are you averaging down? IE having bought at a higher price than now buying a "bargain".

Chris will you buy more?




> hit panic buttons because they could not interpret the report correctly.




Wow Everyone who sold price down in a panic were so right when they bought it and now so wrong when they sell it!!

This appears to be an arguement to fit a belief.

I dont believe those who "trade" like yourself and Chris ( the majority on the fundamental forum) actually trade.

*The only strategy I see is buy on pending news and hold pending more news.*


----------



## constable (10 November 2006)

mahmoodf said:
			
		

> I think it's fair to say everyone has their trading style and as long as your style is successful and making you $$$, good on ya!
> 
> My style is more like Chris's where I hold a stock if I believe in it's fundamentals and only sell if the fundamentals of the company have changed.
> 
> ...




Im not sure mahmood how you can say nothing with gdn has changed when the last week or so they have lost 60 % of their share price . At what stage does this fact affect the weight of the fundamental analysis ?
 Wouldnt it have been prudent to bail at say 30% down and then pick the share back at a cheaper price. If youd had a stop loss earlier on im sure youd be in a better position today to "to top up". Anyrate just curious on your thoughts i know its easier with hindsight .


----------



## SevenFX (10 November 2006)

Tech/A & MichaelD,

Just reading your gdn posts and you guys are so right on the money, with physchology and seeing right through Arguments.

Thanks for bringing clear propestive to thier disturbing arguments, and saving new members from fundermentalists/Investors & professional rampers suggesting holding durning AVALANCHES.   

GDN is prob the worst avalanche I've seen since the begining of this year.

EDITED:
p.s I don't have a prob with fundermentalists holding, but I am concerned when (stolen from Tech/A) they hold and when the FOLD....as some could still be holding when their 500-600% profits turn to 5-10% profits or worse still LOSSES of initial capital.

I sonner incurr additional broker fees in selling when trend has changed, than huge profit sacrifices... just to hold.

Thanks
SevenFX


----------



## chris1983 (10 November 2006)

Tek I know your referring to me as a holder.  Tech and Michael did get it right..but I'm sure with many of my shares they wouldnt be holding them like me with the ups and downs that have been faced.

BMN went to 1.25..before the share split..got smashed down back into the 70's.  I held.  The profits I am sitting on now are very healthy.  I got a 3 for 1 share split..now the shares are 1.40+ again. Tech and Michael looking at the way they trade wouldnt have held.  I have been in many shares that have rebounded much harder to their falls.  SMO i got in at 12.5..got smashed into the low 7's..look at them now..I highly doubt Tech and Michael would of held during that stage.  One share that I stuffed up on when it got belted was FXR.  It got smashed when everyone was bailing and I got out at 66...I had a panic and sold.  It is now 1.80+

So hey I'm glad you got out.  I'm still in and still believe once the well is proven commercial it will come good.


----------



## constable (10 November 2006)

took the overnight money and ran myself but gee look at it go now!


----------



## Snakey (10 November 2006)

And took off 90000 at average 61.5 thank you 
left 11000 on for leadville


----------



## constable (10 November 2006)

Snakey said:
			
		

> And took off 90000 at average 61.5 thank you
> left 11000 on for leadville



 wow super effort that big weekend coming right up!


----------



## Snakey (10 November 2006)

constable said:
			
		

> wow super effort that big weekend coming right up!




Yes constable and that weekend starts right now    
last trade on these was 93300 on at 38.5 of at 1.15
thank you very much golden state now its time to move on....


----------



## toc_bat (10 November 2006)

Snakey said:
			
		

> last trade on these was 93300 on at 38.5 of at 1.15
> ....




snakey im baffled by this ... what do you mean?

thx


----------



## Snakey (10 November 2006)

toc_bat said:
			
		

> snakey im baffled by this ... what do you mean?
> 
> thx





Yes constable and that weekend starts right now    
last trade on these was..  bought 93300 at 38.5c and sold at $1.15
thank you very much golden state now its time to move on....
(held 10000 from 38.5 to current time)(now 11000 in holdings)
monday could be big if they hit leadville over the weekend ,but I remember... risk management!!!! DOH


----------



## Beebles123 (10 November 2006)

What do you think the share price will be then?


----------



## mahmoodf (10 November 2006)

Hi Constable

You are correct, the SP did drop. What I meant was, has anything FUNDAMENTALLY changed for the company in terms of it's operations or outlooks? And I think the answer is no.

I always hold stocks that I have researched and believe in. I could have sold at $1.20 but I believed at the time that the stock would go north of that.

I didn't realise that people would panic so much and sell. With HINDSIGHT, maybe I should have sold and got back in. But I cannot predict the future.

I'm also not so good at picking highs and lows so I stuck by the stock. I also called the MD in Utah twice to discuss some questions I had and he answered each one of them very openly and thoughtfully.

So I will continue to hold until I see a clear reason not to. In time, I believe this stock will be worth well north of $1.50.

Tech

As for buying more, I have no money left otherwise I would. The rest of my portfolio is humming along so I felt no need to sell any other stocks to purchase more GDN. I felt like a day trade yesterday but they have burnt me in the past so I stick to what I know: buy in companies that I believe are undervalued and hold onto them until the market appreciates them a lot more.


----------



## Caliente (10 November 2006)

morning mahmood, welcome to the forums!

 I'm a fan of your investing principles, but a comment like "I could have sold at $1.20 but I believed at the time that the stock would go north of that." makes it sound to me like you are still too married to your shares, and thats the #1 way I've found so far to get burnt. 

I was to write more, but I realised that its only time and experience that guides you towards "better"  trading. 

Best of Luck, and I hope you do make your money back on GDN. I don't hold, because I'm still skeptical, but it looks like a clear turnaround atm for you and other holders so its looking rosier   .


----------



## SevenFX (10 November 2006)

chris1983 said:
			
		

> Tek I know your referring to me as a holder.
> 
> So hey I'm glad you got out.  I'm still in and still believe once the well is proven commercial it will come good.




Chris,

Just walked back in...and thought to reply...

I wasn't actually referring to you, as I actually admire the research you put in and post for all to see, which I've to date found you as a bit of a fundermental rock to learn from.

A balance of both TA & FA is always good, which is what I think you base your trades on....

Personally I can't see any benifit in holding a stock that changes trend from which I'm trading (allowing +/-) unless you getting some super special offer from company (extra shares, etc), dividends and so on.

I appreciate you want to be there when it goes back up, but if you sell somewhere near the change in top trend, and buy back somewhere near the change in bottom trend, there all that profit (30cent yesterday) can be made while we wait for the drilling results (good or bad) you've still made more money.

If it's bad while your still holding down (low of 42c yesterday) well it only goes one way from there compounding ones losses...

I hope my points are valid as I'm only new round here, but see this a safe, extra profitable, and reduced stress way to trade...

p.s If we had all T/A traders, and no fundermentalists, I think the market would be much much more volatile...

EDIT: That's the beauty of the share market, you can get back in as quick as you get out, just when the trend changes again and all else signals are ok.

Cheers
SevenFX


----------



## chris1983 (10 November 2006)

Hey Tek,

I had nothing against what you said.  All good.  I definately should of got out at 1.20 etc...but thats all in hindsight.  I thought they would keep going.  I cant do that charting stuff.  Im useless at it.  Seems to work a lot especially on the spikes because a lot of times they dont keep going.  Bit of a recovery from the slaughter early on Thursday..was way oversold.  I'm hoping Leadville is full of gas.  If not I still think they will have a commercial well.

What a day coming up on Monday.  Hopefully a good day for me.  I honestly think after comparing what they have with Lisbon its gunna go.  I'm hoping that holding throughout the shocker of a fall on Thursday will pay off.  Would of been great to trade it though..I have tried trading before and I suck at it though..So I tend to just hold..draw comparisons with other companys or tenements and wait for the profits.

If Leadville dissapoints..then bang..down she will go again..but I think it will recover because what they have should be commercial allready. Been tough to take the hits I must admit.  I'm not as experienced as some of the other guys but I am learning. My dad did tell me to sell half.  Should listen to the experienced. haha Next time I will sell my initial investment and keep the profits invested.

good luck to the holders in GDN.


----------



## SevenFX (10 November 2006)

chris1983 said:
			
		

> Hey Tek,
> 
> I cant do that charting stuff.  Im useless at it.
> 
> I have tried trading before and I suck at it though..



Chris,

I have never looked at shares b4 March of this year, other than on the news, and determined to change the direction of my life has taught myself charting   and tiny bit of fundermentals  .

Told a fib above, seeked out a really kind person, that spent time teaching me once a week charting, and progressed from there....so try to seek out someone that is willing to help you charting, or pay couple of hundred on a basic course (don't get ripped on big dollar ones), cd education, or similar to start with.

I really think this will help you HEAPS giving that your doing well already and could only do better with charting (very supprised how charting works, high % of the time), under your belt.



			
				chris1983 said:
			
		

> I'm not as experienced as some of the other guys but I am learning.




Sure, nor am I, but you are [more] experienced than others....



			
				chris1983 said:
			
		

> My dad did tell me to sell half.  Should listen to the experienced. haha Next time I will sell my initial investment and keep the profits invested.




Very wise and safe stragerty....and hindsight confirms that....my man.

But for me it's a bit like riding a motorbike on the roads today, and look out for no 1. and in the sharemarket's case it's just about profit....more rather than less.   

No attachment, no emotion....just plain profit.    : 


Hope this helps....as my fingers are getting sore...
Cheers
SevenFX


----------



## chris1983 (10 November 2006)

haha.

Naa very wise comments.

I do agree with the you guys. 90% of shares that rise to fast always have a retrace.  Even MOX which is going well..had a retrace..and was an opportunity to get back in and grab more profits.  I'll have to keep an eye on that especially for future reference.  I'm going to change my strategy on shares that rise to fast.  Especially when still in the speculation phases.


----------



## constable (10 November 2006)

Chris if you've got the money to park at gdn your on a winner !
Myself personally have got gdn over the weekend but im a skittish day trader who trys to keep one step ahead of the school of fish.
Appreciate your openess and cander on the forum good luck and may the force be with you


----------



## SevenFX (11 November 2006)

constable said:
			
		

> Myself personally have got gdn over the weekend but im a skittish day trader




Hey There Constable,

I guessing you must be more a "Trader" as opposed to a "Day Trader" given you are holding overnight & weekends..

The disadvantages IMO on holding "TRADES" overnight is the downside (gap down, as seen on thurs ) can be greater that the upside (gap up), and besides I don't sleep well, not having any control of my trade. (trading holt [cdu, sen, etc] on open)

Sure perhaps there's a big open on Monday for GDN, but it could also turn dragging your trade down....which is more risk IMO....and rather just take a slice out if there's a upside during the day monday....which is more a sure thing...



			
				constable said:
			
		

> Appreciate your openess and cander on the forum good luck and may the force be with you




Agreed....

Cheers


----------



## constable (11 November 2006)

SevenFX said:
			
		

> Hey There Constable,
> 
> I guessing you must be more a "Trader" as opposed to a "Day Trader" given you are holding overnight & weekends..
> 
> ...


----------



## tech/a (11 November 2006)

> Only holding 25ooo units.




While I know youve done OK with this trade.
Bear in mind that at $250/cent a drop from $1.20 to 60c is in effect a loss of $15,000 of a traders money at this parcel size----at one time the trader had it--now----

Those traders who are nervous holding overnight.

(1) Are possibly trading parcel sizes that are to big for their capital. Losses HURT. Where as controlled losses are part of the business of trading.

(2) Have no plan and as such feel "lost" unless the trade is profitable.

Chris I'm encouraged that some of our posts here may have you re visiting outlier moves. Can only be positive to your bank balance.


----------



## tarnor (11 November 2006)

have to admit i made a dogs breakfast trading this one.. was playing around with it over a dollar tryna make some quickies on the hype, missed a stop when i had to go to work(only got half my trading parcel out) .. then I got caught holding in hope all the way down. Very poor form on my part i thought i was past making these sort of mistakes.. junior oilers can really school you quickly(anyone remeber BAS?).  Much better off buying in a few months before a solid drilling program with some juicy targets and selling on spud... pretty easy way to make some good dollars and have some shares free carried if you like the risky stuff.


luckily managed to get most of my losses back by hitting it hard on the bounce but just holding a small casino parcel for the primary target.  Don't mind which way it goes to be honest.... if primary target isn't thier or dissapointing ill try to get some for a good price in the panic sell and grab another bounce (secondary targets have a decent chance of being commercial). If its good ill hit it hard for another run. 

looking forward to monday should be fun..


----------



## trader (11 November 2006)

tarnor said:
			
		

> have to admit i made a dogs breakfast trading this one.. was playing around with it over a dollar tryna make some quickies on the hype, missed a stop when i had to go to work(only got half my trading parcel out) .. then I got caught holding in hope all the way down. Very poor form on my part i thought i was past making these sort of mistakes.. junior oilers can really school you quickly(anyone remeber BAS?).  Much better off buying in a few months before a solid drilling program with some juicy targets and selling on spud... pretty easy way to make some good dollars and have some shares free carried if you like the risky stuff.
> 
> 
> luckily managed to get most of my losses back by hitting it hard on the bounce but just holding a small casino parcel for the primary target.  Don't mind which way it goes to be honest.... if primary target isn't thier or dissapointing ill try to get some for a good price in the panic sell and grab another bounce (secondary targets have a decent chance of being commercial). If its good ill hit it hard for another run.
> ...



Yep I remember BAS bought at 76 cents watched it opened @ 34 cents monday morning then brought some more, watched it go down to 25 cents before selling the lot. Hope this time GDN don't open @ 30 cents (in @ 55cents)


----------



## SevenFX (13 November 2006)

Why do GDN release NEWS again today 2mins b4 markets opens, which they did on thursdays b4 sp took a dive...?????

http://www.asx.com.au/asxpdf/20061113/pdf/3zjqqstb0kzb4.pdf


----------



## constable (13 November 2006)

Can anyone tell me the jist of the ann please!


----------



## chris1983 (13 November 2006)

ABN 39 063 074 635
Level 1 181 Roberts Road Subiaco Western Australia
Postal: PO Box 616 West Perth 6872 Australia Ph: +61 8 9486 4633 Fax: +61 8 9486 4634
Email: gsr@goldenstate.com.au
Drilling Status Report – 13 November 2006
• Paradox Basin #1 well is at 14,550 feet (4,435 m) in the Pinkerton Trail Formation
• Drilling on to the primary objective Leadville Limestone

Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah. Paradox Basin #1 is at 14,550 feet (4,435 m), in the Pinkerton Trail formation (see table and graphic below), a cyclic sequence of dolomite, sandstone and shale. Following the last bit change, the well has drilled on at a rate of 190 feet/day (58 m/day). Significance of Gas Shows and Wireline Log Survey To help clarify the significance of gas shows and log indications reported in the Drilling Status Report of 9 November 2006, we refer shareholders to the Company’s ASX announcement of 23 December 2005, the Notice of Shareholders Meeting and the supporting materials, including the Independent Geological Report. These include maps and geological information on the Paradox Formation. The well has remained close to the original forecast in regard to the anticipated geology except that the gross sand interval of 860 feet, indicated by the wireline log, is much larger than originally forecast and indicates significant upside for hydrocarbons in the Paradox Formation.

The current mud log and wireline log gas indications in the well are significant as the well penetrated the upper Paradox Formation (the secondary objective) well down-dip based on the current mapping. The potential area at the top of the Paradox Formation up-dip to the well is large.The total thickness of sand is significantly greater than originally anticipated. Current log indications are that there is 69 feet of sandstone that is likely to be gas saturated. Additional hydrocarbon thickness may be expected up-dip.
The porosity of 5-10% may be considered low, but in these rocks in the Paradox Basin this level of porosity is commonly known to have commercial production rates, particularly following fracture stimulation. The largest gas field in the Paradox Basin, the nearby active Lisbon Field, has an average reservoir porosity of 5 ½%, yet has produced over 1TCF gas equivalent over 45 years.

The formations are indicated to have natural fractures, the impact of which current logs have not been able to assess. Additional formation image logs, sidewall cores and flow tests will be required. Golden State remains very confident of the exploration and production potential of the area and is expecting to penetrate the main objective section below the Pinkerton Trail Formation shortly.


PARADOX BASIN #1 WELL TARGETS
Formation or Zone Geological Age Lithology Depth (metres) Depth (feet)
Result
Upper Ismay Pennsylvanian Limestone 2,987 9,800 * Gas shows
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,126 10,256 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,355 11,016 * Gas show
Alkali Gulch Pennsylvanian Dolomite 3,705 12,154 * Major gas interval
Cane Creek Pennsylvanian Dolomite 3,979 13,053 * Gas shows
Pinkerton Trail Fm Pennsylvanian Dolomite 4,392 14,410
Leadville Fm Mississippian Limestone 4,465 14,650
McCracken Devonian Sandstone 4,663 15,300
Lynch Dolomite Cambrian Dolomite 4,740 15,550
BOLD: Primary Targets
ITALICS: Minor Targets
* Potential Production
Initial 100% Ownership and Operator
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-
owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner
Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the
drilling of two wells by Golden State.
3
Richard Sciano
Executive Director
13 November 2006
Executive Director: Richard Sciano 08 9381 9522
Exploration Director: John Hasleby 0011 1 435 220 0720


----------



## chris1983 (13 November 2006)

The announcement is a lote more clear this time..Cleared up the porosity debate etc etc.


----------



## constable (13 November 2006)

Thanks chris appreciate that. I bet the share price is about 70 now ?


----------



## tarnor (13 November 2006)

looks great i brought **** loads at 64 on open.. should run hard.. looks like easy money today


----------



## chris1983 (13 November 2006)

yeah 74 atm.  Going nicely..I'm just going to hold untill they hit Leadville.  Should of got more when in the 40's...easy to say that after they come back up though.


----------



## chris1983 (13 November 2006)

welldone tarnor.  I have no spare cash.  Im a little fish trying to build a sizeable portfolio.  So hopefully Leadville is big


----------



## constable (13 November 2006)

you want to hear something funny ? i placed an open sell order for when it opened ,over the phone because i couldnt get onto my broking ac and couldnt read ann couldnt see volumes etc etc  as i speak im on hold to westpac to try and buy them back!


----------



## chris1983 (13 November 2006)

ohh..hmm so you got rid of them at 64?  You made a profit though right?  I'm just going to ride these out untill they hit leadville..see what happens..then make a decision from there


----------



## constable (13 November 2006)

half the profit i could have made! ann. give any indication as to when they will hit leadville and r u up yet?


----------



## chris1983 (13 November 2006)

They give a drilling status report every 3 days...they are only like 1 day away from leadville I think..so I dont know if they will release a report earlier once they hit it.

My avg is at 90 cents so I'm still out.  Looking better than when they hit 42 though :|. I took at tax loss at 65 and got original holding back at 65. Im still risking it by staying in.  If they go to 90 thats break even for me.  Im waiting for Leadville and might just leave them there because they believe the well to be commercial.


----------



## constable (13 November 2006)

now things are looking more solid i'd be surprised if we didnt get to 80 today and onwards and upwards


----------



## SevenFX (13 November 2006)

constable said:
			
		

> now things are looking more solid i'd be surprised if we didnt get to 80 today and onwards and upwards




I'm interested, what are you basing that on Constable...????


----------



## constable (13 November 2006)

SevenFX said:
			
		

> I'm interested, what are you basing that on Constable...????



 The positive bits in the ann that further suggest the commercial capabilities of this venture. By far and away i would have thought this has been a brighter ann than previous ones!


----------



## SevenFX (13 November 2006)

You may well be right, as it seem to of had a strong retrace, which is good if it's gonna make that .76-.80c for the day....


----------



## constable (13 November 2006)

Anyone out there give the 'westpac sacrificial lambs' an update please ?


----------



## tarnor (13 November 2006)

sure.. has come back to the intraday high at 76c. stalled on 75/75.5 atm

update: broken 76c volumje coming in now.. looking good


----------



## constable (13 November 2006)

Thanks for that


----------



## SevenFX (13 November 2006)

Constable it may pay for you to have a Commsec Protader Platium LIVE account, which can be kept by just trading 1 option a qtr or 45 shares a qtr as a backup to westpac.

If you meet the above creteria, it's free live data, and brokerage is cheaper than Westpac(19.95 < 10K)


----------



## constable (13 November 2006)

SevenFX said:
			
		

> Constable it may pay for you to have a Commsec Protader Platium LIVE account, which can be kept by just trading 1 option a qtr or 45 shares a qtr as a backup to westpac.
> 
> If you meet the above creteria, it's free live data, and brokerage is cheaper than Westpac(19.95 < 10K)



 If this ever happens again i'll be switching ...period. Will check out protraders rates tho sounds compeditive thanks. Westpac is , dare i say it ,back on line.


----------



## Rustaf (13 November 2006)

G'day all,

The word on H/C is GDN expecting to reach Leadville target 8-9pm tonight!!!!!!

Cheers.


----------



## SevenFX (13 November 2006)

constable said:
			
		

> If this ever happens again i'll be switching ...period. Will check out protraders rates tho sounds compeditive thanks. Westpac is , dare i say it ,back on line.




Oh, forgot to tell you Protrader has it's fair share of probs, but when managed it works and does what one needs... Cant beat live data for free if criteria is meet, not to mention cheapest brokerage. 

IMO I would keep both accounts, as doesn't cost anything to keep open, should either fail.


----------



## SevenFX (13 November 2006)

Rustaf said:
			
		

> G'day all,
> 
> The word on H/C is GDN expecting to reach Leadville target 8-9pm tonight!!!!!!
> 
> Cheers.




Sounds good, what is H/C...????


----------



## Bullion (13 November 2006)

HotCopper forums...


----------



## SevenFX (13 November 2006)

Bullion said:
			
		

> HotCopper forums...




Thanks Bullion,

I think I read somewhere h/c organised traders   played a big part in ramping cdu up...??? certainly casts doubt based on what I read in post somewhere here...??? (perhaps even backed by abc investergation)

Though I'm sure were all want to hear some good news asap.


----------



## chris1983 (13 November 2006)

I'm glad I held though.    Maybe this one will be very profitable after all.  Still very aware of the risks though.


----------



## constable (13 November 2006)

seems a shortage of sellers now


----------



## SevenFX (13 November 2006)

GDN chatter gone bit quiet since arvo...???

Anyone going to the bank..


----------



## tarnor (13 November 2006)

i took profits at 80c... back in on close with a small parcel... free carried finally.. 

lot of eyes will be on this one tommorow the report today was very bullish, will rocket on any further decent gas shows.


----------



## chris1983 (13 November 2006)

still holding..cant really do anything.  All the messages are still positive IMO.  I'll continue to hold. DT's got out towards the end but its still very positive and I think their latest message cleared up a lot of questions.


----------



## constable (13 November 2006)

wow what a day...enjoying  a bourbon... hope they can break thru to their target tonight. picked up 15k at the close just in case. 2 wins 2 losses on this puppy today , thanks to westpac flying blind for most of it. 1.7k up, could have been dbl that but will have to put that in the shouldagonnawaza a/c!


----------



## SevenFX (13 November 2006)

I took a bit of a slice somewhere in the middle, and it was so nice, I went back for more.... 

Guess the news will come out at 9.58am again...strange as I can't see how this would help them


----------



## tarnor (13 November 2006)

> Yep I remember BAS bought at 76 cents watched it opened @ 34 cents monday morning then brought some more, watched it go down to 25 cents before selling the lot. Hope this time GDN don't open @ 30 cents (in @ 55cents)




Yeah thats about what happened to me, oil and gas shows but wasn't even close to being economic.. was a tough lesson almost learnt it  accept for caz lol



> you want to hear something funny ? i placed an open sell order for when it opened ,over the phone because i couldnt get onto my broking ac and couldnt read ann couldnt see volumes etc etc as i speak im on hold to westpac to try and buy them back!




I migth have got some of yours :/

thats infuriating I don't see why they can't have a backup server or something? i got stung with stgeorges directshares and changed asap..
Very happy with morrison securities althought i havent tryed many


----------



## SevenFX (14 November 2006)

Morning All GDN men that have held strong, or have traded this volatile stock.

No news as yet, but they do seem to leave their announcment till late in the morning.....

Their seems to be somewhat equal depth, but opening price is heading in the right direction...hey

Any thoughts for the day to share....???

EDIT: Spoke to Soon, as positive sentiment seems to be coming late.....Up 7% Pre Open.


----------



## tech/a (14 November 2006)

*Up then down.*

Buy the rumour sell the fact.
Technically this is doing as expected.
Bit of accumulation yesterday but selling off late in the day.
Id be taking what profit I could get if I was in in the 50s.

But thats me.

This is a *60 min chart * of yeseterday


----------



## giss (14 November 2006)

just sold @ 84c bought @ 54c ----> metals merry-go-round


hope to get another go soon

whats next though? 

are we going to have a correction? Should I hold off for a few days?


----------



## SevenFX (14 November 2006)

tech/a said:
			
		

> *Up then down.*
> 
> Buy the rumour sell the fact.




When you refer to up/down tech, do you mean the close yesterday was weak, hence not a good sign, as so far today shows...



			
				tech/a said:
			
		

> Buy the rumour sell the fact.




I have that plastered on to of my screen, and like the physchology, but aren't we waiting for the facts still, or should one be selling b4 facts out, which ever way it goes...????



			
				tech/a said:
			
		

> Id be taking what profit I could get if I was in in the 50s.




I did, at 80.2 only because got caught out by commsec delay, in submitting sell order which I sold at market on .84c bugger...but still happy though...

CATCH for young players: IMO submitting sells at market is always slower, than submitting sells at a defined price....generally lower than what you want or higher than what you want...hence getting filled first..

Thanks Tech/A for your presence, always welcomed for us newsters


----------



## tech/a (14 November 2006)

SevenFX said:
			
		

> When you refer to up/down tech, do you mean the close yesterday was weak, hence not a good sign, as so far today shows...




Yesterday was a so so day.didnt see a lot of accumulation and sell off at close was weak.There will be a few stuck who bought well above 80c and they are going to be the ones who keep price down as they will sell into strength.In cases like this its pretty normal to see early moring enthusiasm followed by sell offs. What happens from then on is dependant on 
(1)A dry up of sellers who want to get out--IE people start holding.
OR
(2)New buyers exceed sellers from either news or company potential---this will be seen in buy volume and isnt there YET.
(3)If news is mediocre then price will reflect market sentiment. This will be quick positive OR negative.



> I have that plastered on to of my screen, and like the physchology, but aren't we waiting for the facts still, or should one be selling b4 facts out, which ever way it goes...????




Again i would use voulme of buying as an indicator and what I'm seeing is no accumulation rather gamblers buying into the unknown and other gamblers selling into the new ones.---so far.





> I did, at 80.2 only because got caught out by commsec delay, in submitting sell order which I sold at market on .84c bugger...but still happy though...
> 
> CATCH for young players: IMO submitting sells at market is always slower, than submitting sells at a defined price....generally lower than what you want or higher than what you want...hence getting filled first..




You should always be filled with an at market order immediately.



> Thanks Tech/A for your presence, always welcomed for us newsters




When it comes off your a genius,when it doesnt pan out your a technical whacko----punters are as fickle as the markets---but thanks all the same.


----------



## SevenFX (14 November 2006)

tech/a said:
			
		

> You should always be filled with an at market order immediately.




I have traded with commsec since day one, march06 (bad time to start ltrading long hey) and let me tell you they have a very different idea of what "Immediate" means, hence getting burn't a number of times purely due to delays (secs-mins, stuck in "processing" status), which cdu hurt the most   



			
				tech/a said:
			
		

> When it comes off your a genius,when it doesnt pan out your a technical whacko----punters are as fickle as the markets---but thanks all the same.




Tech/A You will see all my posts of you, are all GOOD, [whichever] way the trade goes.


----------



## tech/a (14 November 2006)

> Tech/A You will see all my posts of you, are all GOOD, [whichever] way the trade goes.




Excellent--- would you mind having a chat to the missus!!


----------



## Kauri (14 November 2006)

tech/a said:
			
		

> Excellent--- would you mind having a chat to the missus!!




       Carefull tech... a friend of mine once had a _*chat*_ to my *first* missus... :dunno:


----------



## nizar (14 November 2006)

tech/a said:
			
		

> You should always be filled with an at market order immediately.




Agree.
I always buy market price after some not-so-pleasant experiences.
If i want to buy 40,000 shares and there is only 30k left on 33.5, then i take out 34 as well. That example was for SAU, a profitable paper trade for me last week.
If i wouldve waited and put an order at 33c, i would be fairly down in the depth and would not have got filled until after 37c was touched.


----------



## SevenFX (14 November 2006)

tech/a said:
			
		

> Excellent--- would you mind having a chat to the missus!!




Sure when she comes back from the BMW dealership, spending all that "$ EzyMoney $" you make, hollar out, and I'll do my best   



			
				tech/a said:
			
		

> *What an absolutely amazing time to be trading.*
> 
> Ive never seen so many truely incredable charts.Lately my broker has thought Im a genius---I can only trade 3/5 at a time--just cant keep track of anymore.Rate of return is criminal.
> Honestly if your not pulling $$$s from this market you never will.
> ...


----------



## tech/a (14 November 2006)

Kauri said:
			
		

> Carefull tech... a friend of mine once had a _*chat*_ to my *first* missus... :dunno:




Yeh thats how I met the present one!!

Look at it on the bright side---he had good taste,and you dont have to worry about any other "friendly" chatters! If they are going to wander then you dont want them anyway!---now his problem.

GDN seems like it will range here today.


----------



## toc_bat (14 November 2006)

tech/a a question, 



> Again i would use voulme of buying as an indicator and what I'm seeing is no accumulation rather gamblers buying into the unknown and other gamblers selling into the new ones.---so far.




how do you tell the difference between accumlation and gamblers? Are you using some fancy trading software that tells you the identity of traders or is it just your experience in reading the buy/sell stack?

thanks

j


----------



## constable (14 November 2006)

In no mans land at the minute! Anticipation is killing me...........


----------



## tech/a (14 November 2006)

toc_bat said:
			
		

> tech/a a question,
> 
> 
> 
> ...




No I just get this guy out there to find out!


----------



## constable (14 November 2006)

Woah stop your scaring people


----------



## toc_bat (14 November 2006)

hahahahaa

is that you?


----------



## SevenFX (14 November 2006)

ANYWAY commedy aside, no news is normally good news, but wern't they due to hit their targets last night this morning...with results either way...????

Chris...any thoughts


----------



## tech/a (14 November 2006)

toc_bat said:
			
		

> tech/a a question,
> 
> 
> 
> ...




No not me he is good looking.

However in answer sensibly to your question these 2 10 min charts I thnk explain it.
GDN in my veiw will drop like a stone if the so called "news" isnt seen as spectacular---and by the look of it the anticipation is only mediocre at BEST.


----------



## tarnor (14 November 2006)

looks like accumulation to me? automated parcels being purchased in a trickle? .. everyone waiting for news no doubt

will definately drop if leadville dissapoints


----------



## toc_bat (14 November 2006)

thanks tech, yes the chart says it all, let me guess the green volume bar is a buy and the red volume bar is a sell?

so who is he? nice hat tho.


----------



## tech/a (14 November 2006)

tarnor said:
			
		

> looks like accumulation to me? automated parcels being purchased in a trickle? .. everyone waiting for news no doubt
> 
> will definately drop if leadville dissapoints





Tanor.
What I see is no real volume volume I see is sell volume its RED.
On contrast see AIM chart below and what happened today!



> so who is he?




Cant tell you he is on assignment!!
The hats mine though!
Its NOT me.


----------



## tarnor (14 November 2006)

yep sure.. with you on that definately more selling pressure today with day traders dumping into opening spike (me included)

was just speculating that thier was a sneaky accumulator.. usually get into trouble over analysing those things (to easy to manipulate the market depth). Bit risky to hold now for day traders.. next move will be a gap on news me thinks..


----------



## tarnor (14 November 2006)

mmmm one last trade lol


----------



## chris1983 (14 November 2006)

lol.  your funny tarnor.  They are holding pretty strong IMO.  dt's havnt been able to do much with this one today.  Leadville is gunna be charged   Then bang! Up she'll go.  Otherwise..down she'll go.  Even if Leadville isn't charged though you wont lose if you hold.  I still think Leadville will be charged..they have hit gas all the way down...it'll continue.  Directors seem very confident from their last message..i'll wait it out.


----------



## SevenFX (14 November 2006)

I just spoken to a source, but couldn't tell much, only that more prob announcement in the morning, but still some 1000 odd of target.

Not whole lot helpful, but just thought to post.


----------



## chris1983 (14 November 2006)

They were at 14550 feet on Monday..with Leadville at 14650.

They would definately be into Leadville at this point in time unless it was deeper than expected again.  They are drilling approx 190 feet per day.  So announcement should be out on wednesday I reckon unless they strike something major and want to release an announcement tomorrow.  So I think your source stating 1000 off the target may be wrong?


----------



## SevenFX (14 November 2006)

chris1983 said:
			
		

> So announcement should be out on wednesday I reckon unless they strike something major and want to release an announcement tomorrow.
> 
> So I think your source stating 1000 off the target may be wrong?




Agreed tommorow is Wednesday which is when I hear prob annoucement, and suggested still 4-5 days....but hey I/they could be wrong...time will tell.


----------



## chris1983 (14 November 2006)

I lost track of what day it was haha


----------



## SevenFX (14 November 2006)

chris1983 said:
			
		

> I lost track of what day it was haha




Agreed you did, but was waiting 4 you to read my reply.  

Sitting in front of these screens will do that to anyone, even makes me forget LUNCH.   Who need weight loss councellers...  

EDIT: Hope you guys are watchin AIM. UP 38%


----------



## tarnor (14 November 2006)

woah top call on aim tech..


----------



## tech/a (14 November 2006)

The Duck is happy may turn into a Pig I'm so happy!!


----------



## SevenFX (15 November 2006)

GDN News 15th Nov
http://www.asx.com.au/asxpdf/20061115/pdf/3zl3p59plkjvv.pdf

Looks like a heavy selloff today...


----------



## constable (15 November 2006)

SevenFX said:
			
		

> GDN News 15th Nov
> http://www.asx.com.au/asxpdf/20061115/pdf/3zl3p59plkjvv.pdf
> 
> Looks like a heavy selloff today...



Looks like lambs to the slaughter atm ,talk about impatient people!


----------



## SevenFX (15 November 2006)

Wow rince range of 14c if you were lucky enough to buy in atb...   and holding strong 2 on good support above .72


----------



## SevenFX (15 November 2006)

Not much interests in GDN today, which I guessing most got out dropping .18c soon after open from prev nights close.... ouch.

I'm assuming it's the ones that bought high, that got out this morning...??

And the silly part is,,, the jurys still out on the results.


----------



## rosesny_1 (15 November 2006)

constable said:
			
		

> Looks like lambs to the slaughter atm ,talk about impatient people!




A thick salt cover can be an excellent trap for oil/gas.


----------



## constable (15 November 2006)

SevenFX said:
			
		

> Not much interests in GDN today, which I guessing most got out dropping .18c soon after open from prev nights close.... ouch.
> 
> I'm assuming it's the ones that bought high, that got out this morning...??
> 
> And the silly part is,,, the jurys still out on the results.



couldnt agree with u more. I thinks its amazing how an extra 3 or so days drilling can wipe 20% off the sp in a matter of minutes.....lots of ticky touchwood holders out there (although might be a few less now!) . 
my avg price is 78.5 and prepared to hold reguardless of sp atm until they hit target...
sounds good rosesny, salts my new friend


----------



## SevenFX (17 November 2006)

Wow was sellers expecting news every 2 days...guess so....as it' hits .65, and bounces back to .68.

This has worse "ups n downs" than the big dipper at Luna Park, but prob makes some just as sick.


----------



## chris1983 (17 November 2006)

I think the message was pretty positive?_

"Background gas, connection gas and trip gas are all at elevated levels. The well has been drilling on satisfactorily at an accelerated rate of 200 feet/day (61 m/day) towards the primary objective Leadville Limestone.

For the last 24 hours the rig has been running pipe to change the drilling bit.
The rig is capable of drilling to approximately 16,000’ with the current 5” drill string. If it appears the final depth will be greater than 16,000’ part of the 5” string will be replaced with 3” drill pipe."_

They continue to have gas shows the entire way through the well.  They must be through the salt cap.


----------



## Wysiwyg (17 November 2006)

Consultant cashing in some oppies ann. just released.Can`t wait for when it hits 2 bucks  or a profit from the Leadville news?Should make a tidy sum anyway. ...Maybe Nev.the ol` paluka.


----------



## tech/a (17 November 2006)

Havent visited for a while.

You guys *STILL* waiting for the *NEXT* announcement and analysing to death anything that even sniffs of a company release.

Out of interest how many stocks are you guys in---- *WAITING * for the *NEXT* announcement?

Do you ever sell a stock when the Announcement is Crap or it just doesnt eventuate or do you just bottom draw it?


----------



## Wysiwyg (17 November 2006)

tech/a said:
			
		

> Havent visited for a while.
> 
> You guys *STILL* waiting for the *NEXT* announcement and analysing to death anything that even sniffs of a company release.
> 
> ...




You guys *STILL*  waiting for the *NEXT*  moving average convergence/divergence and analysing to death anything that even sniffs of an oscillation.

Out of interest how many stocks are you guys in---- *WAITING*  for the *NEXT*  stochastic trigger?

Do you ever sell a stock when the Oscillation is Crap or it just doesn`t eventuate or do you bottom draw it?


----------



## MichaelD (18 November 2006)

Wysiwyg said:
			
		

> You guys *STILL*  waiting for the *NEXT*  moving average convergence/divergence and analysing to death anything that even sniffs of an oscillation.



Nope.







			
				Wysiwyg said:
			
		

> Out of interest how many stocks are you guys in---- *WAITING*  for the *NEXT*  stochastic trigger?



None.







			
				Wysiwyg said:
			
		

> Do you ever sell a stock when the Oscillation is Crap or it just doesn`t eventuate or do you bottom draw it?



We sell stocks when their stops are hit. We never bottom draw anything.

Note: Real traders (as opposed to technical analysts) have very little time for oscillators and other such esoterica. They are best left for people who don't know how to trade and who like drawing squiggly lines on charts to hide the parts of the chart that actually matter - PRICE and VOLUME.


----------



## chris1983 (18 November 2006)

tech/a said:
			
		

> Havent visited for a while.
> 
> You guys *STILL* waiting for the *NEXT* announcement and analysing to death anything that even sniffs of a company release.
> 
> ...




haha where has the crap message been Tech-a?  Show me.

what is crap about the following table

Upper Ismay Pennsylvanian Limestone 2,987 9,800 * Gas shows
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,126 10,256 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,358 11,016 * Gas show
Alkali Gulch Pennsylvanian Dolomite 3,705 12,154 * Major gas interval
Cane Creek Pennsylvanian Dolomite 3,979 13,053 * Gas shows
Leadville Fm Mississippian Limestone 4,663 15,300
McCracken Devonian Sandstone 4,862 15,950
Lynch Dolomite Cambrian Dolomite 4,923 16,150

They also have oil.

_"Other production opportunities already defined, including an oil-bearing interval from 9,411 feet to 9,431 feet,"_

Like I said we trade differently.  Im sitting on some nice profits because of the way I trade..I dont invest off charts.  If I lose in the end with this one so be it..I can afford too...it would be a minor dent in my portfolio..I believe the larger profits come from holding a stock.  I dont think I will lose..but hey..I could.  I think they have 50bcf allready.  which is a valuation from between $1-1.50

I havn't found anything negative with this stock yet..except for delays with drilling...the depth etc etc..not a big enough negative for myself to sell out.

Investors will jump out on monday if Leadville dissapoints..but why?  They have something commercial allready IMO. If they get sold down they are a good buy.


----------



## tech/a (18 November 2006)

Wysiwyg said:
			
		

> You guys *STILL*  waiting for the *NEXT*  moving average convergence/divergence and analysing to death anything that even sniffs of an oscillation.
> 
> Out of interest how many stocks are you guys in---- *WAITING*  for the *NEXT*  stochastic trigger?
> 
> Do you ever sell a stock when the Oscillation is Crap or it just doesn`t eventuate or do you bottom draw it?




Love posts like this.

I'm not making a personal attack on anyone. *But I am getting through * to more of you than many would think. I ve had quite a few "Fundies" who have watched some REAL TRADING both private mail and email me with common theme.

"Thank God there is something more than the next announcement to use as a trading tool"

Few can trade in either discipline Fundamental or Technical.

I'm one of those who have spent the years required to serve the apprenticeship and can trade profitably---I also trade publically with neck on the line everytime I post trades. If your going to genuinely help people no point in posting theory!!!


My track records are public knowledge here----

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=74;t=000029;p=3

https://www.aussiestockforums.com/forums/showthread.php?t=4650


And your track records are??????------

Wake up people before you have no capital---your not trading---your not even investing!!

*Chris*

Had you been proficient in Charting you would have had great profit and back in at a much lower price.As it is all your doing is riding the roller coaster.

If its valued at $1-1.50 why didnt you sell it on the first spike?

Yeh we sure do look at the market differently.
I for one trade---if you seriously think waiting and analysing announcements is trading then---- No risk management,no idea of expectancy,no position sizing methodology. But hey your young you know everything.
So did I once.


----------



## tech/a (18 November 2006)

> haha where has the crap message been Tech-a? Show me.




Wow cant wait to the the response from a bad announcement!

Why are you and most Fundies so closed to technical introduction to improve your trading? Is it just lack of understanding. (And dont tell me you dont need it!).

own should be DOWN (Miss spelling on the chart)


----------



## tech/a (18 November 2006)

tech/a said:
			
		

> Technically.
> 
> If you bought today then the stop is at 42c and the gap is likely to close in the next 2 days. I would expect trading to re bound to around 75c
> So do the risk maths from there.---then flat unless news.





Hmm how was this so?


----------



## chris1983 (18 November 2006)

lol Tech.  PMH hasnt even gone down yet...your tech analysis works..I dont deny that..but my way of trading has also worked. 

Below are my winners.

BMN/EXT/AOE

All HUGE profits.  Stocks I still hold are BMN/AOE/SMO/INL

SMO has doubled.

sold SHA when it doubled.

INL is very much in profit.

The next stock I had added to my Portfolio is ERN.  I will continue to hold this..if you research the area and what they have..they will be $2+ and there will be ups and downs..but I believe in the end they will keep going up.

Now draw yourself a chart for the stocks I still hold over the past year and see the stages when you would of sold out of AOE/BMN/SMO and INL.  Also the way you trade incurs a lot of tax..my portfolio has more than doubled..and I'm still sitting on a 3 grand tax loss so I'm pretty happy with that...I'm trading very efficiently..I am not saying your trading method doesnt work..I'm just simply stating my trading method has worked very well for me.  All I do is thorough research.  If my stocks get smashed in the early stages when I buy them I take a tax loss and get back in.  I also took a tax loss on ERN of $700..now they are well in profit and looking good to keep going.  Ive taken a tax loss on GDN also..then got back in.  Im expecting them to head back up..and keep going.  If not then ive havnt picked them right.  I researched into the area they are in and I believe its looking very good for GDN.


I can go on with the profits...but thats just bragging. I have had very few losses.  Only major loss was FXR.  You would of sold on the dip when it got smashed...probably would of seen the signals and got out?  Once again I should of held and stuck with fundamentals.  Like I said..I still like GDN..I think they will come good..could be wrong.  If thats the case..It wont hurt me much.


----------



## chris1983 (18 November 2006)

My strategy is pretty simple.  I kind of divide what I buy into..wow thats worth a go..or..thats definately going to be good in 6 months time.  BMN came under the "wow thats definately worth a go" when they were 40 cents before their share split.  SMO/AOE/INL all came under..."I believe these will perform and go up in a years time and will continue to go up".  BMN have matured from "worth a go" to "I'm gunna hold this baby"

GDN came under "wow thats definately worth a go".  Im hoping they mature also to a "I'm gunna hold this baby"

Another stock im going to buy into is AGM...this is a "hold" stock IMO.  I had 10,000 and sold..but im going to get back in with 10,000..girlfriend is giving me money .  I believe they will be 70 cents in 6 months time.


----------



## tech/a (18 November 2006)

Chris.

Dont get me wrong ( I know you do understand), I'm not stupid enough (Some would disagree) to believe that there is only one way to make a profit in trading and its that which I have adopted.

What I have seen in the Majority of cases while visiting this Fundamental Individual stock discussion forum is many who have no idea other than waiting for announcements.

I have seen many who have lost almost their entire nett worth attempting to make $$s on tips and announcements. Over the years many have contacted me.

What im trying to get across and succeeding to some degree is that many of these people COULD be profitable with some very basic knowledge of HOW to trade. Coupled with a basic knowledge of WHAT makes profit and WHY and a struggling trader CAN turn into a profitable one.

Seriously I'm sure you can see and have seen it all the time here.
The only reason I post my trades is to offer some actual realtime examples so that others can see that it can be done. I hate theory---its not worth the paper its written on!!!.

Finally I used to be firmly in Stevo's camp---If I cant test it and prove profitability I dont trade it!! For the majority of traders I would strongly advise they join the camp. Few can and have explored the discretionary UNPROVEN methodologies successfully.
However this---the most difficult to master yet most profitable---is where newbies start and often fail spectacularly.

I would love to find a snippet that would help in my own profitability and (from here---this Fundamental forum) I,m yet to find one.
Every now and again someone will post a gem.Over the years I have found many. What I have found is a prolific number of traders struggling---and wont even admit it to themselves.


----------



## rosesny_1 (19 November 2006)

I would love to find a snippet that would help in my own profitability and (from here---this Fundamental forum) I,m yet to find one.
Every now and again someone will post a gem.Over the years I have found many. What I have found is a prolific number of traders struggling---and wont even admit it to themselves.[/QUOTE]

A sage snippet from Warren Buffet: "Invest in what you know." 

Trading, as done by so many today, is a relatively new thing dependent upon the computer, discount brokerages etc. As such it has no long-term track record. Warren Buffet, the second richest man in the US after Bill Gates, made all his money investing in stocks as a fundamentalist. Trading may in the long run be profitable for a percentage of careful traders but many will hit the same wall that the momentum traders in the US hit in 2000 when the tech bubble burst. When you are doing the same thing that many many others are doing, watch out! In the long run it will prove to be a Ponze game or a game of musical chairs. The Market itself and the Market Makers are the ones playing the music; when the music finally stops, at the top of a trading frenzy, there will only be a few get-out quick chairs and lots of small traders unable to stack much of what's left of their trading capital on them.


----------



## nizar (19 November 2006)

chris1983 said:
			
		

> lol Tech.  PMH hasnt even gone down yet...




Fair point Chris. If i recall correctly his target was 30-32c.
But thats okay. Maybe he was wrong there (or just early). 

Thats what iv learnt in my short time trading. Do some research, but when the trade doesnt go your way, get our and protect your profits/capital. The market will let you know pretty quickly if your right or wrong. Bottom line is that you only make money when the share price goes up. Company prospects and earnings dont really mean much in terms of the big picture. Its VERY hard to predict what news will move the share price.


----------



## nizar (19 November 2006)

rosesny_1 said:
			
		

> I would love to find a snippet that would help in my own profitability and (from here---this Fundamental forum) I,m yet to find one.
> Every now and again someone will post a gem.Over the years I have found many. What I have found is a prolific number of traders struggling---and wont even admit it to themselves.
> 
> A sage snippet from Warren Buffet: "Invest in what you know."
> ...




Warren Buffet is quite a weird man. He lives as though he has very little money. Id rather have 10s of millions and live in it up (like Fiddy and those other gangstas) than have 50billion and live like him - But thats just me.

Until recently he didnt want to give his money to charity. He was interviewed and his response was along the lines that there were so many other "better" things to do with the money.

Tech this man needs that little piece of advice from you:


			
				tech/a said:
			
		

> (13) Dont die Rich!---use it.


----------



## tech/a (19 November 2006)

Buffets passion isnt obviously money.

I love it when Fundies rabbit on about trading like Buffet.
Buffets not a trader and never has been.
He's a business builder,he recognises an opportunity in a company and buys a control in it.
To attempt to emulate this entrepeneur is fanciful.


----------



## MichaelD (19 November 2006)

nizar said:
			
		

> Warren Buffet is quite a weird man. He lives as though he has very little money.



Indeed so. However, as Tech points it - Buffet's passion is NOT the money. You can say the same about a lot of the very best traders - they're not in it for the money, they're in it for the game (but the money comes as a consequence of playing the game well).


----------



## chris1983 (19 November 2006)

nizar said:
			
		

> Fair point Chris. If i recall correctly his target was 30-32c.
> But thats okay. Maybe he was wrong there (or just early).
> 
> Thats what iv learnt in my short time trading. Do some research, but when the trade doesnt go your way, get our and protect your profits/capital. The market will let you know pretty quickly if your right or wrong. Bottom line is that you only make money when the share price goes up. Company prospects and earnings dont really mean much in terms of the big picture. Its VERY hard to predict what news will move the share price.




I'm glad Tech posted on PMH to tell you the truth.  It made me read up heavily on them.  Learnt a lot about Porphyry deposits.  I still think what they have "could" be worth something..and they have other projects going for them but I decided to get out once I read further into it.

I still like GDN though.  Nothing I have read or researched so far can be seen as anything negative yet.  Im no oiler expert but they look alright in my mind.  Otherwise I would of got out when they bounced back to above 80.  Could be a bad mistake   Monday will reveal more.  Anymore delays and we can see them get hit hard on Monday.  I really dont know why though.  I think they allready have a commercial well...but initially they will get spanked..and very hardly spanked.  Could be another chance for the tech-traders to make money.  Im sure on the charting side of things a sharp fall could begin to trigger signals to buy..just as too much of a sharp rise is signs for a pullback.  Does that make any sense Tech?


----------



## tech/a (19 November 2006)

Chris 
The beauty of Trading Price action is that I dont have to know a thing about the stock.
I have no idea what GDN do or PHM. Dont care really. If I'm going to trade them it could be at a maximum of a week,often a day or two.
So its fundamentals really mean very little.

Selloffs take various shapes.

Generally the longer the selloff lasts and the further it pulls back and the further the retest is away from the initial high the longer the stock tends to drift sideways.This is *GDN.*
Trading over 87c (Sustained) would indicate indicate stronger interest---but I dont see this in the forseeable future.

*PMH*
On the other hand retested very quickly and sold of to a lesser degree.
This normally means the stock tends to stay held at higher pricing slowly being sold off as patience wanes. I still believe 30-33c is a low side target in the forseeable future. 49c would see renewed interest.

The difference with your method and mine would be that I would be out.
If it didnt show on  breakout scan then Id never trade it again.
I dont like to guess if shortterm---its either moving in my direction---Ill allow some consolidation but

*I will not allow procrastination*. 
(1) It costs a lot of money in giving back un realised profits.
(2) It costs a lot when trading without a stop.
(3) It costs a lot when you are fully capitalised in non productive stock and you see one of these fly while you watch!!


Just be careful that procrastination or Judgement doesnt turn a great trade into a bottom draw trade.It happens more often than traders admit---to themselves.


----------



## constable (19 November 2006)

tech/a said:
			
		

> Havent visited for a while.
> 
> You guys *STILL* waiting for the *NEXT* announcement and analysing to death anything that even sniffs of a company release.
> 
> ...



just read this tech/a,
                            why on earth would you contemplate selling this stock until they hit their primary target? To answer that you have to ask why did you by this stock?  It has a bucket load of potential for starters.  And the fact is we ARE waiting for the next big ann! 
     I did try to buy this as close to the completion of the well as i could but to activate your stop loss at this stage is downright stupid.
     If it goes well the current price over last few weeks is going to be merely academic.
If it tanks then we lose but i know ive gone into this prepared take that loss as much as im prepared to ride out the last week of price fluctuations.
 To me this is not an arguement about who's right between the fundies and the tech analists based on the current information available, because how could anybody possibly value an unreported resource. Gdn is a pure gamble win or lose (nobody will be afforded any different once the outcome is released)  you either have the money and the gumtion for this or you dont.
And this IS the only stock in my portfolio that i have afforded this luxury and certainly not a reflection on my day to day trading stance.


----------



## tech/a (19 November 2006)

constable said:
			
		

> just read this tech/a,
> why on earth would you contemplate selling this stock until they hit their primary target? To answer that you have to ask why did you by this stock?




If you dont answer to make as much profit from it as possible then its the wrong answer.  



> It has a bucket load of potential for starters.  And the fact is we ARE waiting for the next big ann!




That potential has been bought and sold by those who understand short term trading once already and if the potential turns into profitable price action once more they will do it again.




> I did try to buy this as close to the completion of the well as i could but to activate your stop loss at this stage is downright stupid.




By the look of it placing a stop in the first place was pretty stupid if you dont act on it.



> *If* it goes well the current price over last few weeks is going to be merely academic.
> If it tanks then we lose but i know ive gone into this prepared take that loss as much as im prepared to ride out the last week of price fluctuations.




*IF* a small word which has no place in trading fits in the same box as *COULD, SHOULD, HOPEFULLY*



> To me this is not an arguement about who's right between the fundies and the tech analists based on the current information available,




Never was to me either,simply maximisation of profit/minimisation of Risk.



> because how could anybody possibly value an unreported resource.




Pretty easily according to the chart--some think it was at one stage 300% more valuable than the time of breakout---now the market value it very differently---its being valued DAILY



> Gdn is a pure gamble win or lose (nobody will be afforded any different once the outcome is released)  you either have the money and the gumtion for this or you dont.




And herin lies the un proffesional attitude I regularly see. It doesnt have to be a gamble,its only the trader (some traders) who adopts this approach.
Gambling has no place in proffesional trading.



> And this IS the only stock in my portfolio that i have afforded this luxury and certainly not a reflection on my day to day trading stance.




Excellent make it your last!!


----------



## MichaelD (20 November 2006)

constable said:
			
		

> why on earth would you contemplate selling this stock until they hit their primary target?



Simple. The price was going down.


			
				constable said:
			
		

> To answer that you have to ask why did you by this stock?



Simple. The price and volume were going up.


			
				constable said:
			
		

> If it goes well the current price over last few weeks is going to be merely academic.



I'll take this to mean that the price will dramatically race upwards. I don't have a crystal ball - how do you KNOW the price will go up? The price went up with positive announcements a while back, and then plummeted down with positive announcements soon thereafter. Why? What's to say that the market hasn't already factored in any more positive news? What happens if they don't find anything at their target? What happens if something goes wrong? Does anybody know?


			
				constable said:
			
		

> Gdn is a pure gamble win or lose



No it isn't. Not if you're trading systematically. It's just another trade. Depending on one's system, pure price/volume trades like this basically have 4 outcomes;

1. A small loss (about 1/2 the trades taken).
2. A small profit (most of the rest).
3. A big profit (varies but about 1 in 8 - 10). Lately market conditions have been skewed towards this outcome but IMO these conditions have now rapidly evaporated for the time being.
4. A big loss (slippage, unable to exit - very rare).

The exact mix is dependent on the exit strategy with an intraday exit better than mine (i.e. Tech capitalizes on these moves significantly better than I do at the cost of having to engage the market intraday which I don't want to do at this time).

The nett result for both of us is that we make money consistently in the long run, and that's all that matters to us. Most people can't handle the frequent small losses inherent in this style of trading, but it's essential to limit the losses effectively.

GDN was an exceptional opportunity of the (3) variety. These whoppers don't come along very often. There have been a few lately, probably just enough to get a few novices hooked into short term trading thinking it's easy money before they are wiped out down the track, but I digress.

Having said all of the above, I'm not saying that holding GDN is either right or wrong. It's entirely possible that GDN will be a 10 bagger in the long run, and I for one will not begrudge all current holders their profits if that is what happens. It's also entirely possible that it will languish at its current price for a long, long time. This doesn't matter to me.

All I know is that for a brief flicker of time, GDN presented an extraordinary money making opportunity over a period of a few days and I was in a position to take advantage of it (and did). My profit's in the bank. GDN may never again present this sort of opportunity. Then again, it just might. I also know that sooner or later another stock will present much the same opportunity. Don't know where, don't know when, and that's one other key point I'll make about GDN - at the time of entry it literally was just another trade. I had no idea that it would pan out the way it did. Indeed, I almost talked myself out of it since the breakout was so strong and I'd just had three losses in a row - "it CAN'T possibly go much higher than this" was my self-talk...but I took the trade anyway and the rest is now history.

I never have any idea which of my trades will be winners or losers. That's just the way trading is. If GDN signals a buy again, I'll buy it again. If it doesn't, I'll have my money working for me elsewhere. If I do buy it again, I'll have no idea whether it will make me a profit or not this second time until the trade's done - doesn't matter so long as my overall trading comes out nett positive.


----------



## constable (20 November 2006)

The're great replies guys. Appreciate that it is principally wrong to continue holding gdn at 78.5cents, but that is why, (for me) it is a gamble to wait for the announcement! And with this mindset of staking it all on positive news there is no other strategy to the trade ! Call it a lack of discipline which im aware of but its ok to buy a box of chocolates once a year!


----------



## tech/a (20 November 2006)

Alter the mindset.

You've bought the box with the potential for chocolates or an empty box.
When you KNOW the box is full of chocolates then buy it!
Particularly if they're Scorched Almonds!!


----------



## SevenFX (20 November 2006)

In Suspension

The moment of Truth... Good Luck (for want of a better word) Guys.

EDIT: Well not quiet the * moment * more so Wednesday
http://www.asx.com.au/asxpdf/20061120/pdf/3znjf42jj1rz6.pdf


----------



## Mr Right (20 November 2006)

There is a rumor GDN has hit a massive gas! Any one to confirm.


----------



## constable (20 November 2006)

Mr Right said:
			
		

> There is a rumor GDN has hit a massive gas! Any one to confirm.



Gee whiz, and i thought this was the rumour all along!?


----------



## chris1983 (20 November 2006)

ABN 39 063 074 635
Level 1 181 Roberts Road Subiaco Western Australia
Postal: PO Box 616 West Perth 6872 Australia Ph: +61 8 9486 4633 Fax: +61 8 9486 4634
Email: gsr@goldenstate.com.au
Drilling Status Report – 20 November 2006
• Paradox Basin #1 well is at 15,397 feet (4,692 m) in Pinkerton Trail
Formation
• Significant gas interval located over 30’ in Pinkerton Trail Formation
• The drilling rig is preparing to run a wireline survey and set casing prior
to drilling on to the Leadville Limestone objective Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah.

Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pinkerton Trail formation, a cyclicsequence of limestone and black shale (see table and graphic below).
A significant gas show, with levels up to 800 to 1,000 units, was intersected in the Pinkerton Trail over a 30 foot (9m) interval from 15,292’ to 15,322’ (4,661m - 4,670m). Background gas has since increased to 800 units. The production potential of the interval will be determined upon setting production casing and conducting flow tests at the completion of drilling.

The rig is preparing to run a wireline log survey to test the interval below 13,014’, which contains this and other gas shows. Following the survey the well will be cased to protect the gas shows below 9,743’, as a precaution given the large thickness of open hole salt formation and the potential for high gas pressures in the objective Leadville Limestone.

Following setting casing, the rig will drill on at 6 ½”, allowing the well to be progressed below
16,000’.
PARADOX BASIN #1 WELL TARGETS
Formation or
Zone
Geological Age Lithology Depth
(metres)
Depth
(feet)
Result
Upper Ismay Pennsylvanian Limestone 2,987 9,800 * Gas shows
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,126 10,256 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,358 11,016 * Gas show
Alkali Gulch Pennsylvanian Dolomite 3,705 12,154 * Major gas interval
Cane Creek Pennsylvanian Dolomite 3,979 13,053 * Gas shows
Pinkerton Trail Fm Pennsylvanian Limestone 4,621 15,160 * Major gas interval
Leadville Fm Mississippian Limestone 4,709 15,450
McCracken Devonian Sandstone 4,923 16,150
Lynch Dolomite Cambrian Dolomite 4,953 16,250
BOLD: Primary Targets
ITALICS: Minor Targets
* Potential Production
2
DEFINITIONS
Connection gas: Pressured formation gas introduced into the well during short periods of mud pump shutdown, such as when connecting additional drilling pipe.

Gas units: 10,000 units = 100% gas i.e. 3,000 units = 30% gas.
Initial 100% Ownership and Operator
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-
owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner
Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the
drilling of two wells by Golden State.
Richard Sciano
Executive Director
20 November 2006
1. ITT (.23) & ITTO (.08) exposed to Copper, Uranium, Gold, Lead-Zinc, Nickel, $3.5mil cash in bank, 21mil! shares on issue, Drilling has began on there Olympic Dam Style targets in SA for Copper, Uranium & Gold, first target .50+. 
2. CYL (.27) Drilling underway 20 holes for Molybdenum.
3. VMS (.24) Exposed to Copper, uranium, Gold, Zinc etc.. 26mil shares, $5mil in bank, soon to drill on Olympic Dam Style Target in SA for copper.


----------



## tarnor (20 November 2006)

Thats a corker of an announcement, very much playtime.. preopen will have some large hitting on the buzzer 


edit: very much so this makes it looks very commercial, plus its hotting up rigth where the big pay load is.. should go baliistic today,


----------



## chris1983 (20 November 2006)

The story keeps getting better IMO.


----------



## constable (20 November 2006)

tech/a said:
			
		

> Alter the mindset.
> 
> You've bought the box with the potential for chocolates or an empty box.
> When you KNOW the box is full of chocolates then buy it!
> Particularly if they're Scorched Almonds!!



mmm yummy .... chocolates in the box now techa/a


----------



## chris1983 (20 November 2006)

I honestly believe this is going to be a huge discovery.  It looks pretty good allready!

Wait untill they get into Leadville.


----------



## tarnor (20 November 2006)

yeah i think this has got a long way to go now.. fully loaded expecting 1$+ by close


----------



## bigdog (20 November 2006)

Todays ANN stated "major gas interval" at 4,621 15,160 

Pinkerton Trail Fm Pennsylvanian Limestone 4,621 15,160 * Major gas interval

Up 19.5 cents and hoping further upwards; why not?

Sounds VG


----------



## chris1983 (20 November 2006)

yeah its looking really good now.

They have hit two major gas intervals and are continuing to hit gas the entire way down the well.  This is definately a stock to hold.


----------



## bigdog (20 November 2006)

Petroz reports *still not in Leadville*. 
http://www.shares.com.au/forum/showthread.php?t=2220&goto=newpost

Reporting major gas show in Pinkerton interval, *still not in Leadville*. Possibly a good trading opportunity here. 

They intend to run wireline tests and run a casing to protect the gas shows to date before drilling on to below 16000 ft with 61/2in bit. 

Say 48 hours to test, 48 hours to run and cement casing and 8-12 hours to run in string before they start drilling again. 

It will be six days before next progress report (other than wireline test results of course). 

Also another week of nail biting.

I fully agree with Chris


----------



## tech/a (20 November 2006)

Hmm dont leave those chocolates out in the sun too long they will melt!!

This is a one minute chart


----------



## constable (20 November 2006)

bigdog said:
			
		

> Todays ANN stated "major gas interval" at 4,621 15,160
> 
> Pinkerton Trail Fm Pennsylvanian Limestone 4,621 15,160 * Major gas interval
> 
> ...



dont hold back locking in profits tho.......


----------



## chris1983 (20 November 2006)

this is a hold.  There are a lot of daytraders in there atm.  But I'm happy enough to just let them sit there over the next 6 months with how things are developing.  If your a trader..for sure you would of been out early this morning to grab your profit.


----------



## chris1983 (20 November 2006)

There has been not one negative message.  Directors believed the well to be commercial last week.  Chuck another major Gas interval onto that.  They havnt even hit Leadville.  They are in a known area for Gas.  Gas is expensive in the US.  They are right near the pipeline.  This is a no brainer.


----------



## Kauri (20 November 2006)

constable said:
			
		

> mmm yummy .... chocolates in the box now techa/a




   Enjoy them while you can, even chocolates have a use by date..


----------



## chris1983 (20 November 2006)

Kauri said:
			
		

> Enjoy them while you can, even chocolates have a use by date..




lol Kauri.  Have you researched on GDN?  Do you know what they have found?  I find it amazing how so many people dont think a stock can go up.  It will be interesting to see where this one is at in the next few months.  Then we will know who was right and who was wrong.


----------



## nizar (20 November 2006)

chris1983 said:
			
		

> Gas is expensive in the US.




Expensive relative to what?
Look at the price decline in natural gases in the past year.


----------



## tarnor (20 November 2006)

i kinda got that wrong expected it to go a little harder.. have managed to improve my position a little when it fell thru the opening price... looking more solid now finding support for a surge towards close..


----------



## Mr Right (20 November 2006)

nizar said:
			
		

> Expensive relative to what?
> Look at the price decline in natural gases in the past year.




Yea mate what do you think the future trend is!

How you gone power China, India, Japan, Europe and USA as Chris said do your research.


----------



## Kauri (20 November 2006)

chris1983 said:
			
		

> lol Kauri. Have you researched on GDN? Do you know what they have found? I find it amazing how so many people dont think a stock can go up. It will be interesting to see where this one is at in the next few months. Then we will know who was right and who was wrong.




   No, I haven't researched GDN, no I don't know what they have found, and where it is in a few months and who is right or wrong doesn't matter. My spec allowance has been busy elsewhere lately, it only stays in so long as the stock is rising, as soon as it signs of faltering I am out and utilising the money elsewhere on something that is moving. Leaving capital in a stock for a month then having it double verus having it in a stock that makes 20% in 5 days, over a month I guess works out about the same. You like a big box of choccies, I like lots of small ones with he possibility of having a big one drop into my lap.    All the best with your endeavours, heres hoping the Easter Bunny comes early..


----------



## chris1983 (20 November 2006)

nizar said:
			
		

> Expensive relative to what?
> Look at the price decline in natural gases in the past year.




Below is a good link for natural gas prices in the US.

http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

Its pretty expensive I thought?  The US have to import a lot of their Gas dont they?  From the website it looks to me as if demand is well out stripping supply?


----------



## chris1983 (20 November 2006)

Hey Kauri.

Nothing wrong with your technique.  You must be a well rounded trader like Tech-a.  I cant do what you guys do.  I find it very hard.  Its harder than researching a stock..then picking it and sticking with it.  Thats just me though..

There are a lot of traders in GDN atm and they are playing it hard   Good on them if they are making a buck here and there.  I'm going to hold because I believe they will go further.  Always risk involved but I think the risk is getting smaller and smaller.


----------



## constable (20 November 2006)

well i dumped at 82.5 and bought back in at 77 last trade b4 the open didnt get it all . I think the news was good but lot of people had been holding a loss like myself and keen to unload. Should steady tommorow and start consolidating with the news and confidence levels improving.


----------



## chris1983 (20 November 2006)

Good idea to get back In constable.  

_"Following the survey the well will be cased to protect the gas shows below 9,743’, as a precaution given the large thickness of open hole salt formation and the potential for high gas pressures in the objective Leadville Limestone."_

From the message above they are expecting something very big in Leadville.


----------



## SevenFX (20 November 2006)

Ahhhh You guys have all the fun, got called out on real job, and missed all the fun.... bugger   

And I thought Wednesday....NOT.   

Hope you all made some money, even if I didn't..


----------



## MichaelD (20 November 2006)

constable said:
			
		

> I think the news was good but lot of people had been holding a loss like myself and keen to unload.



This is certainly consistent with today's chart pattern.

How I interpret today's trading psychologically;

Gamblers punting on what the announcement would bring piled in during the trading halt, hence a gap up, but then sellers wanting to get out at breakeven quickly took out all the new buyers and pushed the price back down.

I'd suggest there is still a massive backlog of buyers from the top of the frenzy still sweating it out, hoping for a breakeven exit. They need to be mopped up before the price can advance again.

i.e. the sellers are still in control of this stock.


----------



## trader (20 November 2006)

I don't know if this is even close to right, but the figures that they are quoting are amazing. 3 billion mcf of gas, 1 mcf = approx 1 MMBTU which sells for $7.50 US.
3 billion x $7.50 = $22.5 billion. even if you lose half in production cost it is
still a profit of over 10 billion and they have only 150 million shares.
Which would equal about $10.00 a share in AUS money.


----------



## nizar (21 November 2006)

chris1983 said:
			
		

> I cant do what you guys do.  I find it very hard.  Its harder than researching a stock..then picking it and sticking with it.  Thats just me though..





Chris
Every1 has their own style, and you have to stick to what works for you.

But have a think about this.

Does researching a company give it a better chance of going up when it is the market which will ultimately deduce its value?

WHen i asked the same question to a friend regarding fundamental research, he answered that he does it so that he can invest in something "solid" and that he can "sleep better at night". Unfortunately these things have to do with his own psychology and have NOTHING to do with his profitability.


----------



## rosesny_1 (21 November 2006)

trader said:
			
		

> I don't know if this is even close to right, but the figures that they are quoting are amazing. 3 billion mcf of gas, 1 mcf = approx 1 MMBTU which sells for $7.50 US.
> 3 billion x $7.50 = $22.5 billion. even if you lose half in production cost it is
> still a profit of over 10 billion and they have only 150 million shares.
> Which would equal about $10.00 a share in AUS money.




I think 7.50 per mcf is the about the current hub price. I would guess-timate that the wellhead price, which GDN will get for gas, is now around $5.50US per mcf in the Rockies.


----------



## SevenFX (21 November 2006)

MichaelD said:
			
		

> How I interpret today's trading psychologically;
> 
> Gamblers punting on what the announcement would bring piled in during the trading halt, hence a gap up, but then sellers wanting to get out at breakeven quickly took out all the new buyers and pushed the price back down.
> 
> ...




Hi MD.

Apart from your thoughts above, which always seem spot on (IMO), what weighting do you put on the XJO down 80pts along with the XSO, as most of my screen was RED.

*IF* the mining, small caps & all ords were bullish, I think the outcome would have been completely different, with buyers climbing over each other to get a slice of the pie.

This to me seems to have had a compounding factor, hence the much lower close.

Cheers
SevenFX


----------



## Mr Right (21 November 2006)

trader said:
			
		

> I don't know if this is even close to right, but the figures that they are quoting are amazing. 3 billion mcf of gas, 1 mcf = approx 1 MMBTU which sells for $7.50 US.
> 3 billion x $7.50 = $22.5 billion. even if you lose half in production cost it is
> still a profit of over 10 billion and they have only 150 million shares.
> Which would equal about $10.00 a share in AUS money.




10 US billion divided by 150 million shares = $100 AU dollar per share


----------



## nizar (21 November 2006)

Mr Right said:
			
		

> 10 US billion divided by 150 million shares = $100 AU dollar per share




I wonder what are the chances of GDN being the first australian company to have a $100 share price as compared to, say, RIO or MBL ?


----------



## Mr Right (21 November 2006)

nizar said:
			
		

> I wonder what are the chances of GDN being the first australian company to have a $100 share price as compared to, say, RIO or MBL ?




I am happy with $5 per share


----------



## chris1983 (21 November 2006)

I would say 3 bucks in a years time is very possible.  That would be a good profit.  Thats about the time period im looking to be holding for unless I see something go majorly wrong with their well..then I will assess into the future if I should hold longer


----------



## Mr Right (21 November 2006)

chris1983 said:
			
		

> I would say 3 bucks in a years time is very possible.  That would be a good profit.  Thats about the time period im looking to be holding for unless I see something go majorly wrong with their well..then I will assess into the future if I should hold longer




Depends what they hit. I know for fact that the gas is good quality not much capital cost. Also close to a pipeline should be 3-4 months from production. I think anything above 1bmcf will get this share above $5 in very short period of time.


----------



## chris1983 (21 November 2006)

hmm true.

I was just thinking they would have to drill more wells..etc etc.  Going to cost them money.  Once they get this well up and confirmed..the potential for them to be huge is there.  It will mean they have great grounds.  Thats allready confirmed in my mind.  Other investors want it all up and running 100% confirmed before they put their money into the stock though.  They look very healthy though..and i think its just a matter of time.


----------



## chris1983 (21 November 2006)

nizar said:
			
		

> Chris
> Every1 has their own style, and you have to stick to what works for you.
> 
> But have a think about this.
> ...




Hmm yeah.  I know what your getting at.  Maybe he invests in safer stocks though?  I go into high spec plays which I think are going to come good.  The market in the end will always place the end value on a stock.  I like to think with my research the market will see what I and others also see.

I thought you invest on fundamentals Nizar?  Or do you mix the two?  charting and fundamentals?

GDN is an assurity in my mind.  Thats only in my mind...many things can go wrong which can change my mind!  but atm I really like them but I could be wrong.  Im going with my gut though and also off the results they have announced thus far.  ERN is another high spec play that im in atm..I really like them.  the market will come around to their potential eventually.  Just like they will realise the potential GDN have within the next few weeks.


----------



## nizar (21 November 2006)

chris1983 said:
			
		

> Hmm yeah.  I know what your getting at.  Maybe he invests in safer stocks though?  I go into high spec plays which I think are going to come good.  The market in the end will always place the end value on a stock.  I like to think with my research the market will see what I and others also see.
> 
> I thought you invest on fundamentals Nizar?  Or do you mix the two?  charting and fundamentals?




Im starting to mix the two.

Oh You mean "safer" stocks like AMP and TLS?



			
				chris1983 said:
			
		

> GDN is an assurity in my mind. Thats only in my mind...many things can go wrong which can change my mind! but atm I really like them but I could be wrong.




And how about if you are wrong? What will you do?
Will you cut your losses quickly?

Or keep holding it until it turns upwards so u can be right?
After all - u did hard research - it must be right! It has to go up!

Its human tendancy to want to be right.


----------



## constable (21 November 2006)

MichaelD said:
			
		

> This is certainly consistent with today's chart pattern.
> 
> How I interpret today's trading psychologically;
> 
> ...




Im not sure there are to many sweating it out at the minute, i think that people are starting to believe in this stock and the last ann has done wonders for its credibility. Certainly shortage of stock at the end of the day and the sellers side ahead is certainly not as congested as yesterday.
   Certainly looks like a runner at the minute im tipping a stronger day ahead. Certainly had some fun at the end there still holding 33k @ 78 and 8k @ 78.5 .


----------



## chris1983 (21 November 2006)

nizar said:
			
		

> Im starting to mix the two.
> 
> Oh You mean "safer" stocks like AMP and TLS?
> 
> ...




Hey Nizar..Im confident on being right.  6 months should let us know. Just research into the area and how many successful wells have been drilled in the area. You never know though.  I also admit I could be well wrong.  I will get out of this one if something goes wrong with the well or from their announcements they change their tone to be more negative..I dont just stay in stocks that arent going to move.

You have to realise one thing..if this well is a gusher..which it looks to be heading that way..can you imagine what the area will be worth.  They wont stop with one well.


----------



## nizar (21 November 2006)

chris1983 said:
			
		

> Hey Nizar..Im confident on being right.  6 months should let us know. Just research into the area and how many successful wells have been drilled in the area. You never know though.  I also admit I could be well wrong.
> 
> You have to realise one thing..if this well is a gusher..which it looks to be heading that way..can you imagine what the area will be worth.  They wont stop with one well.




Did you know a fund manager with 30 years experience quit in the dot com boom because he was "sick of being wrong"?

I read it in fortune some time ago.



			
				chris1983 said:
			
		

> I will get out of this one if something goes wrong with the well or from their announcements they change their tone to be more negative..I dont just stay in stocks that arent going to move.




How about if the share price just goes down regardless of what happens?
eg. they find heaps of gas and commercial wells yet the share price goes down? what will u do then?
Keep holding because its "meant" to go up?

Isnt it the share price which will determine your profitability NOT whether or not the company is in production or has earnings or wateva?

Many people say: "Oh but when the company is earning money of course the share price will be in the dollars!"

Iv seen weirder things. Remember the market can stay irrational longer than you can stay solvent (officially my favourite quote).

Iv seen companies release heaps of good news yet the share price does nothing. Then iv seen share prices jump for no apparent reason. Who cares what the cause of the announcement is. Even if u find the cause, it has NO predictive ability to determine what will happen to another stock if the same news is released.


----------



## maverick11 (21 November 2006)

nizar said:
			
		

> How about if the share price just goes down regardless of what happens?
> eg. they find heaps of gas and commercial wells yet the share price goes down? what will u do then?
> Keep holding because its "meant" to go up?
> 
> ...




That's the nature of the game i guess.  I don't hold these but will be watching to see how they go.  Personally I think GDN managment are wankers.


----------



## constable (21 November 2006)

maverick11 said:
			
		

> That's the nature of the game i guess.  I don't hold these but will be watching to see how they go.  Personally I think GDN managment are wankers.



Thats a bit harsh ......but i bet these "wankers" are a little richer now this holes got some gas!


----------



## tahpot (21 November 2006)

nizar said:
			
		

> How about if the share price just goes down regardless of what happens?
> eg. they find heaps of gas and commercial wells yet the share price goes down? what will u do then?
> Keep holding because its "meant" to go up?




In the case of GDN that's exactly what I would be doing -- because they'd be paying 0.50 divvies in 18 months 

FWIW: It would take ~30 years to get 1TCF of gas out of the ground (roughly -- based on lisbon field nearby). So NPV calculations would need to be applied to value in the ground, so we won't be seeing a $100 SP. However if they did expect 3TCF -- $40-$50 may not be unreasonable. Their capital costs are almost entirely that of drilling wells according to their announcements.

Personally I'm hoping for 440BCF -- their "expected" scenario. That should see a SP around $10.


----------



## chris1983 (21 November 2006)

nizar said:
			
		

> Did you know a fund manager with 30 years experience quit in the dot com boom because he was "sick of being wrong"?
> 
> I read it in fortune some time ago.
> 
> ...




Heres a good link to read

http://www.goldenstate.com.au/eldorado_dec05.pdf

Neville M wrote the article. He has had 30 years experience also..its worth a read is all I'm saying..he isnt a fund manager..but he does have some good experience.

_"Neville M. Henry is an independent consultant and contributor
to World Energy magazine with more than 30 years of successful
exploration and production experience worldwide. He has held
positions with UNOCAL and Marathon, senior positions with Trend
Exploration (Adobe) and Anadarko and has been associated
with significant exploration discoveries in Southeast Asia,
Australia, North Africa, the North Atlantic as well as North and
South America. Mr. Henry has undertaken technical work on"_

His overall ranking of Golden States prospects was 

_"Overall Ranking:
This prospect receives a total of 11 out of a possible score of 15.
She’s a big beauty, mate."_

I would love to know how he would rate the prospect now.  To answer all your questions Nizar..yes I will continue to hold even if they go down.  I didnt sell when they went to the low 40's because I believed nothing was negative.  I still think everything is positive so I'll just hold and wait it out untill they go up.  Hopefully


----------



## tech/a (21 November 2006)

Its human nature to find anything positive about a belief you have.

When that belief needs re enforcing the more vehement the search.
I see it particulary with Friends who are/have been Cancer patients who have chosen the Natural therapy route.
Of those who have been diagnosed terminal 2 of 8 are still alive today.

Similar happens to those holding losing positions or marginally profitable.
If you werent concerned about it you wouldnt keep finding positive news to re enforce your veiw.

While there is nothing wrong with taking a long term view or position,I question doing so whilst there is no production.
There will be time enough to get on board when it is clear that buying strength is making new highs consistantly.

Most price action over the last week has been between 65 and 82c.
Anything significantly below or above this (Sustained) will show a definate sign in change of sentiment = or -.


----------



## nizar (21 November 2006)

tech/a said:
			
		

> There will be time enough to get on board when it is clear that buying strength is making new highs consistantly.





Agree wholly.
Im watching this one closely.


----------



## chris1983 (21 November 2006)

tech/a said:
			
		

> Its human nature to find anything positive about a belief you have.
> 
> When that belief needs re enforcing the more vehement the search.
> I see it particulary with Friends who are/have been Cancer patients who have chosen the Natural therapy route.
> ...




Lol I am slightly concerned because nothing is an assurity..but trust me my concerns arent that great.  The small doubts that I had have been deminishing with every message that has been released..plus my research into the surrounding areas.  I like to think I keep a cool head when it comes to trading stocks...i dont get phased much..i like backing up my viewpoint and hopefully open some other views from other investors aswell.  I was actually looking to buy more this morning but my money hasnt been transferred into my account yet..so I feel pretty confident with them.  Even if I lose money..that is the name of the game and you move on.  Fortunately for me in my young trading life there hasn't been much of that but I'm sure I'll also experience some failures.

I'll continue to find facts on all my stocks whether it be BMN/ERN/INL/SMO/AOE/ and I'll continue to write on them..it gives me something to do and keeps me interested


----------



## stiger (21 November 2006)

I believe money will be made on this co sp going upwards.imho.cheers


----------



## jtb (21 November 2006)

Last ann' smells like interface to me, I'd spew to trip that string again without good reason................................ scuse me while I go and clean my rose coloured glasses


----------



## MichaelD (22 November 2006)

SevenFX said:
			
		

> Hi MD.
> 
> Apart from your thoughts above, which always seem spot on (IMO), what weighting do you put on the XJO down 80pts along with the XSO, as most of my screen was RED.
> 
> *IF* the mining, small caps & all ords were bullish, I think the outcome would have been completely different, with buyers climbing over each other to get a slice of the pie.



It could have been - who knows? However, right at the moment all that is evident from the chart is big volumes pushing the price down whenever the price shows a bit of strength and then smaller volumes pushing the price back up.

I still read this as sellers overwhelming buyers at any time the price looks strong. If/when the sellers wanting to get out at breakeven dry up, then the short term situation may change, but then we move up to the next price level where the same scenario will play out again.


----------



## trader (22 November 2006)

jtb said:
			
		

> Last ann' smells like interface to me, I'd spew to trip that string again without good reason................................ scuse me while I go and clean my rose coloured glasses



I don't even know what you are saying.


----------



## jtb (22 November 2006)

Sorry mate, 'interface' is the transition from zones, geology can be messy at these points and that can be a sign. I wonder if a corresponding pressure spike didn't accompany some chips (that indicate they may be into target). Just personal bias but if'd just put a new bit down that hole I'd be dark on tripping out again without a good reason (ie: Excited geologists can be a hindrance). Superstitious, drillers can be and don't like mucking around on deep holes that are being good to you.   
The boys pulling these levers seem to know what their doing, so I suspect they know something that wasn't in the announcement.

As I say, these glasses - they sometimes colour my perspective


----------



## constable (22 November 2006)

jtb said:
			
		

> Sorry mate, 'interface' is the transition from zones, geology can be messy at these points and that can be a sign. I wonder if a corresponding pressure spike didn't accompany some chips (that indicate they may be into target). Just personal bias but if'd just put a new bit down that hole I'd be dark on tripping out again without a good reason (ie: Excited geologists can be a hindrance). Superstitious, drillers can be and don't like mucking around on deep holes that are being good to you.
> The boys pulling these levers seem to know what their doing, so I suspect they know something that wasn't in the announcement.
> 
> As I say, these glasses - they sometimes colour my perspective



Hi jtb, i get the jist of what your saying, but what do you mean by chips ....prefer bbq flavour myself!


----------



## jtb (22 November 2006)

constable said:
			
		

> Hi jtb, i get the jist of what your saying, but what do you mean by chips ....prefer bbq flavour myself!




G'day mate, I'm an 'original' man myself but I was alluding to small pieces of leadville limestone appearing amongst the shales (present in the rock sample coming out of the hole).


----------



## constable (23 November 2006)

certainly broke thru a barrier the last 10 minutes of trade


----------



## trader (23 November 2006)

Still going strong, maybe someone knows something or thinks they do.


----------



## tech/a (23 November 2006)

This is a 1 min chart of the last few days of trading for GDN

If it trades below 79c then there will be resistance from these buyers at that level. If it trades above then support.


----------



## trader (24 November 2006)

If we don't get any ann today it is going to be a nail biting weekend, because
by Monday they will know alot more about what they have got and it will
either be too late to get in or out.


----------



## constable (24 November 2006)

trader said:
			
		

> If we don't get any ann today it is going to be a nail biting weekend, because
> by Monday they will know alot more about what they have got and it will
> either be too late to get in or out.



funny i'm sure i was thinking the same thing last weekend!


----------



## chris1983 (24 November 2006)

This is still a traders delight..but management have made it a bit harder for traders to guess when the message will be out.  It was almost mechanical for them before...a drilling status report was released every 3 days right before trading begins.  Traders would then buy in during the previous afternoon before the message was announced the following morning or buy directly after the message was announced pushing the sp up. They would then sell out soon after.  Then 3 days later the same process would begin again.

The past couple of messages havnt followed this routine..so maybe management have realised their stock is heavily traded and are trying to get some of these traders out of their stock.  I think we should get an update on how things are going..maybe within the next hour or two?  I would like to know how its all progressing..but we may have to wait till monday.  I'm sure its good though..you have to remain optimistic


----------



## trader (24 November 2006)

tech/a said:
			
		

> This is a 1 min chart of the last few days of trading for GDN
> 
> If it trades below 79c then there will be resistance from these buyers at that level. If it trades above then support.



Been trading above for the last 2 hours, as high as 85 cents, I think we have 
support now.


----------



## constable (24 November 2006)

trader said:
			
		

> Been trading above for the last 2 hours, as high as 85 cents, I think we have
> support now.



on the move now frenzy coming right up (scuse me a little taken with the moment)


----------



## Mr Right (24 November 2006)

People close to the company are putting big


----------



## SevenFX (24 November 2006)

Mr Right said:
			
		

> People close to the company are putting big




What do you mean by this, and HOW do you know this Mr Right...???


----------



## constable (24 November 2006)

Mr Right said:
			
		

> People close to the company are putting big



...........is that putting big sells in ?


----------



## Mr Right (24 November 2006)

constable said:
			
		

> ...........is that putting big sells in ?




Buying into


----------



## constable (24 November 2006)

Mr Right said:
			
		

> Buying into



not in the last 10 minutes pal!


----------



## Mr Right (24 November 2006)

Watch the closing


----------



## chris1983 (24 November 2006)

Just a waiting game really.  I'm liking the movement over the past couple of days..i think its more investors than day traders.  I think the day traders can sense something is up though so they might start jumping into this.  When your day trading you usually dont like holding your positions over the weekend.  Is that right?  I dont think you would be buying towards the end of trading also?  So if they hold up towards the end of trade..that is some good signs


----------



## Mr Right (24 November 2006)

SevenFX said:
			
		

> What do you mean by this, and HOW do you know this Mr Right...???




I am not selling this share for less than $5. Monday is a big day!


----------



## Binjal (24 November 2006)

Mr Right said:
			
		

> I am not selling this share for less than $5. Monday is a big day!




Mr Right

Any theories on why the share price would be jumping up by so much??? I sure hope you are right though....


----------



## Mr Right (24 November 2006)

Binjal said:
			
		

> Mr Right
> 
> Any theories on why the share price would be jumping up by so much??? I sure hope you are right though....




I can only guess its the logging results probably information is leaking out to the public before the release.


----------



## doctorj (24 November 2006)

Guys,

Please be mindful of ASF's policy on ramping.  Copied posts from other forums are subject to the same standards so please check they are OK before you post them.


----------



## chris1983 (25 November 2006)

Just going back to the earlier posts..I kind of get the feeling you havn't liked this one from the start doctor J...



			
				doctorj said:
			
		

> These are all very 'big' numbers, but please don't go taking a mortgage out on your house tomorrow.  Really, they don't mean anything or in my book atleast, not near enough to warrent a 520% increase in market cap.
> 
> Sure, finding an intersection of hydrocarbons helps you on the way to commerciality.  Finding more than you hoped is even better.  But 28 feet of gross pay isn't the next Prudhoe Bay.    Running wireline logs means very little.  Many many wells are logged, then plugged and abandoned.  The data they gather can be valuable to add to their understanding of the geology.
> 
> ...




I'll quote the most important sections of the drilling reports and I would like to know how your opinion has changed on GDN now?  There has been some very significant messages released by the company since you last posted.

*Drilling Status Report – 20 November 2006*

"Significant Oil Interval
Geophysical logging of the well was completed by Schlumberger Oilfield Services over the weekend. A 20 foot (6.1m) thick interval with oil within dolomite was detected from 9,411 to 9,431 feet. Porosity was assessed at 4%."

*Drilling Status Report – 31 October 2006*

"Significant gas discovery in Alkali Gulch zone of Paradox Formation

The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units."

*Drilling Status Report – 20 November 2006*

"Significant gas interval located over 30’ in Pinkerton Trail Formation

A significant gas show, with levels up to 800 to 1,000 units, was intersected in the Pinkerton Trail over a 30 foot (9m) interval from 15,292’ to 15,322’ (4,661m - 4,670m). Background has since increased to 800 units. The production potential of the interval will be determined upon setting production casing and conducting flow tests at the completion of drilling."

I also remember questions were brought up in regards to the porosity for the well..but rosesny posted a link that was very informative.  The Porosity of the Lisbon field is in comparison with GDN's well.  Everything is looking good.



			
				rosesny_1 said:
			
		

> The average porosity of the Leadville Reservoir at Lisbon Field, Paradox Basin, Utah (largest leadville producing field in Paradox) is 5.5 percent and varies from 1 percent to 21 percent. http://geology.utah.gov/emp/leadville/pdf/doloposter1.pdf




There is a lot more Gas shows through out the entire well but I cant be bothered posting them all..theres too many.  Id just like to say that the well is shaping up nicely.  It will be very interesting once they are into Leadville..because there still hasnt been anything negative about this well yet.  Also in regards to infrastructure..they are right near a Major gas pipeline..thats handy.

So once again after you assess everything..how do you feel about them now?  The only thing left for GDN to do is confirm gas or oil in Leadville.  I'm waiting it out.  Im expecting good things..but if it isnt as good as what a lot a hoping for..they allready have a commercial well on their hands IMO.


----------



## Mr Right (27 November 2006)

Binjal said:
			
		

> Mr Right
> 
> Any theories on why the share price would be jumping up by so much??? I sure hope you are right though....




This is what i think of GDN:

They will complete the drilling in the next week or so. So far they have aprox 100 million mcf which equates to $2.50 per share after capital and operating cost and taxes. They are preparing the well for production it will take up to four mounts to get it on line. Then they will start drilling the rest of the wells with 3 mounts for each well. 

So the price of the share will be above $ 2.50 BY the completion of the well they have minimum 100 million already.  some people are predicting 400 million mcf. which will probably get it above $7.00 a share.

I am thinking of selling after the completion of the well as it will drop nothing will be happening for 3 mounts at least.


----------



## Binjal (28 November 2006)

Mr Right said:
			
		

> This is what i think of GDN:
> 
> They will complete the drilling in the next week or so. So far they have aprox 100 million mcf which equates to $2.50 per share after capital and operating cost and taxes. They are preparing the well for production it will take up to four mounts to get it on line. Then they will start drilling the rest of the wells with 3 mounts for each well.
> 
> ...




Than ks Mr Right for your insights..this will help me decide when its time to get out


----------



## constable (30 November 2006)

Mr Right said:
			
		

> I am not selling this share for less than $5. Monday is a big day!



Was this last last monday or next monday.........im confused. Anyrate will be interesting to see if there is any mini rally ( again !) leading to the close.


----------



## trader (30 November 2006)

I think AGM today 1.30 our time, could hear something then.


----------



## tech/a (30 November 2006)

You guys still buggerising around with this?

There are other stocks going nuts out there!!!


----------



## trader (30 November 2006)

Yep, brought some this morning, got to be in to win.


----------



## chris1983 (30 November 2006)

tech/a said:
			
		

> You guys still buggerising around with this?
> 
> There are other stocks going nuts out there!!!




haha what hurts waiting 2 weeks?  Thats why you have a diversified portfolio.  Stocks travelling nicely Today are AOE/INL.

Stocks travelling niceley yesterday was AGM.

Stock travelling nicely in two weeks time will be BMN/GDN


----------



## nizar (30 November 2006)

chris1983 said:
			
		

> haha what hurts waiting 2 weeks?  Thats why you have a diversified portfolio.  Stocks travelling nicely Today are AOE/INL.
> 
> Stocks travelling niceley yesterday was AGM.
> 
> Stock travelling nicely in two weeks time will be BMN/GDN




Chris,

I think tech means look at WMT, PEN, FML, MLS.


----------



## chris1983 (30 November 2006)

nizar said:
			
		

> Chris,
> 
> I think tech means look at WMT, PEN, FML, MLS.





Yeah..ive actually held two of those stocks in the past..if you guys like jumping in and out of shares thats great.  Not everyone likes doing that.  The guys who jumped into mls in the morning are allready losing.


----------



## trader (30 November 2006)

chris1983 said:
			
		

> haha what hurts waiting 2 weeks?  Thats why you have a diversified portfolio.  Stocks travelling nicely Today are AOE/INL.
> 
> Stocks travelling niceley yesterday was AGM.
> 
> Stock travelling nicely in two weeks time will be BMN/GDN




The AGM is today will start in 20 minutes, 11.30 perth time.


----------



## chris1983 (30 November 2006)

I think MLS are looking great though...could very well run to 10. Not prepared to jump on though because I don't like trading...gives me too much stress

I jumped onto the GDN train mainly because I think its a major discovery and it wont take long to bring the gas on stream..so yeah.  Just a waiting game now..like what..2 weeks max?  I can wait.


----------



## chris1983 (30 November 2006)

trader said:
			
		

> The AGM is today will start in 20 minutes, 11.30 perth time.





Im talking about allegiance mining.


----------



## Mr Right (30 November 2006)

constable said:
			
		

> Was this last last monday or next monday.........im confused. Anyrate will be interesting to see if there is any mini rally ( again !) leading to the close.




Sorry i haven't kept you updated. The logging results were meant to be released last Monday. Casing will be finished by tomorrow and drilling will be on from next week. I still repeat there are a lot of people (close to the company putting big money in this share). I got the funny feeling this thing is really big definitely don,t wont to miss this one. Big day tomorrow as drilling about to start.


----------



## white monkey (30 November 2006)

did anyone go along to the AGM? i would be interested to hear how it went.

cheers
WM


----------



## Biggle (30 November 2006)

Basically casing for another 5 to 7 days, then drilling for about another 7 days to TD, we should know what we have a few days after, so all up we'll hopefully have good results, if all goes right, about two weeks before christmas. This is what I have been told was said at the AGM.


----------



## constable (1 December 2006)

tech/a said:
			
		

> You guys still buggerising around with this?
> 
> There are other stocks going nuts out there!!!



Buggerising around with this Tech almighty, just put another k in my pocket!


----------



## tech/a (1 December 2006)

> Tech almighty




Whats this crap?


----------



## constable (1 December 2006)

tech/a said:
			
		

> Whats this crap?



hook line and sinker! Hope your having a nice day tech!


----------



## tech/a (1 December 2006)

Duly noted.

Any stock I see you trading I wont bother commenting on.
Over exhuberant noobs can learn their own lessons.
I'm certainly glad I replied to your private mail in the manner I did.

There are some very experienced people who take the time and effort to help out those who may not be in the same boat.
They dont have to do it.

If you want ASF to become a site full of theorists and would be's just continue to piss the real traders off.


----------



## nizar (1 December 2006)

tech/a said:
			
		

> Duly noted.
> 
> Any stock I see you trading I wont bother commenting on.
> Over exhuberant noobs can learn their own lessons.
> ...




Exactly.
Seriously, come on, respect guys.


----------



## constable (1 December 2006)

constable said:
			
		

> hook line and sinker! Hope your having a nice day tech!



Tech/a this was said with "tongue in cheek" and with absolutely no disrespect intended. I was simply replying to your jibe that i was still playing with gdn ( and your point was taken ) Im sorry you have chosen to take offence instead of being a little lighthearted. I know i sit at this desk all day and i dont mind having a joke with people to  break the monotony. 
However i am dissapointed that a joke reguarding the esteem i hold u in (very high by the way) has been viewed out of context by yourself. I hope you can rethink your response in light of this! Sorry!


----------



## tahpot (1 December 2006)

constable said:
			
		

> dont try and undermean what i stand!




... I think this maybe what occurred -- heh. Anyway keep up the quality posts tech/a


----------



## Mr Right (1 December 2006)

constable said:
			
		

> Buggerising around with this Tech almighty, just put another k in my pocket!




wrong move constable. You will never be able to day trade this share any more to close to the end result unless you sold of because you were not sure.


----------



## constable (1 December 2006)

Mr Right said:
			
		

> wrong move constable. You will never be able to day trade this share any more to close to the end result unless you sold of because you were not sure.



Im still holding a small parcel have been for last two weeks!


----------



## tech/a (1 December 2006)

tech/a said:
			
		

> You guys still buggerising around with this?
> 
> There are other stocks going nuts out there!!!





Dont see the word Constable in the above.
Ive answered your private mail--I'm done with this.


----------



## Petty Cash (1 December 2006)

I Invested i this 18 months ago as a long term spec, and dumped early november at $1.05 before the $1.20 peak and the slide down to $45c. 

Then day traded the stock for the next few weeks for some nice profits with all that movement.

I have now bought in again for the long term as this is gunna go !

I went to the AGM yesterday and geologist interpretation of the well so far seem to represent a feild very similar to Lisbon, and the extra unexpected gas shows in the Pinkerton were also very encouraging and will ensure even if the Leadville is dead, the well will most likely be commercial, and the next well will is located more central in the Pinkerton which has shown more potential than initially outlined in the Jan prospectus. 

I like Mr Rights calculations based on a lower side of 1TCF.

Presentation at AGM yesterday quoted figures of "most likely" 550bcf, and "upside potential" 3tcf.

Many questions were asked on the production costs and timelines, re: access / pipes / work over rig etc. all answers confirmed ease of each of these.

Timeframe will depend on the success of the casing which is being hung from the bottom of the existing casing, quite difficult at 5km deep so the 5 to 7 day period before re drilling could push out, and also the change to a smaller drill bit will slow things down. so I reckon 20 days before drilling of the leadville is complete. 

just in time for xmas.  


(no mention of wire line log results at the AGM - not sure why? any thoughts?)


----------



## Mr Right (1 December 2006)

constable said:
			
		

> Im still holding a small parcel have been for last two weeks!




good idea i think big potential in this one but you can never be 100%.


----------



## toc_bat (1 December 2006)

Mr Right said:
			
		

> This is what i think of GDN:
> 
> They will complete the drilling in the next week or so. So far they have aprox 100 million mcf which equates to $2.50 per share after capital and operating cost and taxes. They are preparing the well for production it will take up to four mounts to get it on line. Then they will start drilling the rest of the wells with 3 mounts for each well.
> 
> ...






mr right - what is the timetable for the completion of the well? you also mentioned somewhere else that people close to the company are buying stock. How do you know? are you close to the co? thanks

thanks


----------



## chris1983 (1 December 2006)

patience..rewards will come...we hope. haha 

They are actually looking quite good atm..just hanging around..people just holding waiting for the results and for drilling to recommence.


----------



## Mr Right (1 December 2006)

toc_bat said:
			
		

> mr right - what is the timetable for the completion of the well? you also mentioned somewhere else that people close to the company are buying stock. How do you know? are you close to the co? thanks
> thanks



I think petty cash timetable looks good to me before Christmas? 

No i am not close to the company but this is what i am hearing!


----------



## constable (1 December 2006)

Gdn has had a  50% retracement and a double bottom with a higher low id be interested in anyone elses analysis!


----------



## bigdog (3 December 2006)

We should get new drilling status report tomorrow (Dec 4)

Reports have been weekly on Mondays lately

I am sure that there are many looking forward to ASX ANN about 10:00 AM AEST

I hold GDN


----------



## CanOz (3 December 2006)

constable said:
			
		

> Gdn has had a  50% retracement and a double bottom with a higher low id be interested in anyone elses analysis!




Cons, again to me this looks allot like AUZ in that its forming a triangle after that stellar rise. But as Tech pointed out on AUZ, its drifting a bit.

A bit confused atm i must say.


----------



## juddy (3 December 2006)

FWIW and FYI  to holders, it got an 'avoid' recommendation in today's Sunday Times (Perth).


----------



## bigdog (3 December 2006)

Juddy,

Can you please provide link to Sunday Times Perth


----------



## juddy (3 December 2006)

Perthnow.com.au.

here is the article.


----------



## bigdog (3 December 2006)

Juddy,

Thanks for reportin what Perthnow.com.au.posted

My friends in the USA tell me that the Paradox Basin is a possible trillion cubic feet of natural gas potential. 

I await tomorrows GDN updates rather than aussie advisers predictions!

Why have they not walked away from the current casing/drilling!


----------



## juddy (3 December 2006)

no idea BD, I don't really follow GDN, but it stood out to me in the Sunday Times today and I know it is well followed her so I posted it as I believe holders may expect some selling because of it tomorrow,. One rather strange thing about it though is that I read these every week, but have rarely seen an 'avoid' notation. It is usually buy, hold or reduce.


----------



## chris1983 (4 December 2006)

What a shocking report by Gary Lebas.  Once again they start comparing the porosity of this well to Australian standards and not the standards in the US.  The Lisbon field has very similary porosity...and look at how much Gas that field has produced.  These guys don't know what they are on about.  I should give them some tips on how to pick stocks and carry out proper research.

In regards to Leadville not being existant..we'll see.  I thought the seismic could of been a bit messed up due to the large salt caps that they had to drill through?  Oh well.  Time will tell.  I dont really care what they have to say.


----------



## constable (4 December 2006)

chris1983 said:
			
		

> What a shocking report by Gary Lebas.  Once again they start comparing the porosity of this well to Australian standards and not the standards in the US.  The Lisbon field has very similary porosity...and look at how much Gas that field has produced.  These guys don't know what they are on about.  I should give them some tips on how to pick stocks and carry out proper research.
> 
> In regards to Leadville not being existant..we'll see.  I thought the seismic could of been a bit messed up due to the large salt caps that they had to drill through?  Oh well.  Time will tell.  I dont really care what they have to say.



Chris if you were in any way a conservative investor which mainstream shareholders generally are you would not be holding gdn nor would you be recommending it to your clients until it was a proven producer! This stock is still a gamble ( with much reward if it goes well ) , goes well, get it ha ha excuse my pun!


----------



## chris1983 (4 December 2006)

constable said:
			
		

> Chris if you were in away a conservative investor which mainstream shareholders generally are you would not be holding gdn nor would you be recommending it to your clients until it was a proven producer! This stock is still a gamble ( with much reward if it goes well ) , goes well, get it ha ha excuse my pun!




I knew someone would come around and say that.  For starters I wouldnt start commenting on the porosity as being bad when it has actually been labeled as good for US standards and producing fields around the well all have similar porosities.  I think thats just bad advice.


----------



## juddy (4 December 2006)

Chris,

from memory Lebas had a *buy *recommendation on *NEO *in about May last year when I was trading them.


----------



## chris1983 (4 December 2006)

Hey Juddy..yeah its all good..I dont really care about what these brokers say..

He covers his own ass in the article by using the words "may" and "suggest".  They will come out a month or two later when it's sucessful and recommend them as a buy.  Anyway lets hope INL fire up today


----------



## Mr Right (4 December 2006)

chris1983 said:
			
		

> Hey Juddy..yeah its all good..I dont really care about what these brokers say..
> 
> He covers his own ass in the article by using the words "may" and "suggest".  They will come out a month or two later when it's sucessful and recommend them as a buy.  Anyway lets hope INL fire up today




if there is a delay with the  drilling Chris,this share will get smashed i sold mine at 0.80. But i am very confident in the end result so i will go in before the drilling starts again.


----------



## chris1983 (4 December 2006)

Mr Right said:
			
		

> if there is a delay with the  drilling Chris,this share will get smashed i sold mine at 0.80. But i am very confident in the end result so i will go in before the drilling starts again.




I agree.  I just cant be bothered going in and out.  They could put a message out at any time..trading halt etc etc..and yeah I'm not willing to miss the boat.


----------



## rosesny_1 (4 December 2006)

*Re: GDN - Golden State Resources - more on porosity*

Perhaps the biggest on-land nautral gas winner in the US in the last 5 years has been Ultra Petroleum (UPL). UPL's big win comes from its tight sands production in the Pinedale Anticline in Wyoming. These tight sands plays must be frac'd to be economic but this frac'ing, in Pinedale at least, produced the most economic wells in the US natural gas business. The average porosity in the Pinedale Anticline wells is 6% to 12%. It is thus clear that higher porosity than this is not necessary in these type of frac'd plays. I see no reason to assume, from the porosity, that a well with 5% - 10% average porosity such as GDN's Paradox well, after frac'ing cannot be a successful well.

http://www.spe.org/elibinfo/eLibrary_Papers/spe/2004/04ATCE/00090467/00090467.htm


----------



## bigdog (5 December 2006)

ASX 10:09 AM  Drilling status report just posted but can not read yet
-- being processed

Trading in Company Trading Status: Pre-Open 

http://asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00675079


----------



## noobs (5 December 2006)

Director just bought 50,000 FPO @ .82c - Looking good!


----------



## toc_bat (5 December 2006)

noobs whats FPO?


----------



## noobs (5 December 2006)

fully priced ordinary shares


----------



## giant (6 December 2006)

actually it's fully PAID ordinary shares


----------



## tahpot (6 December 2006)

I just rang the company and the two directors are both heading to Utah  The receptionist laughed when I asked if all was well... and seemed upbeat.
Drilling is expected to start again on the weekend.


----------



## Mr Right (6 December 2006)

tahpot said:
			
		

> I just rang the company and the two directors are both heading to Utah  The receptionist laughed when I asked if all was well... and seemed upbeat.
> Drilling is expected to start again on the weekend.



From what i am hearing it will be Friday. I also heard that the company is ordering piping so they already know it is a production well.


----------



## tahpot (6 December 2006)

Mr Right said:
			
		

> From what i am hearing it will be Friday. I also heard that the company is ordering piping so they already know it is a production well.



Yep they mentioned announcement Friday was most likely. Where did you hear about ordering piping?? I didn't ask that.


----------



## Mr Right (6 December 2006)

tahpot said:
			
		

> Yep they mentioned announcement Friday was most likely. Where did you hear about ordering piping?? I didn't ask that.




Friend of mine has a friend working for a US piping supplier.


----------



## jtb (7 December 2006)

It was mentioned after the first major gas interval was intersected that piping was to become a priority in conjunction with the permits required to tap into the nearest gas trunkline (only 10 k's away). This was to faciliate flow testing straight into the system ($$$$$) instead of blowing the gas away by flaring (don't remember the projected flows but they were substantial).
As the present well was located to target the high side of the leadville primary it has only brushed the downthrown edges of the secondary targets. Paradox 2 will likely target the big fat centres of the shallower targets and therefore they want to be capable of drawing immediate income from flowtesting significant volumes of gas. 

and yes.............I hold GDN


----------



## tarnor (8 December 2006)

Some really large chomps going thru.. should be into primary target leadville now or very close..


last minute pump.. leak.. or big buyers with last chance to get set...?


----------



## chris1983 (8 December 2006)

Lets just see what Leadville brings...Im confident it will be charged..but we all know what way its going to go if it isnt..even if they do allready have a commercial well..People will sell out in a panic..the signs are looking good though.


----------



## toc_bat (8 December 2006)

with so much to catchup on for a newbie i must admitt i am not up on the latest ann for GDN,

any kind soul let me know when the leadville ann is expected?

bye


----------



## Biggle (8 December 2006)

General concensus seems to be Leadville by Monday, but then again Leadville was expected weeks ago, seems to be some positive feeling this time, fingers crossed.


----------



## bigdog (11 December 2006)

ASX ANN just posted

GDN 10:20 AM  Drilling Status Report 
-- can not read right now

• Paradox Basin #1 well is at 15,397 feet (4,692 m) in the Pennsylvanian Molas Formation
• The well has been cased to the bottom, and the rig is recovering pipe attached to the casing hanger prior to drilling into the Leadville Limestone objective


http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00676764


----------



## chris1983 (11 December 2006)

yep..more delays.  traders will bail..hard and fast.  2 weeks we are going to have to wait.  They are doing everything very safely.  Dont want to put the well at risk.


----------



## toc_bat (11 December 2006)

looks like it will bounce back pretty quickly, damn shouldve bought some at the low, wanted to had a gut feel but didnt trust it!


----------



## tahpot (11 December 2006)

You've still got a chance around 0.68 at the moment...


----------



## Broadside (11 December 2006)

chris1983 said:
			
		

> yep..more delays.  traders will bail..hard and fast.  2 weeks we are going to have to wait.  They are doing everything very safely.  Dont want to put the well at risk.




I think they have blundered but it doesn't change what lies below...for better or worse...hold a few but it doesn't fill me with confidence


----------



## petee (11 December 2006)

GDN so long under 30cents and then whammo over $1..now back and todays news isnt good give the at least 2weeks uncertainty...testing times this one..especially those who bought in before todays fall..goodluck all but i wouldnt be buying this thats for sure DYOR


----------



## Broadside (11 December 2006)

petee said:
			
		

> GDN so long under 30cents and then whammo over $1..now back and todays news isnt good give the at least 2weeks uncertainty...testing times this one..especially those who bought in before todays fall..goodluck all but i wouldnt be buying this thats for sure DYOR




got in round 30c and traded it so my position now is free carry...prepared for disappointment but hoping they have something substantial...but I would be feeling pretty sick if I got in at $1.20+ at the height of the hype...hope Leadville delivers, if it does even those who paid at the high will be smiling....but it is a long shot


----------



## petee (11 December 2006)

this is such a deep well..any well at that depth is sure to have its risks..anyone comment on the depth of this well and ur feelings on it


----------



## chris1983 (11 December 2006)

I beg to differ on the well being a longshot.  They have cased it and the risk has been minimised.  Casing has been completed..its getting prepared IMO.  They arent taking any risks to damage the well..if that concerns you..then sell


----------



## Broadside (11 December 2006)

chris1983 said:
			
		

> I beg to differ on the well being a longshot.  They have cased it and the risk has been minimised.  Casing has been completed..its getting prepared IMO.  They arent taking any risks to damage the well..if that concerns you..then sell




you don't think Leadville target is a long shot? that is what I was referring to, not earlier zones....as for shallower targets I reserve my judgment, but I am not selling, it is free carry and the upside is huge (but I believe odds are much against a massive find)


----------



## chris1983 (11 December 2006)

ohh..Leadville..dont know about Leadville.  I thought the gas shows they have are allready enough.  They say they are on top of the formation.  I think its there.  They havent drilled onwards yet...its just delays.


----------



## constable (11 December 2006)

sold the shares today and brought the options for a little less exposure but the same number of units. I think even tho there are some holdups at the end of the day nothing has changed except people are getting impatient.


----------



## Mr Right (11 December 2006)

chris1983 said:
			
		

> ohh..Leadville..dont know about Leadville.  I thought the gas shows they have are allready enough.  They say they are on top of the formation.  I think its there.  They havent drilled onwards yet...its just delays.




i dont see drilling starting by the end of this year in which case the share will just get smashed. The same as what happened to ARH from 22 cents down to 0.08 cause people just loose confidence and interest.


----------



## petee (11 December 2006)

Mr Right said:
			
		

> i dont see drilling starting by the end of this year in which case the share will just get smashed. The same as what happened to ARH from 22 cents down to 0.08 cause people just loose confidence and interest.



100% agreed especially on this down news today..


----------



## chris1983 (11 December 2006)

post from another forum site.  The guy who posted has experience with drilling wells

"You wont like this. What has happened is one giant stuff up. First they have Cemented the drill pipe in the well, this means that the Cement that should be on the out side of the casing is on the inside. I am sure they now will have to perforate the casing and then pump cement in to the out side. I would say this will take up to three weeks at least. This is a normal day at the rig, don't worry, the gas is still down the well."

So its another delay..but nothing that cant be fixed.  Its quite annoying..but hey atleast the well hasnt collapsed.  If they get absolutely smacked they might be worth looking at/topping up on.


----------



## rosesny_1 (11 December 2006)

petee said:
			
		

> this is such a deep well..any well at that depth is sure to have its risks..anyone comment on the depth of this well and ur feelings on it




Of course anything can happen in a well, but as an American oil and gas investor, I can assure you that the American drillers are the best in the world at deep land wells. They are experienced and are drilling them constantly - for example many in the Bartlett Shale, a very large play in Texas/Oklahoma, often go to 20m feet without difficulty.


----------



## tarnor (11 December 2006)

I sold on open today anticipating some panic when no announcement came hoping to get back in cheaper on close... was a very lucky play. Pretty happy about the ann actually.. can get more then i had...

I liked how they confirmed that they were definately about to enter the leadville.. a lot of people were concerned that it might not be thier after all the target revisions.  hopefully it will come a bit lower short term..


----------



## bigdog (18 December 2006)

ASX ANN today GDN 10:20 AM  Drilling Status Report 

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00679158

The well is cased to the bottom of the hole at 15397 feet

10 more days to retrieve 1000' of drill pipe with minimal risk

After recovery of drill pipe then continue drilling on to Leadville

There was NO other 'adverse' news


----------



## chris1983 (18 December 2006)

Sold these at 68 cents.  Pushed all the money into ERN. hmm.  GDN are just having too many delays and negative press.  I still think they will work things out..but maybe a re-entry in a months time is a better avenue.

I still think long term they will get this well going..but hey..I wasnt willing to watch them get pushed down anymore.  I'll wait untill these problems start to go away.


----------



## Mr Right (18 December 2006)

chris1983 said:
			
		

> Sold these at 68 cents.  Pushed all the money into ERN. hmm.  GDN are just having too many delays and negative press.  I still think they will work things out..but maybe a re-entry in a months time is a better avenue.
> 
> I still think long term they will get this well going..but hey..I wasnt willing to watch them get pushed down anymore.  I'll wait untill these problems start to go away.




Well the biggest rise will be in the next 2 weeks for GDN, I just got in at 0.65. I dont know much about ERN why do you think it is a good bet?


----------



## chris1983 (18 December 2006)

Read the ERN thread.  Dont want to go into detail under this thread.  I just think they are a good bet.  Anyway..I think GDN will still do well.  There is gas down there.  But I'm just waiting.  If I miss out now..I miss out.  The stock I got into is allready up..Its hard to have them all.


----------



## bigdog (29 December 2006)

rosesny_1, 

Can you please provide GDN updates that you may be aware of?

We do appreicate reading your valued updates


----------



## constable (29 December 2006)

Mr Right said:
			
		

> GDN is running



Are you for real?  its moved 1.5 cents and hasnt beaten the high 3 days ago, plus volume is still ordinary . Sure there is a little bit of interest in the stock but i think when you post to the forum with " its running "  you perhaps should add a little fact behind the post, otherwise its just ramping.


----------



## Mr Right (29 December 2006)

constable said:
			
		

> Are you for real?  its moved 1.5 cents and hasnt beaten the high 3 days ago, plus volume is still ordinary . Sure there is a little bit of interest in the stock but i think when you post to the forum with " its running "  you perhaps should add a little fact behind the post, otherwise its just ramping.




This share is very predictable it runs every friday before an expected release it wont be much different this time. I dont think this is rumping


----------



## bigdog (30 December 2006)

For those interested in the tech talk related to GDN drilling and progress reports (or any other mining company) please check out this site:

http://www.glossary.oilfield.slb.com/search.cfm?Discipline=Drilling

Drilling
Drilling terminology deals with major rig components, processes and equipment required to drill and case a well. Definitions in this module range from abnormal pressure to penetration rate and zip collars, and many are augmented by color photographs or high-quality illustrations. All definitions have been reviewed by technical experts in the field of drilling.


----------



## bigdog (2 January 2007)

GDN 9:19 AM  Drilling Status Repoet -- they need a spell checker!

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00682550

Drilling yet to start and still continue to remove pipe lost

Two more weeks need for recovery before drilling starts


----------



## ozeb (9 January 2007)

anyone with any news about GDN? seems to have quietened down in here. could this be due to the lost pipe (what does this mean actually? did the physically lose a pipe? and how small is the pipe if u can lose one?) which has  caused a delay in getting the gas out. am i right to say that there is a huge amount of gas but they just cant get it out? or they still dont know how much gas there is???

anyone with answers please....
 cheers


----------



## bigdog (10 January 2007)

ASX ann today GDN 1:38 PM  Drilling Status Report – 10 January 2006

-- still recovering lost pipe and drilling to continue after recovery in est tw weeks which is taking a long time!

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00684255

Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet (4,692 m) in the Pennsylvanian Molas Formation, at the top of the well’s primary objective

• The well has been cased to the bottom. The rig is recovering a length of lost drill pipe above the casing hanger, prior to drilling into the Leadville Limestone objective

• Lost pipe recovery is proceeding on schedule, with over 50% recovered, and 742 feet remaining in the well Golden State Resources is pleased to announce progress on the Paradox

Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in Grand County, Utah.

Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.

The well is cased to the hole bottom at 15,397’. The rig is currently recovering a lost section of drill pipe left in the hole, attached to the casing hanger, above 9,150’.

Recovery rates are as predicted in the previous announcement of 2 January 2007. The lost section is currently free of the casing wall and is being recovered by washover pipe, at rates of up to 80’ per day.

So far 749’ has been recovered by washover pipe, with an additional 55’ milled. There remains 742’ of pipe left in the well to be recovered. Once recovery is completed the well will drill on into the major objective Leadville Limestone.

It is expected that the recovery operation will take approximately two weeks.


----------



## constable (11 January 2007)

Little bit of a pick up in interest. This may start the ball rolling again towards their expected drilling start and the illusive leadville target. Its like counting the day to xmas.


----------



## bigdog (11 January 2007)

Agree looking much better and up 5 cents today
-- was down to 50 cents yesterday

GDN   $0.60    +$0.05  +9.09% 890,674 share  $510,724  11-Jan 15:01:19


----------



## rosesny_1 (12 January 2007)

Following link contains operational update from Delta Petroleum. The first two updates are on Paradox Basin discoveries which are approximately 65 - 85 miles north of the Lisbon Field and, I believe, in the general area of the Golden State prospect. The Greentown prospect discovery contains up to 3T+ of natural gas and NGLs. The Salt Valley probably contains probably 25 million barrels of oil.

http://finance.optonline.net/Engine...=3821107&Ticker=DPTR&SOURCE=LATH04011012007-1


----------



## GreatPig (12 January 2007)

Broken above the recent downtrend today with a tiny gap.

GP


----------



## rosesny_1 (15 January 2007)

Following is a link to a Tidewater Oil and Gas web page that talks about two Grand County Utah prospects that are believed to be next to the GDN well that is currently drilling. The second talks about the Leadville formation.



http://www.tidewater-oil.com/7500Plus.htm


----------



## rosesny_1 (15 January 2007)

Note that NAPE is an oil and gas E&P gathering where oil and gas exploration companies seek partners/financing for their prospects.


----------



## constable (15 January 2007)

somethings put a rocket under it!


----------



## jtb (15 January 2007)

constable said:
			
		

> somethings put a rocket under it!




Big orders going through- must be nice to be able to throw 200 grand @ a stock


----------



## bigdog (30 January 2007)

GDN ASX ann today and SP now down 4.5 cents to 64.5 cents

GDN 10:01 AM  Placement & Update on Paradox Basin #1 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00688261

$5.4 million raised by placement at 61 cents

Lost pipe recovery continuing


----------



## bigdog (31 January 2007)

ASX ann today
GDN 4:24 PM  Second Quarter Activities Report 
http://www.asx.com.au/asxpdf/20070131/pdf/310r6h8qyq9smk.pdf

Cash on hand Dec 31 $3.1 million with December quarter $3.9 million spent for exploration

But out of trouble with GDN ann yesterday where $5.4 million raised by placement at 61 cents

Jan 30 ASX ANN
GDN 10:01 AM Placement & Update on Paradox Basin #1 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00688261


----------



## Accaeric (1 February 2007)

hit the bottom of 59 today. 
Read to head north : 
CK Locke which swallowed latest share placement of 61c, published an analyst report of GDN in June 2006, when sp was 20ish, they rated GDN as speculative buy and targeted $1.00-$1.50, at that time, no gas was discovered.

But so far, they jumped in, definitely, they set target at least $1-1.5.


----------



## Wysiwyg (2 February 2007)

Hi chris 1984....this Gdn mystery still draw your attention?I like watching the scenario unfold without being financially and emotionally tied.Some days I say...gee you made the right choice not holding them and other days spewing that I didn`t` buy in at the lows.

The elusive Leadville zone hey...more excitement than a Hollywood blockbuster.


----------



## chris1983 (2 February 2007)

haha wysiwyg.

Im watching them.  I hope it pays off for the holders.  When things started to go wrong it was my time to bail.  If things start to go right I might get back in.  Theres is still time...its all about getting the timing right...hmm


----------



## Accaeric (2 February 2007)

Recent drop of sp mainly contributed by dumping exercised shares.

Institutional placement at 7.5% discount of one-month average of 66c, gave an absolutely good sign, because, they are able to access and assess much concrete info, they are not supposed to be purely speculative.
but in short term, it could result in a slight decline in sp. In most cases, sp will decrease after completing placement in a short time. Then it is quite easy to bounce back.

Good luck to holders!


----------



## Accaeric (3 February 2007)

based on current recovery rate, how long the recovery can be completed? 
Keen to hear that from you


----------



## bigdog (7 February 2007)

ASX today GDN 11:09 AM   Drilling Status Report 

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00691236

Still milling lost pipe at 25 feet per day
-- milled 195 feet since last report

GDN advise milling is to be less risky and substantially cheaper than drilling around the lost pipe and hanger

Missing pipe to be milled is not reported


----------



## jtb (7 February 2007)

Wysiwyg said:
			
		

> Hi chris 1984....this Gdn mystery still draw your attention?I like watching the scenario unfold without being financially and emotionally tied.Some days I say...gee you made the right choice not holding them and other days spewing that I didn`t` buy in at the lows.
> 
> The elusive Leadville zone hey...more excitement than a Hollywood blockbuster.




Try being an option holder- my missus just shakes her head...............

Hahahahaahaha

Go gdn


----------



## rosesny_1 (7 February 2007)

bigdog said:
			
		

> ASX today GDN 11:09 AM   Drilling Status Report
> 
> http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00691236
> 
> ...




Hello Bigdog. I looked at previous GDN announcements. On 1/10, 742 feet of pipe was left in the hole, after 749 feet was recovered with washover pipe. On 1/30, 246 feet were reported recovered "in last week" and it was reported that the rest of pipe would have to be milled. If 246 feet is all the pipe that was recovered between 1/10 and 1/30 then on 1/30 there was 496 feet left in the hole. As 195 feet has been milled since the "last report" (1/30) the maximum length of pipe left in the hole is 301 feet. Of course more may have been removed between 1/10 and 1/30. What we know now, assuming the 25 foot per day milling rate is maintained, is that the job should be done in 12 days or less, that's by about 2/19/07. Too bad these PRs were not more specific. Of course there could be a few days added to this to trip in and trip out with the mill head.


----------



## rosesny_1 (8 February 2007)

*Re: GDN - possible helium in Paradox gas*

Per a post on the IV board the Lisbon field contained 1% helium and the Salt Wash field 1.5% helium. It is quite possible that the current GDN well will also contain helium. Per the IV post, pure helium goes for $80/mcf as it is quite rare so it can be an important addition, if it's there, to the economics of a well/field. Since helium is very light even gas shows in the upper reaches of the GDN well should probably be checked for helium by management.


----------



## constable (13 February 2007)

gdn has all of a sudden got a bit perky


----------



## Wysiwyg (13 February 2007)

constable said:
			
		

> gdn has all of a sudden got a bit perky




A bit of a rally in anticipation of drilling update tomorrow. :batman:


----------



## bigdog (14 February 2007)

SP up 4 cents this morning

GDN   $0.685    +$0.04  +6.20% 14-Feb 10:25:14 

Lets hope SP continues in this direction

Assume update report could be issued today!


----------



## jtb (16 February 2007)

constable said:
			
		

> gdn has all of a sudden got a bit perky




Wheres the sell side gone on GDNO?


----------



## bigdog (16 February 2007)

SP up 7 cents this morning with VG volume

GDN   $0.725    +$0.07  +10.69%  1,502,254 shares $1,056,178  
16-Feb 10:21:49 

Normally ASX ann are early in the morning, but not today!

Date------Close---Volume

14-Feb-07	0.645	1,567,009
13-Feb-07	0.645	1,186,646
12-Feb-07	0.615	444,670
09-Feb-07	0.615	236,297
08-Feb-07	0.610	593,900
07-Feb-07	0.605	893,281
06-Feb-07	0.615	543,371
05-Feb-07	0.615	454,438
02-Feb-07	0.605	1,252,710
01-Feb-07	0.590	1,775,406
031-Jan-07	0.605	1,875,175


----------



## jtb (16 February 2007)

bigdog said:
			
		

> SP up 7 cents this morning with VG volume




Interesting to see the buying coming from off screen too, little depth but orders keep going through.

Go GDN


----------



## doctorj (16 February 2007)

Please attribute these rumours to a respectable source before 1230 WST or I'm going to delete these posts.

Otherwise, you're more than welcome to "confirm" these rumours with the honourable posters over at HC.


----------



## Mr Right (16 February 2007)

doctorj said:
			
		

> Please attribute these rumours to a respectable source before 1230 WST or I'm going to delete these posts.
> 
> Otherwise, you're more than welcome to "confirm" these rumours with the honourable posters over at HC.




I can't confirm and i have never confirmed anything. You can go ahead and delete it.


----------



## bigdog (16 February 2007)

Called GDN on 08-9486-4633 and Stacey advised that John is still in WA office and not sure of his movements

John was at a meeting.


----------



## Mr Right (16 February 2007)

bigdog said:
			
		

> Called GDN on 08-9486-4633 and Stacey advised that John is still in WA office and not sure of his movements
> 
> John was at a meeting.




Did you ask if there were any off take possibility?


----------



## bigdog (16 February 2007)

Mr Right said:
			
		

> Did you ask if there were any off take possibility?
> 
> Called GDN on 08-9486-4633 and Stacey advised that John is still in WA office and not sure of his movements



Yes and Reception was not aware of john's movements


----------



## rwkni1 (16 February 2007)

Mr Right said:
			
		

> Did you ask if there were any off take possibility?




Maybe you can ask your mates what their sources are for this info.... that would probably be easier. Either way, i can't really see how this would work because:
1. Why would a gas distributor would be signing deals to buy gas that they don't even know exists?
2. Why would GDN care about off-take agreements at this stage of development?


----------



## bigdog (19 February 2007)

ASX Ann today

The market did not like Ann today
GDN   $0.655    -$0.055  -7.75% 2,734,535 shares $1,894,144  19-Feb 15:59:58 

119 feet milled since last report Feb 7 and not yet finished with a rate of about 10 feet a day!

Announced Fieldwork to start on Thompson uranium project!

IMO there is about 182 feet yet to be milled 

This has been calculated as 742 feet lost, less 246 recovered 31 Jan; less 195 feet recovered Feb 7 and less 119 feet recovered Feb 19.

GDN 2:33 PM  Exploration Update 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00694373


----------



## josh82 (19 February 2007)

What are everyones thoughts bout this one??
Im not holding any but must be frustrating for those who are.
Do you think it will stay at this price or correct below .60 again?I think it will drop a bit, think those holding will reduce further


----------



## the barry (19 February 2007)

josh82 said:
			
		

> What are everyones thoughts bout this one??
> Im not holding any but must be frustrating for those who are.
> Do you think it will stay at this price or correct below .60 again?I think it will drop a bit, think those holding will reduce further




I would stay well away from this stock until they have recovered the lost piping. There will definatly be more short term pain until the pipe is recovered and the drilling recomences.


----------



## bigdog (24 February 2007)

ASX ann Feb 23
GDN 5:30 PM  Prospectus -- Capital Raising Shares
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00696508

$5.4 million in the bank to continue development of the Paradox Basin #1 oil and gas well in Grand County, Utah, USA and to provide additional working capital funding to support this activity.

1.1 Purpose of the Offer
The Company has issued to investors a total 8,852,462 Shares at an issue price of 61 cents each to raise $5,400,000 ("Capital Raising"). This Prospectus has been issued to facilitate secondary trading of Shares issued under the Capital Raising ("Capital Raising Shares"), as these Shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act. A prospectus is required under the Corporations Act to enable persons who were issued Capital Raising Shares to on-sell those Shares within 12 months of their issue.

The Capital Raising will allow the Company to fund development of the Paradox Basin #1 oil and gas well in Grand County, Utah, USA and to provide additional working capital funding to support this activity.

The Company did not issue the Capital Raising Shares with the purpose of the persons to whom they were issued selling or transferring their securities, or granting, issuing or transferring interests in, those securities. However, the board of the Company consider that such persons that have been issued the Capital Raising Shares should be entitled, should they wish, to on-sell their Shares prior to the expiry of 12 months after their issue.


Closing date for acceptance and receipt of applications under the Offer* 28 February 2007

Last day for despatch of holding statements* 2 March 2007
*These dates are indicative only.


----------



## Wysiwyg (24 February 2007)

The s/p should drop back to the 60c mark in line with offer I think.No time to apply on such short notice for me.  Good of them to offer at same price but some more notice would have been thoughtful. :321:


----------



## jtb (24 February 2007)

Wysiwyg said:
			
		

> The s/p should drop back to the 60c mark in line with offer I think.No time to apply on such short notice for me.  Good of them to offer at same price but some more notice would have been thoughtful. :321:




No mate, this is old news.
The prospectus has nothing to do with us and simply refers to the shares taken up by CK Locke and Oceanic asset management announced last month.
From a quick glance the prospectus is simply stating the shares will be tradeable amd not escrowed for any period.

Cheers


----------



## Wysiwyg (25 February 2007)

jtb said:
			
		

> No mate, this is old news.
> The prospectus has nothing to do with us and simply refers to the shares taken up by CK Locke and Oceanic asset management announced last month.
> From a quick glance the prospectus is simply stating the shares will be tradeable amd not escrowed for any period.
> 
> Cheers




It is a public offer to buy those investor shares at 61 c.The public offer to buy those investor shares (at the same price)came out at 5.30 p.m. on Friday so the offer is not old news.Is that a correct interpretation?  



> 1.2 Details of the Offer
> By this Prospectus, the Company is offering the public to apply for 1 Share at an issue
> price of 61 cents to raise 61 cents.
> 1.3 Opening and Closing Dates
> ...


----------



## constable (25 February 2007)

the barry said:
			
		

> I would stay well away from this stock until they have recovered the lost piping. There will definatly be more short term pain until the pipe is recovered and the drilling recomences.



Ive been in and out of the options for the last 3 weeks with a big smile on my face, however im glad im not holding at the minute! Looks like tankville come monday with a move back to the low 60's insight.


----------



## jtb (25 February 2007)

Wysiwyg said:
			
		

> It is a public offer to buy those investor shares at 61 c.The public offer to buy those investor shares (at the same price)came out at 5.30 p.m. on Friday so the offer is not old news.Is that a correct interpretation?
> 
> "1.1 Purpose of the Offer
> The Company has issued to investors a total 8,852,462 Shares at an issue price of
> ...


----------



## bigdog (1 March 2007)

ASX ann Mar 1 2007
GDN 5:27 PM   Appendix 3B 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00699338

We attach an Appendix 3B relating to the issue of 1 new ordinary share (GDN) as per the prospectus lodged on 23rd February 2007. The closing date for the prospectus was 28th February 2007. The prospectus was issued to satisfy compliance requirements associated with the capital raising of $5,400,000 as announced to the market on the 30th January 2007. No other shares will be issued in relation to this prospectus.

Can someone please advise why one share would be issued @ 61 cents?
-- Ann does state: "No other shares will be issued in relation to this prospectus"

Is one share being issued to public and the rest being issued to sophisicated investors to raise total of $5.4 million?

Or is this a change of plan?


----------



## white monkey (2 March 2007)

why on earth have they just released one new share? capital raising of 61c?
do they need to buy a stamp or something?


----------



## bigdog (12 March 2007)

ASX ann March 12

Still milling with no indication of how many feet to recover or time this will take!!!
-- the last GDN  Exploration Update was on 19-02-2007 

IMO there is about 77 feet yet to be milled where the last 105 feet took 17 days with average daily rate of six feet per day.
-- 77 feet to go = 13 more days to go!!!!!

This has been calculated as 742 feet lost, less 246 recovered 31 Jan; less 195 feet recovered Feb 7; less 119 feet recovered Feb 19 and less 105 feet recovered March 12 update report!


GDN 2:58 PM  Drilling Status Report 
Drilling Status Report – 12 March 2007
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00701888
http://www.asx.com.au/asxpdf/20070312/pdf/311f284csn5mrm.pdf

• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet
(4,692 m) in the Pennsylvanian Molas Formation, at the top of the
well’s primary objective. The rig is recovering a length of lost drill pipe
above the casing hanger, prior to drilling into the Leadville Limestone
objective

• Lost pipe recovery is proceeding. 105’ of pipe has been milled since last
announcement - milling continues

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Paradox Basin #1 oil & gas well continues to recover a lost section of drill pipe left in the hole, attached to a casing hanger above 9,150’.

Since the last announcement, 105’ of drill pipe in the well has been milled. The milling rate over the period has been slow but progressing without any serious event. Penetration has been effected by pipe breaking off and fouling the mill bit, resulting in more bit trips than would be normal. The drill string has been swapped out to accommodate wear on hard banding.

Once the mill reaches the casing hanger, the well will be cased at 7” to the surface to preempt any risk resulting from damage to the 9⅝” casing during the milling and recovery process. After cementing, running a bond log and conducting a BOP test, the well will drill on at 6⅛” into the major objective Leadville Limestone. Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon
formed on the top of the Leadville Limestone, the primary objective of the well.


----------



## bigdog (12 March 2007)

The market did not like more bad news today with SP down 3.5 cents to 58.5 cents

GDN   $0.585    -$0.035  -5.65%  1,145,967 shares $694,090  @ 12-Mar 16:10:10


----------



## Wysiwyg (12 March 2007)

bigdog said:
			
		

> The market did not like more bad news today with SP down 3.5 cents to 58.5 cents
> 
> GDN   $0.585    -$0.035  -5.65%  1,145,967 shares $694,090  @ 12-Mar 16:10:10




Hopefully with Spring in the air the workers can thaw out and enjoy the scenery a bit.Oilers oilers oilers...the hardest stock to predict.  From now on I will think the worst and may get a pleasant surprise one day.


----------



## Dutchy3 (18 March 2007)

Perhaps ... perhaps .... perhaps .... will be fast which ever way it jumps


----------



## jtb (18 March 2007)

Dutchy3 said:
			
		

> Perhaps ... perhaps .... perhaps .... will be fast which ever way it jumps




Base @ 60c should hold regardless I think as absolute worst case would be production from the existing zones and a second shallower hole again into the secondaries (huge apparent reservoir). Porosities look to be positive and a well placed to maximise exposure to the shallower already logged zones offer the potential for big flows. This cashflow/ability to farm down to 65% or so would underpin whatever they wanted to in the future. Due to the enormous reservoir potential it would take many many years to drain the shallower zones and Leadville could then be approached at their leisure. 

This being said I believe the Leadville will be penetrated by the end of April. 

Secondly I imagine some substantial data concerning the uranium interests such as historical logs, grab sample results - near term drilling program, farmin by US partner etc would be expected prior to the option expiry/June reporting period.
Most likely around the same time as drilling recommences imo just to thoroughly blow the markey away.
Remember that the majority of these historical veins were only mined to the *water table*!
I imagine the market would take a shine to a Uranium company, with resources, in a benevolent western market that is also producing umpteen million cf/day of gas   . 

carpe diem


----------



## bigdog (20 March 2007)

SP latest GDN   $0.685    +$0.015  +2.24%  419,700 share $287,614  
20-Mar 11:48:35 

ASX ann March 20
20-03-2007 10:13 AM  GDN  Drilling Status Report  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00704318

*34 feet to go*

Drilling Status Report – 20 March 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet
(4,692 m) in the Pennsylvanian Molas Formation, at the top of the well’s primary objective. The rig is recovering a length of lost drill pipe above the casing hanger, prior to drilling into the Leadville Limestone objective

• *Lost pipe recovery is nearing conclusion. 34’ (10m) of pipe remains
above the casing hanger - recovery continues*

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Paradox Basin #1 oil & gas well continues to recover a lost section of drill pipe left in the hole, attached to a casing hanger above 9,148’.

Recovery is proceeding at 9,114’. 34’ (10m) of pipe remains to be recovered above the casing hanger. Pipe milling will be completed at 9,116’, at the top of the final pipe joint attached to the hanger. Washover pipe will be used to recover the remaining 32’ length of pipe.

Upon reaching the casing hanger, the well will be cased at 7” to the surface to circumvent any risk resulting from damage to the 9⅝” casing during the milling and recovery process.

After cementing, running a bond log and conducting a BOP test, the well will drill on at 6⅛” into the major objective Leadville Limestone. Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.

The production potential of the above intervals will be determined upon setting production casing and conducting flow tests at the completion of drilling.


----------



## jtb (20 March 2007)

bigdog said:
			
		

> SP latest GDN   $0.685    +$0.015  +2.24%  419,700 share $287,614
> 20-Mar 11:48:35
> 
> ASX ann March 20
> ...


----------



## bigdog (22 March 2007)

GDN SP is looking VG today following update on Tuesday

GDN   $0.79    +$0.07  +9.72% 4,889,499 shares $3,803,223  
@ 22-Mar 12:59:49


----------



## Dutchy3 (22 March 2007)

Yes ... nice move and the MD has not swung hugely on the buy side ... chart latter


----------



## Dutchy3 (22 March 2007)

Gap on the open too ... good as any and better than some ... lets see what it can do now.


----------



## zt3000 (28 March 2007)

Announcement - Today

• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet
(4,692 m) in the Pennsylvanian Molas Formation, at the top of the
well’s primary objective. The rig has been recovering a length of lost
drill pipe above the casing hanger, prior to drilling into the Leadville
Limestone objective.

• The pipe milling and recovery operation has been successfully
concluded. Preparation for casing from the surface is underway.


----------



## Dutchy3 (30 March 2007)

Close of the week and this has confirmed the move away from 70 - 75.

Todays action very encouraging ... little gap on the open and a hook up into new air. Nice relative increase in volume over the last week or so to.

HOLD


----------



## Wysiwyg (31 March 2007)

bigdog.....are you still around,I was wondering what you think the sentiment will be after Leadville is reached?Any thoughts?  

This excerpt is from http://www.tidewater-oil.com/  (Prospects-Thompsons Deep Gas) that rosesny1 posted from earlier.It even mentions GDN.It appears that GDN are preparing for some serious pressure coming up and note in the story below the p.s.i that had to be "killed" by additional  mud weight.I`m getting my hopes up too high again but the chance of major gas showing is there in my opinion.

Good day. 


Thompson Canyon Deep Gas Carbonate Prospect,
Grand County, Utah

Seismic amplitude anomalies within the area of bedded Paradox Formation salts suggest the possibility for structurally controlled hydrothermal dolomite reservoirs associated with carbonate beds. The geometries also indicate that some mounding may be present.

The strong vertical component to the seismic anomalies is similar to the seismic signature of other structurally controlled hydrothermal dolomite fields. A recent AAPG bulletin in November, 2006 (v. 90, no. 11) dedicated to hydrothermal dolomite reservoirs offers several analogs with similar seismic characteristics.

Recent work under the supervision of the Utah Geological Survey has documented the presence of hydrothermal alteration in the Leadville Limestone at Lisbon Field. (See the two posters published by Eby, et al, 2004).

The Gulf Canada Seismosaur #1 well took a kick at 15,483’ and flowed 11.4 lb/gal brine water with 5,000 psi flowing tubing pressure. 19.0 to 19.1 lb/gal. mud was required to kill the well. The reservoir pressure was in the 15,300 psi range for a gradient of 0.99 psi/ft. This is extreme pressure, which is not uncommon for hydrothermal reservoirs. The brine water had a unique composition of 37% calcium chloride with very little potassium, magnesium or sodium. Other trace elements such as lithium, however, were present. This water is also consistent with the high calcium chloride brines that are commonly associated with hydrothermal dolomitization and leaching of limestones.

The seismic amplitude anomalies that are believed to be associated with carbonates and over-pressuring offer the potential for very large per-well reserves. An area of approximately 15 square miles has been identified where consistent seismic amplitude anomalies are present. Additional information may be supplied upon request. Seismic and other proprietary data may be reviewed by appointment at Tidewater’s office in Denver.

Golden State Resources nearby drilling at Paradox Basin.


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## Dutchy3 (2 April 2007)

Gaps today and the whole disaster ...


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## doofuss (3 April 2007)

the whole disaster?


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## Wysiwyg (3 April 2007)

Enjoyable milestone for me reached by going through  $1 again.:


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## bigdog (5 April 2007)

GDN ASX ann April 5

SP was up 3 cents today which is heading in the right direction.

05-04-2007 12:43 PM  GDN  Drilling Status Report  

Getting close to the top of the well’s primary objective.

Drilling Status Report – 5 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet (4,692 m) in the Pennsylvanian Molas Formation, at the top of the well’s primary objective.

• Running of casing from the surface to the casing hanger at 9185’ has been completed. Following completion of cementing, running bond log and BOP test, the well will drill on into the Leadville Limestone.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that running casing at the Paradox Basin #1 oil & gas well has been completed without event.

The well has now been cased at 7” from the surface to the casing hanger at 9,185 feet. The remainder of the well has already been cased at 7” from the casing hanger to bottom at 15,397’.

Following completion of cementing, running a bond log and conducting a BOP test, the well will drill on at 6⅛” into the major objective Leadville Limestone. Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.


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## bigdog (9 April 2007)

Many are hoping that the next ASX ann will state that drilling has started again.

During November 2006, drilling stopped at at 15,397 feet (4,692 m) in the Pennsylvanian Molas Formation, at the top of the well’s primary objective.

Last ASX ann April 5 stated:
Following completion of cementing, running a bond log and conducting a BOP test, the well will drill on at 6⅛” into the major objective Leadville Limestone. Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.


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## chance fate (10 April 2007)

Just joined this forum thing...  been reading GDN's thread and being a GDN holder since last October share the pain and the elation that this ride is producing... i've held on to this stock despite the stuck pipe setbacks because of the potential return on a leadville success - i reckon there's a better than 50% chance of success -  and also even if it proves dry then there's already enough decent gas shows encountered to provide a better than 50% chance of being viable in the longer run i.e. worth a couple of bucks... ...Reason i reckon there's a greater than 50% chance in the leadville is that the pinkerton had good shows and lies only a few feet above the leadville - it would have had to be charged by gas migration from source rocks (Alkali Gulch) leaking across the fault which juxtaposes this rock again both the pinkerton and the leadville (assuming GDN's seismic interpretation is good)...it's obvious there's alot of shareholders keeping a close watch on this and waiting to sign the paperwork for the new Cayman....   I just hope the bond log that needs to be run shows there's no need for remedial work before drilling on....


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## Wysiwyg (10 April 2007)

chance fate said:


> ..it's obvious there's alot of shareholders keeping a close watch on this and waiting to sign the paperwork for the new Cayman...





Greetings chance....I was wondering what the new cayman is?imp:


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## chance fate (10 April 2007)

Porsche Cayman....   i.e. make a large profit! Regards


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## Wysiwyg (10 April 2007)

chance fate said:


> Porsche Cayman....   i.e. make a large profit! Regards




Might be a porsche for some but I`ll be souping up the dato 120y so I get to work on time.


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## bigdog (11 April 2007)

11-04-2007 11:32 AM  GDN  Drilling Status Report  

SP now up a few cents on ANN and currently GDN   $1.11    +$0.03  +2.78 pct  

Currently drilling out approx. 150’ of cement fill at the well bottom. On completion of a bond log the well will drill on at 6⅛” into the major objective Leadville Limestone.

http://www.asx.com.au/asxpdf/20070411/pdf/311w6c5l73w57d.pdf

Drilling Status Report – 11 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet
(4,692 m) in the Pennsylvanian Molas Formation, at the top of the
well’s primary objective.
• Cementing of casing from the surface to the casing hanger at 9185’ has
been completed. A BOP test has been completed successfully, and following running of a bond log the well will drill on into the Leadville Limestone.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that operations casing at the Paradox Basin #1 oil & gas well are proceeding successfully.

Cementing of the new 7” casing from the surface to the casing hanger at 9,185 feet has been completed successfully. The remainder of the well has already been cased at 7” from the casing hanger to bottom at 15,397’.

The rig has completed drill-out of cement, float collar and shoe at the base of the new casing and is currently drilling out approx. 150’ of cement fill at the well bottom. On completion of a bond log the well will drill on at 6⅛” into the major objective Leadville Limestone. 

Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary
objective of the well.


----------



## the barry (11 April 2007)

bigdog said:


> 11-04-2007 11:32 AM  GDN  Drilling Status Report
> 
> SP now up a few cents on ANN and currently GDN   $1.11    +$0.03  +2.78 pct
> 
> ...




Would you have any idea how long it will be till they start drilling? In a best and worst case scenario?

Thanks


----------



## chance fate (11 April 2007)

Reckon the forward timetable is:
Wednesday = 1 day - drill out 150' cement plus pull out of hole
Thursday = 1 day - run and interpret bond log
if ok...
Friday = 1 day - run in hole drill ahead..

roughly speaking will have initial results of drilling into leadville early next week...


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## bigdog (13 April 2007)

chance fate - Great call on April 11

SP looking great also on news ann hitting high of $1.18 and currently $1.175

GDN   $1.175    +$0.115  +10.85% high $1.18  low $1.04  
3,427,195 shares with $3,840,368  @ 13-Apr 15:19:10 

The well is expected to drill on into the objective Leadville Limestone within 24 hours.

ASX ann 13-04-2007 02:48 PM  

GDN  Drilling status report  
http://www.asx.com.au/asxpdf/20070413/pdf/311xq4gpvy4gwc.pdf

Drilling Status Report – 13 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,397 feet (4,692 m) in the Pennsylvanian Molas Formation, at the top of the well’s primary objective.

• A cement bond log has been completed to hole bottom with satisfactory results. The well is expected to drill on into the objective Leadville Limestone within 24 hours.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that operations at the Paradox Basin #1 oil & gas well are proceeding satisfactorily.

A cement bond log was today completed successfully to the well bottom.

Preparations are in progress to run in the hole with a drilling assembly and drill on, within the next 24 hours, into the major objective Leadville Limestone.

Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.


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## chance fate (13 April 2007)

Been waiting so long ... this announcement doesn't seem real!!!  Reckon there's a few hundred feet of leedville to be drilled ....  first indication should be early next week though....  good luck golden!


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## the barry (13 April 2007)

Such a 50/50 bet. Have topped up on the options today. Will either go from hero to zero in a split second. The risk/reward is so great on this one. Either going to have a lot of happy people come monday or a lot heading for the ledge. Very nervous wait.


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## Agentm (13 April 2007)

whatever you do, dont forget to profit take pre announcement!!


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## zt3000 (13 April 2007)

Agentm said:


> whatever you do, dont forget to profit take pre announcement!!




Like now hahaha


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## Agentm (13 April 2007)

yeah i know,, left that a bit late! 

good luck to all holders, i have been watching this one for a long time, i have my opinions and i dont care to air them as i dont have a position on this stock, but one thing i love seeing is people making a killing on the stock exchange,, i hope all holders get rewarded for their patience.. 

good luck!!


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## bigdog (13 April 2007)

The GDN after close sales knocked down the SP to $1.135 from $1.15, $1.16 and $1.17 in final minutes at 3:59 and 3:58 PM

Is this manipilation by the brokers after close?
-- how does this happen?
-- imagine can only be controlled by brokers!

Time(AEST) Price Volume Value Condition Codes 
16:10:03 1.1350 4,600 5,221.00  
16:10:03 1.1350 850 964.75  
16:10:03 1.1350 4,150 4,710.25  
16:10:03 1.1350 850 964.75  
16:10:03 1.1350 20,000 22,700.00  
16:10:03 1.1350 4,150 4,710.25  
16:10:03 1.1350 6,450 7,320.75  
16:10:03 1.1350 3,550 4,029.25 XT 
16:10:03 1.1350 16,450 18,670.75 XT 
16:10:03 1.1350 941 1,068.03  
16:10:03 1.1350 19,750 22,416.25  
16:10:03 1.1350 6,750 7,661.25  
16:10:03 1.1350 600 681.00  
16:10:03 1.1350 1,959 2,223.46  
16:10:03 1.1350 3,041 3,451.53  
16:10:03 1.1350 500 567.50  
16:10:03 1.1350 7,000 7,945.00  
15:59:59 1.1500 10,250 11,787.50  
15:59:59 1.1500 10,000 11,500.00  
15:59:59 1.1500 4,650 5,347.50 XT 
15:59:59 1.1600 2,000 2,320.00  
15:59:59 1.1600 5,000 5,800.00  
15:59:59 1.1600 18,100 20,996.00  
15:59:53 1.1700 2,868 3,355.56 XT 
15:59:53 1.1700 5,000 5,850.00  
15:59:53 1.1700 5,132 6,004.44  
15:59:45 1.1600 1,900 2,204.00  
15:59:45 1.1600 8,100 9,396.00  
15:59:28 1.1600 6,900 8,004.00  
15:59:28 1.1600 5,000 5,800.00 XT 
15:59:28 1.1600 1,000 1,160.00  
15:59:20 1.1650 10,000 11,650.00  
15:58:34 1.1700 5,000 5,850.00  
15:58:34 1.1700 2,000 2,340.00  
15:58:34 1.1700 11,868 13,885.56  
15:57:33 1.1700 1,132 1,324.44  
15:57:33 1.1700 868 1,015.56 XT 
15:57:23 1.1750 300 352.50


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## Wysiwyg (13 April 2007)

My take on the close was that a 500 pounder placed a sell at $1.20 and others quickly joined in the sell Q.He`s still out there somewhere too.Looked like $1.20 (which is a psyche level) was going to go at one stage.On the positive side of things those who hung back picked their lot up lower.

The power of the purse hey.Money speaks all languages.

Oh,and don`t forget the aeroguard Mr.Walker and avagoodweegend.


                                                        :bekloppt:


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## zt3000 (15 April 2007)

Have they drilled yet?


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## Haveacrack (15 April 2007)

No news yet.  Keeping everything crossed for this one.


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## bigdog (16 April 2007)

GDN 10:03 AM  Drilling status report http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00711399

Drilling has commenced and proceeding satisfactory

Currently "Company Trading Status: Pre-Open" this morning


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## bigdog (16 April 2007)

Now trading and up 11 cents and volume VG

GDN   $1.245    +$0.11  +9.69%  434,076 shares  $527,134  16-Apr 10:10:32


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## chance fate (16 April 2007)

Currently at 15531 ft with target now at 15555 ft (they keep on resetting it deeper!)....  that's less than 8 metres...so could mean we hear more news today...


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## Haveacrack (16 April 2007)

Would anyone like to make an assumption on what might happen from here?  Market seems to be sitting on the fence.


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## Agentm (16 April 2007)

the stock appears oversold to me, i assume any bad news will have a dramatic effect on the sp.  good luck to any holders.


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## Miklin (16 April 2007)

I am anxious to see if the after market close sales knock it down like they did on Friday.  I'm hoping it at least closes higher than it opened.


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## zt3000 (16 April 2007)

Can someone explain to be the meaning of "elevated background gas levels" and the average 40 units they said in their announcement. Is that any good, average or poor?  

Cheers


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## Haveacrack (16 April 2007)

zt3000 said:


> Can someone explain to be the meaning of "elevated background gas levels" and the average 40 units they said in their announcement. Is that any good, average or poor?
> 
> Cheers




You should refer back to Drilling status report dated 20 October 2006 to get an idea.


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## zt3000 (17 April 2007)

Still no announcement .... they should be in by now ... unless they got stuck again .. ha ha ....


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## ongchuan (17 April 2007)

Yeah...was waiting for an announcement today and nothing came out....hopefully tomorrow will have good news. If they manage to get 50BCF, how much will the share worth?


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## zt3000 (17 April 2007)

ongchuan said:


> Yeah...was waiting for an announcement today and nothing came out....hopefully tomorrow will have good news. If they manage to get 50BCF, how much will the share worth?




1 TCF = $1 billion dollars value
Total GDN shares aprox 200 million (inc options)

So 1 TCF = $5 per share

so 50 BCF = 0.05 TFC = 0.25c

but this doesnt include what the rest of the reserve holds

so figure from there ... i think these calcs are correct ... if not .. then sorry hehe

correct me if im wrong


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## ongchuan (18 April 2007)

What a crappy start for the day....however,seems like lots of buyer queuing up and not much seller. Are they waiting for the results?


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## Haveacrack (18 April 2007)

ongchuan said:


> What a crappy start for the day....however,seems like lots of buyer queuing up and not much seller. Are they waiting for the results?





min. vol 4 such an important announcement.  My take is all the smaller investors are getting nerv. and r taking profs.  i would say there r mega numbers sitting on the fence playing the waiting game.......waiting.......waiting.............

Confidence creeping back last $1.11....happens everytime!


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## ongchuan (18 April 2007)

Yeah...small fish like me are nervous ...hahahaha...but i m still holding tight to it...wont repeat the same mistake as in NIA...


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## Haveacrack (18 April 2007)

More conf. creeping back.  If it can hold these levels for a period, price is where mkt believes it should be.  I am very confident in this one and believe all the signs r right.
Are u a live trader?


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## ongchuan (18 April 2007)

I am just part time investor...hehee...but i m quite sure they will get something big down there. It is just the timing. It take so long for them to finish all the drilling and cementing stuff...


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## chance fate (18 April 2007)

Starting to get cold feet on this now....  assuming drilling ahead at about 100ft per day the well should be well and truly into the leedville limestone....


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## Haveacrack (18 April 2007)

A bucket of warm water should fix that........


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## Haveacrack (18 April 2007)

ongchuan said:


> I am just part time investor...hehee...but i m quite sure they will get something big down there. It is just the timing. It take so long for them to finish all the drilling and cementing stuff...




I hope you're right!!!


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## ongchuan (18 April 2007)

Hopefully the price is consolidating between 1.10 to 1.15. Then can shoot up further. Otherwise if they keep shooting, i m sure they will get the speeding ticket too.Hahaha..let's wait for the good news.


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## chance fate (18 April 2007)

Trying to figure out realistic timing on this to see whether the project should still receive the benefit of the doubt....  from Monday's report drilling at say 100ft/day they should be 200ft into leedville by now .... the drilling mud needs to circulate any gas shows out (i.e. whatever is above background levels - which could be climbing slowly) 4.7km's to surface say 6hours - that depends on pump size/rate... arghhh.... whatever the consensus of the market was definitely wait and see....  good luck tomorrow.... hope there's a trading halt at 09.54 am EST.....


----------



## chance fate (18 April 2007)

If this proves to be dry those big holders are going to go down the gurgler with the rest of us...  time to get ready to buy in when it drops thru' the floor.....   reckon the secondary targets will add up to some respectable value after testing whatever happens with this main target.....


----------



## Wysiwyg (18 April 2007)

I have a rising interest in chart patterns.I have been searching for any meaning to what I see as a broadening of the trading range.This stock was fundamentally driven to the heights shown last year and along the way patterns are formed which I find interesting.The volume is less than previously.Fate...you seen this pattern before?

Does anyone have an example of this or is it just an odd, random or insignificant pattern or just me creating something out of nothing?I`d be interested to know.


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## ongchuan (18 April 2007)

I have no idea bout this chart but I guess if the SP closed below $1.10 then it will be a gone case. The trend will shift to reverse gear and go down. So hopefully the announcement will come out really soon. Maybe tomorrow morning (hopefully). Then it will has the chance to go up more. Expecting a new high. Maybe 1.30 or 1.50.


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## chance fate (19 April 2007)

Wysiwyg said:


> I have a rising interest in chart patterns.I have been searching for any meaning to what I see as a broadening of the trading range.This stock was fundamentally driven to the heights shown last year and along the way patterns are formed which I find interesting.The volume is less than previously.Fate...you seen this pattern before?
> 
> Does anyone have an example of this or is it just an odd, random or insignificant pattern or just me creating something out of nothing?I`d be interested to know.




Hi What you see...  I don't do much tech analysis at this end... more of a fundamentals type...(with no claim to any expertise!)....  but whatever, the announcement's going to cause a breakout up or down....  if it's positive news, looking at other explorationists, reckon the SP will go to 20% of expectation i.e. 20% of $10 - so $2 without too much hesitation.....  if it's negative then it'll collapse below 60cents but then recover to that level pending news on production testing of the secondary gas intervals....  i've already made the move and sold off some of my holding - reckon i'm a bit more wary than most - you don't go broke taking a profit!


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## bigdog (19 April 2007)

19-04-2007 09:03 AM  GDN  Drilling Status Report - 19 April 2007  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00712602

This ANN was earlier time than in the past!

Last report of April 16 was at 15,531 feet and now 15,756 (plus 225 feet in three days)
-- drilling is certainly underway!

Drilling Status Report – 19 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,756 feet
(4,802 m) in the Mississippian Leadville Limestone Formation, the
well’s primary objective, and drilling on with increasing background gas
levels.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that drilling at the Paradox Basin #1 oil & gas well is proceeding satisfactorily.

Paradox Basin #1 is at 15,756 feet (4,802 m), in dolomitic limestones of the Mississippian Leadville Limestone Formation, the primary objective of the well. The top of the Leadville was intersected at 15,573 feet.

The well is drilling ahead at 6⅛”. Background gas levels have been increasing progressively, now averaging 100 units, an encouraging trend as porosity increases into the Leadville Limestone.


----------



## chance fate (19 April 2007)

well....  it's looking like it can't be 3Tcf...  my rough calc says it could still be up to 1.5Tcf...  hopefully the porosity improves...  150ft of good quality reservoir will probably give us 440 Bcf...i.e. expectation...  fingers crossed as they drill deeper...


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## ongchuan (19 April 2007)

$1.20 is heavy resistance. Never stay above $1.20 for more than half an hour. Wondering why ppl want to sell at $1.20.Hmmm


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## zt3000 (19 April 2007)

ongchuan said:


> $1.20 is heavy resistance. Never stay above $1.20 for more than half an hour. Wondering why ppl want to sell at $1.20.Hmmm




Yes i have noticed that too. There seems to be lots of buying early morning ... followed by the opposite at the end of the day ... im  

How much further untill the hit the bottom of leadville?


----------



## Haveacrack (19 April 2007)

zt3000 said:


> Yes i have noticed that too. There seems to be lots of buying early morning ... followed by the opposite at the end of the day ... im
> 
> How much further untill the hit the bottom of leadville?




According to last Drill Rep. 544 feet to top of McCracken.


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## ongchuan (20 April 2007)

Seems like this one is running out of steam and getting tired and tired.....but the seller seems to reduce now and buyers are increasing. Better news expected today?


----------



## Gangis (20 April 2007)

They gave an update yesterday, next one will either be Mon morning or Tue Morning. It could even take 6 dyas if they decide to release when they hit the next target.

People selling at this stage makes no sense as the potential is still the same with some encouraging info being released yesterday.


----------



## chance fate (20 April 2007)

I'm out....  reckon they're 350ft into limestone with no major gas interval...  this means potential is less than 440bcf...  so even if there is a major show from here on it'll only be enthusiasm that carries the share price over the $2 mark....  it's tough...  but had to make the call.....


----------



## rosesny_1 (20 April 2007)

*Re: GDN - McCracken Sandstone*

I hope GDN can/does take the well into the McCracken Sandstone (16300'). Sandstone intervals around the Paradox Basin are sporadic but often highly gas-charged. GDN's 11/16/06 update indicated they could go below 16000 feet with three inch drill pipe. They now appear to need to do this to get to the bottom of the Leadville Limestone so I hope they also can go to the bottom of the McCracken Sandstone, which is listed at 16400 feet. 
Good luck everyone.


----------



## chance fate (20 April 2007)

hello rosesny_1,  interesting comments...  do you know if they'll have to run a liner prior to drilling on with a yet smaller string?  and re. current background gas levels ... has the mud weight been changed to a level that suppresses the influx of gas??


----------



## bigdog (23 April 2007)

ASX ann today 
GDN 10:18 AM  Drilling status report 
http://www.asx.com.au/asxpdf/20070423/pdf/3121x6l0gk8qrj.pdf

*Market did not like the ANN with SP down 16.5 cents*
GDN   $0.91    -$0.165  -15.35% 3,995,227 shares  $3,699,129  
23-Apr 10:42:58 

Drilling Status Report – 23 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 15,979 feet (4,870 m) in the Mississippian Leadville Limestone Formation, the well’s primary objective.

• Background gas levels have increased. Minor 60 foot gas show from 15,822’ to 15,883’.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that drilling at the Paradox Basin #1 oil & gas well is proceeding satisfactorily within the Leadville Limestone Formation.

Paradox Basin #1 is at 15,979 feet (4,870 m), in dolomitic crinoidal limestones of the Mississippian Leadville Limestone Formation, the primary objective of the well.

A minor gas show was intersected from 15,822’ to 15,883’ at 200 units of C1 (methane) and C2 (ethane). Background gas levels have since increased to 300 units with connection gas up to 600 units.

Following a bit change, the well will drill ahead at 6⅛” into the Leadville Limestone Formation.

Connection gas: Pressured formation gas introduced into the well during short periods of mud pump shutdown, such as when connecting additional drilling pipe. The consistent levels of elevated connection gas in this well are highly significant.

Gas units: 10,000 units = 100% gas i.e. 1,000 units = 10% gas in drilling mud.


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## rosesny_1 (24 April 2007)

Connection gas. The last drilling update included, "The consistent levels of elevated connection gas in this well are highly significant." A much earlier update contained the same statement. I looked over all the drilling updates on the GDN website to see if I could better understand this statement. Here is a list of drilling levels and what was said of connection gas at that level.

9740'    "connection gas peaked at 3120 units."
10152'   connection gas levels of "3000 units."
10470'   "increasing levels of background gas and influx of connection gas."
11950'   "strong formation gas pressures and gas influx into the well upgrade  
            production potential."
12490'   "strong background and connection gas continues."
12985'   "connection gas ranges from 2000 - 3300 units."
13720'   "the well continues to have consistent levels of background
            and connection gas."
15165'   "background, trip and connection gas are all at elevated levels."
15397'   "after a significant gas interval located from 15292 - 15322 feet,
            background gas rises to 800 units." [note: this says nothing of 
            connection gas but if it is related to background gas in the same
            degree as at 12985' then connection gas here is about 3000 units.]
15531'   "background gas... averaging 40 units."
15756'   "background gas levels increasing, averaging 100 units, as porosity
            increases."
15979'   "background has... increased to 300 units with connection gas up to
            600 units."

As can be seen there is a major drop off in background gas at 15531' in the Molas Formation. This gas then goes up 1.5times in the next 220' and then triples to 300 units in the next 220'. If the background gas triples in the next 220' it will be at 600 units. In upper levels of the well this is consistent with connection gas being at about 2000 units. If background gas quadruples (this is consistent with the acceleration of background gas increases at the previous two levels as porosity increases) then connection gas will be at 3000 units. This would put the well in the last 100' of the Leadville Limestone. If this has the best porosity of the Leadville and if the McCracken Sandstone has good porosity, then there could easily be a major gas interval  
in these two zones. In any case, the connection gas figures appear to indicate that this well is gas charged through over 5000' from about 10000' to about 15000'. Since that appears to be the case I intend to hold onto my GDN stock.


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## chance fate (24 April 2007)

Hi roses...  don't understand your logic for turning 300 units of background gas into 3000 units... and saying it's gas charged over 5000' is a bit misleading as there are only a few zones that are around 100ft each that could be productive....  the leedville has definitely got gas in it...but at this stage inications are that it's certainly not a gusher...  whatever the question is will the gas be commercially recoverable?... but i think the price is now reflecting the increased risk..... so may get back in with a smaller holding.......   good luck


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## sleeper88 (24 April 2007)

I remember they have some U prospects in the US, with some very good grades, its seems they're not focused on it atm, a possible spin off? Would that be feasible?


----------



## ongchuan (26 April 2007)

Time to pick up some of the discounted share? SP has been down to the level of previous 3 month. Good entry at current SP?


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## Tech_king (26 April 2007)

Looks like a good buy atm but i have to buy a house so i may get myself into trouble if i were to buy some shares!


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## ongchuan (26 April 2007)

Good announcement but dipping SP....   

Time to reenter i guess...


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## bigdog (26 April 2007)

todays ASX ann
26-04-2007 02:04 PM  GDN  Drilling Status Report  

Today's report at at 16,153 feet (4,923 m) and 23 April report was at 15,979 feet (4,870 m) = 174 feet deeper in three days!

GDN   $0.82    -$0.035  -4.09%  with $0.90 high and $0.76 low;  5,728,102 shares $4,733,430 
@ 26-Apr 14:47:47 

http://www.asx.com.au/asxpdf/20070426/pdf/3123y3hkgmbnq5.pdf

Drilling Status Report – 26 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 16,153 feet (4,923 m) in the Mississippian Leadville Limestone Formation, the well’s primary objective

• Continuing elevated background gas levels

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that drilling at the Paradox Basin #1 oil & gas well is proceeding satisfactorily within the Leadville Limestone Formation.

Paradox Basin #1 is at 16,153 feet (4,923 m), in dolomitic limestones and shales of the Mississippian Leadville Limestone Formation, the primary objective of the well.

Background gas levels continue to be elevated. Connection gas is up to 150 units. Trip gas is up to 1100 units.

The well is drilling ahead at 6⅛” in the Leadville Limestone Formation.

PRODUCTION AND PERMITTING 
So far eleven potential gas production intervals have been defined in Paradox Basin #1 between the Upper Ismay and the Leadville Limestone, as well as one potential oil interval.

Additional zones are expected in the remainder of the well. Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged.  Permitting for an onsite gas plant awaits completion of the well.

The production potential for the intervals annotated below will be determined upon setting production casing and conducting flow tests at the completion of drilling.


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## chance fate (26 April 2007)

Trying to figure the rationale behind today's sell off...  stop losses.. or last minute 'profit taking' ...  at 80c seems like a good buy....  oh well... one man's stop loss is another man's buy opportunity....  need to hear some news on when production testing will occur once drilling is stopped...  wondering if they'll keep the rig in situ to do the test or demob and bring in another test rig...  if they do that'll be a turn around time of at least a month.....  maybe that's the reason for the sell down....


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## chance fate (27 April 2007)

oh my God...  a trading halt....  all the last one's have been followed by good news... hope this one is the same!!!


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## bigdog (27 April 2007)

I would expect if they have found nothing, that the drilling would continue down deeper without any announcement!!!

Must assume good news to be reported!!


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## chance fate (27 April 2007)

Thought it was a drilling issue but it's uranium....  that's come in from left field!  No idea what the price implication could be....

... definitely buys some time for the share price given the extra drilling time and no trading...


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## elcruzy (27 April 2007)

chance fate said:


> Thought it was a drilling issue but it's uranium....  that's come in from left field!  No idea what the price implication could be....
> 
> ... definitely buys some time for the share price given the extra drilling time and no trading...




What the?!?? Since where did you get word that its uranium?

I think there are a fair few like me out there who are trying to wait the 12months out...


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## chance fate (27 April 2007)

... don't know how to cut and paste announcements...  you'll need to look at the wording of the company's request for the trading halt...  it concerns an advanced uranium mining exploration and production joint venture...


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## Agentm (27 April 2007)

the uranium is mentioned in the trading halt on the second page.

its one hell of a show at the well, no major gas intervals in the primary, and now a trading halt, the sp has been fluctuating all over the place,, must be gut wrenching for the holders..

good luck with the announcement,


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## chance fate (27 April 2007)

Correction .... that should be venture (with a small v) .....and not joint venture....   I recall the price jumped 5-10c on the back of news re: iron ore exploration not so long ago...  hope the sp does the same with this....


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## elcruzy (27 April 2007)

My apologies I didnt open the ann, it is usually just a request for a trading halt. I think its quite sneaky to place the uranium message in the request - trying to give us shareholders some hope???


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## bigdog (27 April 2007)

GDN ASX ann today
GDN 9:58 AM  Trading Halt 
http://www.asx.com.au/asxpdf/20070427/pdf/3124gd3zzbd7yl.pdf

Please refer page 2 of the document which GDN issued and states:

Golden State Resources Limited requests an immediate trading halt in the securities of the Company *pending the announcement of details of an Advanced Uranium Mining and Exploration venture currently being executed*.

The Company expects to be able to release full details by Monday 30 April 2007.


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## Wysiwyg (27 April 2007)

3 announcements in the past week... hmmm , this one stopped the slide in it`s tracks.Shuffled to the top of the announcement list maybe.

I couldn`t bear to watch the slide and sold at 89 c. yesterday when $1.25 was up for offer at one stage.Then this announcement today on the U play could not wait till the end of the Paradox drill.

I suppose that could be paradoxical.


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## elcruzy (27 April 2007)

Wysiwyg said:


> 3 announcements in the past week... hmmm , this one stopped the slide in it`s tracks.Shuffled to the top of the announcement list maybe.
> 
> I couldn`t bear to watch the slide and sold at 89 c. yesterday when $1.25 was up for offer at one stage.Then this announcement today on the U play could not wait till the end of the Paradox drill.
> 
> I suppose that could be paradoxical.




I had promised myself not to be too greedy and yet when 1.20 came around AGAIN I still didnt sell because of the 12month CGT rule. unfortunately this stock is very volatile....who knows how good the reaction will be anyway. Good on ya - you cant go broke making a profit!!


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## Wysiwyg (27 April 2007)

elcruzy said:


> I had promised myself not to be too greedy and yet when 1.20 came around AGAIN I still didnt sell because of the 12month CGT rule. unfortunately this stock is very volatile....who knows how good the reaction will be anyway. Good on ya - you cant go broke making a profit!!




Hi cruzy...yes, volatile it is.This info may give the s.p. a boost up to bail out those caught up higher. I hope the s.p. trend is upwards after your 12 months are up, pending sentiment. W.


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## Football Star (29 April 2007)

Wysiwyg said:


> Hi cruzy...yes, volatile it is.This info may give the s.p. a boost up to bail out those caught up higher. I hope the s.p. trend is upwards after your 12 months are up, pending sentiment. W.




Why would investors want to bail? The well is a potential company maker and the U thing may be significant. We shall see tomorrow.

Regards
FS


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## DAZT49 (30 April 2007)

No announcement today re the U venture, and no update on drilling at Paradox.They must be throught to China by now.
I bought in in Sept 2005 so I am doing allright, but what a roller coaster!!


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## bigdog (30 April 2007)

ASX ANN just issued
GDN 6:00 PM  Third Quarter Cashflow Report 
http://www.asx.com.au/asxpdf/20070430/pdf/3126w094z24kqj.pdf
-- Cash at end of quarter $1,962,000

GDN 6:00 PM  Third Quarter Activities Report 
http://www.asx.com.au/asxpdf/20070430/pdf/3126vyx9xyrpmm.pdf

HIGHLIGHTS
• Golden Eagle Oil & Gas Prospect, USA: The Paradox Basin #1 lost pipe recovery was completed on 27 March. The well is at 16,306 feet (4,970m). Gas shows were encountered in the Leadville Limestone objective. Drill stem test is underway.

• Thompson Uranium Project: The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

• Laverton Gold Project: New gold anomalous alteration zone located by RAB drilling

• Johnston Range Iron Ore Project: Bedrock iron ore targets to be tested in coming quarter.

GOLDEN EAGLE PROSPECT - ONSHORE OIL & GAS, UTAH, USA
During the quarter, drilling continued on the Company’s first well, Paradox Basin #1, on the Golden
Eagle Oil & Gas Prospect in Grand County, Utah. An extended period of lost pipe recovery was completed on 27 March.

Drilling continued into the Pennsylvanian Molas Formation and Mississippian Leadville Limestone Formation. A gas show was intersected from 15,822’ to 15,883’ at 200 units of C1 (methane) and C2 (ethane). Background gas levels increased to 300 units with connection gas up to 600 units.

The well passed from the Leadville Limestone into the Devonian Ouray Formation at 15,916’, then entered the objective McCracken Sandstone at 16,200’. The well is currently at 16,306 feet (4,970 m), in the objective McCracken Sandstone. Background gas levels are reduced although with trip gas up to 940 units.

The rig is currently conducting a drill stem test (DST) to test gas levels and pressures in the Mississippian Leadville Limestone target. Gas shows from the Leadville Limestone would likely be subdued by the hydrostatic pressures associated with increased depth of drilling operations. Following completion of the DST the well will drill on into the McCracken Sandstone objective.

PRODUCTION AND PERMITTING
So far twelve potential gas production intervals have been defined in Paradox Basin #1 between the Upper Ismay and the Leadville Limestone, as well as one potential oil interval. Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged. 

Permitting for an onsite gas plant awaits completion of the well.  The production potential for the intervals annotated below will be determined upon setting production casing and conducting flow tests at the completion of drilling.

THOMPSON URANIUM PROJECT, UTAH, USA
Golden State Resources has executed a memorandum of agreement for a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.

It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of a planned capital raising. It is the intention of Golden State’s directors that there will be a priority entitlement for Golden State shareholders to participate in this raising. 

The agreement is the result of six months’ negotiation with White Canyon and will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger advanced project with a short time frame towards mining operations.


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## bigdog (30 April 2007)

30-04-2007 06:03 PM  GDN  Drilling Status Report  just issued
http://www.asx.com.au/asxpdf/20070430/pdf/3126w7d5vfg9wv.pdf

Drilling Status Report – 30 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 16,306 feet (4,970 m) in the Devonian McCracken Sandstone.
• The rig is conducting a drill stem test (DST) to test gas levels and pressures
in the Mississippian Leadville Limestone target. 

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA 
Golden State Resources is pleased to announce that drilling at the Paradox Basin #1 oil & gas well has proceeded at an accelerated rate.

Paradox Basin #1 is at 16,306 feet (4,970 m), in the Devonian McCracken Sandstone. The well passed from the Leadville Limestone into the Devonian Ouray Formation at 15,916’. Background gas levels are reduced although with trip gas up to 940 units.

The rig is currently conducting a drill stem test (DST) to test gas levels and pressures in the Mississippian Leadville Limestone target. Previously announced gas shows from the Leadville Limestone would likely be subdued by the hydrostatic pressures associated with increased depth of drilling operations. Following completion of the DST the well will drill on into the McCracken Sandstone objective.

PRODUCTION AND PERMITTING
So far eleven potential gas production intervals have been defined in Paradox Basin #1 between the Upper Ismay and the Leadville Limestone, as well as one potential oil interval. Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged. Permitting for an onsite gas plant awaits completion of the well.

The production potential for the intervals annotated below will be determined upon setting production casing and conducting flow tests at the completion of drilling.


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## chance fate (30 April 2007)

....  got the following on DST's using a web search...lots more stuff out there on the web....  seems as though the process will determine potential commerciality very quickly...i.e. without the cost of production casing etc...  so should hear results pretty soon....


_Drill Stem Testing
A Critical Tool for Obtaining Well Data
Prove Reserves
When you conduct a Drill Stem Test you are establishing a flow rate from a zone of interest. 

"Confirmation of commercial productivity of a reservoir, by a production or formation test, is required for classification of reserves as proven." 

Petroleum Society, Canadian Instituteof Mining , Metallurgy & Petroleum

Maximize Reserves

Get credit for thin zones 
Evaluate multiple zones 

Reduce the risk of overlooked reserves 
Continue leases 
Lower Finding Costs

Discover new reserves 
Test multiple zones the same day with one run in the hole 
Avoid unnecessary completions 
Reduce testing costs by up to 90% 
Quick Results

Prove up reserves while rig is on location - no waiting for well completion 
Minimal Flaring

DSTs flare less gas than a post-completion production test 
Flaring permits not required _


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## sleeper88 (30 April 2007)

sleeper88 said:


> I remember they have some U prospects in the US, with some very good grades, its seems they're not focused on it atm, a possible spin off? Would that be feasible?




LOL..i posted that on the 24th..guess i got my answer today 
White Canyon Exploration, has anyone done any research of who they are and what exploration licenses/deposits they have? Too bad i dont hold this one, i'll consider getting some tomorrow morning


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## elcruzy (30 April 2007)

Sleeper88:  As GDN shareholders we will get a priority subscription to the IPO.

Does anyone think the recent announcement is good news? while its not 'wow' do you think it will at least stabilise the SP???


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## chance fate (1 May 2007)

....more from Schlumberger web site....  indicates testing may take approx. 24 hours...  flow rates could give a good direct/immediate indication as to commerciality...  if not... we'll have to wait for wireline surveys and analysis of pressure response to determine if leedville could benefit from stimulation...  so may have to wait for a week or 2 for definitive results....

_2.  n.  [Well Testing] ID: 8022 

Well tests conducted with the drillstring still in the hole. Often referred to as DST, these tests are usually conducted with a downhole shut-in tool that allows the well to be opened and closed at the bottom of the hole with a surface-actuated valve. One or more pressure gauges are customarily mounted into the DST tool and are read and interpreted after the test is completed. The tool includes a surface-actuated packer that can isolate the formation from the annulus between the drillstring and the casing, thereby forcing any produced fluids to enter only the drillstring. By closing in the well at the bottom, afterflow is minimized and analysis is simplified, especially for formations with low flow rates. The drillstring is sometimes filled with an inert gas, usually nitrogen, for these tests. With low-permeability formations, or where the production is mostly water and the formation pressure is too low to lift water to the surface, surface production may never be observed. In these cases, the volume of fluids produced into the drillstring is calculated and an analysis can be made without obtaining surface production. Occasionally, operators may wish to avoid surface production entirely for safety or environmental reasons, and produce only that amount that can be contained in the drillstring. This is accomplished by closing the surface valve when the bottomhole valve is opened. These tests are called closed-chamber tests.

Drillstem tests are typically performed on exploration wells, and are often the key to determining whether a well has found a commercial hydrocarbon reservoir. The formation often is not cased prior to these tests, and the contents of the reservoir are frequently unknown at this point, so obtaining fluid samples is usually a major consideration. Also, pressure is at its highest point, and the reservoir fluids may contain hydrogen sulfide, so these tests can carry considerable risk for rig personnel.

The most common test sequence consists of a short flow period, perhaps five or ten minutes, followed by a buildup period of about an hour that is used to determine initial reservoir pressure. This is followed by a flow period of 4 to 24 hours to establish stable flow to the surface, if possible, and followed by the final shut-in or buildup test that is used to determine permeability thickness and flow potential. _


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## DAZT49 (1 May 2007)

Apart from the U thing the ann looks less posistive (to my novice eyes) than the one on the 23rd when the sp dropped 40c and fnished 18.5c lower.
Hold em or fold em??


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## the barry (1 May 2007)

DAZT49 said:


> Apart from the U thing the ann looks less posistive (to my novice eyes) than the one on the 23rd when the sp dropped 40c and fnished 18.5c lower.
> Hold em or fold em??




I think this is the problem with this stock. The majority of the investors in this stock have no idea how to guage the announcements made by the company. As soon as one person sells on an announcement it creates panic and everyone else follows suit.


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## Agentm (1 May 2007)

i look at the stock as vastly oversold, and as a result its made it a volatile stock with many daytraders into it and not a very large spread of investors.

i hope the announcements coming through and the near term well testing can deliver some normality to the sp, i dont hold the share but i feel the announcements are very upbeat and can easilt mislead and assist the sp in jumping around..

all imho and i dont hold any stock


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## DAZT49 (1 May 2007)

LOOK AWAY GDN HOLDERS ITS GUNNA BE A ROUGH COUPLE OF DAYS.
DST RESULTS COULD TAKE A WEEK. MUST GET BATTERIES FOR MY PACEMAKER.


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## bigdog (1 May 2007)

ASX ANN GDN 10:14 AM  Suspension from Official Quotation 

http://asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00716923+

 must assume that there is a further GDN announcement to be issued that covers a statement included in the "Third Quarter Activities Report" 

GDN 6:00 PM Third Quarter Activities Report 
http://www.asx.com.au/asxpdf/2007043...vyx9xyrpmm.pdf

In the activities report it says re the uranium project "full details of the transaction are contained in an announcement issued today (30 April) to the ASX."


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## chance fate (1 May 2007)

....  trading suspension!!....  perhaps the asx rightly has concerns ...  there is no way the general market has sufficient info. to put a value to the stock....  reckon the management team should come up with an indication... fun!!


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## white monkey (1 May 2007)

Why would a company request a suspension?  Can't they request an extension to the trading halt that has already been issued? 

Any explanations would be great.

thanks
WM


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## bigdog (1 May 2007)

There is a further GDN announcement to be issued that covers a statement included in the "Third Quarter Activities Report" 

GDN 6:00 PM Third Quarter Activities Report 
http://www.asx.com.au/asxpdf/2007043...vyx9xyrpmm.pdf

In the activities report it says re the uranium project "full details of the transaction are contained in an announcement issued today (30 April) to the ASX."


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## chance fate (1 May 2007)

... putting all doubts, suspicions etc aside....  re. the uranium - some preliminary logic in the absense of any further info..  i don't believe there was much uranium value built into the share price prior to this announcement.. i.e. it was all about the gas well..  so given that suddenly golden has become exposed to potential (as it announced) advanced status mineral production, by way of a JV with White Canyon, this can only be good news for the SP....  secondly, go back to the announcements re. paradox..  there are indeed many chances for commercial production given the large number of intersected intervals baring hydrocarbon shows...  so standing back from the heat of the volatile nature of this stock/shareholders.. there is a strong chance of realising value from both the U and the gas...  so if anyone can pick up golden stock for 40cents ... reckon they've got a bargain....  (in my opinion!)...  reckon also that the market should have been allowed to run it's course...  (in my opinion !!)...  agree with AgentM in this sense that the share price was probably heading back to the 60cent mark and that any rise beyond that was pure bubble....


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## bigdog (1 May 2007)

Yesterdays ANN

Thompson Uranium Project: The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

I have not been able to locate "White Canyon Exploration" using search on the internet!!!

If you can find "White Canyon Exploration" please post links


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## elcruzy (1 May 2007)

http://www.eia.doe.gov/cneaf/nuclear/page/umtra/whitecanyon_title1.html

i cant find the company but did find info on the area...it did produce in the 40-50's some very high grades of U @ 0.43%
the mine plant has been dismantled but obviously with the price per pound at $113 it is now economic to mine again. considering most mines are using a cut-off 0.1% this mine once JORC complaint could be good.

another thing i have noted when a stock is suspended the buy/sell list is cleared as oppposed to a trading halt. hopefully this will force speculators to rethink their actions and  the SP will stabilise - however i dont think there is much chance of that as even i am becoming a nervous nellie!!.


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## shanty (1 May 2007)

Hi,White Canyon is name of U.S.Energy Corp U property at San Juan.Utah. Last info I could find,100% owned by them? It'll all come good! Trust me! DYOR!


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## kevro (1 May 2007)

elcruzy said:


> http://www.eia.doe.gov/cneaf/nuclear/page/umtra/whitecanyon_title1.html
> 
> i cant find the company but did find info on the area...it did produce in the 40-50's some very high grades of U @ 0.43%
> the mine plant has been dismantled but obviously with the price per pound at $113 it is now economic to mine again. considering most mines are using a cut-off 0.1% this mine once JORC complaint could be good.
> ...




Those sellers may have been trapped T3er's who are still trapped and having to find some money to pay for their shares.


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## DAZT49 (1 May 2007)

Do you mean Buy/Sell depth?
My Comsec platform indicates an IAP change of -15c but thats from around the time of the suspension of trade.


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## Wysiwyg (2 May 2007)

So this is the reason for the hold up folks.....


URANIUM MINING AND EXPLORATION VENTURE
The directors of Golden State Resources are currently finalising the content of a detailed
announcement regarding the proposed spin off of the Company’s uranium assets.
There are issues to resolve regarding the levels of confidence and method of presentation for
resource estimate data prepared within the USA.
It is expected that these issues will be resolved shortly and an application made to lift the
current trading suspension as soon as practicable.


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## chance fate (2 May 2007)

What does this mean??  ...  we could be waiting weeks for them to meet the criteria required for that kind of declarataion in the usa....   seems the original announcement was premature and that a trading halt was not required....  no news of the DST.......:sleeping:


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## DAZT49 (2 May 2007)

Have they stopped drilling at Paradox1 until after the DST or have they called it quits.  
Very confusing to this little black duck.


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## chance fate (2 May 2007)

They use the drill string to do the test...  i.e. it's the usual length of drilling pipe but without the drill bit on the end... and instead a whole bunch of gear to isolate the area they're interested in testing...  so no they can't drill and test at the same time if that's what you mean by the question...  once they've finished testing they can then proceed with drilling....  but i guess they're not really under pressure to report well results now that trading is supended....

I reckon the original annoncement that we didn't get to see concerning the uranium venture was rejected as containing insufficient details by the ASX....  that's why we're now having to wait some more....  that reflects poorly on the manager's judgement... tho' must concede they're under alot of pressure right now...  on the brighter side.. if they're having to firm up resoruce estimates for the Uranium venture there'll be something more concrete by which to value to company... so it will be worth waiting....  i hope!!!


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## DAZT49 (2 May 2007)

Seems they were trying to rush the U report thru to cover the not so good ann about Para1.
I converted my options to shares a day before that, as the expiry date was looming, I am bleeding rather profusely.
Fingers crossed ..as they have been for the last 12 months.


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## ben_Q (4 May 2007)

New announcement available regarding the Uranium spin off. 
Looks like the market may open again this morning. 
Hoping for a good result.


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## bigdog (4 May 2007)

Two GDN Announcemetns to ASX yesterday
GDN 6:35 PM  Reinstatement to Official Quotation 
http://www.asx.com.au/asxpdf/20070503/pdf/31293j7nzdtlph.pdf

GDN 6:35 PM  Uranium mining and exploration venture - assets spin off
http://www.asx.com.au/asxpdf/20070503/pdf/31293gv2vzd441.pdf

URANIUM MINING AND EXPLORATION VENTURE
Uranium Assets Spin Off
• The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

• The new entity will hold high grade U3O8 deposits estimated to contain in excess of 1.9 million pounds (a non-JORC-compliant resource – see page 2 for details) and is expected to begin mining operations, given satisfactory confirmatory drilling results and statutory approvals, within the year. The directors of Golden State Resources announce the execution of a Memorandum of Agreement for a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.

It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of a planned capital raising. It is the intention of Golden State’s directors that there will be a priority entitlement for Golden State shareholders to participate in this raising.

The agreement is the result of six months’ negotiation with White Canyon and will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger advanced project with a short time frame towards mining operations.

The new joint enterprise has distinct advantages:
• In excess of 1.9 million pounds of U3O8 with an ore grade of 0.3% (6.2 lbs per ton) contained in 300,000 tons of ore in high grade sandstone-hosted roll-front deposits, plus substantial exploration potential on the Thompson Project.

• Experienced management, with successful underground uranium mining expertise, who are currently contract mining and shipping ore to the White Mesa Mill, Blanding, Utah.

• Early mine production potential from drilling-defined ore bodies.

• Favourable and proven geology – the Chinle and Morrison Formations of the Colorado Plateau. Utah has historical production of 130 million pounds of U3O8, with 80% from the Chinle Formation.

• All projects are in Utah, USA – a supportive jurisdiction with currently licensed and operating uranium mines and mills.

• An aggressive and ready market for yellow cake product from US electricity utilities. Spot price for uranium has doubled in the past six months to US$113.

Drilling to commence in May
The Company has engaged a drilling rig and lodged application for statutory permits to commence a drilling programme on the Daneros and Geitus bodies. The technical programme will include twinning a large number of the drill holes used in the original assessment, infill drilling certain zones and opening up and relogging old drill holes. The work will evaluate the assessment and reporting criteria of Table 1 of the JORC Code and allow the generation of mineral resources over a period of two to four months, and in time ore reserves in accordance with the JORC Code.

Terms of agreement with White Canyon Exploration LLC
Golden State and White Canyon will contribute their respective uranium interests to the new entity, which will acquire remnant interests in the Daneros and Geitus leases from unrelated parties for US$10,000,000, part of funds to be raised. The new company will own 100% of all assets. There is a pre-existing 15% mill return royalty on the Daneros and Geitus leases, ceded to the previous owner of the leases in 1993.

Indicative timetable
An indicative timetable for due diligence investigations, fund raising and listing will be  released within two weeks.


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## DAZT49 (4 May 2007)

1.9mp x $113=$214.7 m gross. Is that good? Seems small .
say $20/p to produce.
1.9 x $93=$176.7m A days wage for Bill Gates
Or is my math out


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## bigdog (4 May 2007)

GDN today opened 74 cents

GDN  0.725 -0.065  -8.23%  0.74 high and low of 0.70 549,230 shares $405,637 04-May 10:05:23 AM


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## constable (4 May 2007)

This thing is a game of russian roulette! Every trade changes the bloody price!!!
Looks like it might be coming off the boil now after nearly 400 trades in the first 25 minutes.


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## trader (4 May 2007)

Makes you wonder if any of the directors sold any this morning, could be
a very timely uranium ann because we all know what would happen to the
share price if their well is a dud.


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## DAZT49 (4 May 2007)

Hammered again!! If this DST report is not good, I am gunna jump off a bridge (a very low one..say 1/2 metre)


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## bigdog (4 May 2007)

I would imagine that the success of the Uranium mining and exploration venture float could very much depend on what happens with GDN's current drilling for gas@

If the GDN well is a flop and the SP drops, which GDN shareholders will be interested in subscribing for shares in the new company run by the current GDN managment????


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## DAZT49 (4 May 2007)

Bigdog,
Thats the prob I spose.
I have had the stock since IPO and I am gettin old FAST.
My bro (broker) ses its all rosy and hang on. While I am in front thats ok but its a long way back to $1.12 of a few days ago.


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## sleeper88 (4 May 2007)

bigdog said:


> I would imagine that the success of the Uranium mining and exploration venture float could very much depend on what happens with GDN's current drilling for gas@
> 
> If the GDN well is a flop and the SP drops, which GDN shareholders will be interested in subscribing for shares in the new company run by the current GDN managment????




I thought a new management team will be assembled to run the new U company? or is it going to be the same old team that runs GDN.


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## the barry (4 May 2007)

Does anyone know when the dst report is due. I may as well hold on till that is announced. Good news and they will go through the roof, the more likely of the two and bad news, the stock won't be worth the paper it is written on. Was looking at selling my options today, but when i was trying to early on the only buyers of depth were at 35 cents.


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## DAZT49 (4 May 2007)

My bro ses about a week (from Wed) for the report(he thought)
Isnt there also another 3 wells planned?


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## shanty (4 May 2007)

Re Uranium management comments.
GDN ann stated:
"Experienced Management with successful underground uranium mining expertise who are currently contract mining and shipping ore to the White Mesa Mill, Blanding, Utah."
Let's face it they have been busy working on this move for six months.Yes! One could dream up all sorts of devious reasons, twists and turns but you can do that in most situations. Have faith lads and have a good weekend!


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## chance fate (4 May 2007)

.... i bought back in and am now trying to work out tactics for next week..... and apologies.. to some extent this is just me typing out stuff that comes to mind... seems to me as per threads on other sites the stock now contains a small element of value due to the uranium and an expectation value due to confidence that the gas well has at least 50bcf of reserves...  if on Monday an announcement is made re. the DST it would thus seem irrelevant with respect to the 2 reasons above... i.e. there's high confidence that there's at least the 50bcf in the shallower sections...and so represent only upside.....  and so a negtaive report on Monday although will have a direct negative impact on the SP will not reflect the actual value as the leedville has now been removed from the market value of the stock....  so that means wait and buy at the low....and hold with confidence if you already hold....or if you fancy a gamble sell at the open and buy back lower later.....  whatever...  once this is all over i'm cashing out of the market...  going on holiday.. and hopefully get rid of the black bags that are starting to appear under my eyes!!!!    This could just be crap...  but interested in any comments....


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## constable (4 May 2007)

chance fate said:


> .... i bought back in and am now trying to work out tactics for next week..... and apologies.. to some extent this is just me typing out stuff that comes to mind... seems to me as per threads on other sites the stock now contains a small element of value due to the uranium and an expectation value due to confidence that the gas well has at least 50bcf of reserves...  if on Monday an announcement is made re. the DST it would thus seem irrelevant with respect to the 2 reasons above... i.e. there's high confidence that there's at least the 50bcf in the shallower sections...and so represent only upside.....  and so a negtaive report on Monday although will have a direct negative impact on the SP will not reflect the actual value as the leedville has now been removed from the market value of the stock....  so that means wait and buy at the low....and hold with confidence if you already hold....or if you fancy a gamble sell at the open and buy back lower later.....  whatever...  once this is all over i'm cashing out of the market...  going on holiday.. and hopefully get rid of the black bags that are starting to appear under my eyes!!!!    This could just be crap...  but interested in any comments....




Plenty getting out today, any exhuberance was convincingly squashed by 11.30. Lost 6 ticks myself and although i looked for re entry it just wasnt there. This one's the gamblers' nightmare or dream, take your pick!
I should add, it just ranges so wide that i couldnt help myself!!


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## rosesny_1 (5 May 2007)

Hi. Jessie Livermore, a well-known an early 20th century stock market investor said, "I made a lot more money sitting than trading." I think that still holds. We've all heard of Warren Buffet, who invests on fundamentals, but I think few of us can name a comparably well-known and successful trader, if one such exists. Now as to what we know about the fundamentals of GDN... We know GDN has a well with potential in eleven zones for gas and one for oil. We know GDN has a relatively rich uranium play that is being monitized by a listing on the ASX. We know that GDN has an interest in an iron play that may eventually result in GDN being paid a regular royality.

Regarding the well, management has all but stated that it is commercial. They are planning a gathering pipe and gas plant. How productive will this well be and what does it mean for the approximately 7 square mile formation that the well is on that GDN has a large interest in? We'll know much about that only after frac operations and testing. But there is high pressure here and lots of shows and after fracture a number of these shows could flow in a big way. Fracturing is usually fundamental to these wells. It opens up paths for the overpressured gas to flow through - a good frac goes up to 400 feet or so from the well bore in all directions and the gas flows into the well bore from this great space and beyond. This 7 mile structure could very easily give up a lot of gas. A slightly larger high-pressure Paradox structure that Delta Petroleum has drilled two wells about 7 miles apart on (40 miles to the north) is now estimated to hold between 2.5 and 4 Tcf of gas. The bottom line. It's time for sitting with GDN not trading it.


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## Wysiwyg (5 May 2007)

Is that Greentown you are refering to.No reserve declared yet but looks very promising.
I have little patience and at one well per year things could take a while.You are right though , in the future GDN holds the lease and all that gas.Those heady s.p. bandied around will come around one day.


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## DAZT49 (5 May 2007)

Thanks for that post rosesny_1. Gives me a bit of confidence to hang tough.
I have only been on ASF for a short time, so spent the last 18 months relying on ASX announcements and trying to extract info from my broker.
These forums are great.


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## chance fate (5 May 2007)

...just lost some typing and redoing it so hope this doesn't appear twice!!

I must be pretty slow but anyhow...  i was re-reading the DST announcement and trying to understand why they are doing a DST at this stage...  after thinking about it it seems from a technical standpoint (i.e. all sinister reasons aside) that something isn't adding up....  here's my logic...

The announcement states that due to hydrostatic pressure the gas shows are likely to have been subdued...  it seems that the hypothesis is that with the high mud density being used to counter the over-pressure i.e. higher than hydrostatic, gas has not been absorbed into the mud and so the shows have been less than expected...  this suggests that the leedville was not overpressured...  and consequently it could be that heavier than needed mud has penetrated the formation and clogged the rock so that gas doesn't flow as readily into the well....  on the face of it the DST would enable the mud to be 'blown' back and so improve the gas flow...

This doesn't explain why the DST needs to be done right now...  the well is only a few hundred feet away from total depth..  why not drill on and do the test along with the other shallower zones as part of the testing program to follow completion of drilling?

A possible reason why could be that with declining back ground gas due to possibly the effect of drilling mud penetrating the rock, they need to make a decision on whether to run more casing to protect the formation from being 'damaged', and drill ahead with a smaller diameter drill....:
*  if the DST showed that gas flow improved and appeared commercial after cleaning out the mud then it would be a good reason to go ahead and case the leedville before drilling ahead (another week or so delay)... 
*  if the gas flow was poor, the leedville could be dismissed as a potential producer and drilling ahead would be ok as there would be no need to protect the formation from being damaged..  

To me this seems to be reasonable logic for doing the test right now.... but although I've had some experience in this area I wouldn't say i've got the expertise to make the call...  so was wondering if anyone out there could shed some light.....


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## rosesny_1 (5 May 2007)

Chance Fate, I like your logic. There was a major drop off in background gas in the Molas Formation at 15531' (dropped to 40 from 800 at 15397'). Then, after the Leadville gas shows at 200 units, background gas got back up to 300 then dropped way down again. Perhaps there's less natural fracturing in the Leadville/McCracken than in upper formations and therefore less gas pressure, and as you point out this may have resulted in the mud being too heavy to allow much of the gas to flow into it. Thus the DST.


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## chance fate (5 May 2007)

rosesny_1 ... not sure if i'm interpreting you right... but the well was cased down to 15531  'i.e. communication with formation rock above 15531' cannot occur...  so the background gas levels we're seeing now come entirely from the formation that has been drilled since drilling started again after the lost pipe delays...i.e the leedville and downwards......


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## rosesny_1 (6 May 2007)

The upper figures for gas content are the ones in GDN announcements before casing. They were reportedly higher throughout the potentially productive levels.


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## chance fate (6 May 2007)

rosesny_1..ok ...  yeah...sorry...  the rock properties could be the reason for the difference... and if so...like you say fraccing might enable the gas to flow more readily....  the DST results should give an indication...

...  given that we haven't heard anything on the results up to last Friday ..  i was starting to think (could be stretching it) that that may be a good sign that at least they've obtained results worth interpreting...  otherwise they could have announced something immediately along the lines of ...  'insufficient gas flow for measurement'....  for me at the moment (on a weekday!) no news=good news...


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## bigdog (7 May 2007)

ASX ann today
GDN 9:46 AM  Drilling status report 
http://www.asx.com.au/asxpdf/20070507/pdf/312b5kfnvx0hgv.pdf

Drilling Status Report – 7 May 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, has successfully reached its final depth of 16,471 feet (5,020m) in the Cambrian Lynch Dolomite
• A geophysical wireline survey was completed
• The Company has opted to use the current rig to proceed immediately to well completion, initially testing the Pinkerton Trail Formation gas show, to be followed by gas shows in the Alkali Gulch, Barker Creek, Akah and Upper Ismay intervals

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
The Directors of Golden State Resources are pleased to announce that the Paradox Basin #1 oil & gas well has successfully reached its total depth of 16,471 feet (5,020m) after passing into the Cambrian Lynch Dolomite at 16,368 feet (4,989m).

DEVELOPMENT AND PRODUCTION
The Company has elected to use the current drilling rig to proceed immediately to well completion (the process of finishing a well so that it is ready to produce natural gas), given the difficulty in acquiring a work-over rig capable of operating to depths in excess of 15,000 feet (the depth of the Pinkerton Trail Formation gas show).

Testing of the Pinkerton Trail gas show will commence within 36 hours. The production potential for the intervals annotated below will be known within two weeks.

As a first priority, perforation and testing will be undertaken on the following gas shows:

Upper Ismay 9,845’ - 9,858’ 3,001 - 3,005 Gas in dolomite reservoir rocks at up to 520 units, with connection gas levels up to 3,000 units.

Akah 10,815 - 10,834’ 3,296 - 3,302 A gas show of up to 790 units.

Barker Creek 12,558’ - 12,580’ 11,015’ - 11,031’ 3,828 - 3,834 3,357 – 3,362
A major pressured gas interval in dolomitic sandstone. Gas (methane, ethane and trace propane) was present at levels of up to 2,300 units, with connection gas up to 3,300 units.
-- A 16’ gas-bearing interval (390 units), in a sandstone unit marking the top of the Barker Creek member.

Alkali Gulch 13,097’ - 13,106’ 13,145’ - 13,154’ 3,992 – 3,995 4,006 – 4,009
Two significant gas intervals in vuggy dolomite between salt horizons, with gas levels up to 800 units. The host dolomite was the best quality reservoir rock seen in the well.

Pinkerton Trail 15,288’ - 15,321’ 4,660 – 4,670 A significant show over a 33’ interval within a strongly fractured cyclic sequence of limestone and black shale, with gas up to 1,020 units.

Other oil and gas shows in other formations, may be assessed in conjunction with the above intervals.

Following the completion of a geophysical wireline survey, the Mississippian to Cambrian bottom interval of the well was plugged to allow development of the upper Pennsylvanian section of the well.

Drill Stem Test – Leadville Limestone Fm
The drill stem test on the Mississippian Leadville Limestone target yielded water at this depth, indicating that the Leadville target will be better tested further up dip, above the inferred oil/gaswater interface (see diagram below). The proposed second well for the project targets the Leadville Limestone one mile (1.6 km) up dip to the SSW, and would intersect the Leadville Limestone 1,000 feet (305 m) higher vertically above the intersection in Paradox Basin #1. Permitting is currently under way for the next location.

PRODUCTION PERMITTING
Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged. Permitting for an onsite gas plant awaits completion of the well.


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## bigdog (7 May 2007)

The maarket did not like todays ANN and now down 8.5 cents to 60 cents

GDN   $0.60    -$0.085  -12.41% high of $0.705 and low of  $0.595  1,693,815 shares  $1,104,491  

@ 07-May 10:22:28


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## chance fate (7 May 2007)

... one thing is now for sure ... and that is the upside potential in the sp represented by the leedville has vanished.... which leaves the secondaries... forward low mid and high value scenarios might be (rough!) - anyone got alternatives???:

Low: 50 bcf Pinkerton
Mid: 50 bcf Pinkerton, 50bcf Barker + Alkali
High: Mid + 50bcf in remaining zones

Taking 50bcf to be worth approx. 50cents (rough!)

Low SP target = 60c
Mid SP target = 110c
High SP target = 160c

In my mind the risk is lower (i.e. not much risk of lower sp movement) .... the secondary shows have been good... so to me still worth holding pending results for another few days....


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## rosesny_1 (8 May 2007)

*Re: GDN Announcement*

GDN doesn't say the intervals to be tested are being frac'ed now, so I assume testing is being done without first frac'ing. I like the fact that GDN is testing quickly to try to get gas to the pipeline ASAP but I wish they had said something about frac'ing. Perhaps they'll comment on this in the announcement about the tests. As the current Pinkerton Trail shows appear to be above the gas/water contact, the Leadville Limestone in the 2nd well 1000 feet updip and at/above the Pinkerton level of the current well, should also be above the gas/water contact and so hopefully will be gas charged and productive there, as might the McCracken Sandstone.


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## bigdog (8 May 2007)

GDN seem to have a special relationship with CK Locke and Partners of Perth!

IMO it was very convienent for the SP to drop today to 57.5 cents (the basis of placement price -- "The placement price was calculated at today’s closing price less a 7.5% discount")!!!

Date ----- Open 	 High 	 Low 	 Close 	Volume
07-May-07	 0.705 	 0.705 	 0.575 	 0.575 	10,669,772
04-May-07	 0.740 	 0.770 	 0.670 	 0.685 	9,562,963
03-May-07	 0.790 	 0.790 	 0.790 	 0.790 	0
02-May-07	 0.790 	 0.790 	 0.790 	 0.790 	0
01-May-07	 0.790 	 0.790 	 0.790 	 0.790 	0
30-Apr-07	 0.790 	 0.790 	 0.790 	 0.790 	0
27-Apr-07	 0.790 	 0.790 	 0.790 	 0.790 	0
26-Apr-07	 0.875 	 0.900 	 0.760 	 0.790 	6,658,687


ASX ANN after close may 7
GDN 6:13 PM  Placement & Option Exercise 
http://www.asx.com.au/asxpdf/20070507/pdf/312bmc45pdflb6.pdf

ANNOUNCEMENT
• Golden State $4 million share placement.
• Exercise of listed options

Share Placement Raises Funds for Working Capital

Golden State Resources is pleased to announce that $4 million has been raised by the placement of 7,476,635 shares at a price of 53.5 cents per share to Cranport Hedge Fund and to CK Locke and Partners of Perth.

The placement price was calculated at today’s closing price less a 7.5% discount.

The proceeds of the share placement will be applied to working capital for the
Company.

Exercise of listed options
The attached 3B includes the issue of 307,500 new ordinary shares as a result of the exercise of listed options (GDNO) expiring on 30 June 2007.


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## chance fate (8 May 2007)

...  I should have included the no reserves scenario in the list in my previous post!... good comment on the fraccing, rosesny_1...  it's possible that the current test results will reveal poor flow and indicate the need for fraccing and so a delay of several weeks for design and bringing the kit to the site... sp would get battered... and it also looks like the zones with the highest chance of not needing fraccing have been selected on the list for this set of tests...  so plenty of scenarios for when and where the price will head...


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## rosesny_1 (8 May 2007)

I doubt if there will be any delay for frac'ing. I think GDN knows enough of the zones that they are testing will naturally flow gas at commercial levels. That's what their announcements have been implying right along. If they do frac before hook-up I think it will be done during plant/gathering line construction. Right now they need to know enough about gas flow so as to size the plant and gathering line. The bottom line is that this company needs cash flow quickly.


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## DAZT49 (8 May 2007)

C.K. Lockes handled the IPO for GDN in 2005.
If they are using the rig to finish Para 1 How long should it take before the 2nd well is commenced?


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## chance fate (8 May 2007)

...  the thing that concerns me with the water in the leedville is how close to the spill point they've drilled in the upper zones...   it's possible that they could produce but get watered out pretty quickly...  if they are close they'd have to drill the next well updip asap...  but at least they will know the size of the reserves...  but if it plays out like that there may be a cash flow problem...

... and if they are close to the spill point, and running my ruler over golden's area map, the reservoir would only be about 4 square km's in the Barker Creek down to Pinkerton (ignoring Ismay) - which means reserves using total net reservoir of say 30m in upside case would be approx 70-80Bcf....  let's hope the area is bigger....


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## chance fate (8 May 2007)

...  I should add that if the area is anything like that shown on the golden chart .. the same calc produces reserves in the order of several 100Bcf's... my calc is a simple enclosed volume with 5% porosity at hydrostatic pressure converted to atmospheric pressure...  so reasonably comfy with it as being a rough guide...


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## bigdog (8 May 2007)

The agreement to $4 million placement based on a 7.5% discount to the last closing price for the day ahead was not smart on GDN's part; nor transparent!
-- I am very disappointed to this action by GDN!

If the placement was offered to me, then I would you sell down and do everything in my power to keep the stock price low?

Why was the average closing price of prior days/week not used?

What is a reasonable basis for determining the placement SP?


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## elcruzy (8 May 2007)

Totally agree big dog, it should not be calculated on the last days trade but on an average weekly. Also thanks to the others for drafting up a rough idea on the gas-price idea.

I know of a few deals where the directors or fundies (in this case CKlocke) either buy or sell prior to manipulate the SP, I dont know if this is legal or not but it DOES happen. 
Maybe this stock is worth more than it is currently quoted? Can we check on who the major sellers were and see if they were trying to push down the SP?

What i am happy about is the positive side of it that it 'should' provide a floor price to the SP and that extra funding gives more life to this company.

What a roller coater this stock is!!!


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## Wysiwyg (8 May 2007)

The most likely response to minor gas shows in leadville was the s.p. decline.Announcing the U spin off at the same time  accelerated the decline.An entry at 53.5 c or less is what I would like too rather than the 70 c re-entry I paid.


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## bigdog (8 May 2007)

ASN ANN today
GDN 4:30 PM   Change of Director's Interest Notice 
http://www.asx.com.au/asxpdf/20070508/pdf/312c5j13kbqbbd.pdf

"We attach an Appendix 3Y relating to a change in director’s interests for Mr Richard Sciano. The change reflects the purchase of 200,000 ordinary shares in the company on market for 75 cents per share."

Total paid $150,000 by Richard Sciano for 200,000 shares 
--- drop in the ocean compared to what Richard held June 30 2006

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 page 34
http://www.goldenstate.com.au/myuploadfiles/Annualreport2006.pdf

Note 6: Key Management Personnel (continued)
Shares balance @ 30/06/2006 per annual accounts issued 
4 Australia Pty Ltd (R Sciano) 3,000,000
Auctor Group Pty Ltd (R Sciano) 1,190,500
R Sciano 16,300


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## chance fate (8 May 2007)

.. timing is really odd...  why at 75c just before the financing and the DST result...  why not 75c a few weeks ago...  and if he knew the dst result - which he must have done because it seems there was no flow at the well - why not buy today/monday??  and if he knew the dst result, even if he had a large holding before, why throw good money away?


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## jtb (8 May 2007)

chance fate said:


> .. timing is really odd...  why at 75c just before the financing and the DST result...  why not 75c a few weeks ago...  and if he knew the dst result - which he must have done because it seems there was no flow at the well - why not buy today/monday??  and if he knew the dst result, even if he had a large holding before, why throw good money away?




From memory didn't he take profit on the first spike?
After the rollercoaster of paradox 1 draws to a close maybe he's dribbling a bit of that coin back in for the development?
As I've mentioned prior I think the existing results points to an extremely interesting reservoir, irrespective of leadville and lower.
Contemplating re-entry myself atm
Paradox 2 will kick a$$ I think with the focus on the fatter shallow structures.

Me thinks one could draw all sorts of conclusions from the recent price action also


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## bigdog (8 May 2007)

Just adding up the numbers I must conclude that "Consolidation: means sales and our directors sold 13,794,335 shares in the financial year ended June 30 2006per the annual accounts below. 

Why was "consolidation" used and not sold?

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 page 34
http://www.goldenstate.com.au/myuplo...report2006.pdf

(d) Details of transactions of Key Management Personnel concerning shares
-----------------------------Balance -----Purchased -----Options ----------------Balance
Shares ----------------------30/06/2005  -(Sold)  ------- Exercised Consolidation -- 30/06/2006

4 Australia Pty Ltd (R Sciano) 9,000,000 ------------------------- - (6,000,000)-- 3,000,000

Auctor Group Pty Ltd (R Sciano) ---------- 611,500 ------2,960,000 (2,381,000)-- 1,190,500

R Sciano --------------------------------- 16,300 -------------------------------- 16,300

J Hasleby----------------- 3,500,000 ---- 240,000 -------- 740,000 (2,946,665)-- 1,533,335

J Hopkins-------------------------------------------- - - 2,960,000 (1,973,335)--- 986,665

P Ruttledge - - - - -

P Strachan ------------------------------------------- - 740,000 -----(493,335)-- 246,665

Total -------------------12,500,000 ----- 867,800 ---- 7,400,000 --(13,794,335) 6,973,465

Mr Richard Sciano.has now purchased of 200,000 ordinary shares in the company on market for 75 cents per share.
--- wow!!!


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## jtb (8 May 2007)

See pg 3 ann' dated 31 Oct 2006 (see share price).
I would have tipped more in myself


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## tino (9 May 2007)

Finally, so positive SP movement! Not quite sure what brought it on. Don't think the directors buy in would be enough to turn the tide, but I am not complaining.


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## chance fate (9 May 2007)

...reckon the buy-in was absolutely what turned the tide... and i'm not complaining either - just wish google earth was live and could zoom in on Utah for flare activity...  can they flare in Utah?


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## DAZT49 (10 May 2007)

I have tried to find Paradox 1 on Google earth, does anyone have the coordinates?
Another 8 days like yesterday and I stop bleeding.


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## sagitar (11 May 2007)

Try these coordinates - it should land you right on the drilling hole!

38 °47'58.35"N
109 °22'39.69"W


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## chance fate (12 May 2007)

..looks like the right spot...  but there's just dirt.....and a few shrubs...  the whole thing has been fabricated!!


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## DAZT49 (12 May 2007)

Yeah, could be a hoax!!!
Dont know how often Google updates its data, but being that the rig has been there about a year you would think there would be something.
Seriously, hopefully, the report early next week will give some good results and the SP will slowly recover to about half what I bought it for.


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## chance fate (12 May 2007)

Yeah...  i'm gradually falling out of love with golden..  bit of a sour taste after all these ups and downs...  but not ready to give her the flick because i still think there's a chance that she can deliver the goods...


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## sting (13 May 2007)

In responce to Google Earth's currency... when I look at my house it shows a pic of a car that I sold 3yrs ago. So I dont think its that recent well not over the east coast of QLD where I live....

sember ubi sub ubi


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## DAZT49 (13 May 2007)

It would be nice to know if GDN still think the 3 TCF or even the midrange 440 BCF is still realistic. 
Hopefully the results of the testing will include some kind of reappraisel of the overall situation, tho going by past anns they wont.
I bought GDN for the whole ride, s..t or bust, cos if they get strike 'gold' I can get out of this 9 to 5 bind.


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## rosesny_1 (15 May 2007)

*Re: GDN - Pinkerton Trail Formation*

Brief internet article:

New Gas Play in Fractured Pennsylvanian Strata in the Eastern Paradox Basin of Colorado and Utah

Rasmussen, Donald L.1, Dalton L. Rasmussen2 (1) Paradox Basin Data, Denver, CO (2) Platte River Associates, Inc, Boulder, CO

An emerging new play in the Paradox Basin is for gas trapped in micro-porosity and fractures within strata of the sub-salt (Pinkerton Trail) and salt-bearing (Paradox) Pennsylvanian horizons. Greatest potential for gas in the Pinkerton Trail is in structures along the Uncompahgre Uplift where thick organic-rich shales were interbedded with carbonates, evaporites, and siliciclastics during the late Morrowan and earliest Atokan. These strata were subsequently fractured in the late Paleozoic by wrench and thrust faulting and again during the early Tertiary Laramide event by reactivated folding and faulting. Hydrocarbon generation began possibly as early as the late Paleozoic and continued into the Tertiary. Gas potential in the Atokan and Desmoinesian Paradox organic-rich shales and dolostones and their siliciclastic interbeds is greatest within trends of maximum thickening or where interbedded between Paradox salts. Fracturing of these strata began during post-depositional folding and faulting, primarily during excavation of salt intervals to adjacent anticlines or diapirs, and was reactivated during hydrocarbon generation and tectonism in the Cretaceous and Tertiary.


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## DAZT49 (15 May 2007)

Interesting..if you know what they are talking about.
when n where did you see the article rosesny_1?


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## bigdog (15 May 2007)

49er,

looks like 2004 article

we need someone to make opinion of the statements!

http://www.searchanddiscovery.net/documents/abstracts/2004rocky/rasmussen02.htm


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## DAZT49 (15 May 2007)

Woofer,
Reckon we need GDN to tell us what the hells going on.
Specifically, are they still after the BIG Kahuna, or are they happy to be a small production company.


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## elcruzy (15 May 2007)

I have heard that 50-100bcf is still worth 50cents a share to GDN which it seems where the SP is atm, any positive news from the DST will help the SP. I only wish we knew whether GDN's partner was going to back in for 16.67% - now wouldnt that be a vote of confidence?!? especially since they are the ones drilling the 2nd hole.

DATZ49 - i'm in the same boat as u pal, otherwise i would have sold at $1.


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## DAZT49 (15 May 2007)

elcruzy,

This is from GDN website.
in part..
Analysts Report- CK Locke june 2006

A minimum case of 50BCF currently is
potentially economic. Even based on this
alone it technically values the GDN share
price at $1.00 to $1.50.

Analysts Report-StockAnalysis Mar 2006

Since it is earning a massive 83.3% in the project, GDN offers huge leverage to success.
Discovery of 440Bcf of gas by this A$10-12m well, would be worth about $10 per share,
compared with a current price of 19 cents.


Well we can dream cant we??


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## chance fate (15 May 2007)

...  the current well's drilling costs are effectively sunk costs i.e. should really have no baring on whether the well is economic looking forward...  so it is conceivable the well could flow even in a very low reserves case to at least recover all or a portion of costs...


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## hoppielimp (16 May 2007)

Hey Dazt49,

The silver lining to all this is that CK Locke's report was based on a gas price of $4 ish...  I think gas prices are somewhere in the hi $7's...


Here's still got the fingers crossed. :


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## DAZT49 (16 May 2007)

hoppy,
Thanks for that, makes me feel  a bit better.
Nice to see the SP actually up for a change this am.
I keep haggling my broker for info, an he ses to hold as the 'fundamentals' are still the same...whatever that means.
Be nice if the report came out this week!!!


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## chance fate (16 May 2007)

DAZT49... seems like your broker means the price movement is solely due to traders at the moment...  did you say once before that you're with CK Locke??  If it is and that's the advice you're getting right now then that would be a good sign!!!  Whatever... and whoever you want to believe .. reckon all those that have lost the nerve/stomach for this have gone now..


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## DAZT49 (16 May 2007)

Chance fate,
Yep, CK Locke.

Its hard to hang on when you see your profits get vaporised like in the last 2 weeks.
Haven't lost my stomach yet but I did start dry reaching when the drill got stuck for a few months 53' from the target in Para1!!
Then again when they didn't hit the jackpot!!


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## Haveacrack (16 May 2007)

Does anyone know when we might expect another ann regarding measured estimates?  We are fast approaching the end of the two week period where they stated they should have test results.


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## chance fate (16 May 2007)

Hi DATZ49,

... if that's what they've advised you today or yesterday - that is very good news....  interesting that they couldn't revel further details though...  maybe they have enough to go on from way back when they were drilling the shallower horizons..  but still there's nothing like having a well test result to confirm the resource size....  so at this end at least still a mixture of excitement and terror...


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## rosesny_1 (17 May 2007)

*Re: GDN - Golden State Resources - natural gas prices*

Regarding the gas price that GDN should get - Delta Petroleum (a lot of Rockies production) just entered into some 2008 hedges with the bottom at, if my memory serves me, $6.60 or 6.80US and the top at 8.80. If the first gas goes out of this GDN well in the northern fall, I think these prices are about what can be expected. The Rockies get lower prices right now but an added pipeline to Chicago is due to go on line in 2008 and that should up the prices to closer to East Coast US prices which are now in the $7.50 to $8.00US range. This is usually the slow time for natural gas is the US so the prices could drop for a while but they should be in that 6.60 to 8.80 range in the September 07 to March 08 period.


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## Haveacrack (17 May 2007)

*Re: GDN - Golden State Resources - natural gas prices*



rosesny_1 said:


> Regarding the gas price that GDN should get - Delta Petroleum (a lot of Rockies production) just entered into some 2008 hedges with the bottom at, if my memory serves me, $6.60 or 6.80US and the top at 8.80. If the first gas goes out of this GDN well in the northern fall, I think these prices are about what can be expected. The Rockies get lower prices right now but an added pipeline to Chicago is due to go on line in 2008 and that should up the prices to closer to East Coast US prices which are now in the $7.50 to $8.00US range. This is usually the slow time for natural gas is the US so the prices could drop for a while but they should be in that 6.60 to 8.80 range in the September 07 to March 08 period.




Thanks Rosesny - some encourageing research on your behalf given gas prices when GDN commenced drilling last year.   I read the appraisal by CK locke and if what they assume is correct this will have a very positive effect on the SP if test results are positive.


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## DAZT49 (17 May 2007)

Guess we are all hanging out for that report.
Dont forget the U equation too.
The ann of 3rdMay....
'An indicative timetable for due diligence investigations, fund raising and listing will be released within two weeks.'
Well..2 weeks is up..nearly.


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## chance fate (18 May 2007)

...  not sure now that it'll be 'within 2 weeks' ...  that's what was announced re. the uranium spin off and an announcement on its respective forward timing on 3 May...  it's now the 18th and no sign of an announcement on that...  the heart's going to be pounding when the announcement flag comes up... and the way thigns have gone it'll be the U announcement and we'll be kept in suspense on the test results...  getting frustrated and impatient ....what a stock....:viking:


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## DAZT49 (18 May 2007)

Still nightime in the US. Ann will probably come after trading closes here..maybe..perhaps. 
You are right.. this stock is driving me crazy.
Almost drive a guy to drink.


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## chance fate (18 May 2007)

...I gave up smoking a while back... but temptation got the better of me today...cigars!!...  it's back to 9-5 for me if this doesn't come through... took a few months off ...  luckily the job market here in Perth means i can walk into something within a few days...  build up some more cash and get into Nexus asap and Karoon towards the end of the year...


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## chance fate (18 May 2007)

...  was doing some rough calcs using a spreadsheet i used to use when i did exploration econs for a well known co. here in town...  on potential sp v's resource size and with US$4/GJ (conservative)...  looks healthy even with 50bcf: here's the numbers (dyor!)

12km² area:
10m reservoir thickness = 0.075Tcf = $1.50
20m reservoir thickness = 0.15 Tcf = $3.00 etc..

16km² area:
10m reservoir thickness = 0.1Tcf = $2.00
20m reservoir thickness = 0.2 Tcf = $4.00 etc..

at US$8/GJ double these SP's...  

there's a significant uncertainty in my mind as to the boundary of the pensylvannian levels..  the mapping shows an area up to 16km²...  however this is based on the assumption that the well penetrated the boundary of the reserves.  It certainly penerated reservoir (barker creek was a pressurised interval if i remember rightly) - it could be bigger as the gas water contact hasn't been established in these upper levels - and it looks like (from gdn seismic interpretation) a large structural trap - this is why i'm holding on...... having said all that it could be nothing!


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## DAZT49 (18 May 2007)

Funnily enough I was planning to take a few months when another stock (BMN) hit a  mark and GDN were going to be sailing off into the $4--$5--$10 $?? So I was GUNNA quit the 9 to 5er (well * to 8 to 5er) and just trade some CFD's for petrol money.... and.. have a cigar!!
Wooops


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## Haveacrack (18 May 2007)

Yep.....it seems we're all paddling the same boat - let's hope it's not the one that ends up up the creek without a paddle.

I have to say i have been doing this for quite some time now and GDN without doudt has been one of the most frustrating holds i have encountered for some time.  Saying that i'm in it for the long haul now and feel there is still substanial upside considering gas prices at present and estimates.  If these prices hold and i have no doubt they will, and should they get there 50BCF we should see a healthy rise in the SP.  There reports state they have begun the wells comlpletion process and negotiating a pipeline lease so its obvious they intend to retrieve something from the well - the question on everybodies lips is HOW MUCH? - 

Let's hope its better than 50BCF so we can all get some sleep.


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## hoppielimp (21 May 2007)

We are all hoping now that the time is drawing near   it has been a long wait.

With your ref to a pipeline Haveacrack, I agree... in the inital prospectus I think it mentioned that a minimum of 50bcf would be economical.  Back then gas was down near US$4...

Now that gas is creeping close to double that...possibly that 30bcf would be economical.  If the statement was true that a minimum quantity would be required to be economical it would make sense that you don't apply for a pipeling permit for something that wasn't economical...

I hope there is some logic in my argument...


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## Wysiwyg (21 May 2007)

hoppielimp said:


> We are all hoping now that the time is drawing near   it has been a long wait.
> 
> With your ref to a pipeline Haveacrack, I agree... in the inital prospectus I think it mentioned that a minimum of 50bcf would be economical.  Back then gas was down near US$4...
> 
> ...




Wuth your reference to economical hoppielimp .... the company (shareholders) has forked out over 10 million dollars for this well.If the well is not economical then *major gas shows * in two of the nine sniffs would be considered a misleading statement.Look at other oiler e.p. reports....do they ramp a gas show like this company does?99.9% commercial i.m.o.


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## Haveacrack (21 May 2007)

hoppielimp said:


> We are all hoping now that the time is drawing near   it has been a long wait.
> 
> With your ref to a pipeline Haveacrack, I agree... in the inital prospectus I think it mentioned that a minimum of 50bcf would be economical.  Back then gas was down near US$4...
> 
> ...





All the fundamentals still appear to be somewhat positive and GDN continues to spend money on the project, they wouldn't be spending for nothing....right!!!

Now we must wait for the full assessment of the wells production capacity of reported gas shows following testing, which is now due today according to there ann. on 7 may.  We should expect news any time time and if its positive re BCF levels - enjoy the ride!!!


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## DAZT49 (24 May 2007)

Another heart pumping stress inducing NON ann!!!
Why not wait till they have something to say?
More faulty equipment...where do they get there gear from...Tools R Us!!
Sorry boys ..must assume lotus position....breath in..breath out..


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## chance fate (24 May 2007)

...  yeah .... a pretty bad absense of luck ...  a bit of meditation ...  a good stiff drink...  and several days away from the screen needed ....  reckon if you can survive this without jumping out a window you can survive the 2nd well they're going to drill!!!....


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## DAZT49 (24 May 2007)

I think there are 40 wells planned (isn't there?).better stock up on the Valium and VB...and keep some champers somewhere, just in case.


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## rosesny_1 (24 May 2007)

*Re: GDN - Golden State Resources announcement*

My reading of the current announcement is that whatever flow GDN found in the Pinkerton Trail was insufficient to declare commercial (since its limestone and shale it may need to be frac'ed in order to flow commercially) and that whatever they found in the Alkali Gulch was not sufficient of itself. Otherwise IMHO they would have said something more direct. The Barker Creek however is sandstone and dolomitic sandstone and the next zone to be perforated is the lower 12 feet of this pay which is over-pressured so the next announcement should say "commercial" or it's equivalent. Then GDN can add whatever they get from the other zones to give us a first number for this well and an estimate for the structure it's on. I'm not surprised by the delayed testing. I believe 2 weeks was not enough time to flow test this well in five or six intervals. I think we'll have our answer within a week or two from now.


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## the barry (24 May 2007)

I know the options expire in june, but does anyone know on what date they expire? How long after they expire have you got to redeem them to shares, or does it have to be before the date they expire?


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## DAZT49 (24 May 2007)

Thanks for that post rosesny_1. If you are correct, the 50BCF we would all like to hear about seems a bit of the mark.


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## Broadside (24 May 2007)

*Re: GDN - Golden State Resources announcement*



rosesny_1 said:


> My reading of the current announcement is that whatever flow GDN found in the Pinkerton Trail was insufficient to declare commercial (since its limestone and shale it may need to be frac'ed in order to flow commercially) and that whatever they found in the Alkali Gulch was not sufficient of itself. Otherwise IMHO they would have said something more direct. The Barker Creek however is sandstone and dolomitic sandstone and the next zone to be perforated is the lower 12 feet of this pay which is over-pressured so the next announcement should say "commercial" or it's equivalent. Then GDN can add whatever they get from the other zones to give us a first number for this well and an estimate for the structure it's on. I'm not surprised by the delayed testing. I believe 2 weeks was not enough time to flow test this well in five or six intervals. I think we'll have our answer within a week or two from now.




the company has either dug a hole for itself, or later shareholders, through its early announcements, Oct 27 as an example:  "At this stage, from formation pressures and the amount of gas bleeding into the well, it is likely that production will be obtained from the Upper Ismay, Akah and Barker Creek members that have already been drilled..."

Upper Ismay was 9800 feet, Akah show was at 10,528 feet and Barker creek 11,016 feet.

Now today they talk of perforating at depth 12,560 feet within 30 hours....do we now assume there is no price sensitive news on the earlier shows?? do they not have an obligation to report their findings thus far?  after all they are now already past the zones they earlier indicated as _likely to produce...._

This built expectations very high and the shares have been on a very volatile roller coaster ever since, a lot of people have been burned unnecessarily through such premature statements.  Now it may or may not be commercial but the company has handled their news releases poorly.


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## DAZT49 (24 May 2007)

expire on June 30 Bazza.
I cashed mine in and bought shares at $1.10..do you reckon I am happy?
Well I sort of am, because of leverage the option price was pretty good so I was able to get more shares.


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## rosesny_1 (25 May 2007)

Completions are done from the bottom of the hole to the top with the lower zones being temporarily plugged as they perforate the next higher zone. They should now know about the deeper two zones but not the shallower upper zones.


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## Broadside (25 May 2007)

you are dead right rosesny_1 , my mistake, not withstanding they test from bottom and work their way upwards, they still would have already been through regions with gas shows so I am surprised they choose to release all news after completion rather than incrementally.  Creates potential for some market players  to have inside knowledge - potential, that is.  And I maintain they have not managed investor expectations well since their super bullish pronouncements in October / November.

Anyway, good luck I hope it is commercial for holders.


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## zt3000 (26 May 2007)

Whats the valuation of this stock? Ie

1 Tcf gas = $5 SP

Im guessing they have significantly less than this say 200 Bcf's

That gives a SP of $1 which is double current levels ....

I dunno ... maybe i'm worng


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## chance fate (26 May 2007)

...  I calc 200b's gives from $4 to $8/share using $4 and $8/GJ respectively... calibrates well with CK Lockes numbers...  i've seen others use around $3/GJ which is apparently a current benchmark on the acquisitions scene in the US (but that's acquisitions - and not sure whether that's for proven [90%confidence], Proven+probable[50%confidence], proven+probable+possible[10%confidence])...  lots of assumptions behind all that...  but would say $1/share for 200 b's is quite low on the range of possible valuations....  if they get 200b's proven and if i had spare cash i'd buy in at $1 no prob....


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## bigdog (28 May 2007)

GDN Company Trading Status is Pre-Open this morning and assume ASX ANN today


GDN Company Trading Status is Pre-Open this morning and assume ASX ANN today!


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## chance fate (28 May 2007)

...could be ...barker creek well test completed.. placed in pre-open until analysis of results from the test equipment are complete 2-3days to avoid insider trading...


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## sting (28 May 2007)

Wondering if it is good news or just details of the court action against them... I suppose the halt gives them time to put thier side of the story out

SEMPER UBI SUB UBI


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## DAZT49 (28 May 2007)

As that great Share Trader ..Jimi Hendrix said..
"I got a bad, bad feelin..."
But I get this everytime GDN has an Ann!!


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## rosesny_1 (28 May 2007)

*Golden State Resources - Coming Good News?*

GDN said in its last announcement that the lower Barker Creek pay would be perforated within 30 hours (ie: by mid-day on 5/25/07, Perth time). We don't have these kind of halts in the US (although they seem to be a good idea) but I suspect that, if this halt is related to the Paradox well as I think it is, that it's good news. The lower pay in the Barker Creek was the best potential pay so I suspect that it showed some clear action (high pressure and volume gas flare for example) after perforation, which would have allowed anyone who saw this to make confident insider purchases of GDN stock before any GDN announcement. GDN needed more time to accurately estimate an initial flow rate so, per the Australian rules, GDN asked for the trading halt. Given the circumstances, this seems the likely reason for the halt.


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## the barry (28 May 2007)

*Re: Golden State Resources - Coming Good News?*



rosesny_1 said:


> GDN said in its last announcement that the lower Barker Creek pay would be perforated within 30 hours (ie: by mid-day on 5/25/07, Perth time). We don't have these kind of halts in the US (although they seem to be a good idea) but I suspect that, if this halt is related to the Paradox well as I think it is, that it's good news. The lower pay in the Barker Creek was the best potential pay so I suspect that it showed some clear action (high pressure and volume gas flare for example) after perforation, which would have allowed anyone who saw this to make confident insider purchases of GDN stock before any GDN announcement. GDN needed more time to accurately estimate an initial flow rate so, per the Australian rules, GDN asked for the trading halt. Given the circumstances, this seems the likely reason for the halt.




I hope your right. Could sure use some good news on this one before the options expire at the end of the month.  I have a feeling you are correct about the reasoning behind the halt, although wether it is good or bad only time will tell. Never want to get to excited on this stock.


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## bigdog (28 May 2007)

ASX ANN just issued
GDN 1:30 PM  Drilling Status Report 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00724701

Drilling Status Report – 28 May 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, has successfully reached its final depth of 16,471 feet (5,020m) in the Cambrian Lynch Dolomite. The Company has proceeded immediately to well completion.

• Gas flowed to the surface and was flared following perforation of the Barker Creek interval at 12,560 feet. Gas flow was shut in pending mobilisation of further testing equipment to site.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Paradox Basin #1 successfully reached its total depth of 16,471 feet (5,020m) after passing into the Cambrian Lynch Dolomite at 16,368 feet (4,989m). Golden State is pleased to announce that, following initial perforation of the Barker Creek interval between 12,561’ and 12,599’, gas flowed to the surface and was flared.

Gas flow was shut in pending mobilisation of a detector array and CO2 to site. Initial fracturing of the formation was performed using CO2 and ongoing testing will allow measurement of an indicative flow rate. Testing of the Barker Creek interval will proceed until late in the week when a decision will be made on whether to continue testing with this rig or demobilize DHS Rig 12 and proceed immediately to development using a specialised workover rig.

A suitable workover rig has been located in the area and has been tentatively secured for this purpose.

OTHER INTERVALS TESTED
Pinkerton Trail Testing on an interval in the Pinkerton Trail Formation indicated the targeted gas show had depleted. Given the amount of gas released to the well during drilling and the open fracture system indicated by downhole geophysics, the “Pinkerton” interval appears better evaluated as a Cane Creek play. In oil and gas fields 20 miles to the south-west of the Golden Eagle Prospect in the Paradox Basin horizontal drilling dramatically increases the probability of encountering economic oil and gas production. This play at Golden Eagle can be tested in Golden State’s subsequent wells on the Prospect.

Alkali Gulch Testing on a Cane Creek Shale interval in the Alkali Gulch zone initially produced gas, which was depleted. The interval would be best tested as a Cane Creek play, with drilling by horizontal wells, as detailed above.

INITIAL 100% OWNERSHIP AND OPERATOR
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the drilling of two wells by Golden State.


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## Broadside (28 May 2007)

So Pinkerton and Alkali gulch which were talked up late last year are now duds.  And the remaining areas of interest are...wait and see.  I wonder if they can stretch this out till after options are converted, looks like they will need the cash.  The directors really have something to answer for how they reported to the market in late October / November.


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## DAZT49 (28 May 2007)

Seems you were right on the money rosesny_1 and Broadside has a point too.
What is the upshot of all this, SP wise??


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## chance fate (28 May 2007)

..trying to see the +'s in this ann...  good that they got gas to surface... they mentioned in a previous announcement (if you can beleive them) that they expected the barker sands to thicken up dip... given this zone is pressured there may be quite some gas updip.  Reckon they're going to continue testing this week to see if the zone depletes to the extent that they would call off development and suspend the well...   so fingers crossed for the ongoing tests (reckon that's why we're still in a TH)...  also seems they're calling in more CO2 to do more fraccing....


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## DAZT49 (28 May 2007)

Any verdicts yet boys?? I see there are a couple of orders to sell at $1.2 and $3.44 that werent there this morning and seems to be more in the 80-90c bids.  Not much change to the buy side .Am I dreaming or am I 'a one eyed optimist' . (Yes I know it is TH but orders still get placed dont they?)
Or if it goes the other way, with the slippage thats gunna occur when the SP gap opens, are we riding the GDN bomb into the Utah sand.


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## chance fate (28 May 2007)

Hi datz49...  reckon we've still got to wait for the testing to be completed and results announced before anything firm can be said about where the sp will move to...  but the director still sounds bullish though - started indicating multiple wells to come in this announcement.  They also said they did an initial frac on the well...  maybe the next frac which they've ordered the CO2 for will make the well at this level more productive...  been following HotCopper threads on golden.. dude under name of walliska had a meeting with John Haselby last week at golden office in Subiaco - comments he reported then from his meeting e.g. early last week has been confirmed in this report e.g. cane creek v's pinkerton - so looks genuine - John indicated to him then that they expect 20-50Bcf from this well but more wells to come...  (hope i'm repeating that correctly - and was suprised and hence skeptical that that info. was released to him pre- this announcement - unfair)... he also indicated the U announcement would be end-June.

I'm liking the way they're moving forward- albeit with delays... they can use results from experience in other wells near-by (I think it's the Greater Aneth that produces from the pensylvanian levels) to tailor the programme on this well...  and hence the comment that cane creek could produce using horizontal wells...  so all's not lost on cane creek - but there would be more waiting!!


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## DAZT49 (28 May 2007)

Sorry Chance ..its the frustrated thespian in me...you know.. "Hark what gold by yonder gas field dwell" that sought of stuff.
My bro ses 40 wells (think I mentioned that before) and that Para 1 located in wrong position. Para 2 to be 1.8k away and on the money.


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## chance fate (28 May 2007)

...  oh ...  your bro = locke...  40 wells... at 20Bcf/well = 800bcf..  hmmm...  i'll take it if it's true!!...  i was expecting only a handful of them...  another poster on HC also mentioned (last week) CK Locke advised the well would be a company maker with a capital M...  all sounds too good to be true at the moment.... me...  i wanna see the results get posted....  PS stress levels are dropping... can't take in the same amount of nicotine as last week!!


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## DAZT49 (28 May 2007)

As you say ,they do seem to be pushing ahead with infrastructure to get the well producing. The U thing is the unknown, while it seems ok I dont think it is going make a huge impact.
Its so frustrating trying to eak out any information, ASF thread is great, a few of you guys know what you are talking about, but we are still dealing with opinion/rumour/guesswork for the most part.
Must admit my sleep patterns are all over the place with this share ...hopefully some good news at the end of the week and i can enjoy a long snooze and an ice cold beer.
Perhaps you better stock up on Nicorettes!!


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## chance fate (28 May 2007)

...  yeah good idea...  no good landing a good profit if all comes good and not being around to enjoy it....  wouldn't mind a good night's sleep aswell!!!  Think i'll be happy whatever the result... it's the hanging around waiting to move on that's the killer....


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## Agentm (28 May 2007)

i am no holder, but have been watching the whole sorry story of GDN unfold over the last year. i read all on HC and here, and have little respect to the management for what the investors have had to endure. 

IMHO it is a complete sham, there is nothing that this company is doing that is going to inspire investors in the O& G exploration shares, GDN has been making one major blunder after another, and how ASIC have allowed it to continue is beyond me, i pulled up a few weekly reports from last year where these guys are saying they have major shows and high proability of commercial flow, and now they have nothing, even when you are flaring you get valuable information and insights into flows and volumes, for them to say they cant tell you even that is unacceptable. 

I honsetly believe the massive volumes of shares traded in the .40's to the $1.20 and back to the .80's and againthe last spike, has meant the average investor is trapped in a very inflated sp bracket due to appauling reporting and speculation by the management.

The well has absolutely nothing to offer the shareholder and has cost a fortune in drilling out cement instead of a simple sidetrack, and if you look at todays report you dont see major gas shows and the word commercial posted on anything. they had no idea what zone was what, where they were, and the company itself has no oilmen in it, nor a geologist with any oil experience on deck... you see a whole bunch of corrections on asx releases, the most inaccurate, hyped and unfair reporting i have ever come across.. if they had managed to have got one thing correct on any report i fail to see what it was and i have been shaking my head in disbelief wondering how wild the sp would go on pure speculation on a gas show of no significance, no director sitting on any reputable board would allow speculation of gas shows ever, these guys have been doing it non stop.. to say you can get gas flowing from depleted flow by drilling horizontally is reprehesible. enough is enough dont you think???

i hope the shareholders get some value in something in the future, but i cant see from where its going to be achieved. its a very sad and sorry story IMHO and i wish all holders the best and i really hope you get a good outcome, but if it was my money in that stock i would be outraged and doing everything to make the management accountable..

sorry if it sounds a little down beat, but i absolutely feel for anyone who is on the losing end of this share right now, i cant understand how these guys are getting away with it..

DYOR and all IMHO..


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## bigdog (28 May 2007)

Agentm said:


> they had no idea what zone was what, where they were, and the company itself has no oilmen in it, nor a geologist with any oil experience on deck... you see a whole bunch of corrections on asx releases, the most inaccurate, hyped and unfair reporting i have ever come across.. if they had managed to have got one thing correct on any report i fail to see what it was and i have been shaking my head in disbelief wondering how wild the sp would go on pure speculation on a gas show of no significance, no director sitting on any reputable board would allow speculation of gas shows ever, these guys have been doing it non stop.. to say you can get gas flowing from depleted flow by drilling horizontally is reprehesible. enough is enough dont you think???
> DYOR and all IMHO..




Read somewhere that GDN managment's experience was in real estate which is above the ground!!!!

There must be another report coming as GDN did not trade today after the GDN 1:30 PM Drilling Status Report!!!

Note that the GDNO GOLDEN STATE RESOURCES LIMITED OPTION EXPIRING 30-JUN-2007


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## chance fate (28 May 2007)

...Howdee AgentM...  yeah this whole golden reporting thing is getting a bit out of control... it's been interesting to compare ADI v's GDN on the quality, timing and quantity of their reports...  ADI have always presented in a low key way - probably Alex Forcke's financing experience - much tighter control.. but when you stand back from them (and just trying to be positive about gdn's performance) both stocks have had their spikes and collapses...and pre-testing on sugarloaf there'll probably be the same craving for information... in some ways more info. from golden coupled with most shareholders not being capable of understanding the announcements has been the cause of much stress...   so if you throw gdn's reporting credibility out the window you are left with even less to go on - there's still the fact that financiers have taken a punt recently based on info. presented to them...  so yes warning bells... but this is a high risk stock... and still IMO potential for a decent reward...  just hope they report xx Bcf's and audited by xxxxx....


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## Agentm (28 May 2007)

in the future GDN will be the case study on how not to manage a O&G company.. 

As for not understanding the announcements, thats exactly why you shouldnt invest in a company. nothing they have said makes any sense, and nothing they have done during the drill has made any sense, when you couple that with hyped up reporting and directors selling stock on false and misleading and totally inaccurate reporting, you have this mess that you have today.  

ADI pre Sl testing has announced 170-bcf, so the sp has $1.50 value in it already pre testing, they have 16 wells scheduled across the two areas, and thats only for the gas.  the jvp's will not report in the manner GDN are, and have no interest in seeing wild speculation on the sp, the ADI share so far has only attracted larger accumulating buyers. 

if you want to see hype, wait until the flow testing is done, then you will nothing like hype, but just accurate appraisals and bluesky on the sp.. much as you will see in the next two weeks with NT flow testing.. 

GDN has used every trick in the book,, i expect the next rabbit will be uranium, in an attempt to deflect the disaster on the well.. thats my pick..

again i hope people can redeem some of their losses here, but from where it will come i cant understand??  but i cant stand this type of behavior, it will cause an ongoing effect on the sector, as investors leave in droves as they realise they have been misled and the sp collapses. 

O&G has a high risk high reward profile, but it should also require a standard of reporting that never can be reflected upon as inaccurate, misleading, confusing or in GDN's case, completely incorrect..

best of luck to all holders, but i think you have to start organising yourselves and making the management accountable.. this is wrong, just plain wrong..


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## chance fate (28 May 2007)

...  too late now for the sp AgentM... next stop results announcement...  how would you go about contacting ASIC to take a look at this??  what would you have to do to develop this into criminal/prosecutable evidence? and then whats are the damages??  think it'd be a waste of time personally....


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## chance fate (29 May 2007)

Found this (below) on the web re. Barker Creek...  admittedly from Colorado... but assuming Barker Creek is the same there as in Utah the max drainiage to be expected from a single gas well is 320 acres.  At 30ft gross pay and 5% porosity a single well assuming A$4m drilling cost would be worth A$0.10-0.15/share (assuming US$4/GJ) and multiplying up to the area of the mapped pensylvannian section on golden's acreage - say 12km² - gives 12 wells and A$1.20-1.80/share...  proportionately higher roughly for higher gas prices...  could easily be $3.60/share....  and if the area of the field is larger....


IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE RED MESA FIELD, LA PLATA COUNTY, COLORADO  Cause No. 404 Order No. 404-1 


REPORT OF THE COMMISSION 

This cause came on for hearing before the Commission on October 17, 1983 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Davis Oil Company for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Barker Creek formation underlying certain lands in La Plata County, Colorado 

FINDINGS 

The Commission finds as follows: 

1. Davis Oil Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing. 

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law. 

3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order. 

4. Evidence presented at the hearing indicates that all of Sections 21, 28, 32, 33, and 34, Township 33 North, Range 12 West, and Sections 1and 2 Township 32 North, Range 13 West, 6th P.M. should be deleted from the requested area to be spaced. 

5. Evidence presented at the hearing indicates that the Barker Creek formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in La Plata County, Colorado, to-wit: 

Township 33 North, Range 12 West, 6th P.M. Sections 13, 14, 15, 22, 23, 24, 26 and 27: All 

6. In order to prevent waste of oil and gas, as defined by law, to protect the correlative rights of all parties concerned to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Barker Creek formation, a common source of supply underlying the lands defined herein, that said units should be 320-acres, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location should be in the center of the NW/4 and the SE/4 of each section with a tolerance of 200 feet in any direction for topographical reasons. Well No. 1 Red Mesa Deep, located 2055 feet from the north line and 2355 feet from the west line of said Section 23, should be considered the permitted well for the unit upon which it is located. Only one well should be permitted to be drilled on each unit and produced from the common source of supply. 

7. All available geological and engineering data concerning said Barker Creek formation indicate that one well will efficiently and economically drain an area of approximately 320-acres and that the drilling unit of the size and shape hereinabove described not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Barker Creek formation. 

ORDER 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Barker Creek formation underlying the Red Mesa Field. herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith. 

Rule 1. Three hundred twenty (320) acre drilling and spacing units shall be and the same is hereby established for the production of gas and associated hydrocarbons from the Barker Creek formation underlying the following described lands in the Red Mesa Field, La Plata County, Colorado, to-wit: 

Township 33 North, Range 12 West, 6th P.M. Sections 13, 14, 15, 22, 23, 24, 26 and 27: All 

Rule 2. Said drilling units shall consist of 320-acres, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location shall be in the center of the NW/4 and the SE/4 of each section with a tolerance of 200 feet in any direction for topographical reasons. Well No. 1. Red Mesa Deep, located 2055 feet from the north line and 2355 feet from the west line of said Section 23, shall be considered the permitted well for the unit upon which it is located. Only one well shall be permitted to be drilled on each unit and produced from the common source of supply. 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith. 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders. 

ENTERED this 14th day of November 1983, as of October 17 1983. 

CORRECTED this 5th day of July 1991. 

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO 

By Patricia C. Beaver, Secretary 

1580 Logan Street Denver, Colorado 80203 July 5, 1991 13001 -- 2 --(404-1)


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## rosesny_1 (29 May 2007)

*Re: GDN - "Barker Creek" potential*

I looked back over some of the GDN announcements. The names of various formation zones have changed over time. For example the "major pressured gas interval" noted at 12549' to 12577' was called "the top of the Alkali Gulch member" in the 10/31/06 ann. This is now part of the "Barker Creek interval" in the most recent announcement. My point: "the major pressured gas interval" at part of the zone originally called "Alkali Gulch" has NOT so far been a disappointment rather it's name changed to "Barker Creek." Similarily if one looks at the 10/24/06 ann it states that "it is likely that production will be obtained from 9742' to 9446' Upper Ismay, 9930' to 9960' Barker Creek, 10714' to 10765' Barker Creek, and 11016' to 11030' Barker Creek." Now 10815' to 10834' is currently called "Akah" as it was when this potential pay zone was first mentioned. But on the 10/24/06 ann that zone, between two zones called the "Barker Creek," is not even specifically mentioned.  Connection gas however was very high over almost all of the range of depths from 9742' to the bottom of the Barker Creek, which is at approximately 12600' or a little more. My suggestion is that all of this approximately 3000 feet is perspective of hydrocarbons. It was almost all called the  "Barker Creek" in the 10/24/06 ann because of similarities across it. The gas shows, for example, appear to  be mostly in sandstone or dolomitic sandstone members. There is also a lot of wet gas in the Paradox Basin so considerable condensate or oil could come from some of these wells (remember gas shows were oil-stained at 11360' to 11366'). Each zone however probably has to be frac'ed. I am glad to see that they are beginning to do that. A CO2 frac involves liquid CO2 and sand being pumped under pressure into a formation to fracture it. The sand is left in the fractures to hold them open and the CO2 evaporates.


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## chance fate (29 May 2007)

...yeah could be larger gross pay.. my numbers in the previous post could be conservative...  was concerned about the further fraccing program...  had the suspicion that the initial frac was all that had been planned and actually wasn't a total success... so additional fraccing needed...  not sure if that's a valid thought....


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## chance fate (29 May 2007)

...this link takes you to a good report on paradox potential... good maps etc...

http://geology.utah.gov/emp/pump/pdf/pumprpt8.pdf

...gives some credibility to the statement regarding horizontal wells in the cane creek play...


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## DAZT49 (30 May 2007)

Why did the trading halt stay in place on Tues? Why did they even have the TH if the ann said..
"Testing of the Barker Creek interval will proceed until late in the week when a decision will be
made on whether to continue testing with this rig or demobilize DHS Rig 12 and proceed
immediately to development using a specialised workover rig."
Why didnt they wait till that occured before making the ann??
Will there be another TH then as well?
Are they trying to torture me? Is my WIFE running GDN?
Good luck today everyone.


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## bigdog (30 May 2007)

ASX ANN 
GDN 10:12 AM  Notice of Litigation in USA 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00725370

Contractor wants $US940,000 related to casing hanger installed by contractor

GDN will be pursuring contractor for $7 million for failure of casing hanger

I can not paste fax words


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## bigdog (30 May 2007)

GDN is now trading again this morning

GDN   $0.52    +$0.015  +2.97%   with high $0.53  1,369,464 shares $701,344 @ 30-May 10:31:50


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## adamwu (30 May 2007)

the failure already resulted $7million cost in wells. And looks like GDN will win the case anyway. so nothing to worry about. and sp rise to $.56 right now.


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## Broadside (30 May 2007)

adamwu said:


> the failure already resulted $7million cost in wells. And looks like GDN will win the case anyway. so nothing to worry about. and sp rise to $.56 right now.




when has a lawyer ever said "we think your chances are poor??!" If you think $7m counterclaim is money in the bank I guess we agree to disagree.  Claims and counterclaims in a foreign jurisdiction, sorry that is bad news.  And can you see contractors queuing to deal with GDN for future wells if they don't win this suit?

I think the rise today is more on testing of Barker which in the big scheme of things matters more than the legal issues.


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## bigdog (31 May 2007)

ASX ANN today
31-05-2007 09:46 AM  GDN  Drilling Status Report  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00725789

31-05-2007 09:46 AM  GDN  Drilling Status Report  
Drilling Status Report – 31 May 2007
• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing completion and stimulation activities.

• The Barker Creek gas interval was stimulated by injection of carbon dioxide. An increasing gas flow was flared.

• DHS Rig 12 has been released and will be demobilized from site. A completion rig will then be mobilized to site to complete the assessment and development of the Barker Creek reservoir and shallower gas intervals.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA 
Paradox Basin #1 is undergoing completion works after successfully reaching its final depth of 16,471 feet (5,020m).

Following perforation of the Barker Creek interval between 12,561’ and 12,599’, gas flowed to the surface and was flared. Initial fracturing of the formation as then performed using CO2. 37 tons of carbon dioxide was injected into the formation to clean up the productive interval without adversely effecting any of the reservoir characteristics.

The carbon dioxide stimulation (a “mini-frac”) has resulted in flaring progressively increasing levels of gas over the last 48 hours.

The directors of Golden State are encouraged by the results so far that indicate that Paradox Basin #1 has excellent potential to achieve gas production as soon as permitting allows.

To this end the rig, DHS #12, has been released and a completion rig engaged to come on location directly to finish completion activities on the Barker Creek interval, and to test the further gas intervals indicated during drilling above the Barker Creek, including:
• Upper Barker Creek
• Akah
• Upper Ismay.

PERMITTING AND PRODUCTION
The Company had a meeting with the Bureau of Land Management (BLM) on 29 May to progress the permitting process for next well location and for the connector production pipeline to the main trunk pipeline 7 miles north-west of Paradox Basin #1. The timing for these will be announced once firmer dates are received from the BLM.


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## Broadside (31 May 2007)

That announcement is all things to all people....something for the bulls, after all it's encouraging, talking of increasing flare over time and production...and also something for the cynics, it's light on detail and may get them over the line with conversion of oppies expiring June 30.


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## chance fate (31 May 2007)

> • DHS Rig 12 has been released and will be demobilized from site. A completion rig will then be mobilized to site to complete the assessment and development of the Barker Creek reservoir and shallower gas intervals
> 
> The directors of Golden State are encouraged by the results so far that indicate that Paradox Basin #1 has excellent potential to achieve gas production as soon as permitting allows.
> 
> ...





The ann makes a direct positive statement regarding progress to development to start with... then it walks back from that by saying ....PD1 has "excellent potential to achieve gas production".. which is a conditional statement and so leads you to beleive there's a need for more results....


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## DAZT49 (31 May 2007)

Obviously the 'market' is unimpressed +1c atm. Still I feel a bit more confident that maybe the SP will hold and maybe slowly build from here.
Lot happier than recent weeks/months.


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## Haveacrack (31 May 2007)

DAZT49 said:


> Obviously the 'market' is unimpressed +1c atm. Still I feel a bit more confident that maybe the SP will hold and maybe slowly build from here.
> Lot happier than recent weeks/months.




I'm with you DAZT.  Feeling a bit more comfortable about having held a sh_t load of shares.  What do they say, pictures tell a thousand words but BCF levels you can take to the bank.  Lets hope it all comes together for us poor bastards that have left our heads on the GDN chopping block!!! - we deserve it after all the crap GDN and their ann. have put us through.

Good luck everyone!
 but still


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## chance fate (31 May 2007)

..with you Datz49 and Haveacrack.. alot more comfy now.. but now I'm thinking there are a lot of steps to go before the share price will reflect the full potential (if it is there) of this project..  they have to demob drilling, mobilise the workover rig (say 1 week), do further tests on 3 higher zones (say another 2 weeks), then assess the results, if good, tie into the main gas tansport pipeline and set up production plant (if modular could take say 2 months maybe more) and come up with a field appraisal and a field development plan...  starting to think they will need the 2nd well to prove up the reserves level too... so this is a long term hold for the patient...  believe that's why we're seeing not much in the way of action on the sp...  but pretty encouraged by the announcement anyhow.... reckon only the impatient are selling out/plus option expiry looming so traders will have a good wrestle over the next days....


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## sandlion (31 May 2007)

They'll do the flowline tie-in to the spineline whilst the workover rig is in place doing the completions and headworks. They still have to perf or frac the higher levels for flow stimulation too...it's all nice and normal


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## chance fate (31 May 2007)

Hi Sandlion...  I'm used to seeing much bigger flares than this i.e. 50mmscfd+ ...  was wondering if you've got any experience with smaller scale activities like this.. and if so..  whether you'd be able to guage what kind of flow rate it looks like... admittedly we don't know what the choke size is...  doesn't look like much consensate in the stream to me - but they could have a knock out drum on site...


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## sandlion (31 May 2007)

All very true Chance, the night shot seems to show a fair bit of pressure on the flare, nice normal burn colours (no blues or greens). It's just like a blowdown flare...be happy it burns and doesn't spew mud like certain other operations one could mention...


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## chance fate (31 May 2007)

Yeah...  looks nice and gassy... but would have liked to see some condensate go up in smoke...  that would add some cents to the share price...  someone's posting some nice pics of flares on HotCopper...  comparison looks to be in the 2.5mmscfd area...  commercial.


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## chance fate (31 May 2007)

...still stewing over this announcement and wondering if anyone could comment on the next step re. the mini-frac...  in this case would it have been a test frac to get the parameters needed in preparation for the main one i.e. we could expect higher flows post main frac... or has it been called a mini-frac because the volume of CO2/propant is quite small??  Rosesny_1 would you know/any comments????


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## chance fate (1 June 2007)

... got these 2 postings off of HC by wally (walliska) who's been to see Golden today at their offices and thought there may be a few interested in this forum... wish goldens announcements contained info. like this...  good thing is it ties up with your 40 wells as well DATZ49...  500Bcf looks v.good!!!



*Initial Posting*

"Unlike sue12 whenI say I am in Perth am actually in Perth

Update as folows:

Rig moving off site over next couple of days

New rig in place probably Monday Utah time - 3-4 days establishment / positioning then development work will begin on zones

Flow test results expected middle of June - very conscious of option holders exercising options and predicament in - cash must be in bank account by 29th June

Cashflow good relative to new wells / permits

Concentrating on cash flow with the next well - permitting discussions have changed - next well will not target Leadville rather target known resources - essentially Barker Creek and above but other zones will be tested - e.g. Cane Creek, Pinkerton - if this isn't an indication this well is commercial then I have no idea what is

Still hold with their potential 500BCF on entire acreage - and I think this excludes Leadville - based on the current zones being tested plus Pinkerton and Cane Creek (don't quote me on that interpretation)

An independent geoligist will be used to extrapolate reserves / numbers once flow tests have been determined

They may use Henry to update report / additional information

Uranium will more than likely be after options have been exercised - as I have previously expressed believe this will return profits to those currently holding paper losses

Possibly work out flow rate based on potential cashflow - 30-50k per day (do not quote me on that number)

Believe next well will provide even greater return on Barker Creek and upper zones - believe they are downstream and next well will target maximum flow rates for the zone - though believe this well to have commercial flow rates

there is the potential to drill 80 wells on this acreage

Difficulties associated with analysing zones acknowledged (actually identifying Cane Creek, Pinkerton)
Last time I walked out 50/50

This time 90 / 10

This morning called a W.... by sue12 and that I had lost - well sue12 you have "lost" - not only credibility but the opportunity to realise long term benefits with GDN stock

More than happy to answer any questions re discussion - for those that are going to write abuse - don't bother

Wally"




*Follow-up after another poster asked caltification…*

Rocketmon:

Have placed my comments next to your questions

New rig in place probably Monday Utah time - 3-4 days establishment / positioning then development work will begin on zones

**** does this mean 2 days for the rig move and 3~4 days for the setup? 5~6 days in total?

Wally: I interpreted this as you have written - think we can set commencement of development to Thursday or Friday of next week - should probably have a contingency for some kind of setup / testing / downtime - have no idea re well development and testing durations but definitely indicated we would potentially have flow tests by mid June - let us give them another week


Flow test results expected middle of June - very conscious of option holders exercising options and predicament in - cash must be in bank account by 29th June

** mentioned anything about the broker underwriting oppies? 

Wally:No - I asked that question last time - did not pursue this time but know there are 2 brokers lining up - got the distinct impression not required


Still hold with their potential 500BCF on entire acreage - and I think this excludes Leadville - based on the current zones being tested plus Pinkerton and Cane Creek (don't quote me on that interpretation)

** that's the initial 2000 ha not the surrounding 20,000 ha. right? - 

Wally:yes believe it to be 2000 Ha


Possibly work out flow rate based on potential cashflow - 30-50k per day (do not quote me on that number)

** does this mean they are expecting 3~5mmcf/d? or is this after the royalties and taxes? 

Wally: 30 - 50k cashflow was definitely mentioned during the conversation - I did not pursue this as interrogation of key items can lead to not gaining information re others - tried to establish an initial relationship today so there is no issue in the future - just thought one of you may be able to calculate an estimated flow - one thing to remember about cash flow is that royalties and taxes are payable in arrears so can build substantial cash holdings before payment is required - ie day 60 production may pay for days 1-59 royalties and taxes


there is the potential to drill 80 wells on this acreage

** sounds like 20~30 ha spacing over 2000 ha

Wally: I told him we were investing based on 40 wells not just the first one - this was relative to him discussing the second well and not targeting Leadville till later in the program - he turned around and said potential to drill 80 wells

wally


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## DAZT49 (1 June 2007)

wow..nice post chance.
When I posted about the 40 wells the bro also said about $40k/day..$8-12M/year production, but as I mentioned, it was a confused call, so I didnt want to mention that in the post in case I was up Barker Creek without a paddle...so to speak.
Nice to see that people like walliska have the gumption to walk into their office and get that sought of info.
As you say..wish GDN would be so forthcoming in their ann's


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## DAZT49 (2 June 2007)

Chance -fate,
In the figure '2.5mmscfd' what does the mmscfd mean.
Would have been nice if the SP had finished on a high for the week ie 57-58c.


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## chance fate (2 June 2007)

... mmscf/d stands for 1 million standard cubic feet per day (m stands for 1000 and the other m stands for 1000 - oil field units).

1000000 scf/d = 1080 GJ/d  assuming US$8/GJ and 0.8 US$/$AU = $AU 10800/d

so if they're saying $40k/d it looks like the flow rate they're expecting is around 4000 mmscf/d


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## DAZT49 (2 June 2007)

Ok..this makes sense. The call I had to the broker re 40 wells.Para 2 was very confusing to me, and I didnt relate everything in that post.
My conversation went something like this
Me..'I am assuming, as they are going to produce,that the 50bcf target or thereabouts has been met?'
Him..'The well is producing 8-12mmscfd and make $40k-$45k/day"
I as shocked (not understanding thinking 8m is a long way from 50bcf)
me .."so the 440bcf 3tcf targets are out the window!!!!?
Him... "there will be 40 wells on the site...possibly 5 tcf"
My confusion led to the $40k =8m$12m a year post ($40kday =$146m!!)
If you use $5/cm x 8mmscfd=$40k/day 
Mak any sense to you chance?


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## chance fate (2 June 2007)

DAZT49 said:


> Ok..this makes sense. The call I had to the broker re 40 wells.Para 2 was very confusing to me, and I didnt relate everything in that post.
> My conversation went something like this
> Me..'I am assuming, as they are going to produce,that the 50bcf target or thereabouts has been met?'
> Him..'The well is producing 8-12mmscfd and make $40k-$45k/day"
> ...




Hey DATZ.. just wrote a novel in reply and got logged out ... lost the whole lot..!!

anyhow...  5Tcf is huge...  wqould be a world class reserve... so personally skeptical on that...  yeah the 50Bcf is the total quantity so if you flow at 10mmscfd that means you can produce for 5000 days or 13 years.  The rest makes sense excpet $40k/d = $146m over a period of 10 years or $14.6m/year....

can't wait for the geo report ...  but i'm going to have to...  so looks like some gardening duties for me over the next couple of weeks!!!  then hopefully it's partyyyyy.....


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## DAZT49 (2 June 2007)

its all a bit like childbirth this stuff...
Yep, off to the local nursery for me , bit of gardening, watch the footy..few beers.
Not so anxious about GDN now, hopefully we can enjoy the upcoming months.
Cheers
Dazza


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## helpmeunderstand (2 June 2007)

So for some one who really do not understand plese explain to me like I'm a two year old. Does GDN SP is going to go up? what are we talking about more the $1-$2. shel i keep my shares and wait for the big announcement? would some one please explain in dollars and cents?!?!?!


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## sleeper88 (2 June 2007)

lol..if i knew what price this would go up to (or down to) i would be a billionaire by now. The fact is no-one knows where the SP will go from here. We can only guess based on the facts that are given to us so far.


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## chance fate (3 June 2007)

helpmeunderstand said:


> So for some one who really do not understand plese explain to me like I'm a two year old. Does GDN SP is going to go up? what are we talking about more the $1-$2. shel i keep my shares and wait for the big announcement? would some one please explain in dollars and cents?!?!?!




you might find some answers if you go back in the thread...  not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!


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## sting (3 June 2007)

chance fate said:


> you might find some answers if you go back in the thread...  not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!




Ill take your 40 cents and raise u 1 cent....... Ive lost about 50 % of the value in this stock so I may as well hold out ... ALL or NOTHING.....

Altho I must admit I had my first ALL green day in my portfolio on friday for a long time

DGR.....AAR....MPOA....GDN....ADS....PEN to name a few

All is good in the world

SEMPER UBI SUB UBI


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## helpmeunderstand (4 June 2007)

chance fate said:


> you might find some answers if you go back in the thread...  not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!




mmmmmmmmmm.... you much to kind..... but if you are willing to get my shares for 40c I might hold to them a little bit longer :

Hope tomorrow will bring better luck then today!!!!


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## DAZT49 (4 June 2007)

Sting,
I am down a bit more than you, I converted my options over when they were $1.10..been going backwards ever since.
Disappointed to see they went down another 3c today


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## constable (4 June 2007)

Have you guys ever watched the movie ground hog day? Im sure this thread has come full circle!! (meteoric rise euphoria crash loss stubborness meteoric rise euphoria crash loss stubborness)


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## DAZT49 (4 June 2007)

Hopefully the meteoric rise 'hog' part is on its way!!- and hopefully i will jump ship before the 'crash' part comes so I can not make a 'loss' and  enjoy the 'euphoria' for a change..(provided I stop being so stubborn)


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## bigdog (5 June 2007)

ASX ann today

GDN 11:10 AM  Uranium Assets Spin Off - Further Details 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00727068

URANIUM ASSETS SPIN OFF
URANIUM MINING AND EXPLORATION VENTURE
• The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State will retain approx. 30% of the new entity.

• Golden State shareholders will have a priority entitlement in the capital raising for the new company. It is intended that the Golden State shareholder entitlement will be one share in the new company for every four Golden State Resources shares held at the record date.

• It is intended that the record date for shareholder entitlements will be 10 July 2007.

• It is expected that the prospectus for the capital raising and IPO will be submitted for ASIC approval in the last week of July.

• Approvals have been received to commence uranium drilling on 15 June.

Golden State Resources has established a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.

This will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger and advanced project with a short time frame towards mining operations.

Full details of the combined uranium assets to be held in the new company are contained in the Company’s announcement issued on 3 May 2007.

It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of the planned capital raising under an IPO prospectus.

Priority Entitlement and Record Date
Golden State shareholders will have a priority entitlement in the capital raising for the new company. It is intended that the Golden State Resources shareholder entitlement will be one share in the new company for every four Golden State Resources shares held at a record date, currently intended to be 10 July 2007.

The Independent Experts for the prospectus for the capital raising have been appointed. The prospectus is expected to be submitted for ASIC approval in the last week of July.

Uranium drilling to commence 17 June
Statutory permits for the first drilling programme on the Daneros ore body have been received, with a provision that drilling may not commence until the conclusion of the Longhorn Sheep lambing season on 15 June.

Drilling is planned to begin on 17 June. The initial programme will twin existing ore grade holes at Daneros, to check historical drilling data and grade and tonnage calculations. Followon drilling will explore extensions to ore bodies and previous ore grade intersections at Daneros and Thompson.

First results will be available within three weeks of drilling.

Terms of agreement with White Canyon Exploration LLC
Golden State and White Canyon will contribute their respective uranium interests to the new entity, which will acquire remnant interests in the Daneros and Geitus leases from unrelated parties for US$10,000,000, part of the funds to be raised. The new company will own 100% of all assets. There is a pre-existing 15% mill return royalty on the Daneros and Geitus leases, ceded to the previous owner of the leases in 1993.


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## DAZT49 (5 June 2007)

Why didn't the market like THAT ann???
Even with free shares in a U mine the price keeps going down!!


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## trading4schoolfees (5 June 2007)

I have been following this thread since buying in at $1.17. I'm enjoying some success at the moment with PLT and MVH but this share is a wild ride. No point in selling now, but am I right in saying that some of you are positive about the future despite the SP drop??? I cannot see why the market is responding the  way it is?? Any thoughts??


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## Haveacrack (5 June 2007)

DAZT49 said:


> Why didn't the market like THAT ann???
> Even with free shares in a U mine the price keeps going down!!




The market is pretty much down across the board.  China was off about 8% at close yesturday and US was off the boil at opening last night.  I don't think these u shares will be free as the ann said "priority entitlement in the capital raising" - there going to want some more of our blood!


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## Haveacrack (5 June 2007)

trading4schoolfees said:


> I have been following this thread since buying in at $1.17. I'm enjoying some success at the moment with PLT and MVH but this share is a wild ride. No point in selling now, but am I right in saying that some of you are positive about the future despite the SP drop??? I cannot see why the market is responding the  way it is?? Any thoughts??




If i knew what was going to happen next id be a trillionaire.  as for the sp it also baffles me. i have been in and out of gdn for about 12 months and i thought i had this bull by the horns - but not to be.  i started buying back in at 80c and have been topping up along the way as and when i thought it had hit bottom.  ive just bought in again at 46 only to find it has retreated more - i left my desk for 20 mins and when i got back the first thing i said was WHAT THE.......

Its just hit 43.5 and is now back to 44.5 what happens next is anyones guess.and but still as it will come back just have to be patient


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## bigdog (5 June 2007)

Todays ASX ann:
"Golden State shareholders will have a priority entitlement in the capital raising for the new company."

I wonder how sucessful this will be for current shareholders who are not having much luck with the GDN share price!

I have my doubts with investing more of my $ with this group!


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## the barry (5 June 2007)

The shares in the ipo are not free. You will have priority to buy 1 share for every 4 you own. The reason they are doing the record date when they are is to entice shareholders who haven't converted their options by the end of july to do so. The reason the share price is behaving the way at the moment is a sparrow farting would produce as much gas as it is looking like the current well will produce. Until the company proves a commercially viable well, the further the share price will decline. At this point, the short term for this company is highly speculative with serious downside if they announce a dud well.


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## constable (5 June 2007)

the barry said:


> The shares in the ipo are not free. You will have priority to buy 1 share for every 4 you own. The reason they are doing the record date when they are is to entice shareholders who haven't converted their options by the end of july to do so. The reason the share price is behaving the way at the moment is a sparrow farting would produce as much gas as it is looking like the current well will produce. Until the company proves a commercially viable well, the further the share price will decline. At this point, the short term for this company is highly speculative with serious downside if they announce a dud well.




So nothing has really changed has it lol, its been speculation all along barry!! As for that sparrow im tipping he would be kinda crispy after the flaring....hmmm could i get mine with the hot n spicy seasoning.
Seriously though this is the third time its tanked in 7 months and each time it has had a remarkable recovery. Should this time be any different ?? I wouldnt have a clue but there was plenty of large buys put up in the last hr of trade. Call that the "smart money" coming in or is it just the same people who sold out when it was over a dollar and now ready to reload and do it all over again!


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## DAZT49 (5 June 2007)

Chinese consortium is the $10,000,000 holder in the new venture.
Apparently the consortium will pay a premium on the issue price.
GDN holders will be able to purchase 1 for 4.
ie 100,000 GDN shares /4 = 25,000 at 35c (issue price)=$8750
Chances are the testing will be reported before listing.


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## chance fate (5 June 2007)

...  problem is no one can attribute a value for the gas or the uranium to the share...  there's no concrete results yet and there is time to kill until gas results come through plus options expiring soon ...  so traders taking the opportunity to squeeze some holders out of the market...  possibly all the way down to 30c???? can't see any reason in the near term (week) for the sp to climb...  reckon the initial U results due early July are intended to underpin the IPO...   have to say the comments copied from HotCopper a few postings ago are consistent with this announcement on the U... which makes me put some credence on the comments on the gas and so feel comfy enough to stay holding due to the potential 500Bcf (director's comment) reward...  best not to look at the sp over the next week or 2 unless you want to trade or just buy more low....:hide:


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## Broadside (5 June 2007)

chance fate said:


> ...  problem is no one can attribute a value for the gas or the uranium to the share...  there's no concrete results yet and there is time to kill until gas results come through plus options expiring soon ...  so traders taking the opportunity to squeeze some holders out of the market...  possibly all the way down to 30c???? can't see any reason in the near term (week) for the sp to climb...  reckon the initial U results due early July are intended to underpin the IPO...   have to say the comments copied from HotCopper a few postings ago are consistent with this announcement on the U... which makes me put some credence on the comments on the gas and so feel comfy enough to stay holding due to the potential 500Bcf (director's comment) reward...  best not to look at the sp over the next week or 2 unless you want to trade or just buy more low....:hide:




the option holders are in an awful position now, they don't have enough information as to whether or not to pony up more funds, and if they try and sell a large quantity and the liquidity isn't there....well, they are over a barrel.


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## the barry (5 June 2007)

Broadside said:


> the option holders are in an awful position now, they don't have enough information as to whether or not to pony up more funds, and if they try and sell a large quantity and the liquidity isn't there....well, they are over a barrel.




Right on the money. If the results from the gas flow aren't out in the next week there are going to be a lot of nervous people. No results, in trouble, bad results, trouble. Not to many upsides really.


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## elcruzy (5 June 2007)

this is the wildest ride i have ever been on. if only we were all smart enough to sell at over $1 buy back in and sell again over $1. 

with the gas shows, doesnt this mean that there should at least be some commercially extractable gas in the well? unless someone is guesstimating on that photo being less than 50bcf.


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## DAZT49 (5 June 2007)

My bro ses they are mystified as to the SP. 
"Nothing has changed" 
Still sees the share as a multibagger but maybe have to be patient enough to hang until No 2 well is drilled so maybe 8-12 months.Thinks the SP is cheap. (Dont we all??)
8-12 months for multi bag..Sp to recover in the meantime


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## chance fate (6 June 2007)

...  another posting from hotcopper ... this time re. the rig move... still only mildly confirming productive well....

jantimont,

I sent John a couple of emails over the past two days. One was about info been leaked prior to announcements, the other was about changing the rig.

here is the reply about the drilling rig:


Using an exploration rig to do completion work, especially where it involves 
stimulation or fracing, is not ideal and is very expensive. We went down the 
route of using Rig 12 to reduce delay in giving the company and shareholders 
some early comfort that we might have a producer. We have successfully done 
this and now can no longer delay the inevitable - we have to get a workover 
rig in. You may be aware that rig costs will be 30% of what Rig 12 costs us. 
I am sorry you don't like the idea of a rig move but there is no technical 
or economic reason to use a fully equipped and crewed deep drilling rig to 
do development work.

-----------------------------------------------------


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## Haveacrack (6 June 2007)

What a day the market has had, or not.

ASX200 is pretty much down about 75% with only very moderate gains for those who did make some ground on todays trading.  If there is anything that may contribute to the very poor performance of GDNs sp its that for the past 3 days the maeket has been retreating to say the least.  China and the us have not helped with there poor showing and this may or may not have had some effect on GDNs sp.  

If its any consolation for holders who are seeing their hard earned $ heading down the toilet - you're not alone not to mention us poor option holders who have seen the op fall off highs of 92 cents and now have fork out another 30 cents to convert each option.

GDNs sp has dropped substantially since it announced the restructure of its u interests and there's no surprise there, at least we are getting priority with the listing at 1 for every 4 GDNs held at record date.  We should, given the premium new u floats have achieved claw back some of our lost profits if the decision is taken to buy in.

Fundamentally i still believe GDN is value for money at this level (DYOR im no expert) and have continued to top up.  This is going to be a long haul stock now and certainly very speculative but looks like there is much upside given what they say is in the ground.  The waiting game is driving me nuts and the company ann have in all their entirety not been the most comforting or encouraging and i think the market is completely confused as to exactly what they have to offer and this is reflectant in the sp.  i myself can't understand what has happened as the past few ann have'nt been negative and if anything they have been quite encourageing - so what's the story.

I would like to think that once the market has finished its correction we should see some confidence come back and hopefully some substanial gains as well.

Good luck to all holders and if you thought my carry on was crap, that's ok i'm just have a bit of a winge and trying to justify to myself why i have what is equal to the value of my house in this stock.


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## Broadside (6 June 2007)

Haveacrack, do you intend to convert all your options into shares?  hope you get some good news and some more information before you have to make a decision, if you haven't already.


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## Haveacrack (6 June 2007)

Broadside said:


> Haveacrack, do you intend to convert all your options into shares?  hope you get some good news and some more information before you have to make a decision, if you haven't already.




I have cheques sitting on my desk which will be posted tomorrow.  Don't really have a choice on conversion, but i do think the good news will come, just have to be patient and work on my intenstinal fortitude.


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## Broadside (6 June 2007)

Haveacrack said:


> I have cheques sitting on my desk which will be posted tomorrow.  Don't really have a choice on conversion, but i do think the good news will come, just have to be patient and work on my intenstinal fortitude.




Why not wait another week before posting your cheques - see if more news comes out, it is always a possibility - why commit before you need to?  they need cheques cleared by June 26 or something like that.  It's not my business and I am not advising you, but if I were in your shoes I would hold out to the last minute (without risking them not getting the cheques cleared).  When is the record date for the priority entitlement for the Uranium float, I guess that needs to be considered too.


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## Haveacrack (6 June 2007)

Broadside said:


> Why not wait another week before posting your cheques - see if more news comes out, it is always a possibility - why commit before you need to?  they need cheques cleared by June 26 or something like that.  It's not my business and I am not advising you, but if I were in your shoes I would hold out to the last minute (without risking them not getting the cheques cleared).  When is the record date for the priority entitlement for the Uranium float, I guess that needs to be considered too.





i hear you - may wait, but will still cost me what i paid plus 30 cents or do you know something i don't?

record date 10th july - ann. yest.


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## Broadside (6 June 2007)

I don't know anything you don't and I don't know if news is coming sooner or later.  But I would wait longer if I were in this position to see if there is more news, that's all.


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## Haveacrack (6 June 2007)

good idea, will hold off a week and pray for good news.

What's your take on what's happening with the sp?


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## Broadside (6 June 2007)

Haveacrack said:


> good idea, will hold off a week and pray for good news.
> 
> What's your take on what's happening with the sp?




I don't know. I still see it as high risk and the primary target didn't come in on this well so a lot of the upside is gone.  The directors indicated some gas shows were likely commercial I just hope they are vindicated. And I hope they release some data to enable option holders to make an informed decision, beyond showing a couple of pictures of a pretty flare.  I hope holders aren't left holding the bag and they make a lot of money for all the stress this stock has put them through.  Good luck.


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## chance fate (7 June 2007)

...  bit of a risky thing to do.. but i sold mine yesterday...  and bought back in only a short while later...  to realise a cgt loss on this stock this year....


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## Broadside (7 June 2007)

chance fate said:


> ...  bit of a risky thing to do.. but i sold mine yesterday...  and bought back in only a short while later...  to realise a cgt loss on this stock this year....




I did that on a stock I owned a couple of years ago but the volume was thin so I crossed them to myself (using an online broker).  ASIC called me and asked me a question or two, then said don't do it again.  Too bad ASIC aren't on the ball with the things that really matter.

Edit: maybe it was the ASX, I can't remember any more.  It seemed like a good idea at the time, I thought why should I lose out on the spread when I can buy and sell at the same price.


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## bigdog (7 June 2007)

Today I have sold my 2006 purchased GDN shares for the capital gains tax loss and bought back in today


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## helpmeunderstand (7 June 2007)

bigdog said:


> Today I have sold my 2006 purchased GDN shares for the capital gains tax loss and bought back in today




but by doing so aren't you really losing more money...... buying 10000 shares for .40c will rebuy you much less..... no?  or does it balance it self with the saving on the tax you had to pay?


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## Broadside (7 June 2007)

helpmeunderstand said:


> but by doing so aren't you really losing more money...... buying 10000 shares for .40c will rebuy you much less..... no?  or does it balance it self with the saving on the tax you had to pay?




you aren't losing more money, you are just realising the loss and can use it to reduce your tax if you have other capital gains.  Suppose  I buy 10,000 GDN @ $1, the price falls to 40c, I sell these shares for $4000.  My loss is $6000.  I then buy the shares back - $4000 worth - and once again hold the same number of shares as I did before.  The loss from a dollar to 40c was there all along, but the sale made it actual for tax purposes.  I don't know if this helps you or answers your question.


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## Haveacrack (12 June 2007)

Nice ann. this morning right on 10 am as usual.  Market not too impressed with ann. guess what's needed is bcf's before sp starts to recover.

Anyone tempted to buy back in or top up at tis level?

Who's doing what, with your options? who thinks Sp will drop below 30 and why (if you don't mind me asking)?

have a good day!!!


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## sting (12 June 2007)

What is a "unit" .... and how many units do u reckon will be required to make this profitable. 

Judging by the markets reaction a lot more units are required

SEMPER UBI SUB UBI


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## Haveacrack (12 June 2007)

sp beginning to move last was 40 at 10.27 though volumes are very low - com' mon' people where's your ticker!!!!

here we go, that's more like it, volume at 40 gaining mommentum.  Need sp to hold at this level for a while.  just gone to 40.5

please sir may we have some more!!!!


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## DAZT49 (12 June 2007)

Yeah right on 10am, they are good at that.
Still not the info we all want, as you say ..how many bcf's????
So we still have to wait for other rig to be brought in,set up,run, testing etc before we know what is really in Para 1.
I would love to bail out for a while...just for a  breather on this mongrel stock.
But I have a feeling in my waters that it will turn out ok.
Drill on Para 2!!


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## Haveacrack (12 June 2007)

refer back to previous threads - "what is a unit was discussed" - about 2 pages back - i think.

have i used enoght characters yet...............................................................................


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## Haveacrack (12 June 2007)

what i thought was going to be a quick profit has turned ot a hold for the long term i think.  i too slao think there is gas in them there hills.  with some luck #2 will not have the drill problems of #1 so should be completed and reported back much more diligently.

previous threads (sorry can't remeber who spoke to GDN and posted) but said about 50 wells planned for paradox with potential for 5tcf...yes that's TCF - straight from the horses mouth (please don't take my word for it, check previous threads)


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## bigdog (12 June 2007)

12-06-2007 10:01 AM  GDN  Progress Report  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00728786

PROGRESS REPORT• The completion rig for Paradox Basin #1 oil & gas well, Grand County, Utah, is due on location on Friday 15 June
• Site works at the Daneros Uranium Prospect, White Canyon Uranium District,
Utah, will commence this week. The rig for the initial drilling programme is mobilising on Monday 18 June

PARADOX BASIN #1 OIL & GAS WELL, GRAND COUNTY, UTAH
Well Stimulation Programme
The well completion rig is due on location on Friday 15 June to commence a stimulation and fracturing programme on the major Pennsylvanian Barker Creek gas interval and on the shallower gas zones indicated above the Barker Creek interval, in the Upper Barker Creek, Akah and Upper Ismay intervals.
As a first priority, perforation, testing and stimulation will be undertaken on the following Pennsylvanian section gas shows:

Formation.... Gas zone (feet) Gas zone (m) Oil & Gas Indication
Upper Ismay 9,845’ - 9,858’ 3,001 - 3,005 
Gas in dolomite reservoir rocks at up to 520 units, with connection gas levels up to 3,000 units.

Akah 10,815 - 10,834’ 3,296 - 3,302 
A gas show of up to 790 units.

Upper Barker Creek 11,015’ - 11,031’ 3,357 – 3,362
A 16’ gas-bearing interval (390 units), in a sandstone unit marking the top of the Barker Creek member.

* Barker Creek 12,561’ - 12,599’  3,828 - 3,840
A major pressured gas interval in dolomitic sandstone. Gas (methane, ethane and trace propane) was present at levels of up to 2,300 units, with connection gas up to 3,300 units.

* In May, following perforation and initial fracturing using carbon dioxide of the above Barker Creek interval, gas flowed to the surface and was flared with progressively increasing levels of gas before shutting in. 37 tons of was injected into the formation to clean up the productive interval without effecting any of the reservoir characteristics. The zone will be further fractured and tested using the completion rig.

The Pennsylvanian-age Barker Creek was one of the primary targets for Paradox Basin #1.

The well location was chosen as an optimal place to test this deep target due to good seismic control at this point and coincidence with a large flexure throughout the Pennsylvanian section. The oil and gas shows encountered at this level are very encouraging and indicate a further potential accumulation east and up-dip from the well.

This provides a priority target to be tested in the second well location, Paradox Basin #2, currently being permitted.

A review of the well results in the Pennsylvanian section above the Barker Creek interval, conducted by an independent consultant, announced on 12 October 2006, concluded:
“This remains one of the most significant wells to be drilled in this region if not in the US this year.”

WHITE CANYON URANIUM PROJECT, SAN JUAN COUNTY, UTAH
Uranium drilling
Site access works to commence on Friday 15 June. The initial drilling programme will begin on the Daneros uranium-vanadium ore body at White Canyon on Monday 19 June, initially with 10 holes to confirm width and grade of earlier drill holes used to generate the historical reserve (see announcement of 3 May 2007).

Complete results of this initial drilling programme will be available within three weeks of completion.

White Canyon Uranium Project is subject to a Memorandum of Agreement (MOA) between Golden State and White Canyon Exploration LLC, a Utah-based uranium explorer and miner.

Details of this agreement are contained in the 3 May announcement.

Prospectus for Uranium IPO
Snowden Mining Industry Consultants has been appointed Independent Expert for the IPO capital raising for the spin off of the uranium assets of Golden State and White Canyon under the MOA. Snowden field investigations have been completed.


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## DAZT49 (12 June 2007)

Haveacrack,
That was my post (868) on 2/6/07
(It was my broker not GDN) 40 wells....and yes he did say 5tcf.
SP under pressure at the moment...come on you little bugger!!


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## Haveacrack (12 June 2007)

thanks for clarifying.  Nothing to worry about. i've already lost my dough - just have to wait, be patient and work on my handicap, though i don't if that is such a good idea - i don't know which is more frustrating, Golf or GDN. Might need to take up Ti chi.....ty chee......tie shee........


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## chance fate (12 June 2007)

Hi Dazt...  I was wondering how CK Locke can substantiate the 5Tcf potential that they've mentioned to you...  I'd give them a call myself to find out but they're not my broker...  so was wondering if wouldn't mind next time you talk to your bro' whether he could shed some light on the basis for that number...  e.g. has there been some new geological information that has upgraded the reserves potential...  5Tcf is huge - i can't see that coming out of the mapped area GDN carry in there presentations for the barker creek... i.e. 16km² by 10m deep....  i'll send gdn an email at this end ... could possibly check for a consistent story....  would it be appropriate to quote CK Locke on the number?  Thanks CF

PS..  the garden is coming along pretty good at this end...  running out of jobs to do!!!


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## DAZT49 (12 June 2007)

HI Chance,
The guy I spoke to wasnt my normal broker (from CKL tho), and was very upbeat about the whole thing.
My normal bro is hard to extract info out of, but I will call him am tomorrow as I have to discuss my options re GDN and others that are not performing at all well, while the all ords keeps pushing thru the clouds.
You are right tho 5tcf would be huge,( i found it hard to believe too) 
The ann today didnt shed any light on the potential reserves (as usual)


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## chance fate (12 June 2007)

Thanks Dazt...  I've fired off an email to Golden for their comment on the range of numbers... will report back... i'm quietly suspecting they are still carrying the Leadville in their forward looking plan...  if they are then we are looking at 50Bcf pending the do or die confirmation report to be factored into the short term share price and the 5Tcf is just hype.


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## Wysiwyg (12 June 2007)

*What happens to the persons/company *, when figures of 3 tcf or 5 tcf are bandied around , *if it isn`t there*.This dude calling 40 wells(40 years at present rate)  is spreading information that isn`t documented or available to the share holders.

The motive could be to drive the price lower I suppose but the legality of such far out claims is in question.Like most I am optimistic , but bull****ting to shareholders is despicable don`t you think.


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## DAZT49 (12 June 2007)

ok good stuff. Think you are right about the hype. 50bcf ann would (hopefully) get the SP moving.That or dynamite.
Dont know if you have had a look at the Hot Cropper threads.
I take look now and again but there is so much crap on it you have really sort thru the bull.


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## DAZT49 (12 June 2007)

Wysiwig,
we are all in the same boat, trying to get info.
I have dealt with the same broker for 4 years and had many conversations with him, he has picked good stocks for me. I dont get the impression that he is bull****ting me. Why would he, i am a just 1 client with very small holdings.


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## chance fate (12 June 2007)

Yeah that does make sense Dazt....  even if you are a small holder why would he bring his credibility into question re. your future business with him???  hopefully will get a decent reply out of gdn asap.....


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## Broadside (12 June 2007)

if the broker is serious about 5 TCF still being in play I would be back in this (in a small way) at these levels, I am dubious however.  Even GDN itself was only talking of 3/3.5 TCF pre drill. Let us know how it goes please!


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## chance fate (12 June 2007)

i'll keep an eye on hot copper tomorrow...  i caught the dude who goes along to gdn saying he's going for another update tomorrow...  so may have some more info. from there... i also asked gdn if they had acquired any further acreage in addition to the original 2000 hectares...


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## the barry (12 June 2007)

DAZT49 said:


> Wysiwig,
> we are all in the same boat, trying to get info.
> I have dealt with the same broker for 4 years and had many conversations with him, he has picked good stocks for me. I dont get the impression that he is bull****ting me. Why would he, i am a just 1 client with very small holdings.




Why would you be trying to get info out of your stockbroker? What would he know that isn't already known by the market. If your broker is bullish on this one it is time to get a new broker. Sounds like he is blowing smoke up your ****.


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## Broadside (12 June 2007)

the barry said:


> Why would you be trying to get info out of your stockbroker? What would he know that isn't already known by the market. If your broker is bullish on this one it is time to get a new broker. Sounds like he is blowing smoke up your ****.




sometimes brokers are closer to the company than the wider market, if he has a good track record I would be inclined to listen to his opinion.  I didn't have a broker till a year ago but have to say getting one has been a great decision.  I still trade my own shares online and trade his ideas through him.  Sorry to digress, my point is brokers can be well worth the money if you have a good one.


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## new_trader1984 (12 June 2007)

Hi chance fate,

GDN hold 10 457 Ha of land, they have to drill 2 wells with the agreement with eclipse first.

In announcement on the 25th November 2005 and announcement on 26th September 2005 have the details of the leased land and the land they bought at auction.

Thanks.


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## chance fate (12 June 2007)

yeah with you Broadside, and in this case I'm interested because dazt's broker is CK Locke who have had a close relationship with golden for some time.  If they don't have more info. re. due diligence, than the general market after providing them with capital that'd be surprising....


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## chance fate (12 June 2007)

nice one new trader...thanks for that...  that could give some basis for the claim of the higher reserves...  I was extremely sceptical on the 40 wells 2000 hectares equation...  that's way too many.  1 well per 1 square kilometer would be more reasonable but even then very dense spacing.


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## shanty (13 June 2007)

With the greatest respect may I point out that 10,457 hectare is 104.57 square kilometres which (at proposed 40 wells) would give one hole per two and half sq kms. Is that better?


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## chance fate (13 June 2007)

yes it is much better than the 40 wells (or even 80 wells) people are talking about on 2000 hectares which is the mapped reservoir size in goldens literature


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## helpmeunderstand (13 June 2007)

I do not understand what the hell is going on?!?!?!?!?  How low would it go???
PLEASE EXPLAIN! so much money down the drain!!!! :


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## sleeper88 (13 June 2007)

to be totally honest..i've given up all hope on this stock..treating this as capital loss so as to minimise my hefty tax bill this FY. I contemplated topping up..but i think i'll stick with what i got..get the uranium ipo..and goodbye GDN 

Money comes and money goes...as long as money in > money out im happy


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## maverick11 (13 June 2007)

anyone watching this stock could tell you it's a dog after the dodgy management did a pump and dump at $1.20 and release ann's every second day


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## chance fate (13 June 2007)

This was posted on HotCopper by Walliska...  my read of 'everybody is getting smashed' is that Richard is too...  and their financiers...  they don't seem to care at this stage....  have had no reply to my email yet...

"
Firstly sorry for the delay folks but have been in meetings all day

What did they say

Spoke to Richard

Rig arrives onsite this Friday as confirmed. There could be a number of days setup time - as expected. They will then begin work on Barker Creek. 

They will definitely release results at the completion of each interval. I asked whether we would have these results by 30th June in order for option holders to make a decision.

The answer was "don't know" - he said could take 7 days (guess what - after options stop trading) or could take 20 days - these things happen in oil and gas industry - delays, might have to go off site to get consumables etc

Tried a different approach and asked why the comment made by the analyst was now appearing in reports again and on what basis was this statement made.

The analyst viewed the wireline logs in October after the initial gas and oil finds and based his conclusions on these logs. I then said well why don't you release the analysts findings to the market - don't have to and basically said they needed to secure that information due to competitors / etc.

This gave me some measure of confidence.

I said to him "what would you do with the options" - he basically said he would exercise - I quickly asked how you could come to that analysis relative to the information in the market. Did not really get a reply but mumbled something about a wireline log again.

I may be incorrect here but we have been analysing the picture they release each time and wonder why the gas or oil formations are shown bigger (shading) up the well rather than Barker Creek which they describe as major gas interval. Posed this question and mumbled something about wireline logs again.

Questioned him about underwriting options - no real answer but my tip is either Locke or Oceania have already a verbal agreement in place - subsequently as I said before they don't really care about the shore term share price.

One comment that irked me was that he said "everybody is getting smashed" - well andrewe - I invested quite heavily in SDL and they shot to 40 cents today and they are not getting smashed - so who is"

Sorry for the vague information but simply repeating what was the least informative discussion I have had with them. At least he remembered who I was.

My underlying feeling is they have a commercial well - and that those that hang around will reap the rewards - to them June 30th has no meaning.

Wally

Am on way home so if you have any questions or I think of other things said will be back online round 7:00pm"


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## the barry (13 June 2007)

chance fate said:


> This was posted on HotCopper by Walliska...  my read of 'everybody is getting smashed' is that Richard is too...  and their financiers...  they don't seem to care at this stage....  have had no reply to my email yet...
> 
> "
> Firstly sorry for the delay folks but have been in meetings all day
> ...





Seriously, what a load of crap. Why would you bother excersisng the options, you could just buy the shares at the same price on the open market. Jeez, what a suprise, the director said he "would" excersie the options. Big suprise there. I bet there not worried about the short term share price, they've dumped all there shares long ago. Time to wake up people, get ready for one big cgt write-off. What a big suprise it would be if the results weren't out before the options expire. Expect a, " we have ****loads of gas" announcement with no figures before hand. Wakey, wakey, people.


----------



## chance fate (13 June 2007)

... I'm starting to think quite a number of those options are held by insto's anyhow...  does anyone know a way of checking the %insto v's %public holding...


----------



## chance fate (13 June 2007)

...  seems like I'm posting too much on this thread...  apologies...  here's a copy of the email i sent to gdn yesterday.  I'm starting to get the feeling I won't get a reply because the questions pin them down to providing market sensitive info. on their assumptions.... any thoughts?


"Dear Sir/Madam,

I am a long term shareholder in Golden State Resources and would be grateful if you could
advise on the following query regarding the potential for revision to the pre-drill reserves
estimates associated with the Golden Eagle prospect.  

I have understood from various sources including a brokerage firm that the reserves
expectation for the Golden Eagle prospect could range up to between 500Bcf and 5Tcf;
requiring up to 80 wells for field development.  These numbers are significantly different
from my own deterministic calculation of reserves for Barker Creek based on a 16km² prospect
with 10m net pay 5% porosity i.e. between 50 and 75 Bcf, and also those presented pre-drill
for the entire prospect including Leadville (50-440-3000Bcf).  I would be grateful if you
could advise whether the current view on the potential range of reserves has changed,
whether it still includes the Leadville prospect, what this range is excluding the Leadville
prospect, and if relevant the reason for the revision.

I�d also be grateful if you could advise on the total Paradox Basin acreage currently held
by Golden State Resources i.e. whether there have been acquisitions further to the original
2000 hectare starting point.

Thank you in advance for your time and I look forward to your reply,
"


----------



## DAZT49 (14 June 2007)

Chance,
Cant find that post by Wally on HC, do you have the ref number?
He is about the only one on that thread who makes any sense. Dont know what those guys do for a job GDN has 100's of posts!!


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## DAZT49 (14 June 2007)

DOW up 187..Nasdq and FTSE also up, hopefully that might give todays ASX a boost..........................................


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## Haveacrack (14 June 2007)

DATZ
I appears we are getting smashed from all sides - comp ann. certainly not helping and a very soft ASX and world market.  I agree with you and will also keep everything crossed as there's no point getting out of GDN now.


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## DAZT49 (14 June 2007)

This from the HC site..take it as you will..
A post from Niel_WA

Market sentiment has driven the share price down, not fundamentals.

The fundamentals have improved, not worsened, since the SP hit $1.20 just before drilling into Leadville as we now know two things:

1. There is flowing gas in at least one formation after only a mini-frac, which will improve even further after the full fracturing. This has been good enough that the company has decided to get a workover rig to prepare this for the "excellent potential for production" - you cannot get any closer to saying this is commercial without breaking ASX rules until production testing has been performed.

2. There are other potential producing formations yet to be tested, including an oil show.

3. Some gas was present in Leadville - and the top of leadville at the depth they hit is was a transition zone. For those that don't know, the transition zone is the interval between the gas above and the water below. The composition varies within this zone from pure water below the zone to pure gas (+/- oil) above the transition zone. Typical thickness in Mississippian sandstone in Utah is about 40 foot and never more than about eighty to a hundred foot (see a previous post of mine for a graph of this). Gas will not be detected at all more than about a hundred foot below the top of the transition zone in sandstone. What this means is that if they had hit Leadville 40-80 foot higher they would have been in near pure gas. The gas they did get from Leadville on the show was ethane/methane predominant (ie. sweet gas - capable of being produced).

Why this is so good is that they are a long way down dip in leadville where they drilled, and in fact Leadville was much deeper AND THICKER than they initially thought. This means there is almost certainly not only an awful lot of depth of leadville that is full of gas above this drill-hole (more than would have been initially thought) but that it is also thicker - so the reservoir potential is massive.

This information seem to have gone completely gone unnoticed by almost all of those on this forum - though has been alluded to in the report post leadville testing. Check the meaning of "gas-water transition zone" yourself to get a better understanding.

The only thing that they need is to stay solvent until the massive potential has been realised and this low SP is not helping.

This is why the third of fourth well will be the critical ones here when they will target Leadville up-dip - as given their cash position they will likely drill two more development wells into Barker creek and above to get cashflow. 



You have no idea of my motives when you read this post so research any issues I raise yourself. 

Be skeptical of what you read on a forum (No matter how apparently well-respected the poster - those praising them may be the same person praising themselves though another nic) and research all information elsewhere before acting on it.


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## chance fate (14 June 2007)

DAZT49 said:


> Chance,
> Cant find that post by Wally on HC, do you have the ref number?
> He is about the only one on that thread who makes any sense. Dont know what those guys do for a job GDN has 100's of posts!!





sorry dazt, no i don't but it was headed Update 3 if that helps....and i gotta puff this out to make 100 letters or i'll get points deducted again...


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## DAZT49 (14 June 2007)

Found it CF thanks.
Sp is at least up today, it would be nice if the bleeding stopped.
Are you considering picking up the the U entitlements? Be nice to have more info. Saw a post claiming that the float price would be $2.65...yeah, and 'rabbits might fly out of my butt' (Waynes World)


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## chance fate (14 June 2007)

...yes i would get the U thingy...  need to wait and see what the initial drilling produces...  so yes i'm not ready to bail until the last report comes out on the gas.. blessed by the Pope and inspected by the Queen and all....


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## DAZT49 (14 June 2007)

u drilling to commence 19th June-results WITHIN 3 weeks (takes us to 9th July) record date for entitlements 10th July.
Completion rig for Para1 due 15th June (tomorrow our time but really Saturday) for stimulation and fracturing of Barker Crk.....results....?????????
Gunna be tight.


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## chance fate (14 June 2007)

...  just to add some light to the gloom.... i'm starting to think the fact they're going ahead with the full bifta frac job on the mini-fracced Barker Creek is a very positive sign...  gotta be real careful not to type 'frac' too quickly.. you get 'ar' instead of 'ra'...  ... would be good to get a comment from roses_ny if he's still around....


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## DAZT49 (14 June 2007)

guess you keep an eye on the squabble that is HC. There was a post called 'some thoughts & questions on GDN' check the start of the thread if you are interested.(before they shot him down)
Think you may have a bit of dyslexia with the 'frac' 'fac' 'frc'
Yeah be nice to get a comment from roses-ny. I sent him an email last week but nuthin back,


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## chance fate (14 June 2007)

...yeah HotCopper can be hillarious...  incredible what people will say for a buck - and there's alot of chirping birds on the gdn thread...  much like liberal v's labour same as bulls v's bears with personal attacks par for the course.... I only really zero in on the odd one or two (bears included of course) that have something useful to say...


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## chance fate (14 June 2007)

just watched news item on resurgence of uranium mining in Utah/Colorado Moab...  on SBS newshour with Jim Lehrer... key points:


Resurgence (boom) of uranium mining due to foreseeable elevated uranium prices
Old mines being reopened
Heavy clean up cost from previous activities 30 years ago - clean up still ongoing
Lukaemia sufferer with cancers in family keen for industry to move ahead due to split in regulator responsibilities - safety and promotion of uranium - and it's a job
In situ mining - dissolve uranium with chemicals in the ground then pump out being considered - concerns due to risk of ground water contamination - no guarantees from miners...
Previously lots of environmental mistakes... now more tightly regulated


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## chance fate (14 June 2007)

Here's the transcript from the web site - Newshour with Jim Lehrer PBS... there's down loads if needed....  have had to cut be cause it's too long!!


MINER: Fire in the hole!

TOM BEARDEN, NewsHour Correspondent: The Pandora uranium mine, just south of Moab, Utah, is back in business after lying dormant for more than 15 years. It's part of a brand-new uranium mining boom that is just beginning to sweep over the Western U.S. 

MIKE SHUMWAY, Uranium Miner: We've got an ore heading here and one here that we're shooting.

TOM BEARDEN: Mike Shumway is the contractor in charge of getting the uranium out of the mine. Both his father and grandfather were miners before him.

MIKE SHUMWAY: I guess it gets in your blood. I enjoy it. I like following the ore and seeing what it will do. You never know. You can't see underground, so when you drill the holes, it's just amazing what it does.

TOM BEARDEN: Moab has seen mining booms and busts many times before, first during the '40s and '50s, when nuclear weapons were being developed, and again in the '70s, when the OPEC oil crisis re-ignited interest in nuclear power. Uranium is the fuel for nuclear reactors.

Each of those booms was quickly followed by a bust, when the price of uranium fell. But now, the price of uranium is skyrocketing, from $40 a pound a year ago to $120 today, and still climbing. It's being driven by the search for clean alternative sources of power to fossil fuels.

It has also spurred a frenzy of prospecting and new claims. Shumway himself has purchased more than 150 old claims because he's convinced this new boom is going to last.

MIKE SHUMWAY: We need to go nuclear, and I think people are starting to realize that, with greenhouse gases. And it's safe. It's clean. It's the best power there is that we have, that we know of, and there's abundance of it.


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## DAZT49 (15 June 2007)

Looks like you were talking to yourself last night CF.
I tried to get on but had probs logging in.
GDN had an ann to the market on 3/5/07 re the U Thang with this link
http://www.nytimes.com/2007/03/28/business/28uranium.html?ex=1332734400&en=2ee40a7e7c5a9144&ei=5088&
Wonder if it is the same item, given that it sometimes it takes a while to get items on news programs like News Hour.
I do watch that program from time to time its a bit over my head sometimes, but informative.
The roll call of Amreican soldiers who have died that day in Iraq is a bit grim
and sobering..
DOW ,Nasdq and FTSE up again overnight lets hope the GDN SP at least holds again and dream it will finish the week up


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## the barry (15 June 2007)

Just a question, if the current well is plugged, where are they going to get the funds to drill the upcoming wells you talk about? Chances are the majority of the options aren't going to be converted and it would be hard to see instutions throwing cash at this company again. Unless they offer the shares at next to nothing with massive dilution of the share value. 
Also in terms of the u company. 
Say the company is at 34 cents today and it drops to 20 cents by the time of listing, 

10000 shares at 34cents = 3400 grand to buy
loss at 20 cents = 10000 * .14 = 1400

10000 * .25 for entitlement = 2500

For you just to break even the u shares would have to list at a 56 percent premium just to break even. Do you think that is going to happen?

Just something to think about.


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## DAZT49 (15 June 2007)

TB,
I sold my options a few weeks ago (when the SP was $1.10!!!) and bought more shares. I dont really understand what happens to the other 30odd mill options out there.
In the origional prospectus I am pretty sure the funding was always for 2 wells, could be wrong.
Its a hell of a ride..the closer we get ,the further away the goal posts are.
We have 2 choices..bail out or trust that the powers that be know (sought of) what they are doing.


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## sting (15 June 2007)

WHY ME... almost 200% rise on oppies... i sold out mine yesterday at .045..at a loss..... they hit 12 cents just before close 

SEMPER UBI SUB UBI


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## DAZT49 (15 June 2007)

Sting,
Ouchthat hurts doesnt it.
Its Murphys law of course, and usually what happens to me.
Dont know what all that was about today but keep it rolling!!


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## chance fate (15 June 2007)

what the.....   went out for a paddle in the morning... just got back 2.30 perth... and i'm back in the black... what's going on???   rig should be on site today... test results still well over a week away....   9 millions shares (5% of fully diluted total) traded out of the blue....


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## sleeper88 (15 June 2007)

chance fate said:


> what the.....   went out for a paddle in the morning... just got back 2.30 perth... and i'm back in the black... what's going on???   rig should be on site today... test results still well over a week away....   9 millions shares (5% of fully diluted total) traded out of the blue....




damit damit damit damit damit damit damit...less tax deductions for me this yr >.<


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## Haveacrack (15 June 2007)

that came out of the blue.  Maybe, just maybe the market is starting to realise some value in GDN at these levels. For those of you back in the black, you are very lucky and for those of  us who have been holding out lets all pray this is the beginning of more to come - i certainly hope it is as its in to me for a packet and some.

Putting all the pos and neg talk aside i still maintain this GDN has got something at #1, if not they would have plugged it and moved on.  More fracs to come and talk of substanially more reserves once frac is complete.  Surely the fundamentals tell us all is going to be ok and common sense says GDN has confidence in the well or they wouldn't keep throwing more money at it, then again its only shareholders money after all.

What do you all think?


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## chance fate (16 June 2007)

... here's a guess at what might be occurring...  sp only as good as it's last capital raising.... fear.... 30c exercise on 30 million shares... significant amount of cash... fall close to 30c....  but why would traders want to send a company broke if options not exercised??  ...  ok will stay above 30c....  will get the options converted...?  hold on last recent capital rasing was actually 53c...  very confused... no clear benchmark to go by... no concrete results.... result sp still very volatile....  traders' play time....


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## shanty (16 June 2007)

those last three words "traders' play time". I reckon you've hit the nail on the head.
I know GDN are sloppy, better say lousy, at the PR buisness like reporting, answering emails, posting stuff on the web and, quite incredible really for a 'respectable' company, posting stuff on their own web site. Compared with a number of other companies they're crap.
BUT they provide the most fertile ground for those busy little bees of bros to recommend a sell to the nervous and a buy for the optimistic gambler. Well it's legal of course so what the hell.
DYOR but I've been with these jokers almost since they started, never had a reply of any sort to an email, hold some 300,000, never thought of jumping ship, they might need some guidance from an old hand on how to keep the punters sweet  but the answer is in the ground,luv yer all.


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## Haveacrack (18 June 2007)

Interesting story on 60 mins last night about indonesian gas well, geo's blamed casing or lack of which caused massive amounts of water/mud to spew from the earth.

Thankfully GDN did the right thing when they had casing failures which as a result caused completion to drag on for quite some time.  They are back on track and proceeding with fracturing so all being what it should we shhould start to see more frac results.  We are at that stage of the well we should have been at 6 months ago and it's my guess that the market is, and still is, frustrated with the time it has taken, thus the poor SP.

I'm liking what i have seen this morning, traditionally the stock spike a little and retreats below its previous close.  This morning it has done this but stayed about prev. close and is now moving forward into more positive territory.  there doesn't appear to be any real serious selling down of the stock which tells me the market is gaining confidence in what it expects from GDNs next ann.

DYOR im not an advisor.


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## DAZT49 (18 June 2007)

Hava,
Interesting about the casing...maybe management are looking after us after all!!
Promising start for the SP. Holding on to that 43-44c area.  Would have prefered if it hadnt gap opened.
Looking good on the charts too, all my indicators heading in the right direction!!!
Slowly, slowly catchee monkey.


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## Haveacrack (18 June 2007)

My thoughts exactly,  too much money in this well to risk it all.  One of their ann. mentioned that they are taking the safe approach with regard the casing - all the wait will be worth it.

Ann. just out - Maquarie Eqities have just agreed to underwrite 16.6 million options if a shortfall occurs with the option take up - now's theres a vote of confidence - and from a mercahnt bank who don't like to lose money!!!

this will be interesting..........


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## bigdog (18 June 2007)

ASX ann
18/06/2007   Underwriting of exercise of options 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00730495

Maquarie Eqities have just agreed to underwrite 16.6 million options


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## DAZT49 (18 June 2007)

Disappointing finish, would have been nice to finish up on the day.
Still, good volumes ..nice and steady. 
RSI,MACD etc still havent got over the median yet.
Cant wait for that Ann!! (gas)


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## Haveacrack (19 June 2007)

I just don't get this stock!!!! 

Maq bank has agree to underwrite any short fall in the ops.  GDN would not be in this position re the delays in para #1 if it were not for faulty casing and as a result of such time delays.  Investors have bailed out like rats on a sinking ship. The fact Maq bank is onboard shows it has confidence in the stock.  They would have gone through GDN with a fine tooth comb when completing dudiligence to ensure what GDN has is worth every cent.

And yet the SP is retreating once again...........sentiment must be terrible!!!


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## DAZT49 (19 June 2007)

Shhheeeeiiiitte!! This stock is gunna send me crazy. I reckon you are right Hava .Sentiment..no Ann re the new rig, we dont evenknow if it is there yet.


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## floyd (19 June 2007)

Work Over Rig was to be in place last Friday ... 
no news yet + bad sentiment = decreasing stock price ... 

again ...


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## DAZT49 (19 June 2007)

I have just sent ANOTHER email to GDN, not expecting a reply, but I suggest everybody sends one asking about the whereabouts of the workover rig.
gsr@goldenstate.com.au 
And give them a pump too!!


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## DAZT49 (19 June 2007)

Rumour on HC. Rig is in place and will commence testing on Thurs. Ann on Thurs..repeat..rumour.
Disappointing to finish down again..however..as stated I am an optimist!!.
If you are a Joe Ross follower you will recognise the potential start of a 1.2.3 low with positions 1 and 2 complete, need a higer high and higher low to establish pos no 3, then breakout of no 2 to establish a trend.


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## DAZT49 (19 June 2007)

could confuse a stupid person...try this..........................................................................


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## new_trader1984 (19 June 2007)

Hi, not sure if anyone is interested in knowing this demand supply amounts recently and the differences in numbers for the smart money, but thought to share it anyway.

If want to understand about this supply demand indicators ive been mentioning you can get the 2 ebooks off the inside trader website under resources you don’t have to be a member since im not but just explains how it is meant to work. There are 2 pdf files which might be of interest to some people.

Today I was looking at the demand line for the top 5 prices, this goes up and down all during the day and the final number at end of each day is what is used on the daily chart except during the day as the number changes it will still appear on the daily chart too. I also watched the top 8 and the full market depth lines but for short term price direction the top 5 and top 8 prices are the ones to likely be most accurate.

Today on the chart for the first 5 prices, around 10 55am there was an increase from 0.7567 to 2.1748 which is an increase of 2.8740 times or about 290% increase in demand in the top 5 on the buyers side compared to the sell side. At around 12 43am there was an increase from 2.1595 to 4.2565 which is almost another 100% on top or a 560% increase in demand from the opening this morning. At close it finished at 1.9171 more than the sell side but big buyers wont buy up all day which can be noticed when the demand increased at 4 separate times in large amounts today, but that also means demand dropped during the day as well. The demand increased from 1.1104 at 3.51pm to its 1.9171 at close.

The top 8 levels increased to a high of 2.2437 this morning from opening at around 0.9218, its closed at 1.4982.

The full market depth isn’t really used for short term price movements but for just an idea of the direction the price should be moving towards. At close the full market depth demand is 0.745 and number of buyers is 0.4869. The higher the demand is the blue line on the chart and the lower the red line is shows there are smaller number of buyers but they want to buy bigger amounts of shares. 

On the charts the blue line is above the red line on the top 5, top 8 and full market depth at close. 

The idea of these indicators is just when you see the blue line increasing it means there are more shares being bought then shares being sold, so when on the chart it said the demand was 4.25 it meant there was 4.25 times more number of shares wanting to be bought then there was to be sold. Its only to give an indication of what direction the price might start moving towards like the macd and other indicators but the demand shows an increase in buyers and number of shares wanting to be bought so may provide some people a chance to buy in earlier then those that wait till indicators have crossed to suggest a new direction in trend. 

This isn’t always going to work since market depth can be manipulated and that’s why there are 3 different price intervals to use, but looking at all 3 you can get a better idea of what might happen in the near future. 

The smart money indicator, many may not call it smart but just going by its name just lets people know if the buy side is buying more shares than previously then people would be expecting a price increase. So using the example where the top 5 price levels reached 4.2565 and the number of buyers/sellers ratio was 1.8888 this gives a smart money ratio of 2.2535 times bigger parcels of shares per buyer being bought then sellers are selling. The smart money numbers are only to give people an idea and doesn’t mean will work every time but it does at least suggest there is confidence in either short or longer term for the share price from current prices.

If you look over the last 5-6 days of trading before the price moved up to 40+ cents there were some big buy orders going through. Also some might say smart people don’t sit in the market depth for their trades since they don’t want to show what size parcels they are purchasing, but can look at the trades that go through during the time of increased demand and can see if anyone is buying large amounts of shares which can help show that when the demand has increased that its not just people manipulating the market depth and placing orders and taking them away at the last minute.

Also a brokerage site called trader dealer is one that is set up designed to suit traders where they can make several trades over a day so if they want to buy a very large amount of shares they can break the amount of shares into several portions to be purchased over the day for the one brokerage cost, this can be used to make people looking at the market depth think that there isn’t anyone buying large amounts of shares when some individuals could be buying large amounts of shares. Same goes for selling. 

The 2 charts I have posted if look at the daily chart just before march the demand went up to 10 and a month later the price increased from 60 cents to over 1.20. Also looking at the last few days on the qu chart the demand has increased over the last week but with very little price movement, the idea of this indicator is to show when demand has increased before a price move to help with picking stocks before any movement happens. Doesn’t always work but thought this may be of interest to someone.

Just thought I would share what I have seen using these demand indicators.


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## DAZT49 (19 June 2007)

new trader 1984,
can you give us the website for this stuff? Or can you email me the pdf files?
I always try to consider depth in my calcs. I dont want to bog myself down too much with charts ,candles,fibannacci, chalkien etc. Prefer to interpret simple bars with Bollinger Bands. i do look at RSI and MACD but just as confirmation
What program is that you use to chart it.
thanks
dazza


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## new_trader1984 (19 June 2007)

Hi dazt49,

The website to download the pdf files is www.theinsidetrader.com.au Click on the resources part at the top and there should be a few files you can download. 

Under the heading neilsen supply demand indicator there is a 2meg file its 24 pages long explains all about how the shares and buyers sellers numbers work and how to come up with the smart money ratios. 

Also look at the documents under information for phoenix ai users with neilsen indicator. there is 4 documents, all of the documents have examples which can show what the demand and supply numbers mean for the share price in the near term.

The inside trader has the smart money indicator which is the shares ratio divided by the buyers/sellers ratio, moses on this forum on another thread has posted many examples of the charts from the inside trader which i think uses the full market depth for the blue line but not sure. 

I use phoenix ai which i just started when they offered first month trial for 2.95 and i got the live feed and the demand supply indicator which is an extra but i think it will be very helpful for me at least.

The phoenix ai offers 3 different levels which looks at the full market depth, the first 5 price levels and first 8 price levels. This just helps to look at short term possible movements and if looking at full market depth bids at 5 cents and sells at 90 cents would have an affect on the demand ratios even though the price would not reach either level in the short term. 

Using phoenix ai if have live data it will change during the day and have watched it on tick data as well and last week when gdno increased by 100-200% the demand increased about 20 minutes before the price did. Not saying it would work every time but thats just an example of what happened.

I dont use charts much but starting to learn how to use them, but so far only really look at macd and this demand supply for indications of likely price movements so far.

Looking at the demand and supply wont always work but it can offer some idea of where there seems to be bigger parcels of shares being bought compared to the sell side and if the buy side has a bit of pressure behind it normally a price move will follow.

Thanks.


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## DAZT49 (20 June 2007)

thanks nt1984.
where is everybody?
This lifted from HC by ironworker.

Sorry for not replying until know, but Utah time is about 16 hours behind Sydney time.

Anyway, John just confirmed the workover rig is on site, frakking materials being transported to the site, permitting for #2 still with government, currently doing the plumbing and they will begin frakking this week.


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## chance fate (20 June 2007)

Here's another update from HotCopper-walliska (our trusted source of golden info.!!)   Conflicting info. on rig location and status....

Hi folks

Have not read any other posts so may be repeating what is already known

the goose has negativitis 

We spoke to Richard (I didn't - colleague did)

Drill rig onsite tomorrow - flow testing 7 days and you guessed it we are passed end of financial year.

He was pressed on the fact why put a workover rig over the hole if you do not have positive flows there - you would plug and abandon.

Response was basically a positive to being commercial

And the reason they don't have the drill rig over the hole as we speak - transport problems

apologies for limited info but what more can we say

Wally

Andrewe and sue12


----------



## helpmeunderstand (20 June 2007)

So which one is it? is the rig on site or not??? it should have been there last Friday?!?!?

When will they release there next ann?


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## Haveacrack (20 June 2007)

surely it must be commercial, why would they place a workover rig in place if you aren't absolutely confident the rig will be used to extract commercially viable quantities of gas.  They have only conducted minimal fracs and decided to bring in the workover rig to complete fracs to continue fracs in barker - they must know what they have but can't release to the market until they are 100% sure - which will come with next ann i hope.
Am i reading this right or not - what do you all think?


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## floyd (21 June 2007)

on the surface that would appear so BUT

why no announc. 
- Work Over Rig Arrived (was supposed toi be last Friday)
- if delayed, why and when to

also

- now, given work has not commenced, will there be an announc., facts based figures before the option expire?  Is this being manifacture to extract the option money before the announc.?
- if you believe you have a productive well then why not make every post a winner and keep your shareholder (and options) aware of what is happening.  You do not/cannot make statements that you cannot justify to the ASX but that does not stop you keeping everyone up-to-date on what is happening.

all this IMO adds up to No Announc + Delay = Share Price down
sentiment is bad and with justification, once again IMO


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## DAZT49 (21 June 2007)

floyd,
As posted elsewhere on this thread (I think) GDN (or any other company) Has no obligation to keep us posted on everything, just relevant ASX anns ie when they DO have results.
It would be nice to have a ann with answers to all those questions we all would like to know, bur it aint gunna happen!!
It is a MAJOR pain this stock..lets hope the nurse is on the way with some TLC ( ie long steady recovery of the SP)


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## floyd (21 June 2007)

Agree, no question ... 

One point though does the commencement of Drilling or a Refrac. constitute something that would be calssed a relevant ASX announcement?  

I am no expert on what does and does not but hey the commenecment of usage of the Work Over Rig would have to be close would'nt it?

Just looking for an opion on that

thx


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## DAZT49 (21 June 2007)

There was a post on the HC site saying that the truck carrying the workover rig had broken down and that testing would start on 21st (US time Friday our time) and a further 7 days for results. An ann would be made on time of commencement ie tomorrow Aus time.
There are lots of 'mischievious' posts on the HC site, bit I pass it on, cos there isnt much input on ASF at the moment.


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## new_trader1984 (21 June 2007)

Hello,

I just have a question and hoping someone might be able to help answer it thanks.

When looking at the trades that go through each day and see orders of shares that have been traded, would they be the shares that are sold or the amount being purchased?

So if one buyer wanted 100 000 shares but 3 sellers had 30 000, 30 000, and 40 000 would the trades screen show 100 000 shares or the 30,30,40 trades?

Just i have gone back to the 30th of May and looked at each daily chart with the demand indicator and then worked out when the smart money was entering meaning just bigger amounts of shares being bought then shares sold per buyer/seller. 

Ive found there have been most days where the smart money was entering even when the share price was at 50-56 cents, the 8th of June seemed to be a day where the full day the smart money was entering and looking at the trades there were parcels in the 100-200 000 range and many trades in large amounts over 50 000 shares. There were also lots of smaller parcels of shares going through all at the same time when the demand was high and buyers/sellers were dropping which meant each buyer was buying more shares. 

Thanks.


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## chance fate (21 June 2007)

nt9184..  looks like you're putting alot of effort into this analysis... and would be interested in what any insights ... however on this stock i believe charting may not achieve anything other than to say that sentiment is bad... in early june before the sp started falling below the 50c there was a belief that results would be out imminently... since then the drill rig has been swapped for the workover rig with delays to the results and the options are due to expire...  i beleive it's fair to say the sp has stabilised at 36-37c pending option expiry...  an upward shift in sp may occur next week although reckon pressure may remain up to the last minute possible for holder to sign and deliver their cheques...  then it all hinges on the results announcement - which will shed new info. on any fundamental valuation... and hence chart history will be of little value...  just my view...


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## Haveacrack (21 June 2007)

I agree.  There has been so much uncertainty surrounding this stock, so manny delays and drill problems hence GDN sueing the supplier of the casing due to casing failure during placement.  It goes without saying that sentiment re GDN probably can't get much lower and those who have been following are dumbfounded by the current sp.  In saying that i have moved away from trying to analys its chart and rather, relied on the project fundalmentals which i still believe to be very sound.  Keep in mind traders don't like uncertainty in a stock and when the news or the progress of a project fails to deliver there is an immediate backlash from punters and the sp retreats - its only natural because holders get nervous.  

GDN has ann. when they felt the need whether the market like the news or not but they must only report the facts so as not to mislead the market.  I think, and it is only my opinion that the directors of GDN must be pulling their hair out over this one and probably thinking that they can't win a trick (with so many problems they have encountered) - i know i would be - yet they soldier on because they know what they can't tell us because its not factual YET

I firmly believe that if and when they finally get their wells measured and confirmed cubic feet reserves and provided they are commercial reserves we will see the sp hit new highs simply due to the uncertainty being dispelled.

I converted my oppies about 10 days ago just before they ann. Maquarie Equities were going to underwrite 1.6 million options.  i felt very comfortable with my decision after reading that as i'm sure they've done their homework and can see the upside. 

As always DYOR, i'm no financial advisor just another optomistic punter.


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## new_trader1984 (21 June 2007)

Hi chance fate, thanks for the reply.

Do you know if the trades that come up during the day are they the shares each seller has sold? So a buyer could make up several of the sellers each time they buy an amount of shares?

I have spent a bit of time looking at the charts since the 30th of may today.  Ive posted all my thoughts on the fundamentals but was posted on another forum. dazt49 mentioned the forum on here recently, i didnt post it here since they said i was upramping over there and that wasnt the intention of the post. 

The idea of this indicator is to show where people are buying in large amounts of shares when the share price isnt moving. If the red line is below the blue line like in the 2 charts on page 49 it suggests that smart money is entering which just means larger then normal share purchases are happening and if people are buying larger amounts of shares then they are confident of a good price rise as people wont invest large amounts of money into a company that is likely to fall further. Thats the idea behind using this indicator from what ive read and thought is worth sharing. The buyer demand normally increases before a share price will increase which is bit different to most indicators since this one suggests when a market direction could be turning from a downward direction to an upward direction in share price. I think this indicator is only offered by phoenix ai at the moment and thats why thought to share it since does show there are more buyers then sellers currently by about twice as many sellers but with very little price movement.

There is a thread on here started by moses called neilsen smart money which shows examples of something similar except, phoenix ai doesnt show the smart money but provides the buyers/sellers numbers and shares ratio which allows people to work out if smart money has or is entering the stock. 

Im confident of good results for gdn just have to hope the market reacts well to any results when they are released to the market. 

Also using the indicator when it shows smart money entering which has been happening recently, they aernt traders so i think would hold the shares for a good profit and if they are entering the last couple of weeks they must be confident in the well being commercial but just waiting till the announcement comes out saying it is. 

Im only looking at this after i looked at the fundamentals side too while the price is at such low prices. Seeing the chart suggesting smart money is entering it improves confidence in holding the stock more after looking at the fundamentals. The same happened around august september 2006 but the demand reached 8 times more buyers then sellers without moving the share price. 

Thanks.


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## DAZT49 (22 June 2007)

nt1984,
yes..

" if one buyer wanted 100 000 shares but 3 sellers had 30 000, 30 000, and 40 000 it would show as 30,30,40 trades".


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## DAZT49 (22 June 2007)

chance,
agree..analysis/charting of GDN is pretty hard  (you cant put an entry in under 'uncertainty'!!,) Anns can really mess them up. 

IMO Really, analysis/charting is always following what is happening.
Works best when the share is trending and has some momentum. They can still 'hint' at things when a share is going sideways.
Its all dragging on isnt it, You are right Chance, we wont get any respite till after opions expiry so early July ,when was the IPO??..about 10 years ago LOL


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## DAZT49 (22 June 2007)

Another factor that could move the SP is the U spinoff.
Entitlements close on 10th July.
The period between option expiry and the 10th will be interesting.
Will ex option holders use there profits (some will make a profit wont they??)
to bolster up there GDN share numbers.
Will there be a rush of new GDN investors jumping in to pick up the entitlements??
If we can believe GDN (and who would'nt!!) drilling at Daneros commenced on 17th June with results due WITHIN 3 weeks, which puts it around the same time or before entitlement cut off. 
If the results of the U drilling are favorable and released before entitlement cut off ,surely the SP of GDN will take off.. if only in the short term. Holders are entitled to 1 in 4 shares for the new float at 35c/share. With results due BEFORE listing. If the u drilling results are good, its a pretty tempting offer. 
Prospectus for U thing to be submitted to ASIC in last week of July.
Listing date???
Who know what the SP of the U thing will be on float!!
(And remember, we still have the results of Para 1 testing to come in the meantime)
I am getting pumped boys.
All IMHO of course.
(And yes I know this is my 3rd post this am, but I couldnt sleep so got up at 6am)


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## bigdog (22 June 2007)

DAZT49 said:


> Another factor that could move the SP is the U spinoff.
> Entitlements close on 10th July.
> The period between option expiry and the 10th will be interesting.
> Will ex option holders use there profits (some will make a profit wont they??)
> ...




If the current SP includes the value of the U assets, why would the GDN SP not drop when the U assets removed and are spun off?
-- Great strategy to sell the U assets of company back to the shareholders!!!


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## DAZT49 (22 June 2007)

agree doggy,
I did say 'in the short term' maybe just a spike up till entitlement.
If it costs (guesswork) 50c for GDN + 35c (entitlement)= 85c.
If the new U (with good results) floats at $1.50  thats a 56% profit.
Not bad for a few weeks investment.


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## bigdog (22 June 2007)

ASX ANN just issued
22-06-2007 10:11 AM  GDN  Progress Report  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00732143

One pager states:

#1 gas well Undergoing completion & stimulation activities
Fracing crew is due on site Monday June 25

GDN   $0.40    +$0.03  +8.11% 1,227,042 shares $477,187 @ 22-Jun 10:28:23


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## chance fate (22 June 2007)

...results due hopefully within a week from next monday... it should be a good battle between bulls and bears next week...


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## DAZT49 (26 June 2007)

Y'all might wanna check out this link
http://africa.reuters.com/metals/news/usnN22206654.html
Seems like the oil rush of the 1800's!!
And we are the new Clamperts lol


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## chance fate (26 June 2007)

Ha ha...Shumey's famous all over the world...  if the U is as good as his promotional capability..  could be attracting wealthy investors from africa...  i know of at least one wealthy person on that continent... he runs Zimbabwe.... it's going to be worth the hold even if the gas doesn't come good...!!  ... don't know about you guys but as the results are getting closer seems time is definitely slowing down...


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## DAZT49 (26 June 2007)

The time is going nearly as slow as when they were retrieving the piping.from the casing ...1ft /day !!
It will be nice to get good gas flows for a handsome income , some oil to pay the bills and some U for beer and chips.
I am hoping the results of the fraccing will be in by Friday, but I reckon it will be Tues Wed next week


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## DAZT49 (27 June 2007)

Idreambig,
Yeah been in from the start (IPO + options)
IMO well is commercial. results due from fraccing end of this week, results end of next week for Uranium spinoff.
 Uranium entltement placement 10 July
Para 2 to start ?? (application for permits are in)
(GDN have stated that Para 2 will be updip and on the money.)
After frac results I will be topping up my GDN to get a nice round number of u shares.

What a ride so far..

I am holding.


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## chance fate (28 June 2007)

..if it's bad news ... it definitely won't be out tomorrow (friday).. not til the options dough is in the bank...  if it's good it could be.... but agree it's most likely to be early to mid next week....


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## ben_Q (29 June 2007)

Doesn't look like any announcement this afternoon. May have to hold out till early next week. 

Are we going to see the Friday afternoon trading rally that accompanies GDN today?


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## chance fate (29 June 2007)

I hope it continues!!  given that the options holders are now either very dark on gdn or holding ords are we going to see the sp return to 53.5 c level even without the announcement?


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## new_trader1984 (29 June 2007)

Hi, I have posted about the demand supply charts and smart money using the phoenix ai software.

Just thought to show the chart from todays trading. 

From around 11am the demand had increased from around 0.7 up to above 2 which means twice as many shares in the top 5 price levels were wanting to be bought then there were to be sold. So pressure on the demand had increased which suggested a likely price move. The price when the demand started to increase was 36.5 cents, i used 6 tick data for the chart but using 1-2 during the day gave about 10 minutes from demand started moving before a price move happened. 

The red line is the ratio of buyers to sellers, during the first hour the red line was above the blue line, the red line meant there were more buyers in the top 5 price levels then there were sellers, which means the buyers in the first hour wernt buying big parcels of shares. 

When the demand increased and blue line shares ratio went above the red line this meant smart money was entering which is just each buyer wanting to buy larger parcels of shares. Looking at the chart on the top 5 price levels from around 11am till close today smart money was entering, looking at the trades that were going through also you can see that there were some large purchases going through so the buy depth wasnt being manipulated with bids being placed and then taken away before trades went through. 

The lower the ratio is for the red line means there is a lot less buyers buying the shares then there is sellers, but the demand of shares was also staying up high which means each buyer today wanted a lot more shares then each seller was willing to sell. 

The blue line has been above the red line on other days but hasnt been for a large part of the day like todays chart except on the 8th and 19th of june where there seemed to be a lot of buying happening all through the day with the blue line above the red line. 

This might not mean much but it can suggest there is confidence in gdn because normally people with large amounts of money wont risk it without being fairly confident that they will make a decent amount of money. With the buying today a lot of people are thinking the same to push the demand up to 2 times more shares wanting to be bought then sold during the day.

Just thought this might be of some interest to others.


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## DAZT49 (2 July 2007)

Is this 'the' big week??
Para 1 report due any time,The U report due, entitlements on the 10th.
 Early depth shows some good size orders with a small rise (1c) on opening.
For any long time holders(like me) who have lost sleep,hair and the ability to talk to other people......Good luck lol


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## chance fate (2 July 2007)

...yeah good luck daz...  actually dreading this announcement...  wondering if it'll come in the form of a trading halt first ... then wait a few hours for the report....???


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## DAZT49 (2 July 2007)

chance,
It would be great if it is today, tho I reckon tomorrow.
If the ann today it should show up pretty soon (10min to open)
I am pretty sure we all know it is commercial..but how commercial.
Beats bungee jumping to get the adrenalin going


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## Wysiwyg (2 July 2007)

chance fate said:


> ...yeah good luck daz...  actually dreading this announcement...  wondering if it'll come in the form of a trading halt first ... then wait a few hours for the report....???





Another roll of the dice chance.Good luck.Must be that Italian connection hey.I still have some at 70 c.I do have lots of time though.


Slowly slowly catchee ducky.lol.


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## DAZT49 (2 July 2007)

Wys,
Love your work.
I sold my options and bought heads at $1.10!!
Still got most of em (the options) at 8c so I too have plenty of time.
2 mins to blast off.


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## toc_bat (2 July 2007)

hi all

question about the options, are they tradeable?

as my anz etrade wont show market depth as it reports : symbol not found, etc

but it does show the price chart for them? is anz playing up again? 

bye

edit : oops i just noticed that the chart stops at 22 june, so i guess they expired there, oops


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## DAZT49 (2 July 2007)

1 mill sales in 22 minutes certainly steaming along.
Sp holding nicely.Its signifigant if it breaks thru .445c
toc_bat, options have expired so no trading GDNO anymore.


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## toc_bat (2 July 2007)

thanks daz

when i saw you write you got em at 8c i thought you were talking recently obviously you got em ages ago

good luck, i wish i had some free money, it looks to me like gdn has found its bottom and is recovering, 

bye

edit: by the way what was the exercise price of the options?


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## DAZT49 (2 July 2007)

toc_bat,
From my fading memory i bought options in Aug 2005. 
Dont know what final prices were at expiry, anyone else help out here?
Looks like no ann today.


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## DAZT49 (2 July 2007)

From the HC site...
John (Haselby)changed his flight and left Perth yesterday (Sun). He would not be there (Denver) till after close of trade today, so announcment will be tomorrow, Tues.


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## chance fate (3 July 2007)

no announcement!....  could be they didn't start the frac job until late last week...  delayed because the CO2 containers didn't get to site until a couple of days after the frac unit...   just theories....


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## DAZT49 (3 July 2007)

chance,
Just had a quick look over past anns, they haven't always been at open of market, all over the place.
Just a bit more torment for us.


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## chance fate (3 July 2007)

this is driving me nuts...  can't read anything serious into the delays at the moment...  could be the geo dude that's writing up the standard compliant reserves report has got the runs and is spending the day on the cr8pper.....


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## DAZT49 (3 July 2007)

Its about 8 ish pm over there, maybe just collating all documents... just about to fill in the part that ses 440BCF.
Or could be a part of the last space shuttle has fallen thru the communication disc.


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## chance fate (3 July 2007)

..or they've got the 440Bcf...  gone straight down the pub for a few pints...  and then a couple of whisky shots... and then...  and then...  'oh sh.t.'..  'we forgot to finish the report'.....


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## DAZT49 (3 July 2007)

SO WHAT DOES THAT ALL MEAN?
ANOTHER 48 HOURS FROM WHEN??
THIS IS REALLY SH*TTING ME TO TEARS!!!!!!!!!!!!!!


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## chance fate (3 July 2007)

DAZT49 said:


> SO WHAT DOES THAT ALL MEAN?
> ANOTHER 48 HOURS FROM WHEN??
> THIS IS REALLY SH*TTING ME TO TEARS!!!!!!!!!!!!!!




8700psi /14.5 = 600 bar
hydrostratic pressure at 12599' (assume salt water say relative density of 1.1) = 12599 * 0.3049 / 10 * 1.1 = 420 bar

therefore gas water contact is:

600-420 = 180 bar
180/1.1 * 10 /0.3049 + 12599 = approx 18000'

either that's a f..ck..ng huge reservoir...  or the pressure data is incorrect....

gonna recheck my maths.... seems unbeleiveable....


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## bigdog (3 July 2007)

ASX ANN today
28-06-2007 04:28 PM  GDN  Appendix 3B  
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00735544

• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing completion and stimulation activities.

• A slickwater hydraulic fracture treatment of the Barker Creek gas interval was completed successfully.

• The well is currently undergoing a 48 hour extended flow test.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
A slickwater hydraulic fracture treatment of the Barker Creek interval (12,561’ - 12,599’) was completed successfully. Following a shut in period the well uploaded gas and process water, and remnant drilling fluids. Pressure recorders left in place while the well was shut in indicated a formation pressure of 8,700 psi.

The well is currently undergoing a 48 hour extended flow test. Flows rates and their commercial significance will be determined once gas flow rates from the interval have stabilized.

Following assessment of this interval, further stimulation work is contingently planned for higher hydrocarbon intervals in the well indicated by drilling in the Upper Barker Creek, Akah and Upper Ismay intervals, between 9,845’ and 11,031’.


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## LetItRide (3 July 2007)

chance fate said:


> 8700psi /14.5 = 600 bar
> hydrostratic pressure at 12599' (assume salt water say relative density of 1.1) = 12599 * 0.3049 / 10 * 1.1 = 420 bar
> 
> therefore gas water contact is:
> ...





Bit of a novice with these gas stats. Would appreciate it if you can hurry up and let us know if your maths is correct!


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## chance fate (3 July 2007)

LetItRide said:


> Bit of a novice with these gas stats. Would appreciate it if you can hurry up and let us know if your maths is correct!




maths is good...  a couple of coarse assumptions used... but magnitude wise it's ok (DYOR)...  what we don't know is what the flow rate is and whether it's sustainable....  but with that kind of background pressure i'm happy to take the punt (DYOR) on the frac job having worked (they say it's successfully completed in the report)....  reckon they need 48 hours of extended flow testing to prove to the gas gathering co. that it's worth granting a permit to tie in to the main gas transport system....   even if this one isn't a producer it looks like there's good reserves....  alternative would be to drill a horizontal well if vertical one can't produce fast enough....(IMO)....


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## chance fate (3 July 2007)

....  try this maths....


if you take the depth that corresponds to 600 bar say 5500m and run a line across the infanous golden diagram that shows all the different formations, you get roughly to the spill point of the Barker Creek formation....  that is where the top of the formation goes upwards to the right rather than downwards as it does from the point where they drilled the well....  if you assume a circular field with a diameter given by the distance from the fault to this point i.e. approx 15km the field area is approx. 175km²....  if you take 10m reservoir thickness and 600 bar (8700psi) with 5% porosity across that and convert it to reserves you get well over 1Tcf.........    ???????  anyone know what I'm doing wrong?????!!!!


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## DAZT49 (3 July 2007)

Chance,
Nice work, your brain must be addled now!!
I dont pretend to understand any of it but I like 1 TCF bit!!
The market just sighed again, reckon some day traders hoping to profit on a good ann ,jumped off .


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## DAZT49 (3 July 2007)

Chance,
You changed from 5TCF what happened?
The next ann will occur around the same time as the U ann.
Hopefully champaigne THIS weekend.


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## chance fate (3 July 2007)

...reckon the sp should really be back over the dollar mark for that kind of potential...  starting to wonder whether Richard's 200000 on market buy at 75c a few weeks back really is a good sign....   46 hours 18 minutes 27 seconds to go....


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## DAZT49 (3 July 2007)

Maybe, because the Sp is so cheap ATM, that punters can afford to hang out for the 'real ann' and then jump on.
Even if it spikes up they can still get on and make big dollars.
Sounds good to me anyway.


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## chance fate (3 July 2007)

yeah i had 5Tcf...  realised i put the wrong pressure in my spreadsheet...  changed it...  comes out to 2.5Tcf....  that's a potential sp of 10's of $'s rather than $1.50......  but would still be happy with 50Bcf anyhow!!!


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## elcruzy (3 July 2007)

My god, what does it all mean? To all those people who dont understand psi except pumping air into a flat tyre this is just confusing. 

Can someone please explain what we should be waiting for?


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## chance fate (3 July 2007)

a few things:


the word 'commercial'

daily flow rate

certified reserves report

field development plan

directors decision to proceed with next well

permits for export pipeline

permit for next well


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## DAZT49 (3 July 2007)

With GDN you might add
* When the cows come home lol
The ann today said.....
The well is currently undergoing a 48 hour extended flow test. Flows rates and their commercial significance will be determined once gas flow rates from the interval have stabilized.
Emphasis "currently" meaning it has already commenced.
Given that the time of the ann was 12pm our time ..8pm Utah time, the tests may have begun in daylight hours..say 3pm ( a guess) +48 hours would be
7am Thurs our time..so hopefully an ann before open on Thurs.
Yeah I know I am dreaming.


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## chance fate (3 July 2007)

oh yeah.... 


when the cows come home

judging by the ever more emphatic down ramping on HC by those that seem to have a tech background it would seem to have a higher chance of coming good!!!


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## DAZT49 (3 July 2007)

Been keeping an eye on the boys over there at HC.
SOME of them seem to know what they are talking about, really cant understand why they dont continue with all the prattle.


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## DAZT49 (3 July 2007)

this from sandilion on HC


There is some speculation that 8700psi is normal static pressure at this well depth...I don't reckon anyone in their right mind is going to report uncorrected formation pressure (i.e use a gauge corrected value to offset background hydrostatic pressure). The fact is that this level of formation pressure and (historical) porosity and the fact there is gas lift sufficient to out lift the frac fluids and remaining drill fluids ( presumably trapped in a reasonably porous formation) points to a reasonable reservoir pocket/entry.

I think the GDN threshold for commercial production was 50BCF from memory (I stand to be corrected, my memory is equally porous)...assuming the formation pressure to be stable and (say) a 15-20% pressure die-back after the in-rush equalisation...you are probably looking at plus 100bcf and onwards (DYOR)...it really does depend on how the volumetric flow rate pans out and whether sustainable flow is likely (duh..!).

I hold, and am positive...and yes, I have actually been on a rig, been at thousands of wells and spent many years in places as diverse as Colorado, Saudi, UAE, Oman, Scotland (go the North Sea!!) and of course Aussie (yay!)...so I hope we all go well, and the bottom line is no-one knows but the rig pigs..lol  Best of Luck


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## sandlion (3 July 2007)

Wow...I am famous on two websites. 

I really posted on HC just cos there is so much rampant negative speculation over there...totally biased uninformed rubbish really...the folks here don't seem to suffer that same affliction thank the Lord/Allah/buddah/Angelina Jolie...

good luck GDN'ers...


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## chance fate (3 July 2007)

good point on the equalisation/die-back....  that would put stable formation pressure at around 500bar and reserves still above 1Tcf....


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## DAZT49 (3 July 2007)

sandilion,
hope you dont mind me stealing your HC post.
We are all trying to harvest as much info as we can.
You will find its a bit quieter on ASF!!


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## DAZT49 (4 July 2007)

Seems like I have treading water for a long time.
SP hanging in there, low volumes so far.
Bring on 2 morrow!! (tho I seem to remember having said that quite a few times over the last 18 months
My other shares (BMN,NMI,PXR) have all been going sideways for months too.
Need that adrenalin rush we all get when they take off.


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## chance fate (4 July 2007)

24 hours 12 mintues and 47 secs to go.... that 7" liner they put in...  they'd have to complete the well with a narrower production tubing... starts making the well bore quite small 4-5"...  am wondering whether that would actually impede the potential flow rate from this well...   maybe not at 10mmscfd....


----------



## DAZT49 (4 July 2007)

..But who's counting?
Maybe sandlion could comment on the casing ,flow rate etc.
Some of the posts I have read lately on this and the 'other' site have given me great heart....maybe GDN had it right all along.
As i have posted a while ago, my broker said .."the fundamentals haven't changed"


----------



## chance fate (4 July 2007)

... think i can answer my own question there daz,....  4-5" is a pretty decent size...  just remembered when i used to work in holland they were installing 9 5/8" tubing on depleted wells (less than 300 bar at 3500m/11500ft depth) in the groningen field i.e. ready for high flow rates due to need for compression pressure boosting at surface...  at 500bar 4-5" is a good size...


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## DAZT49 (4 July 2007)

All Greek to me Chance......just give me the gold lol
They choke down the size as they go up dont they.
I also seem to remember that they had to recase at a smaller diam after the piping was milled from the concrete.


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## chance fate (4 July 2007)

geez... just about all options got exercised by holders...  maccers only got around 2 million...  that's confidence imo....  get the cigar ready dazza...


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## Haveacrack (4 July 2007)

Chance,

Nearly fell off my bar stool when I saw results of options exercised.  i agree that is confidence with a capital C.  Do you reckon all the institutions converted their opies and only smaller investors decided not to which resulted in only 1.8 mil for mackas.


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## chance fate (4 July 2007)

could be...  if true that's another good sign...  insto's would have access to more info. than the regular punter...  makes the 300 grand underwriting fee for the 2 million (600grand) look like a waste of money...  mind you if it was the other insto's then they could have been spurred on as soon as they knew macquaries were underwriting... so maybe the fee was worth it.... whatever good news imo....


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## DAZT49 (4 July 2007)

Chance
even tho I am a non smoker ..I do like those port dipped ones!!
July 4th (Independance day) tomorrow in the States, will this hold up any ann till Friday??


----------



## chance fate (4 July 2007)

...been doin' some research (googling on 'extended flow test reservoir') on expected timing of results from the current testing....  here's an article from a well in columbia where a 48 hour well test was used to determine reservoir characteristics....  post this 48 hours test a stable flow rate could be announced... but not reserves...here they indicate 1-2 weeks before reservoir data will be available... and then it'll take more time for the reserves report......


PetroLatina Energy Announces Results of Initial Flow Test of Serafin Gas Well, Colombia
Thursday, February 15, 2007
Latest Oilvoice Headlines

PetroLatina Energy Plc, an independent oil and gas exploration, development and production company, focused on Latin America, announces that initial production testing at its Serafin Well #1 has produced results at the higher end of expectations.

The Serafin well #1 is part of the Serafin Gas Development in which PetroLatina has a 50% interest. The project offers early cash flow and is expected to materially increase the Company’s revenues from its Colombian operations. 

Results of Initial Flow Test

On February 13, 2007 the fourth point of the test (on a 48 hour extended flow rate) was completed through a 40/64” choke with a stable flow rate of 14 million cubic feet per day of gas, a flowing tubing head pressure of 1530 psi and a shut in casing pressure of 1716 psi. 

Pressure recorders will remain in place for a minimum of 7 days after the well is shut in and detailed reservoir data will be available between one and two weeks following their recovery.

Based on information available in Colombia, the current regulatory commission for energy and gas (“CREG”) gas price for the area in which the development is located is approximately US $3 per thousand cubic feet. The gas is planned to be sold to local industrial users.


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## chance fate (4 July 2007)

... this link is an interesting one.... could explain partly why the extended test...   seems to be a gov requirement for a 48 hour single point flow test - in canada anyhow.....


http://www.ir.gov.sk.ca/adx/asp/adx...ame=PNG+Guideline+18+-+Gas+Well+AOF+Tests.pdf

and this one is good if you like a bit of maths...  8700psi means the gas will flow very easily into the gas export system providing reservoir is now well fracced...

http://www.spidr.com/spidr/sub/news/main.99.97.99.0.0.0.sub.11.html


----------



## Haveacrack (4 July 2007)

Picked myself up off the floor and now comfortably back on my beer stool.  Think i'll crack another and have an early toast to GDN.  I've been in and out and back in again and i'm convince this is going to pay healthy dividends.

chance, your research looks super encouraging if we compare PSI levels, given GDN reported levels upto 8300psi - is that huge or what?  Just need well to sustain presure levels and i reckon we'll be home and hosed.


----------



## DAZT49 (5 July 2007)

chance, hava,sandlion and all.
Good luck today when all our questions will be answered.....maybe.....
if the ann is today... or will we have to wait another 2 weeks for reserves, as chance posted.


----------



## tino (5 July 2007)

Thanks to all for all the information. I found out about hotcopper here, and now I am back! What a nightmare. Will be an interesting day or two, but the wait has gone on for so long I can't imagine it will be over just like that! I wonder if there will be a trading halt again?


----------



## LetItRide (5 July 2007)

It will take a bit of patience in the next few days especially factoring in the public holiday in the U.S and the track record with announcements in the past made by management.


----------



## chance fate (5 July 2007)

...at this rate the uranium report will come out and U registration date will pass before anything on the gas....


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## DAZT49 (5 July 2007)

Sorry I am late lol, been very busy this am THANK goodness, took my mind off GDN.
My plan was to get some more GDN if ann was good so I could get a good parcel of the U thing. Too late now, as entitlements close on 10th, and I needed to sell of some other shares to finance more GDN. (t3 and all)


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## sandlion (6 July 2007)

This just in from Mr E-Trade...

"Dear Leon du Sand, Following your enquiry please be advised that owing to technical restrictions, we are unable to update the web page at "Warp 2" or higher speeds. We also note that you have caused a considerable amount of damage to our website by repeated use of the 'refresh' button. Please stop that you silly thing, no amount of OCD pushing is going to make it happen any faster...you egg. Please be advised that Warp 2 is also a term only used on Star Trek...this makes you a double egg"

I have a similar message from last month when ADI were stuffing around.. 

I do have a relatively dumb question though...I read the U Spin-Off announcement to read that GDN holders will be allocated one share per 3 (or 4 can't remember) they hold. Do you actually get a share or do you get an entitlement? I mean, I already own shares in the U venture, why should I fork out for it again? It's not clear for eggs like me... I would expect that existing owners are given 1 share for each 4 they hold in GDN because they are effectively taking that department out of the shop and making it a seperate entity...would seem very gay to expect us to buy more GDN shares for (albeit in the U venture) when we already own the U through our existing shares...doh!


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## DAZT49 (6 July 2007)

The trouble with warp 2 is that you are in danger of 'morphing' and dissapearing up you own clacker.
Thanks for lightening up a dull couple of days sandlion.
True to form GDN is making us sweat once more, luckily I am flat out getting a project done, so havent got a lot of time to stare at the screen.


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## Wysiwyg (6 July 2007)

sandlion said:


> I mean, I already own shares in the U venture, why should I fork out for it again? It's not clear for eggs like me... I would expect that existing owners are given 1 share for each 4 they hold in GDN because they are effectively taking that department out of the shop and making it a seperate entity...




Yes ....we have the option to re-buy the same U tenements with the additional tenements of White canyon.Though GDN (shareholders) will hold 30% of the new company so if you don`t take up the offer there is still exposure to the uranium spin-out.Time for a re-read for me too.:sleeping:





> Golden State will retain approx. 30% of the
> new entity.
> • Golden State shareholders will have a priority entitlement in the capital raising
> for the new company. It is intended that the Golden State shareholder
> ...


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## sandlion (6 July 2007)

Yeah,

So my happy little brain reads entitlement as "we get 1 share for every 4 we hold"...not "we get the early chance to buy 1 share for every 4 we hold"...

The glass is neither half full or half empty...its twice as big as it needs to be 

Mary had a a little lamb
She tied to to a pylon
10,000 volts went up its bum
and turned its wool to nylon


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## DAZT49 (6 July 2007)

1 for 4 @ .35c each.
Doesn't look like an ann today, tho they have posted late in the day before.
No news is.....no news.


----------



## chance fate (6 July 2007)

... I decided it might be possible to make a few bucks off of those of us holders that are teetering close to the edge....  thinking of marketing a pro-forma suicide note along the lines of:..

Dear [Mum,....,.....] and [Dad],

Thanks for bringing me up to be a [worthy, genuine, caring,....,....] [man, woman,.....,.....].  I really enjoyed the [special times, brithday cakes, xmas dinners,.....] we had when I was a [kid,...,...].

I am sorry that my life has come to this, but Golden State Resources has brought me to the end of my [tether,....].  I can't take it anymore.  So this is goodbye.   With all my [love, respect,....] .

Please make sure you take care of yoursel[f,ves].

Your beloved [son, daugher, ......]

PS if golden does come through please could you get me one of those airconditioned coffins with a TV and minibar....


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## sandlion (6 July 2007)

One of the satan-worshipping minions at HC placed a call to GDN...apparently John Hasleby is compiling the report (it's 10:14am UTAH time) so you never know....in the opinion of the one's who walk backwards and breathe sulphur, it is believed that the flow rates have stabilised....


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## DAZT49 (6 July 2007)

Sandlion,
Would you believe 10.14pm?
So OUTSIDE chance..today given that GDN have posted as late as 6.12 pm.


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## chance fate (6 July 2007)

thanks sandlion...  holding back on the suicide note at the mo'.... rev.2 could include reference to John and Richard in the will....  mean time i was liking the comments in the last annoucement on the well lifting drilling and process fluids...  that means the well is capable of cleaning itself up...  which means you should be able to get a stable flow....  according to soemthing i read somewhere it has to remain at a fixed flow rate for xx hours with a flowing tubing head pressure deviating only a very small % ...  lets hope the permeability post frac is strong enough to enable stable flow at a decent rate - i've got a chart here that says on a 24/64" choke running critical flow you really only need a 3000psi tubing head pressure to get a 10mmscfd export at 1500psi....


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## sandlion (6 July 2007)

ahh..10:14pm...burning the midnight oil is he? Why isn't he burning our gas??? 

Here is some light information while we (endlessly wait) on the joys of slickwater fracture stimulation...it really does sound like the sort of thing one might pay extra for in a Shanghai cathouse but no...not always...

"A new microemulsion additive has been developed that is effective in remediating damaged wells and is highly effective in fluid recovery and relative permeability enhancement when applied in drilling and stimulation treatments at dilute concentrations. The microemulsion is a unique blend of biodegradable solvent, surfactant, co-solvent and water. The nanometer-sized structures are modeled after Veronoi structures which when dispersed in the base treating fluid of water or oil permit a greater ease of entry into a damaged area of the reservoir or fracture system. The structures maximize surface energy interaction by expanding to twelve times their individual surface areas to allow maximum contact efficiency at low concentrations (0.1–0.5%). Higher loadings on the order of 2% can be applied in the removal of water blocks and polymer damage. Lab data are shown for the microemulsion in speeding the cleanup of injected fluids in tight gas cores. Further tests show that the microemulsion additive results in lower pressures to displace frac fluids from propped fractures resulting in lower damage and higher production rates. This reduced pressure is also evident in pumping operations where friction is lowered by 10–15% when the microemulsion is added to fracturing fluids. Field examples are shown for remediation and fracture treating of coals, shales and sandstone reservoirs, where productivity is increased by 20–50% depending on the treatment parameters. Drilling examples are shown in horizontal drilling where wells cleanup without the aid of workover rigs where offsets typically require weeks of workover."...here endeth the lesson...

I like the bit about increasing productivity 20-50%...we could apply some to the GDN board...lube them lil piggies up and make 'em more productive


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## DAZT49 (6 July 2007)

sandi,
io nona comprende. 
Its nice that JH is burning the midnight (nearly) lamp to get the ann in before ASX anns close for the day (8pm??) so we can 
1. All endlessly multiply our GDN holdings by $x and contemplate how to minimise our huge CG tax next year.
2.Watch the footy without twitching.


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## chance fate (6 July 2007)

slickwater sounds good enough to drink...  can you buy that stuff at the local drive thru'?...  could be good for when you're having trouble with anal retention!!!


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## DAZT49 (6 July 2007)

IT WOULD SURE MAKE YOUR EYES WATER LOL
SANDI ANY COMMENT ON CHANCES QUESTION OF 2 POSTS BACK RE 10MMMCSFD


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## DAZT49 (6 July 2007)

Hey Chance, 
you are famous over at HC. Your post (no1023?) is getting a run.
Today is what is termed an anticlimax I think
I hope the ann, when it comes is thorough, tho that hasnt been the hidtory on GDN anns


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## chance fate (6 July 2007)

Hey...  they're stealing my material!!  Was thinking of doing a deal with ASF to go halves on any advertising bonus they get from the number of hits on this thread..!    Just goes to show...  the regular punter doesn't know (me incl.) what it's worth....  say 50Bcf came up with the promise of more...  what would you be prepared to sell at??   reckon there's some punter's that'll be glad to walk away with a dollar... and then there's others that are on the side lines that'll be happy to take that on (some of whom also won't know what they've got!!)....  and this is a junior co...  makes you wonder how on earth you'd put a value to a company like Rio or BHP....


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## DAZT49 (6 July 2007)

Chance,
I am sure you and Kennas can come to some arrangement.
Just wondering what the 'due' process is after JH finnishes his report in the wilds of Utah.
I presume it would be sent back to head office for appraisal by the rest of the board, final draft spellcheck (lol) and then sent to ASX.??


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## DAZT49 (6 July 2007)

Off to the local tavern boys, have a good weekend.
Just have to wait till Monday for the Golden Eagle to do its thing.
Cheers
Dazza


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## ben_Q (9 July 2007)

The announcement is out. 

http://imagesignal.comsec.com.au/asxdata/20070709/pdf/00737241.pdf

Looks positive to me. Can only improve from here as the other targets are opened up. 

The uranium finds to date also look positive!


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## DAZT49 (9 July 2007)

I dont know which way to jump.
Hang on..POW down 6.5c another crap day foor GDN and me
Anybody got a posistive?


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## bigdog (9 July 2007)

The market did not like todays AXS ann !!!!!!!!!!!!

GDN   $0.33    -$0.075  -18.52% 1,878,662 shares $639,363 @ 09-Jul 10:07:10


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## elcruzy (9 July 2007)

no it did not, luckily for me i waited another 10 mins. i am ready to top up but dont know at these levels...can anyone interpret the ann? what does this mean in BCF units?


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## DAZT49 (9 July 2007)

AS PER USUAL GDN MANAGEMENT HAVE GIVEN US A WISHY WASHY ANN.
WHAT WE WANT TO KNOW IS ..HOW MANY BCF??????????????
CANT BELIEVE THIS KEEPS GOWING ON.


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## elcruzy (9 July 2007)

DATZ49 i signed up with HC the other day and am reading their posts - it seems like they are very pessimistic. obviously 0.2mmcf/day is not enough and someone over there highlighted that the well requires the other levels to make up good flow rates. 

i have been holding out for ages and could have 5x my initial stake at $1. i'm going to hold out for the flow results next 2 levels but if they arent above 1-1.5mmcf/day in total then i just have to exit. i'm starting to believe that either the management really know something or they are dodgy and overly optimistic.


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## DAZT49 (9 July 2007)

Eelcruzy,
There are a couple of good posters ocver on HC but also a lot of crap.
I SHOUDA sold out at $1.10
Going to hold out for Para 2 and then make my mind up from there.


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## elcruzy (9 July 2007)

yah me too - but guess what i promised myself that if it hit above $1 i would sell....and i didnt. greed is good and univeral in all man.

let me know if you had these same thoughts..."if its heading back above $1 again then the well must be commercial and a biggie heading to $4-5 per share, the big boys know what their doing so i might as well hold"....2 months later its running at 35c!!


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## DAZT49 (9 July 2007)

If para 2 doesnt hit the jackpot, I dont reckon it will ever get to $2 let alone$4.
I have held on for so long as my broker gave me know reason not too. If you read some of my previous posts 'fundamentals havent changed'....except the market thinks the stock stinks.!!!


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## the barry (9 July 2007)

This stock is looking more and more bearish. Sometimes you gotta know when to hold em and when to fold em. Looks like it might trend into the 20's in the next couple of days. Still can't work out why there was such a high conversion rate on the options, anywhos.


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## redandgreen (9 July 2007)

Isn't it still worth holding on for the time being given the priority for

 shareholders on the forthcoming U float?


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## the barry (9 July 2007)

redandgreen said:


> Isn't it still worth holding on for the time being given the priority for
> 
> shareholders on the forthcoming U float?




I would be careful with this. A lot of shine has come off the u market and adding the word uranium doesn't mean an automatic 200 or 300 percent return. A lot of these companies are now trading around there intial ipo price and uranoz listed the other day below its issue price. I wont be taking up the entitlement, as i have sold out as i think the share price is heading south. Can't see anything in the short term which is going to break that trend.


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## chance fate (9 July 2007)

...slept in!!...  still trying to assess the results - really shocked as the previous pressure data looked really good - but the result is a low flow rate - pretty disappointing.  Would they get a better result from a horizontal well?  and what is the Bcf's????  Wish they would provide more details in the ann's


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## DAZT49 (9 July 2007)

The difference with the u thing is that WILL be producing in 12-18 months, a lot of u companies wont be for years.
I am going to pick up the entitlements.


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## Broadside (9 July 2007)

DAZT49 said:


> The difference with the u thing is that WILL be producing in 12-18 months, a lot of u companies wont be for years.
> I am going to pick up the entitlements.




what is expected production and mine life for this Uranium spin off?  I wonder how this will be priced before the float, they don't want to be too greedy and U is losing its lustre at the highly speculative end of the market. If they produce soon maybe that will improve their prospects.  Thanks in advance.


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## Broadside (9 July 2007)

the barry said:


> This stock is looking more and more bearish. Sometimes you gotta know when to hold em and when to fold em. Looks like it might trend into the 20's in the next couple of days. Still can't work out why there was such a high conversion rate on the options, anywhos.




because there was still 10c profit in the conversion of the oppies at 30c, and management was vague enough to leave doubt as to whether this could be a success.  They postponed things long enough to leave option holders in the awful position of having to make a call without all the facts.


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## DAZT49 (9 July 2007)

Not sure when the AGM is, but if it soonish this management is gunna get blasted.
I suppose, because they havent released any revision of the reserves, they still think the 440BCF-3TCF is still attainable.
My emotions are going up and down like a honeymooners prick.


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## Broadside (9 July 2007)

DAZT49 said:


> Not sure when the AGM is, but if it soonish this management is gunna get blasted.




they're ex property developers, I am sure any criticism they receive from irate shareholders will be like water off a duck's back.


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## DAZT49 (9 July 2007)

Broady..you shock me. I thought all PD's, Estate agents, used car salesmen and snake oil salesmen were as honest as the day is long ..lol


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## Broadside (9 July 2007)

It could have been worse, they might have been lawyers!  

It will be interesting to see the details of the U float.


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## DAZT49 (9 July 2007)

Prospectus expected to be lodged at the end of July. Dont know if that will change now that there is an extra 14 days to pick entitlements.
Would think that it would be on time, given that they have the results.


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## chance fate (9 July 2007)

..oh well... gents, I'm out...  just seems there's too many downward pressures going forward in the short term... e.g. post entitlement due date reckon there'll probably be a rush for the door.. plus the well is only going to bring in at best $1m a year ... then the wait for the second well... 

... will check in from time to time...and may get back in down the road... but in the mean time, dazza, broady, sandy,bigdog... all the best going forward...

CF


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## DAZT49 (9 July 2007)

Chance......but what about those cigars??
Good luck for your future trading, thanks for your input and humour.
Dazza
P.S. I will give you one of MY cigars when GDN go thru $5..lol


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## helpmeunderstand (9 July 2007)

So what the hell to we do now? Do not seem that they might have any good news for us any more in the near future! Tell you what this company have been doing that all the time back in 2001, there was the same story... it seems that no good will come out of them! Shizer back to 9-5 I suposse!


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## DAZT49 (9 July 2007)

Am I  last man standing.? Has everybody jumped ship? Have you slit your wrists/pulled the trigger/jumped???
I am amazed the u thing didnt do much to hold up the SP today.
At least after the intitial thump, it held around 32..33c for the rest of today.
hopefully the remaing layers to be fracced in Para1 can boost the commerciality of the well.
What about the oil?


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## helpmeunderstand (9 July 2007)

DAZT49 said:


> Am I  last man standing.? Has everybody jumped ship? Have you slit your wrists/pulled the trigger/jumped???
> I am amazed the u thing didnt do much to hold up the SP today.
> At least after the intitial thump, it held around 32..33c for the rest of today.
> hopefully the remaing layers to be fracced in Para1 can boost the commerciality of the well.
> What about the oil?




Would you explain why you do hold on? Why do you think there still a chance after all historically the company's board proved us wrong all along.

Please explain!!!!!!


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## DAZT49 (9 July 2007)

helpme...glad there is somebody still out there.
I spose we can make a million excuses to make us feel better.
Piss pour flow rate really crunched it I reckon, really needed to be up around 2.5-3mmcfsd and everyone would have been at least content..maybe.


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## DAZT49 (9 July 2007)

Bit of an optimist Helpme, tho I did get my shares for cents not 10's50's $1.
If I had bought in at $1 I would be a screaming mess lol
Still think there is upside, market maybe overeacted,If the SP pulls back tomorrow it could be a sign that the selling has stopped.
I also think there will be world peace one day.


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## helpmeunderstand (9 July 2007)

DAZT49 said:


> Bit of an optimist Helpme, tho I did get my shares for cents not 10's50's $1.
> If I had bought in at $1 I would be a screaming mess lol
> Still think there is upside, market maybe overeacted,If the SP pulls back tomorrow it could be a sign that the selling has stopped.
> I also think there will be world peace one day.




Lets hope that GDN good news aill come before the world peace!!!!! I'm still in till the bitter end!


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## DAZT49 (9 July 2007)

Gotta hang out for Para 2 Helpme.!!! Then it will be all straberries and cream for us stayers
They must be a fair way into permit applications, be nice if they gave us a timetable of things to come, which they must have already pencilled in.
Wonder if todays 13 mill shakeout made them take notice of shareholder discontent?


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## LetItRide (9 July 2007)

Yes today was very frustrating with GDN especially while watching other mining stocks make news highs.


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## sandlion (9 July 2007)

Its a disappointing day for us GDN'ers...I hold in, realistically there is likely to be more bad news though...p/s sorry if I revved anyone up the wrong way on HC this morning...made a crappy read of the ANN and got very excited and the conversion wrong...it's a pretty poor recovery on a decent reservoir pressure, guess that porosity still leaves a bit to be desired or is there something else down there...I wonder where next...the delay on the U spinoff is very interesting though...do they know other things concerning the upper intervals??? Is there oil in them thar hills/deeper levels?? Sufficient oil? Did the reservoir pressure give them a good gush, and thats what choked the GAS flow rates at depth...there was a huge die-back on flow from 0.5 to 0.2 MMcF, more than you might expect from just in-rush pressure? There is something amiss with the information at hand....normally Ex-Pro would go P&A on this without wasting any more time fraccing at other intervals as its simply not economic...given that the best commercial recovery is going to be around $1.2m US p.a at current prices, how do you expect to keep on keeping on with those existing on-shelf costs?

Let's ask ourselves a few questions...

Is there any advantage to GDN depressing the share price (and their shareholders!) through their dissemination of information to market.

Why is the U date put back 2 weeks? They have the info on the U at hand.

What are they going to achieve in the next 2 weeks at Paradox that requires holding off the U spinoff? Or do they have 2 weeks of pleading to convince the U JV that they still have money in the kitty...

Does 'Commercial' mean 'sell stuff to make money whilst recovering costs?'

Definition of Wildcat - "An oil or natural-gas well drilled in an area not known to be productive"...wildcat is an oiler term, not typically associated with gas where I have been ...I cannot recall seeing Paradox#1 described as a wildcat before, but then I am a lazycat..anyone want to help here?

It's either a race against time or something far less savoury...either way...We are all sitting in the pews and someone really let rip

The glass is twice as big as it needs to be 

I liked it in Saudi, where you just had to be careful where you banged in a star picket or there would be an oily mess to clean up..!!!


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## DAZT49 (9 July 2007)

Why would hold back any "good oil" (good news) Surely if they know there is a commercial quantity of oil, and better gas flows at the higher layers it would be in there interest to release the info to the market.
 That way GDN SP gets a wriggle on,and gives some imputus to the entitlements for the u thing. As it stands they may not get a huge percentage of punters picking up the entiltements.
One thing is for sure, they dont read forums like ASF and HC!!


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## new_trader1984 (9 July 2007)

Todays trading for announcing such low results for a interval so much time and money was spent on wasn’t as bad as many would have expected. If no buyers were around at the 30 cent mark the share price could of dropped into low 20’s I would have thought the way the selling started. 

There were lots of large purchases today, since can only see the amount of shares each seller sold its hard to know the amount of shares buyers were buying but seeing there were a lot of 50-100 000 share trades there must have been lots of buyers happy to pay 30-33 cents. 87 or more trades today were of a large size from 40-100 000+ shares sold and bought, but not sure how many of the smaller 10-20-30 000 trades added up into larger purchases.

Why would anyone buy 50-100 000 shares in one purchase on a day where bad news was released on a gas interval which had high expectations? I realise $32000 for a 100 000 shares may not be much to many traders and investors, but that is a lot of money to some people and for those willing to buy in such large amounts to me shows either confident in other gas intervals, or just people with lots of money to risk on a speculative stock which would be considered a high risk high reward stock.

0.2mmcf per day is 200mcf per day? Not sure if that’s right but if it is I have found a few different documents that have producing wells at 0.2mmcf per day.

A fracture treatment of the Tyner sand zone in the Redfork #1-17 well has delivered oil production equivalent to approximately 200Mcf per day, almost three times the field average for coal bed methane (CBM) wells in this field.

I realise the above is about coal methane but they still say producing at 200mcf.

Investments LLC and Joseph Shunta of Hybrid Energy Inc. agree to give to the Company an option to purchase a combined Working Interest of 52% in the Pantel Gas Unit #1 in Goliad County, Texas. The Working Interest is limited to the Well Bore Only and is Depth Restricted to 3200 feet. Current production levels have been ranging between 200mcf and 250mcf per day. Engineers have determined that these production levels should remain steady for the next several years. The oil and gas mineral leases associated with this property have been recorded and are official public record at the Goliad County Courthouse in Texas. This non-exclusive option agreement with Energy Royalty Investments, LLC and Hybrid Energy Inc is valid through September 1, 2005. The purchase price to exercise the option is $550,000 and is payable upon closing. The Company hopes to raise the acquisition money through a private placement of equity and debt. This 52%working interest would produce income of between $14,950 and $19,500 per month.

The above is another paragraph I found where they are producing 200mcf per day. 

www.bedfordenergy.com on there website have mentioned about some of their producing wells productive at 200mcf per day too. They mention about 160mcf per day for a well at the east chandler project I realise the size of the projects are completely different but just shows there are companies producing commercial quantities at 150-200mcf per day, and gdn can increase this amount when they test other gas intervals.


They have now tested 12561-12599, in a recent announcement the table said testing after the barker creek zone was to test 9845-9858, 10815-10834, 11005-11040. In other reports last year before the gas interval was found at 12561-12599 they had reported saying they believed production would come from 9742-9746, 9930-9960,10714-10765. There are other intervals that may or may not be tested but could assume after the 3 intervals they have mentioned on the tables in recent announcements that those other 3 above would also be tested since they did expect production to come from those zones. Don’t think they would just leave them after the statement they released in a report back in October about those 3 intervals. Those 6 intervals to be tested if they test the 3 others they haven’t mentioned would mean 152 feet of possible gas intervals. Still some gas shows to test, which could help make the well productive. 

The next interval they are going to test is the 11016-11031 gas zone, but in today’s report that has now been changed to 11005-11040 an increase of 20 feet. Why would they increase it by so much?

Looking at todays demand and smart money chart it was not what you would expect to see on a high volume day with bad news. The announcement was out around 9:42am today so that gave about 25 minutes before gdn started trading which would have been enough time for people to read the announcement and decide if good or bad. 

13 million shares were traded today with a price move from 0.355-0.305. There’s about 180-190 million shares on issue now with the options conversion going through last Friday? Is 13 million shares traded today considered low for such bad news if the news was really that bad when there is 180 million shares on issue? There has been days where over 20 million shares have traded in a day. 

Looking at the demand and smart money chart I’ve mentioned is only to show what the market depth is doing which can give you an idea of where a possible price move might happen. Looking at the daily chart from the 04-07-07 the demand blue line started to increase maybe based on expected results. It started at 0.7624 which meant more sellers at end of that day then buyers in the top 5 price levels. On the 05-07-07 the demand finished at 0.8303 for the day. On the 06-07-07 1.0279 is what the demand finished at and today the demand finished at 1.3229 so almost a 100% increase in demand since the 04-07-07. The news which is considered not very good by a lot of people I would of thought the sell side would have been a lot stronger then the buy side which would mean the demand would be under 1.

Today’s intra day chart wasn’t what I thought would of happened after reading the announcement. In the first hour of trading demand had reached 2.5 which meant buyers wanted 2.5 times more shares then sellers wanted to sell. It wasn’t till 11:50am that the demand dropped below 2 but by 12:28 it was under 1 and sellers were selling more shares in the top 5 then buyers were willing to buy. Around 1:30 this changed and buyers were wanting more shares then sellers wanted to sell. The demand did drop below 1 during the day for a total of 1 hour and 24 minutes which isn’t much for a stock that was trading for 6 hours and had released negative news before open. The blue line stayed above the red line most of the day except for 1 hour in today’s trading. This means smart money was entering, which just means a larger amount of shares were being bought then sellers were selling. This is seen in the trades today with a large number of big purchases being bought today. With the news released today I would of assumed no smart money would of entered and the red line being above the blue line, I would have also expected the blue line to stay below 1 all day today with sellers selling out , but the opposite happened all day today with the trading which might suggest someone knows good news is coming out soon and the testing is further advanced then we have been told, or a lot of people are just hoping good news will be out soon. 

This is todays chart


Just thought i would share what the market depth was doing today since i thought it was interesting to see the buyers were wanting so many shares today on bad news around the 30 cent price.


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## DAZT49 (10 July 2007)

NT 1984,
Great post, as usual for you.
Once the initial plunge at the open was over, the price did not vary much for the rest of the day. As you say it could have dropped to 20c or who knows how much further, but it held.
13mill sales when there is 180+mill shares. Maybe the insto's hold large parcels and are locked in to certain timeframes. 
Anyway, you have given me the courage to look at my screen again today.
Cheers


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## Haveacrack (10 July 2007)

200mcf is a long, long, long way off 50BCF which i would have considered as the minimum this well would produce given the way it was talked up by GDN directors and their announcements.  We still have a few intervals to explore but it is fair to say it is off to a very very bad start.  I have alsways held faith in this company believing they were going to deliver but i certainly have my doubts about their integrity and honesty, literally making promises they knew full well they may not be able to keep.  So, as Derrin Hinch would say, SHAME GDN DIRECTORS, SHAME!!!!!


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## new_trader1984 (10 July 2007)

Thanks dazt49,

I was just looking back at the volume that was traded around October last year when share price was 27-31 cents the biggest volume day when trading that range was 5 million with an average around 1-2 mill and that was after the oil and gas shows had been released.

the buying/selling yesterday and today is a lot of people getting out on bad news but the buyers were just there picking up everything that was being sold and a lot higher volume then back in October when there was a lot of potential behind the stock for gas shows further down. Now we have done tests on a few zones and have one that produced 0.2mmcf per day which isnt what many of us were hoping to see in yesterdays report. The sellers were getting out quickly and in the first hour where over 5 million shares was traded the price was between 33-35 cents a large amount of the 5 million was sold/bought at 34 cents. With the 13 million shares that were sold yesterday and the buyers were wanting even more shares then were being sold during most of that day, not sure why that happened considering the bad news and it reduces the chances of success compared to when they were drilling back in October and not as much volume was going through during the same price range. 

The same thing seems to be happening today like yesterday on a smaller volume, the smart money has been constantly entering since 10:15am and only 10 minutes since 10:15 this morning has the red line crossed the blue line. The demand has been over 3 times more buyers then sellers at different times today with a fair amount of time being spent above 2 on the blue line which is twice as many buyers. This doesnt make sense for a stock that has released bad news and reduced chances of success since the demand is saying that a lot of people want shares at this price. 

I realise this price is what it was back when they started drilling but back then there was a lot higher chance of success since they hadnt drilled very far into the well had several big targets to drill into, still had testing to do. Now they have found out leadville had water (doesnt mean 61 feet of gas in leadville cant be produced higher up dip like they have mentioned) that several other intervals were depleted and the most potential to produce from lower barker creek has only produced a smaller than expected flow rate. 

The buyers seem to be buying as much as they can at current prices from the trades today, but what reason is there for such buying? Is it just people hoping for good news? Some that are aware of things that most aernt? 

The last 2 days smart money and demand has been high which is not what you would expect after the news came out yesterday. Im hoping for good news soon like a lot of people just the buying doesnt make sense to the announcement.

A thought i did have was could it be the funds that have invested into the stock could they be the buyers? Since they would have been told more than the reports have told the market, Oceanic did say in a article i saw posted on a forum that they invested into gdn based on the upper intervals and if that is the case could they be the buyers picking up the stock most of the last 2 days at 28-29 cents? If they had good enough reason to believe the upper intervals were worth 61 cents then a 50% discount on more shares would be a good reason to be buying lots when investors and traders were selling out?

Just the last 2 days buying has to be from people with reasons to invest since most investors have been selling.

Just thought to share my views.


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## the barry (10 July 2007)

new_trader1984 said:


> Thanks dazt49,
> 
> I was just looking back at the volume that was traded around October last year when share price was 27-31 cents the biggest volume day when trading that range was 5 million with an average around 1-2 mill and that was after the oil and gas shows had been released.
> 
> ...




What is this smart money entering this morning that you talk about? If there are three times as many buyers why does the share price keep dropping? I'm really not sure about this stock, but even blind man freddy could see which way this share is trending at present. If they end up spudding this well, who is going to fund the second?  In anyones realistic opinion, what is the chance of this well being commercial. According to everyone the leadville was meant to be paydirt, when that came up dry it was supposedly the next series of tests which would bring paydirt and now your all talking about the upper levels being the ones to watch out for. Sometimes you gotta know when to fold them and when to hold em.


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## new_trader1984 (10 July 2007)

Hi the barry,

The smart money, is just where the blue line is above the red line in the chart i posted in previous post. It just means that when the blue line is above 1 there is a demand for the shares, in yesterdays announcement being negative most of us would of assumed sellers would be taking any price they could get and selling? At the same time buyers were willing to pay that price and cheaper why pay more than you have to when the market will take any price they can get. The buyers wanted 2-3 times more shares in the top 5 price levels as the sellers were willing to sell. Now for the news that came out most would expect demand to not be there and no buyers around would of meant the ratio buyers to sellers should of been 0.5 if there was twice as many sellers as buyers or 0.10 if it was 10 times more sellers than buyers. Yesterday and today even though the price kept falling people were buying them in large amounts. When the blue line is above the red line that is called smart money, by the people that came up with it, all it means is the red line is number of buyers/sellers ratio in the top 5 price levels the blue line is the number of shares on the buy sell side in top 5 price levels. You divide the shares ratio by the number of buyers ratio which gives a number such as 0.5 1.5 or some other number, this number means the average buyer wants 1.5 or 2 or 3 times more shares per purchase to what the seller is willing to sell. Its the average in the top 5 so could have one buyer wanting a 100 000 shares and 4 wanting 25000 or they could all be equal. The idea is if you got buyers and the average is buying more then each seller wants to sell thats smart money since no one wants to put large amounts of money into a stock that is going to keep falling especially when so many other stocks are going up. It doesnt work straight away sometimes it might happen the day the demand increases other times might take a week or two before any real moves start to happen. Its just an indicator like on charts except this uses the market depth to give an idea of which side has more pressure the buy or sell side. Normally a price move will follow what the demand suggests. 

i have looked at it back in October again in March when the big rises happened. Ive also looked at other stocks with it. Ive only recently got live data and have been giving this a go and learning how to use it. 

It doesnt mean it will always work but can give you an idea of which direction the market is heading for the stock. 

On the inside trader website under resources there is a few documents that can be downloaded which explains how its meant to work. 

Hope this helps.

Thanks


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## the barry (10 July 2007)

new_trader1984 said:


> Hi the barry,
> 
> The smart money, is just where the blue line is above the red line in the chart i posted in previous post. It just means that when the blue line is above 1 there is a demand for the shares, in yesterdays announcement being negative most of us would of assumed sellers would be taking any price they could get and selling? At the same time buyers were willing to pay that price and cheaper why pay more than you have to when the market will take any price they can get. The buyers wanted 2-3 times more shares in the top 5 price levels as the sellers were willing to sell. Now for the news that came out most would expect demand to not be there and no buyers around would of meant the ratio buyers to sellers should of been 0.5 if there was twice as many sellers as buyers or 0.10 if it was 10 times more sellers than buyers. Yesterday and today even though the price kept falling people were buying them in large amounts. When the blue line is above the red line that is called smart money, by the people that came up with it, all it means is the red line is number of buyers/sellers ratio in the top 5 price levels the blue line is the number of shares on the buy sell side in top 5 price levels. You divide the shares ratio by the number of buyers ratio which gives a number such as 0.5 1.5 or some other number, this number means the average buyer wants 1.5 or 2 or 3 times more shares per purchase to what the seller is willing to sell. Its the average in the top 5 so could have one buyer wanting a 100 000 shares and 4 wanting 25000 or they could all be equal. The idea is if you got buyers and the average is buying more then each seller wants to sell thats smart money since no one wants to put large amounts of money into a stock that is going to keep falling especially when so many other stocks are going up. It doesnt work straight away sometimes it might happen the day the demand increases other times might take a week or two before any real moves start to happen. Its just an indicator like on charts except this uses the market depth to give an idea of which side has more pressure the buy or sell side. Normally a price move will follow what the demand suggests.
> 
> ...




Hey mate, 

I would only use this technique in conjunction with something as an indicator. If you look back at october and march the potential for this stock was completely different to now. They were drilling the mine and their was potential to hit a truckload of gas, at present what potential is there? The potential that the well will be plugged? I think a few people here are looking through rose coloured glasses. The stock finished down another 18 percent today. I would think that by the end of the week there is a good chance looking at the chart that we will see this in the 15-20 cent range. This stock at present is very bearish, maybe they will make an announcement to turn it round, I wouldn't hold my breath though. There are better bets around then punting on gdn.

Good luck with the trading


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## new_trader1984 (10 July 2007)

Hi the barry,

That was a question i asked in the earlier post, why the large volume for a seller to sell his shares there has to be a buyer so why was 13 million and 12 million shares traded in last 2 days? If there were no buyers it could be 20 cents 15 cents 10 cents with people willing to sell at any price. 

In my other posts i did say a lot of the potential had been taken out since last October before the first price rise but there must be something that has got so many people buying and 100 000 shares at 28 cents is still $28000. Would you put $28000 into a stock that was still falling? For 100,000 shares to be a trade it needs to be sold and bought by one buyer and seller so while some people say its expensive and got not much chance of a price rise soon others must think its currently a cheap price and willing to buy?

The charts aernt looking very good at the moment, but still the question why are people buying the shares for if its only to go down if they wanted in wouldnt they wait till it went down to 10-15 cents?

Thats why the demand chart doesnt make sense to the news you would assume the buyers wouldnt be interested in the stock and sellers being a lot more than buyers, but watching the market the last 2 days you can see the buyers were buying a lot of shares on the bad news, just dont know why they would be buying.

Any thoughts on why buyers want the shares at 25-30 cents when next week could get them at 20 cents or less if no news?

thanks.


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## DAZT49 (10 July 2007)

NT,
My head hurts thinking about GDN cos I SHOUDA got out at $1.10,$1.09,$1.08 etc etc.
You are right, why are those bigish parcels being bought when the price is sliding. The smart money must know something??
But..yesterdays smart money people must be kicking themselve for not waiting for today with SP sliding further.
I reckon the smart money is on horse 3 in race three at 3.33 lol
I dont know if the next ann will really affect the SP, they have to squeeze a lot more gas out of the remaining zones for punters to feel comfortable enough to pump the SP along.
Still..I am optimistic that the gas/oil fairy is watching over us and will sprinkle about 440BCF on our tortured heads.


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## gfresh (10 July 2007)

Plenty of times you see good money being poored into a sliding stock.. 

You do have to wonder about the logic in it, but it happens to many stocks, it may not be anomaly.


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## Broadside (10 July 2007)

there was "smart money" buying at $1.20, $1.10.....80c....40c.....30c

point being someone will always see value at some point, doesn't mean they are right.  This is a classic case of trying to catch a falling knife.  I don't hold, unloaded last of my shares at 60c but I have a keen interest in the stock.  It's been a very interesting ride.

The company needs a comprehensive, unambiguous good news announcement to turn this around.  But it's a case of the boy who cried wolf at the moment, they talked it up too much late last year, now scepticism is rife even amongst true believers.

I hope shareholders make money despite all this, but the directors have a lot to answer for in my view.  It was always high risk but they weren't responsible in how they reported to the market and it burned a lot of people.


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## DAZT49 (10 July 2007)

broady,
Yes some honest truth from the directors would go a long way in placating us holders.
More than that some 'detailed anns' rather than reports that might have been texted in and plonked on the company letterhead. (long text I admit)
Surely the directors must be aware of shareholder rumblings and must know we want to know..eg what are the estimates of the reserves, now that Para 1 has not performed as hoped. Failry simple question I would have thought.


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## ozeb (11 July 2007)

doesnt the fact that a share price is falling indicate that demand for that particular stock is also dampening? so in this case, less people want this stock.
and can someone tell me is there or is there not any gas in this well...??


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## austocks (11 July 2007)

Well i must say the GDN share has been a rollercoaster of a ride. i bought in the 70-80 cent region and have held on and have suffered the consequences. It is very true that past ann have been vague to say the least, which has certainly dampened my confidence in the company. Hope still rests on para 2 and the fact that the director himself bought 200000 shares not too long ago (8th of May to be precise) at 75cents a pop. Surely he would not crucify himself for the sake of a short term increase in prices??

I guess the question looming on all holders is the affect of para 1 and its flowtest results. The market has clearly indicated that this was crucial with a drop of approx 40% in a couple of days. Does that mean that para 1 was the core of all results??? what can we expect if a good flow test results from para 2? what can we expect if another bad flow test result is posted??
opinions please..


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## DAZT49 (11 July 2007)

austocks,
Good report SP up.
Bad report SP kaput.
Reckon if Para 2 doesnt hit paydirt GDN will be 10c.
But I reckon it WILL hit paydirt and be $2
IMHO


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## bob56 (11 July 2007)

IMO Para #1 is still a possibility
Why else would they spend more money on it if it is a dry well???
There,I said the dirty word "dry".
Also, none of the directors have sold any shares 
I'm tempted to top up.


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## DAZT49 (11 July 2007)

Bob,
Love your work.:
Question is, if it were dry, why would they bother testing the remaining zones?
The wierd thing is Barker creek was announced as a 'Major' gas flow, whereas the upper zones were just 'gas shows'.
They are hoping that the accumulated amount for all zones will make it commercial.
Then there is the unknown Oil in the equation as well.
Hopefully we will have the fracc results by Friday!!
Hold and Hope.


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## bob56 (11 July 2007)

Thanks Dazt49

I put the champagne on ice until Friday!!!!

And good luck to all of you!


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## DAZT49 (11 July 2007)

If the results on Friday (hopefully) come out with COMMERCIAL in big type,
it will be cld VB's for me, and lots of em lol


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## dj_420 (11 July 2007)

have been looking at these guys for a while

is anything they have commercial yet?

mgt dont seem to be entirely forthcoming from my observations. i first looked at them around $1 but held off. they are now 27 cents!

apparantly the uranium they have is not much either, i would like peoples opinions on this stock.


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## bob56 (11 July 2007)

Hi DJ

Welcome to an exiting stock!

Here the link of the last ann 


http://imagesignal.comsec.com.au/asxdata/20070709/pdf/00737241.pdf

Lots of info about what's happening. 

You make up your own mind!

Good luck!


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## elcruzy (11 July 2007)

i bought in again, dont know why but i've also got a feeling about this one. there you go datz49 - one bloke thats willing to admit he's bought against the trend,.


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## TheAbyss (11 July 2007)

bob56 said:


> Hi DJ
> 
> Welcome to an exiting stock!
> 
> ...




Hope that remark doesnt prove to be prophetic Bob56. I am sure you meant to type "exciting stock" not "exiting stock" , as in get out now?


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## DAZT49 (12 July 2007)

There was (IMO) some manipulation of GDN yesterday, a 1.9 mill sell order was shuffled up and down a cent or two above the market, always 10 -15 orders away happened many times during the day. Also a similar order of 300k on the buy side. Both orders dissappeared at close of trade.
Watch for them today in your 'depth' charts.
If you on HC too you would have seen it.
Heard it explained as the 1.9 seller trying to panic other sellers and actually buying as they got out . The 300k, probably the same guy or cohort, squeezing up from buy side.
Very interesting to watch..like a circling shark.


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## bob56 (12 July 2007)

DAZT49 said:


> There was (IMO) some manipulation of GDN yesterday, a 1.9 mill sell order was shuffled up and down a cent or two above the market, always 10 -15 orders away happened many times during the day. Also a similar order of 300k on the buy side. Both orders dissappeared at close of trade.
> Watch for them today in your 'depth' charts.
> If you on HC too you would have seen it.
> Heard it explained as the 1.9 seller trying to panic other sellers and actually buying as they got out . The 300k, probably the same guy or cohort, squeezing up from buy side.
> Very interesting to watch..like a circling shark.




Do you reckon it is MBL 
or is it just a coincident that they have about 1.9 mill shares????


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## DAZT49 (12 July 2007)

Dont know about MBL bobby.
It was suggested that it was a dummy offer, that the guy didnt have 1.9m tho I dont know how you could place an order like that.
Got a LOT more shares than me anyway.
Keep an eye on it today and see if he/her pops up again.
Hanging out for the next ann


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## LetItRide (12 July 2007)

DAZT49 said:


> There was (IMO) some manipulation of GDN yesterday, a 1.9 mill sell order was shuffled up and down a cent or two above the market, always 10 -15 orders away happened many times during the day. Also a similar order of 300k on the buy side. Both orders dissappeared at close of trade.
> Watch for them today in your 'depth' charts.
> If you on HC too you would have seen it.
> Heard it explained as the 1.9 seller trying to panic other sellers and actually buying as they got out . The 300k, probably the same guy or cohort, squeezing up from buy side.
> Very interesting to watch..like a circling shark.




Hey Datz I don't know if interesting is the word I would use, but yes that #$@# has been hovering around for the last 2 days like a very bad smell. Hopefully today the s/p will have a better chance to dig itself out of the dark waters it has been in without the interference of manipulation.


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## DAZT49 (12 July 2007)

LetItRide,
yeah be nice to get him out of the way, but I guess it goes on all the time.
How do you think the SP will go today? Reckon its just going to drift until the ann.
Its a hell of a ride isnt it??
Dazza


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## LetItRide (12 July 2007)

DAZT49 said:


> LetItRide,
> yeah be nice to get him out of the way, but I guess it goes on all the time.
> How do you think the SP will go today? Reckon its just going to drift until the ann.
> Its a hell of a ride isnt it??
> Dazza





Mate if it holds around 28c today I'll be content. Yeah hopefully(wishful thinking) there will be some new blood in until the next announcement. Management on this one are really unbelievable with all this is going down no wonder the guy is overseas. Lets hope he's overseas in the interest of his shareholders and not just his own.


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## DAZT49 (12 July 2007)

The manipulator is at it again today. Now has two 850,000 parcels.
Hang on...he has gone again.
Keep an eye on your buy/sell depth.


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## bob56 (12 July 2007)

DAZT49 said:


> The manipulator is at it again today. Now has two 850,000 parcels.
> Hang on...he has gone again.
> Keep an eye on your buy/sell depth.




We may need to report this to the ASX!!!!


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## DAZT49 (12 July 2007)

Bob,
Havent seen it for a while, it was reported to the ASX on another forum, seems like they may have gotten rid of him.
Dazza


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## bob56 (12 July 2007)

Looks like the stock has bottomed out
At least until the next ann
Still an almost endless supply of sell orders at 28c
We just have to wait for lift off a little longer

Meantime another stock AQD is worth to research IMO


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## new_trader1984 (12 July 2007)

Hi, i was just hoping does anyone know how they could calculate a estimate in bcf amount of gas once flow tests have been done?

The 0.2mmcf is a small flow rate for getting cash for the gas each day but does that mean only a small amount of gas in a bcf number would be productive too? Could there be a large amount of gas just takes very long time to produce it?

Also 5mmcf is the minimum they were aiming for in total to get $30 000 a day and 8.3mmcf would get gdn $50 000 a day for gas sales?

They increased the upper barker creek interval which they are testing at the moment from a 16 foot interval to a 35 foot interval. If this flows at a better rate then the lower barker creek to 1-2mmcf how much of an affect would it have on the share price?

The last 9 months it has traded above the current price so i would assume there would be atleast a 100 million shares or more that had been purchased above the current share price so a lot of people would be holding losses at the moment and in last 4 days only 30 million has been sold and bought so leaves a lot of people still holding shares at above current prices including the 28 million options that got converted last week plus the 13 million abouts that were issued through the 2 placements. 

The small volume the last 2 days compared to monday and tuesday suggests there are a lot of people holding for better news, if this was to come out anywhere from 1-5 mmcf could we see 60-80 cents or higher since gdn when starts to move does move very quickly from low prices.

What would be the minimum flow rate needed to say the well is commercial? If they do say its a commercial well could we assume they would have a minimum of 50bcf?

Thanks.

Any thoughts would be appreciated.


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## DAZT49 (12 July 2007)

nt,
the origional prospectus and report by CK Locke specified a minimum of 50BCF required for the well to be commercial. With 440BCF mid range target and possible upside 3TCF.
They have indicated the well IS commercial, so do we assume they have 50BCF??
If it IS true why havent they announced it???


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## sandlion (12 July 2007)

This just in from elsewhere 

Seems like Wetherford's case against Golden Eagle has been dismissed...thats $940k USD in the kitty...kerching!!...come back here kitty...what else is in you..??!!

Filed 11 July 2007 - good luck to holders

John P. Harrington, (Utah State Bar No.5242)
Michael N. Thatcher (Utah State Bar No. 11276)
Matthew C. Droz, (Utah State Bar No. 10741)
HOLLAND & HART LLP
60 E. South Temple, Suite 2000
Salt Lake City, Utah 84111-1031
Telephone: (801) 799-5922
Fax: (801) 364-9124
Attorneys for Plaintiff
Weatherford U.S., L.P.
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF UTAH – CENTRAL DIVISION
WEATHERFORD U.S., L.P., a Louisiana
limited partnership
Plaintiff,
v.
GOLDEN EAGLE EXPLORATION, LLC, a
Delaware limited liability corporation
Defendant.
JOINT STIPULATION AND NOTICE OF
DISMISSAL
Civil No. 2:07CV00343
Judge Dale A. Kimball
Pursuant to Rule 41(a)(1)(ii) of the Federal Rules of Civil Procedure, Plaintiff
Weatherford U.S., L.P. (“Weatherford”), by and through its attorneys of record, HOLLAND &
HART LLP, and Defendant Golden Eagle Exploration, LLC (“Golden Eagle”), by and through its
attorneys of record, SNOW, CHRISTENSEN & MARTINEAU, hereby jointly stipulate that (1)
Weatherford and Golden Eagle are the named parties that have appeared in this lawsuit; and (2)
all claims, causes of action, counterclaims and any other disputes arising out of the Amended
Complaint shall be dismissed without prejudice.
Case 2:07-cv-00343-DAK Document 10 Filed 07/11/2007 Page 1 of 2
WHEREFORE, this pleading shall constitute Notice of Dismissal without prejudice of
the above captioned lawsuit.
Dated this 11th day of July, 2007.
/s/ John P. Harrington
John P. Harrington
Michael N. Thatcher
Matthew C. Droz
Attorneys for Plaintiff
Weatherford U.S. LP
/s/ David W. Slaughter
Max D. Wheeler
David W. Slaughter
Attorneys for Defendant
Golden Eagle Exploration, LLC
(Signed by Filing Attorney with permission of
Defendant Attorney)
3734493_1.


----------



## DAZT49 (12 July 2007)

Sandlion,
hopefully they will announce this to the market tomorrow..along with some good news on the upper zones
SP held ok today.
Still the waiting goes on.


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## austocks (13 July 2007)

Looks like the stock has finally bottomed out... i think it will be a slow upward trend up until the next announcement, which i think will include a more detailed analysis of para 1 results. as far as i can tell, para 2 results are some weeks away, given that para 1 results took a number of weeks to be released. Should we expect para 2 results sooner rather than later or am i holding my breath?


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## DAZT49 (13 July 2007)

aus,
Para 2 hasnt been started yet.
Do you mean testing of the upper zones?
results of fraccing due SOON ...thats GDN soon=sometime.


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## austocks (13 July 2007)

Datz,

yeah sorry i meant testing of the upper zones...

and yes ur right, GDN 'soon' means -  1-2-3 weeks away


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## bob56 (13 July 2007)

Is it possible that GDN will cancel Para#2, if para#1 is failing to produce commercially?
Maybe if that happens they will go in to the U-thing rather then float it??

My big question is: why haven't they started para#2-surely it doesn't take that long to get a permit


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## austocks (16 July 2007)

what's the expectations today everyone? do you think there is a chance of an announcement?? i can see the shares sliding to 20cents if there isnt a solid ann...


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## DAZT49 (16 July 2007)

Aus,
Dont reckon there will be an ann today. Sunday U.S.A. time.
Heard a rumour on HC via C.K.Locke that ann would be Wednesday.
I am beyond holding my breath..started hyperventilating back in Oct '06!!
Still..as we all know...GDN just may have an ann today..bit what is in it???


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## elcruzy (16 July 2007)

ANN IS OUT!!!! IT WAS 0.3MM PER DAY COMPARED TO THE LOWER GAS FLOW OF 0.2MM, NOT SURE WHICH WAY THE SP WILL HEAD.

DYOR


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## bigdog (16 July 2007)

ASX announcement

GDN 9:57 AM  Oil and Gas Update 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00739083


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## the barry (16 July 2007)

"The Company anticipates that, through developing a number of such gas producing intervals, flow rates in the well can be brought to a level suitable for commercial production."

The word "can" be brought to a suitable level is a bit worrying. Stock certainly won't reach any dizzying heights on this news.


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## DAZT49 (16 July 2007)

Its goodish news, tho the upper levels are going to have to be fairly productive IMO.
Good news on the legal side.
Market not impressed.


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## austocks (16 July 2007)

Well now we have some news to go by and some questions to raise… 

1: Can we assume that the 0.3 and 0.2 combine to 0.5 MMcf/day??

2: Assuming similar flow results in the upper levels, will we reach 1.0 MMcf or beyond, and if so, is this good enough for commercial production?? 

3: This question has been raised a number of times, but no clear answer has been given – What levels are needed for commercial production??? 1.0MMcf? Bcf? Or Tcf?

4: How many more intervals are there to test??


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## DAZT49 (16 July 2007)

aussie,
1. yes
2. seems so but really 3 to 5 mmcf/d would be 'profitably commercial ' IMO
3. see 2.
4. seems 2 more but i think they seem to be testing zones within the zones.
My post on HC this am.
Market not impressed/doesnt give a sh*t.
Its a complicated equation with this well dragging out/oil question/para 2 imminent/the u thing entilements coming up on 24th.
Really, if the next ann isnt BEFORE the 24th and POSITIVE ie really profitably commercial , (not just commercial enough to cover costs and the Directors xmas party) and tells us Para 2 will commence on a specific date ,the SP can only go one way after the 24th.
Straight to hell. 
(sorry, been watching to many Bruce Willis movies)


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## bob56 (16 July 2007)

so 500mcf/d is worth about US$ 3250
x365= US$1'186250 correct?

How much does 7 miles of gas pipeline cost? That's the big question.

I think we have to be realistic and realise that GDN will need more than one well to pay for the infrastructure.


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## DAZT49 (17 July 2007)

This is a post by New Trader_1984 on HC...

The flow rates aernt much so far but the well is atleast flowing at different intervals which is better than having no flow out of all zones. If they can get maybe 0.5-1mmcf on the next 2-5 intervals depending on how many they plan to test compared to what they have told us so far it would make the well productive for the company.

Looking at the Lisbon field they have a lot of wells many producing and many were plugged and abandoned. They have a total of 225 feet of net gas pay which has produced over 1tcf of gas plus oil. Now 1 tcf of gas from 225 feet of net pay is about 4.4bcf per foot of gas pay.

The flow rates at Lisbon are different anywhere from 0.1mmcf per day to several mmcf per day. If gdn can get several mmcf per day from the well it would be a good start also if they say its commercial they would have to be confident of a minimum of 50bcf from the field.

GDN picked this spot to test as many different formations as possible, which it did, they found 60 feet of gas in Leadville which may have been a good producer if water wasn’t there. It was a deeper well then expected considering many other wells in the same area reach Leadville around 10-12000 feet instead of 15000 maybe in future wells they wont need to go so deep to reach Leadville. The information the company received from drilling this wildcat well is able to help better select future well places to best target certain formations whether they are ismay and desert creek or Leadville.

If this well can be commercial then that’s better than most companies can get on their first well. I realise it cost a lot but if they can recover the 9 million Australian from whetherford then that reduces the costs to about 11 million for the well, yes more expensive then meant to be but a large number of wells always go over budget.

Many oil and gas companies they have projects in many countries or different states of a country? GDN has 10 000Ha or 25000+ acres of land in the paradox basin utah. This first structure covers 2000Ha of that field. That leaves 8000Ha of land to drill which could contain 2-4 more structures in similar size or bigger. We don’t know how big this field is currently and flow results aernt giving us the best results but that can change on future wells if in better positions to reach formations. Also horizontal drilling has been used in utah and can help produce a lot more gas then vertical wells which could help the cane creek formations where it was too tight for successful flow rates. Having so much land in one area saves a lot of travelling and can also mean they are able to build reputations with the drillers to become very successful. The litigation may hurt them possibly if sue12 is right that if you upset one group you wont get any help with drilling, but you cant just let companies walk all over you either and let them take your money when you have proof that they received a faulty casing. 

Earlier I mentioned the Lisbon field has produced over 1TCF of gas with only 225 feet of net pay. If we now look at gdn’s well at the 2 intervals that has flowed successfully there is a total of 73 feet of gas pay even though low flow results in better positions for those formations flow rates could increase, the main thing is the gas is flowing. If we use 1bcf per foot of net pay then that means gdn currently has 73bcf of gas. If used 2bcf that’s 146bcf, If they only have half of the two intervals as net gas pay that is still 37-73bcf of gas. If you look at the original intervals and compare to the two that were flowed they both increased in size not sure why this happened or what it means but I’m assuming it means more net gas pay for each interval. 

They plan to test 2 more intervals we have been told about for a total of 32 feet more of possible gas pay which if going by last 2 intervals could be increased in size still. They then have 3 more intervals which were mentioned to be likely productive zones back in October last year. If those 3 intervals were added it would add another 85 feet of possible gas pay, currently those 3 intervals no one is aware if they will be tested or not. 

So if we can add the 32 feet as likely to flow in this well on top of the 73 feet that already has flow rates even though small its still productive, that gives a total of 105 feet of gas pay. If we only have 1bcf per foot that would then mean 105bcf of gas and using 2bcf per foot is 210bcf of gas for the field. 

Im only using the number of bcf per foot and only using half of what is produced in Lisbon and considering almost same size in structure it should be closer to 3bcf per foot I would have thought. 

I realise if there was a 100bcf in the field with current flow rates it would take a very long time to produce and the daily earnings wouldn’t be much but since success on a first well doesn’t happen often a commercial well for gdn would be a good start. Future wells can increase flow rates by targeting the formations in better places. 

Something that has been mentioned a lot is the types of gas that is being produced, I don’t know why people are bringing it up when they don’t ask the same questions on other oil and gas companies that is producing commercial amounts of gas. Why ask about gdns types of gas when wont do the same for other companies?

This isn’t ramping either, I know the flow rates are small but other companies can produce wells at similar flow rates so it suggests its still productive just needs to increase to be worth producing into the pipeline. The bcf estimates gives me an idea of likely size of the field based on successful flow rates so far and just thought to share it.


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## hoppielimp (17 July 2007)

Thanks for that post Daz, interesting and agree with the post to the extent that flow rates need to increase otherwise the company cannot generate revenue.

My curiosity is that whats happening with Pinkerton and Akali ?  The testing and fracturing seems to only focus on Barker and upwards ?  Does anyone know the flowrates for Pinkerton and Alkali ?

I've searched all GDN's posts but no mention of them.


Hop


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## new_trader1984 (17 July 2007)

Hi hoppielimp,

The testing of akali is lower barker creek which they got a flow rate of 0.2mmcf, since there was lots of expectations on that interval being a major gas interval lots of people thought it would of produced several mmcf. Thats why the share price dropped i think.

The pinkerton trail interval didnt flow but they did suggest it was a cane creek play where horizontal drilling would be best to get production flow rates from that formation. Looking at BUR they got a flow rate of 5.29mmcf but that was with a 5000 foot horizontal into the formation, maybe if we had of done the same we might of got 2-3mmcf for the pinkerton trail. They might try it on future wells, it has been done in utah, i read over the weekend the department of energy offered funding for companies who did horizontal drilling in 2005.

https://fs.ogm.utah.gov/pub/DOGM/Press_Releases/2005/press_rel_UGS_06302005.PDF

There is an announcement on 21st December 2005 on about page 34 there is an independent geologist report for the project, its a good read and in the report the geologist says the Ismay Desert Creek and Akah intervals are where a large amount of production comes from, hopefully flow rates from those intervals will be better then the ones so far.


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## DAZT49 (17 July 2007)

NT1984,
i SENT YOU AN EMAIL RE POSTING FROM HC.
YOUR LAST 2 POSTS REALLY GIVE CAUSE FOR GREAT OPTOMISM IMO.
MAYBE JUST PUT GDN THE BOTTOM DRAW AND HAVE A SQUIZ THIS TIME NEXT YEAR.


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## new_trader1984 (17 July 2007)

Hi dazt49,

Sorry about not responding to your private messages didnt even know about private messages until just now when posted about them.

I dont mind you posting from hotcopper.

Did you read those pdf files from inside trader about the supply/demand? Did you think it would work with speculative stocks such as gdn?

From what i have looked at it seems to work may not always give 50-100% returns but any 10-20% return on a stock in a short amount of time has to be good i think.

Using the supply demand charts you have to look at the market depth and also the traded volume for it to work properly.

Was there any charts you wanted to see? I just read your private message about a chart.


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## DAZT49 (17 July 2007)

Nt,
ASF dont like it too much when we chat about other stuff so I will email again.
Meanwhile I chatted to Locke Stock n Barrel a short time ago re the U spinoff.
(gunna cheat and copy my own post)

Re: U Spinnoff
They still have test drilling to complete, which apparently has good results, to finalise the size of the resource etc.. This is imminent as they want to get that info into the Prospectus and before the ASX for approval.(Then takes a couple of weeks after that for listing)
The 24th still hasnt been confirmed by the ASX, no date has been given, we have assumed that 10th July + 14 days is 24th July..our time ???GDN time.
It would be wise, if you want to get the entitlements,
to get in soon ,taking into account T+3.


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## new_trader1984 (17 July 2007)

hi dazt49,

Did you get my private message just since first time sending one wanted to make sure it went through.

thanks.


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## DAZT49 (17 July 2007)

nt,
yep came thru no probs.thanks.
See the SP has just slipped into the red, i am sure it will finish ok.
Next week (how many times have we said that??) should be intersting to say the least, hopefully final results for Para1 and the U thing.


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## new_trader1984 (18 July 2007)

H, i have just looked at today's smart money chart and also at the macd indicator using 3,5,4 which says the lines have crossed, this gives very short term trading indicators but can give a earlier signal then the 21 day macd charts.

Also the smart money chart today even with buy and sell side have 200-300 000 shares for sale and to buy at different price levels in the afternoon the demand increased to twice as many shares on buy side to the sell side but number of buyers stayed the same. This was interesting since for the number of buyers to not change but demand to increase by so much meant same amount of buyers had increased the amount of shares they wanted at certain prices. For the first time in over a week the blue line finished above the red line on the daily chart too.

The 2 charts below is one of the macd 3,5,4 and the intraday supply/demand chart.

Just thought it was worth sharing.


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## DAZT49 (19 July 2007)

NT,
Interesting post as usual by you.
Its a real saga, waiting and hoping for good news.
Because there has been NO ann of the U entitlement cut off date, I reckon it will be extended, it is too late to buy in now, and SURELY they want punters to have an equal chance to take part in the offer.
I feel there will be an ann re the issue of the prospectus and with it a confirmed date for the entilement cut off, probably a week later, to take into account T+3.
I mentioned they were awaiting testing of the final U drill hole(with expected good result).
I reckon there will be a major ann (with trading halt??)with..
1. Final results of Para 1 including details of commencement of Para 2.
2. Prospectus of U spinoff including new entitlement cut off date.
IMO of course, and don't ask me when.


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## sharemadder (19 July 2007)

SP very sad.  There must be a large seller who keeps driving it down.  Must have bought them much cheaper to continually push it down.  Wonder if ann Friday regards Akah - I hope so.


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## elcruzy (19 July 2007)

i agree the SP is sad, some people would have bought at these levels a year ago  thinking that $1 was just the begining....i dont think someone bought at very low levels. its most likely someone accepting their loss and bugging out.

sorry cant even put anything optimistic/researched, just so disappointed with the SP.


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## sharemadder (19 July 2007)

Strange trading - large buy in again 463,105. Strange, very strange.   Apart from upper ismay and akah does anyone know whether they will test other shows?  Any one managed to get in contact with them lately?  There Ph number just rang out yesterday twice on me.


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## sharemadder (19 July 2007)

Holy Crap the SP is black .  Great stuff, maybe just opened the valve on the Akah and flowing nicley .  Or U JV spin off???  Hope its the gas.


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## new_trader1984 (19 July 2007)

Someone is interested in buying gdn shares since the 200,000 share buy at 1:47pm at 22cents a total of 1341570 shares have been traded between 22-23 cents in 13 minutes. They dont seem to be small purchases either.


the demand/supply chart today increased from 1;30pm and a high of 2.62 times more buyers then sellers around 1:50pm. The number of buyers in this time had dropped from 1.96 down to currently 1.45 which means blue line is well above the red line. 

This may not mean anything but who would be buying large amounts of shares in the last 13 minutes pushing the price up to 23 cents when earlier today could of been buying at 21.5 cents. 

between 2 and 2;09pm another 280 000 shares went through at 23.5 cents.

Just seems strange why there is so much buying happening in the last 20 minutes compared to earlier today and other days. 

Anyone got any thoughts on why the sudden buying?


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## DAZT49 (19 July 2007)

UP 2C IN 30 MINS AND NOW 2.5C AND IN THE GREEN...DOES SOMEBODY KNOW SOMETHING
MAYBE A LEAK IN THE GAS LINE COMMUNICATION


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## sharemadder (19 July 2007)

Sounds like a leak maybe, I really hope so that Akah just turned on the tap and its impressive enough for the CK Locke boys to spend up.  Here's dreaming anyway.


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## new_trader1984 (19 July 2007)

Hi I was just looking at the volume that was traded today with the increase in volume this afternoon.

From 1;47pm when the 200 000 share trade went through at 22 cents a total of 1,291,570 up to 1 59pm.

2-3pm volume of 2,901,536 shares traded.
3-4pm volume of 1,260,842 shares traded
4-4:10pm volume of 207000 shares traded.

Total of shares traded between 1;47 and 4:10pm from 22-25.5 cents was 5,660,948 shares. Total amount of shares traded today was 9,129,860. 

3,468,912 was traded before 1:47pm.

161% increase in volume traded from 1:47-4:10pm compared to the amount of shares traded from 10:05am to 1:47pm. 3 hours and 42 minutes in morning trading compared to 2 hours 23 minutes in the afternoon. 

5,660,948/143 minutes = 39587 shares per minute traded.

3,468,912/222 minutes = 15625 shares per minute traded.

That’s more than a 200% increase in number of shares traded per minute between this morning and this afternoon.

The numbers above don’t mean anything just what I did to see the difference in trading volume between the morning period where the price dropped to 21.5 cents and the afternoon period where it went from 22 cents at the start with a 200 000 share large buy at 1:47pm to closing and finishing at 25 with a high of 25.5 cents.

A large amount of volume went through in the afternoon starting from 1 47pm with no reason for the sudden buying but to almost make a 200% increase in buying over 2 hours compared to the trading volume the previous 3 and half hours we could guess and maybe hope that some positive news is due soon from the upper levels. I know that buying at 25 cents compared to a few months ago is very cheap but if there isn’t positive news we could see a drop in price which shouldn’t really happen considering its cheaper now then it was before drilling. 

Today’s volume is almost as much as the volume on the 2 days on the 9-10 July when the bad results were released and sent the share price down to the 20’s. Today’s volume is even twice as much as the volume traded on the 16th July when news of upper barker creek flowing at 0.3mmcf was released to have a total of 0.5mmcf.

Why was there so much interest today especially this afternoon since the buyers were happy to pay 23-24-25 cents in large amounts to get the shares they wanted when if bought at 11am they could have had them at 21.5 cents. The buying this afternoon doesn’t make sense for a day with no news released. Either people think current price is very cheap and wanted in. Or maybe a leak of positive news since there was a fair bit of buying interest, or could be just that lots of people are thinking there must be some good news about to come out and wanted to get in just in case news is released tomorrow.

Looking at today’s intraday chart using 4 tick data shows that all day today the demand for shares was always above 1 which meant buyers at all times wanted more then sellers wanted to sell. That is normally a positive, at different times during the day the demand had increased to 2 times more buyers then sellers and even reached above 2.5 at a couple of times during the day. 

The blue line was above the red line a few times for short periods during the morning leading up to 1:40pm, but during those times the red line wasn’t that far from the blue line so the parcels of shares weren’t that big per buyer but still more than the sellers each time. 

From 1:04pm the blue line started to increase on both the q5 and q8 indicators with the q5 indicator at 1.48 when it started to increase at 1:44pm the blue line was at 1.9489 so about a 0.5 increase in demand over the 40 minutes, it was at 1;44pm where the blue line crossed the red line and if you look at the demand during that time and the trades going through that was about the same time as the 200 000 share trade went through at 22 cents which started the price move and large increase in buying. 

Looking at the chart from 1;44pm you will notice that the blue line from that time never dropped below the red line which means smart buying or buyers wanting more shares then sellers wanted to sell during that time. Even when the blue line did drop the red line also dropped so number of buyers were a lot less which is good. The less buyers around but the higher the demand blue line is means more shares per buyer wanting to be bought. 

I find these charts helpful, and thought to share, this is today's intraday chart with q5 and q8 showing the demand for the top 5 and 8 price levels and the n5 and n8 is the number of buyers to sellers ratio.

this may not be of interest to others but thought it was worth sharing.


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## sharemadder (19 July 2007)

Thanks NT1984 good post   I think maybe good news from Akah frac leaked out.  I hope so anyway.  If GDN was the dog of a stock it has become why the sudden intense interest this afternoon.  Not for the U JV spin off surely.  Market sentiment went from a deep -ve to a sharp +ve.  Huge bids too.  Anyway as always hard to tell with GDn but here's hoping tomorrow morning reveals all with a hefty Akah gas pay load.


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## new_trader1984 (20 July 2007)

Hi, i was just hoping someone might be able to share some thoughts on the difference in prices between adi and gdn.

From many posters on adi there is meant to be a very large amount of gas and oil for the project. But based on the announcements only so far without the research of surrounding areas at 20% holding of the project is 66 cents a good price for what has been announced so far?

Reason i ask this is comparing the 2 companies from announcements and the holdings in the projects it just doesnt make sense for gdn to be almost 1/3 of adi's price. 

ADI has released news several months ago that the primary target was too tight and didnt flow. They expect to be testing in August of the secondaries where there is very high expectations of a large amount of gas and oil. No flow rates have been provided to say the well is flowing though, but i can see the confidence is because of plans for the next well. 20% of a project but without any flow rates from the secondaries is 66 cents a fair price before any results have been completed?

Im not saying it wont be just trying to look at the 2 companies in comparison both on company making projects 1 company has 20% in a project the other 100% in a project. GDN also has 25000 + acres in one area and ADI have been acquiring land and i think they have around 20 000 acres too. 

So far gdn has announced the primary target as not being able to produce gas since has contact with water, both primaries are not productive for the companies. GDN have announced small flow rates of 0.2 and 0.3mmcf at 2 different intervals covering 73 feet. May not be much but gdn atleast now know that some intervals flow gas. GDN still have several more intervals to test that can turn the first well into a productive commercial well if more successful flow rates are found. 

I know there is a difference in amount of shares on issue but both are above 100 million shares but neither are over 200 million shares so not a real large difference compared to other oil and gas companies with 500-800 million shares on issue. 

Horizontal wells are meant to make flow rates increase by 2-3 times what a flow rate would get on a vertical well ADI already have this planned for their project, GDN so far have not been told whats going to happen with the next well but if they were to also complete a horizontal well it would increase chances of success for both companies.

EME on the london stock exchange who are partners with adi aut eka on another project released news that they have a flow rate on a well at 20.5mmcf per day but gas production will only be 1mmcf per day not sure why they would do this with stronger flow rates but does show even with strong flow rates it doesnt mean the companies will use the maximum daily flow rate from the well for gas sales.

Without a lot of researched infomation on either company and going by just announcements are the current prices for adi shares and gdn shares at a fair price?

Based on percentage of holding in the projects for every 1mmcf per day of gas sales, adi would need to have 5mmcf from their project, which would then provide them with a return of 1mmcf per day worth of gas sales.

Im not trying to be negative about adi, im just trying to look at the differences between the 2 and looking at their share prices based on what has been released to the market.

Any thoughts on the differences between the 2 would be appreciated.

I also know that gdn have always had delays with lots of the timing of reports which may have had an affect on people holding gdn, but delays seem to happen with companies in mining and oil and gas fields. 

Thanks.


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## sharemadder (20 July 2007)

GDN is a strange stock.  Many tout that the well is a dud.  Yet plenty of shares changing hands.  Why???  Is the U JV that good?  Even though they say 24th entitlement date still no prospectus or detail news to really put a firm date on it.  I did think we would see ann today about Akah but probably not till next week.


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## DAZT49 (20 July 2007)

maddy,
I have stopped posting (cept for this one), as I have run out of puff. Feel a bit punch drunk after a couple of years (nearly) in the ring with GDN
Dragging on and on like a bad marriage.
Maybe next week...who knows..I am knocking off and heading down the peninsula for a couple of days R & R.
Back fresh to stare at the screen again bright and early Monday.
Have a good weekend guys.
dazza


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## sharemadder (23 July 2007)

Looks like no announcement today.  24th U JV entitlement extended cut off date.  Maybe ann whole lot tomorrow, U JV and gas results for both Akah and Upper Ismay.  Probably some other surprises as well.


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## DAZT49 (23 July 2007)

madbugger,
Dont reckon there will be an ann today (Sunday in USA) tho I did say that one other time and they put one out....so what would I know lol.
One thing is undeniable.........it is coming
And hopefully


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## Bignote (23 July 2007)

sharemader

from memory there are 5 separate intervals in Akah zone and 3 or 4 in ismay so it may take a bit longer to test.

Just a thought.


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## DAZT49 (23 July 2007)

They needed 48 hours to test the barker zones, is that each zone??
If so that would be 14-16 days to test Akah and Ismay.
The last ann was 16/7, we have quite a while to wait yet if this is so.


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## Bignote (23 July 2007)

datz

there was one interval in each of the  the barker zones. each took about 48 hours, so I would expect the same for each interval to come.

So it depends if there is an ann for each interval or for each zone; so it may depend on whether an individual interval is worthy of an ann.

others more knowledgeable than i may wish to elaborate.


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## sharemadder (23 July 2007)

Bignote

If there are several zones then to test within each formation (akah and upper ismay) it then makes sense to me then why they said *"The Company anticipates that, through developing a number of such gas producing intervals, flow rates in the well can be brought to a level suitable for commercial production. Additional zones **with incremental flows are anticipated from higher (shallower) intervals indicated during drilling as having production potential." *This being the case you can see why the directors are still positive about the well and have not P&A.  One of these incremental flows may also prove to be a gusher.   One hopes anyway.


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## DAZT49 (23 July 2007)

You would think, as they are relying on the accumulated flows from Akah n Ismay to be truly commercial, they will wait untill they have all the flow info before any ann.
(Unless they get a big flow from any single zone.)
They were due to finish and report on the final drill hole on the U thing last week,but will probably save that info for the release of the prospectus.


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## sharemadder (23 July 2007)

The extension was the 24th for the U thing. Surely they will ann on that tomorrow.  Also if the well through incremental flows becomes commercial then what is the immediate share price valuation for the well then also for further developments given they now have a better understanding on 1. the geology and 2. Utah drillers and their methods.  They have 25000 acres to explore.  If they better position the next well could be the gusher we all hoped for.  Speculation I know


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## new_trader1984 (23 July 2007)

Hi, has anyone sent any emails to the directors lately and recieved a response?

I sent an email with a couple of questions but havent recieved a reply. The questions were about the upper formations since in the reports they say there is only 2 intervals left to be tested but should be about 5 intervals left to be tested plus the oil interval.

Just the 2 intervals they are planning to test by reports are smaller compared to the others they havent mentioned in the same formations, and from what i have read the desert creek, ismay and akah formations are where a large amount of gas and oil is produced from. 

So far today the blue line on the charts is above the red line suggesting buyers are buying slightly more bigger parcels of shares compared to each seller today. The blue line has been above the red line all day.


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## sharemadder (23 July 2007)

NT1984

I have sent two emails in last 10 days and no response.  I usually get a response to about 1 out of every 2 emails over last 6 months.  My last reply about 6 weeks ago still had John saying it was going to be productive.  I would imagine they would of been receiving a lot of hate email with the current SP demise.  Probably replying to no one, even us LT faithfulls.


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## new_trader1984 (23 July 2007)

Thanks sharemadder,

I sent an email a while back sometime last year without a response either, i dont sent emails to directors much just would be good to know which intervals are going to be tested though.

The trading is very low for gdn so not many are willing to sell any more at the current prices which is good. hopefully some news will come out tomorow.


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## new_trader1984 (23 July 2007)

Hi i was just looking at the volume over the last month the last day the volume was as low as today was on the friday 6th of july when an announcement came out the following monday about the lower barker creek results. 

Looking at today's chart even with the small volume thought worth showing.

Last wednesday on the chart it had the blue line above the red from around 3pm. Last Thursday when the increased buying pressure happened from 1:45pm when the 200 000 share purchase went through the blue line had crossed the red line and stayed above until close. Last friday there was a small volume traded but the blue line was never above the red line very long and normally stayed close which meant the size of the purchases were about the same as the sellers.

Today even though was low volume was different, from open today the blue line was above the red line and stayed above the red line for the full trading day. If you look at the chart from around 2pm today there was a bigger gap between the blue and red line which meant the size of the parcels purchased are about 1.3-1.5 times bigger than the amount of shares sold. This may not be that much but anytime there are buyers wanting more shares then sellers wanting to sell is a positive because if people were wanting to sell the amount of shares on the sell side would be bigger then amount of shares wanting to be bought which would mean the red line would be above the blue line. 

Also the last 2 days trading volume is only about half of the volume that was traded last thursday, so it shows there are lots of people holding their shares until the next lot of news. 

Can i ask for peoples views on what is a good percentage return if held a stock for 1-4 weeks?

Thanks.


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## DAZT49 (24 July 2007)

NT,
If I could answer your last question I would be a rich man..especially with GDN.
Tho having said that 3 things can happen
1. Good news = SP up.
2. Bad news = Sp down
3. No news = SNAFU
We are creeping up on Judgement Day..lets hope its not obliteration!!
(Still have a feeling in my water that we will all be happy chappies)


----------



## new_trader1984 (24 July 2007)

Hi dazt49,

the reason for the question about the average returns for 1-4 weeks was over the last month i had done scans using smart money over the 4 weeks 51 stocks came up i looked at that had given indications that demand was increasing. Sometimes this causes a share price move soon after the demand increase other times it seems to sit or fall over a week or 2 before any price move upwards.

Out of the 51 stocks 43 of them after 4 weeks had increased, looking at the price increases the average from the 43 stocks were about a 25-30% return, with some stocks returning 50-100% or higher for the month.

43/51 isnt that bad i thought thats without looking at any part of the companies just a scan and watch for a month. Wouldnt wait a full month to sell out but i watched the stocks for a month to see what the high they reached was from the day it started over the 1 month period. 

I didnt invest in any of these stocks it was just running a scan and watching to see if this demand supply indicators worked. 

This afternoon’s trading was interesting, why the sudden interest from 3:25pm today in 30 minutes over 6 million shares were traded with 3 trades of 500 000 shares, and many more between 100-300 000 shares too. Some might consider 20-100 grand on one stock not much to invest into a speculative stock, but to most I would think 20 grand or more is a lot of money. Any thoughts on why the sudden interest?

Last Thursday over 9 million shares was traded with over 5 million traded in last 2 hours which sent the price to a high of 25.5 cents that day. The sudden buying volume happened in the late afternoon but was over a longer time frame.

Today the same thing happened but was done in less than 30 minutes from 3:30pm with more than 6 million shares traded but no price move.

Last Thursday’s chart shows a high point where the blue line was at 2.2678 and the red line was at 1 this meant the amount of shares each buyer wanted was 2.2678 times bigger than each seller wanted to sell that day.

Today the biggest difference between the blue and red line was when the blue line was at 1.6546 at around 3:30pm and the red line was at 0.5862. This means each buyer wanted 2.8225 times more shares than each seller wanted to sell.

Example of this would be if a seller wanted to sell 100,000 shares, the buyer at the same time was interested in buying 282,000 shares.

The 2 charts below the first shows the full days trading where the blue line was above at the start of the day and again from 3 30pm where the large volume went through.

The second chart is of the last 2 hours of trading.


----------



## sharemadder (24 July 2007)

Again strange trading.  Almost like someone selling to themselves .  9 million shares churning is significant money especially 6 million in last 1/2 hour.    No ann again .  One-up from HC said he spoke to John who said fraccing tomorrow.  Maybe problems with rig .


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## sting (25 July 2007)

Saw the ann notice on my screen and opened it with anticipation....and what do I get another lot of nothing........ 

Im totally convinced these lot are are ex army.... for those of you who also have served or like me are currently serving the old army adage applies....

HURRY UP AND WAIT

Semper Ubi Sub Ubi


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## sharemadder (25 July 2007)

*Oil & Gas and Uranium Update*

*25/07/07*

• *Paradox**Basin** #1 gas discovery well, Grand County, **Utah**, is undergoing*
*continuing completion and stimulation activities. The Company is assessing*
*incremental gas flows from various levels in the well.*

• *The Akah gas interval has been perforated successfully. Flow tests will*
*follow fracing.*

*PARADOX**BASIN** #1 OIL & GAS WELL, **UTAH**USA*

The Directors of Golden State are pleased to announce that perforation in the Akah gas interval has been completed. Flow tests will follow hydraulic fracture treatment of the interval.

The potential Akah dolomite reservoir was perforated between 10,815’ and 10,850’. Fracing will proceed tomorrow, followed by flow tests. Testing of the Akah interval follows previously reported successful low-level flows in the Upper and Lower Barker
Creek gas intervals. The Company anticipates that, through developing a number of such gas producing intervals, the flow rate for the well can be brought to a level suitable for commercial production. Additional higher (shallower) intervals indicated during drilling as having production potential, will be tested following completion of this
Akah interval, including the Upper Ismay (9,845’ to 9,858’) gas bearing interval.

*Paradox**Basin** #2 Well*
It is planned that drilling of the follow-up Paradox #2 well will begin in early October, contingentupon grant of the Application for Permit to Drill.

*Initial 100% Ownership and Operator*
GoldenState holds an initial 100% interest in this well, and operatorship through its 100%-owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the drilling of two wells by GoldenState.

*UTAH** URANIUM PROJECT AND IPO*
A timetable for the release of the prospectus (including shareholders’ entitlement record date) is expected to be finalised this week. The release of the timetable has been awaiting the completion of legal and technical due diligence that forms part of the IPO prospectus.

No major or unexpected issues have arisen from the due diligence studies so far.


----------



## the barry (25 July 2007)

sharemadder said:


> *Oil & Gas and Uranium Update*
> 
> *25/07/07*
> 
> ...




The one thing that would be of major concern is the comment "The Company anticipates that, through developing a number of such gas producing intervals, the flow rate for the well *can* be brought to a level suitable
for commercial production."

Hope for long term sufferes that they announce soon that the well is commercial. Suprised that it wasn't smashed today along with everything else


----------



## DAZT49 (25 July 2007)

What have they been doing since the last ann (16/7)??
Nearly 10 days and they havent started the fraccing procedure, does it take 10 days to perforate a zone?
This note..
The Company anticipates that, through developing a number of such gas
producing intervals, the flow rate for the well can be brought to a level suitable for commercial production.
Is EXACTLY the same as the ann of 16/7 and indeed its seems most of the ann is a cut n paste job from previous anns.
This one..
Paradox Basin #2 Well
It is planned that drilling of the follow-up Paradox #2 well will begin in early October, contingent upon grant of the Application for Permit to Drill.
translated means 
"Richard, they want to know when Para 2 is gunna start, and we havent got the permit yet, what will we tell em?"
Richard .."I dunno ...tell em October"
The note re the U spinoff is the only one that seems to be believable.
Having said all that..I hold, and I am optomistic.
Its just TORTURE thats all.


----------



## new_trader1984 (25 July 2007)

Todays announcement didnt tell us much about what other intervals they are going to test but in todays announcement it does say shallower intervals will be tested which means they will be testing more intervals besides the akah and upper ismay 2 intervals. 

One new part in today's announcement compared to the previous ones is the akah interval which originally was a gas show from 10825-10833 which was then increased to 10815-10833 when table of expected intervals to be tested has now been increased to 10815-10850 an increase of another 17 feet from the table at the start of flow testing the intervals.

Not sure what this means but so far this has been done on the last 3 tested intervals. 

With todays report saying they will be testing shallower intervals from reports last year during drilling i would be expecting them to test intervals of
10714-10765
10377-10418
9930-9960
9742-9746
9845-9858
Total amount of gas shows is 139 feet plus the 35 foot interval in the akah formation. Total of 174 feet.

Plus the oil column which would be last at 9411-9431.

The intervals that are about to be tested which is akah, desert creek and Ismay formations all produce oil and gas at many fields in significant amounts. 

If we need about 2mmcf in total they need to have flow rates of around 0.3mmcf for each interval or better. But might be lucky and get 1-2mmcf on the shallower intervals.

BUR released an announcement the other day they had a flow rate of 4.2mmcf per day they are already selling the gas, but to get that flow rate they used horizontal drilling. It has been mentioned that horizontal drilling can increase flow rates by 3-5 times compared to vertical wells. This would mean bur on a vertical well would be producing at 0.84-1.4mmcf per day. This was also enhanced as they had hit a sweet spot which is an area of enhanced fracturing which would increase the flow rates.

GDn's first well was to target as many intervals as possible and wasnt in the best position to reach any of the formations in the best place for higher production levels. 

If they need 1-2mmcf per day for a commercial well they should get it if the other intervals flow which being formations that have been productive at other fields it would be likely those intervals should be productive hopefully.

Anyone have any thoughts on the high volume of over 6 million yesterday in 30 minutes to the 4.7 million traded so far today which included over 700 000 shares all went through at 2:46pm?


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## sharemadder (25 July 2007)

NT1984

I believe there is sponsor broker support happening (i.e. CK Locke).  If the stock was going to be trashed would of happened by now and be at 10c.  Mums and Dads wouldnt touch it (well maybe a $500 flurry but thats all) not in the volumes going through.  You know being very optimistic I reackon they may get that 2mmcfd.  If they dont we can't say they havent been persistent and as you point out with several more levels to test why give up now.  Hope it comes good for us holders.

Regards Oct spud second well maybe they have had a wiff of when the permit will be finally stamped 'approved'.


----------



## DAZT49 (25 July 2007)

maddy,
Yep, reckon there is plenty of gas in the tank yet.
Para 1 MUST be at least able to pay for itself already I reckon, hopefully the upper zones can add some sugar, and maybe a little better.
Not convinced they have sighted the approval, reckon they have guessed it will be thru in late Aug and allowed a month to gear up and start drilling.
Sp did nothing today but I spose it held at least.
Have to adjust from Long Term to Life Term


----------



## sharemadder (25 July 2007)

Dazt49

As NT1984 states there is a lot more gas pay to test yet.

"Total amount of gas shows is 139 feet plus the 35 foot interval in the akah formation. Total of 174 feet."  

Long time waiting now so I guess I can wait a little longer, pleanty years left in me yet. 

Here's hoping Akah flows strong.


----------



## DAZT49 (25 July 2007)

These forums are great for trying to harvest information, and for some soul support, but certainly a gaggle of misinformation, rumour and manipulation..a huge factor in blood pressure/stress tension.
Before the internet we would have to wait for monthly reports/ AGM's etc to have our curiosity satisfied. Now we want instant gratification..not really how mining and industry perform.
They are painstaking and arduous undertakings, just try and get some plans drawn and bulid that carport you have planned for the new Beamer.


----------



## sharemadder (26 July 2007)

Apparently wktwkts from HC spoke to John Haselby and has summarised what was said below (copy/pasted from several threads wktswkts started). 



> I spoke with John on a number of issues.
> 
> The Oil Column
> 
> ...






> I spoke with John on a number of issues.
> 
> With regards to the 1st well, they believe they can make this well commercial when combining all the other zones.
> 
> ...






> I spoke with John on a number of issues and especially about the progress of the 2nd permit.
> 
> He stated that it is underway and should be received sometime very soon.
> 
> ...






> I spoke with John on a number of issues.
> 
> The U spin off date and the share entitlement date.
> 
> ...






> I spoke with John on a number of issues and this one was IMO the most important of all.
> 
> U - production date
> 
> ...


----------



## Broadside (26 July 2007)

Even more important than when they are producing Uranium is how much they will be producing, can anyone answer this?


----------



## sharemadder (26 July 2007)

I would say they will indicate that and other important information about the U JV in the prospectus when it is ann'd.  Then based on that information traders / investors can make up their minds whether to invest.  So until it comes out I don't think anyone can answer your question.


----------



## Broadside (26 July 2007)

Is this now ex entitlement to the new float?  I don't want any but it seems ambiguous to me.  The float would want to be very good given the amount of people who stuck with GDN on the basis it is worth something to be able to apply for shares in the new company.


----------



## DAZT49 (26 July 2007)

This from ann of 3/5..
In excess of 1.9 million pounds of U3O8 with an ore grade of 0.3% (6.2 lbs per ton)
contained in 300,000 tons of ore in high grade sandstone-hosted roll-front deposits,
plus substantial exploration potential on the Thompson Project.
Not a huge resource, as I have posted before.
At $120/lb(current spot price) only gives $228mill resource.
This doesnt take into account cost to actually mine it.


----------



## sharemadder (26 July 2007)

I don't think it is.  wktswkts from HC stated today that John told him -

The legal opinion was that a prospectus will be issued then a date will be set for share entitlements after the prospectus.

The share entitlement date will more than likley be within days or possibly a week after the prospectus being issued.


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## DAZT49 (26 July 2007)

maddy,
you would think it would have to be a week, to give punters to get in, taking in account T+3.
I will be picking up my entitlement, even tho the resource is small I think there could be a short term surge in the SP.


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## sharemadder (26 July 2007)

I will be taking my entitlement up.  Not just based on the existing resource, what can be explored further (combined leases) or the fast track to mining but based on the JV partner, Mike Shumway, his 3 generation mining background in Utah and I would say his influence in that region.  This alone could help the JV to grow into something worthwhile.  Shumway must be looking at a bigger picture or why bother with GDN or its Directors?  Has he got his eye on GDN leases and if so why.


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## sharemadder (26 July 2007)

Hi all

This is something I posted on HC in reply to so sarcastic comments regards getting the 2nd Permit and the hold up.

Refer https://fs.ogm.utah.gov/PUB/Oil&Gas/Publications/Handbooks/guideAPD2.pdf

The handbook states For any wells drilled on Federal or Indian mineral leases the Division shares this authority with the Bureau of Land Management (BLM). The BLM must evaluate the proposed well location first before the State authority will progress it further.

Does this mean both authorities have to sign off on it? Yes I think so. I remember a ann that stated they had to meet with the BLM about the permit. Maybe there is a Federal issue holding them up which has to be resolved first before proceeding further. 

Cheers 

Document extract (text in *BOLD* what I am refering to) -

The Utah Department of Natural Resources, Division of Oil, Gas, and Mining (“the Division”) has regulatory authority for permitting all oil and gas wells drilled in the State of Utah. 

*FOR ANY WELLS DRILLED ON FEDERAL OR INDIAN MINERAL LEASES THE DIVISION SHARES THIS AUTHORITY WITH THE BUREAU OF LAND MANAGEMENT (BLM).
*
An Application for Permit to Drill (APD) must be filed with the Division for all oil and gas wells drilled, deepened, or plugged back, in the State of Utah. 

When an APD is received by the Division it is first assigned an API number. The submitted document is then evaluated to determine if the application is complete and if the proposed location complies with applicable siting and spacing rules. When the application is determined to be complete and that the operator is sufficiently bonded, an onsite evaluation will be scheduled with the operator. An onsite evaluation will be done by the Division staff for all wells with State or Private surface ownership. 

*IF A PROPOSED WELL IS LOCATED ON FEDERAL OR INDIAN SURFACE OWNERSHIP THE BLM IS RESPONSIBLE FOR ONSITE EVALUATION.
*
If the proposed well is on a State or Privately owned mineral lease, the Division staff will then evaluate the proposed drilling, casing and cementing programs. When all applicable rules are satisfied and proper evaluations are completed a Permit to Drill will be issued. 

The Division and its staff will make every effort to process each permit application in a timely and efficient manner. A complete application package, submitted by the operator, which contains all of the required
information will assure that the process moves along as quickly as possible.


----------



## Bushrat (29 July 2007)

Have been watching this 1 for a while and bought in last week at 21...seems like the entire market is waiting on 1 good announcement to turn things around....i think it will come soon, and there could be a string of good announcements to get this one motoring....I do believe the directors are holding there cards closely for some specific reason....waiting on permits that could make the company?


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## sharemadder (29 July 2007)

First well struggling to give up its gas (0.5mmcfd so far) with stimulation flow results due Monday for Akah formation and then on to testing Upper Ismay.  2nd well permit held up with BLM who have duristriction for Fedral and Indian lands in USA.  Need more gas to plumb this well direct to main line or wait on further well flows to combine before plumbing.  Company suggests Oct before 2nd well starts so maybe have a nod from BLM.  Plenty of cash in bank for second well.  U JV spinoff close to issue of prospectus.  Plenty to come for GDN just management suck (as the SP attests to)!


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## sharemadder (30 July 2007)

There's 194,437,235 shares on issue and $9 million in the bank yet the sp is 17c???  Second well to be drilled, U JV to be spun off.  Must now must be getting into oversold territory surely???  GDN management stink bad, couldnt even announce how the Akah frac went.    Frustrating very frustrating.  Anyone heard from GDN management lately (i.e. over weekend).  Cheers.


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## DAZT49 (30 July 2007)

maddy..I have pinched my own post from HC lol
I reckon we will get (ideally)the ann with the u spinoff/entitlement/listing date maybe later this ??week/month/year lol
I am prepared to wait (no choice really) 
History tells us that a vast majority of 'first' wells come up dry. Para 1 may come up with chicken broth, instead of Grange Hermitage, but it has something, and untill we get the final appraisal of the well we dont know how much 'soup' we have.It also has a dash of cream(oil) for garnish.
They have $11mill in the kitty to fund piping etc and Para 2,3,?.
Para 2 is said to be updip and on the money.
The 30% holding in the u spinoff gives GDN $70mill odd to spend on another 15 or so wells at no expense to GDN, so future drilling is certain and virtually free.
I am getting my U shares and hanging tough for para 2.
I got in at IPO for only a couple of $k and traded up to 100k shares, so while I have paper losses and I am stressed out and frustrated but not feeling any financial pain.


----------



## sharemadder (30 July 2007)

Thanks Datz49 for your reply.

Do u know what CK Locke have to say about the SP.  Surely they must be rank about the SP lows considering those funds they introduced into GDN are down heaps?


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## DAZT49 (30 July 2007)

sm,
No, dont know what they think.. I can say my bro bought in at the same time as I did and recently bought another 250k.


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## bigdog (1 August 2007)

IMO, if GDN spin off the U assets, the GDN SP will drop to 10 to 15 cents unless there is VG news to be issued!


Two ASX ann July 31
31/07/2007	Quarterly Activities Report 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744576

HIGHLIGHTS
• Golden Eagle Oil & Gas Prospect, USA: Drilling of wildcat well Paradox Basin #1 was completed during the quarter to a depth of 16,471 feet (5,020m). Testing of gas shows encountered during drilling is continuing.
• Thompson Uranium Project: The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new 
• ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the
new company

A drilling programme of twinned holes in the Daneros ore body showed an increase in U3O8 grade while confirming the historical drilling.

31/07/2007	Quarterly Cashflow Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744474
Cash at end of quarter $8,957,000


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## DAZT49 (1 August 2007)

bigdog.
IMO it was a pretty good report,and remember it is only an activities report not the ann for results of Para 1.
Ann for results of para 1/u spinoff entitlements/prospectus and listing to come.(sooner than later)
$9mill in the bank pays for piping and Para 2 with plenty left over.
Maybe the Golden Eagle is about to drop its bounty on us.


----------



## DAZT49 (6 August 2007)

smokin barrels feels Prospectus is due this week, delayed because of "better than expected results in latest samples", and wanting to get this info into the Prospectus.
No info on Para 1


----------



## DAZT49 (6 August 2007)

Its certainly not a good time for ANY ann IMO
I think the prospectus goes before the ASX for appraisal before release, so they may have no choice on ann date.
This US lead downturn could take a couple of weeks to stabilize according to the press.
I have another stock ODN due for listing into this crap market too!!


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## Busylion (6 August 2007)

hi Dazt49,
how big the uranium  float? $20m?the timing could be wrong as the market correction is taking place now.
cheers,
BL


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## DAZT49 (7 August 2007)

After waiting so long, I wouldnt mind another couple of weeks ..maybe..but who can judge when the DOW has stabilised


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## LetItRide (8 August 2007)

Oil & Gas Update
• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing
continuing completion and stimulation activities. The Company is assessing
incremental gas flows from various levels in the well.
• Three Upper Ismay gas intervals were perforated and flowed gas in a 24
hour test.
• Further flow tests will follow fracing of the intervals, scheduled for
Thursday.
PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
The Directors of Golden State are pleased to announce that perforation of the Upper Ismay gas
interval was successfully completed.
Three intervals in the Upper Ismay were perforated, at 9850’–9860’, 9732’–9727’ and 9740’–9760’,
totalling 35 feet. Dry gas flowed for 60 hours. In a 24 hour test the intervals flowed gas at *300
Mcf/day *through a 28/64” choke. The well has been shut in, in preparation for fracing, currently
scheduled for Thursday.
Following fracturing, the underlying Akah interval from 10,815’ and 10,850’ flowed water, and has
been abandoned.


300mcf/day is good news isn't it?


----------



## elcruzy (8 August 2007)

so from memory GDN is at 0.5bcf/day and now 0.3bcf/day = 0.8bcf i wonder if this brings it the well closer to commerical status??? 

what is interesting is "The well has been shut in, in preparation for fracing, currently scheduled for Thursday." what does this mean? are they fracing the upper ismay or another level???

note that the AKAH has been plugged and abandoned.


----------



## hoppielimp (8 August 2007)

Hey Elcruzy...methinks you have got your units mixed up.  Previous reports are .2mmcf + .3mmcf and now 300Mcf = 0.8mmcf in total  or 800Mcf.

Not great, but hey the share price is now the same level it was before they found anything...


----------



## DAZT49 (8 August 2007)

hop,
Looks like a total of .8mmcf/d whch at $5/mcf? gives an income of only $4k/day..hardly commercial I would have thought, or are my figures awry!!
Sp is holding, guess the market factored in a less than favorable result for Para 1.
I hold for Para 2


----------



## hoppielimp (8 August 2007)

Hey Daz,

Target Energy (TEX) proceeded with a well that produced .45mmcf with 1bcf recoverable.

Now TEX, they are close to a pipeline, so it depends on the cost to GDN to connect the well up and also what the estimate is for recoverable reserves on Para 1.  Gas prices are about $6.30/mcf so about $5k per day.

If reserves are sizeable and limited by the porosity of the region GDN amy drill more wells at some future point to increase the rate of recovery or try horizontal drilling.


----------



## DAZT49 (8 August 2007)

Water in akah was dissapointing as this is a productive zone in other wells in the vicinity.
Wish they would come out with a comprehensive report on prospects for the future, not gunna happen tho.


----------



## DAZT49 (8 August 2007)

hop,
I posted your post on HC with acknowledgment, hope you dont mind.
With the SP at 17.5c and holding I wonder what value punters are placing on oil/gas and what value on uranium.


----------



## new_trader1984 (8 August 2007)

Hi, i have just looked at the volume since start of july from when the options were able to be traded. Once options traded there were about 170-180 million shares on issue that could be traded?

In the last 27 traded days from the start of July a total of 108,071,666 shares have been bought and sold. 25 million shares were traded in the 2 days when the lower barker creek results were released which sent price from 36 cents down to 25 cents over the 2 days from a high of 44 cents 2 days before the announcement came out on small volume.

There are traders and investors holding shares in gdn, the well may not be as good as expected but for a full month to go by and still not trade a total of shares on issue on several announcements which aernt very positive compared to expectations most would think the volume would be a lot higher since why hold if the well is no good?

Before the drilling started on this well the share price was 25-30 cents. Since then they have hit a lot of gas shows on the way down for a wildcat well using 2d seismic which seems to be inaccurate. This has provided the company infomation on what intervals are best targeted on future wells, which intervals would be best reached using horizontal drilling which by some people suggest can increase flow rates by 3-5 times more than on a normal well. They also know there is a large amount of gas in leadville but on the first well contact with water caused the well to not be able to produce from that interval, but should be able to when drill to leadville on the next well.

The oil column yet to be tested is 20 feet, in the honaker trail interval. Looking at other wells this formation and upper ismay are producing oil in other wells in utah. Hopefully some good results will come from the testing of the oil column.

At the moment the 3 upper ismay intervals are flowing at 0.3mmcf before fracturing, hopefully after fracturing which starts thursday they will be able to increase the flow rate to 1-2mmcf. 

Also on the ck locke report in June 2006 the top 20 shareholders held over 30% of the total shares issued at that time, dont know if those shareholders still hold since under 5% each.

Also in that report it mentions 4 people that are working for gdn on the first well. So those who think its just the director john hasleby running the well would be wrong unless all 4 of the staff that were hired and written about in the ck locke report quit but then if that was the case shareholders would of been informed. So there are people that are qualified to make all the best decissions at the well site with the director being there to oversee how everything is going. Thats my opinion on whats happening at the drill site.

They have also mentioned to people in phone calls they would have given up on the well if didnt believe it was worth continuing so they must be expecting to reach a flow rate to run to the pipeline on the first well. 

Maybe they know more than they are telling us at moment since they aernt saying much in the reports?

What i have said above just my thoughts and thought to share.


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## DAZT49 (8 August 2007)

nt,
good post as usual for you.
I does seem strange that they would keep flogging para1 if they didnt think it would produce.
I think you may be a little optomistic with 1-2mmcf/d but hope you are right.
Maybe the oil component is more important than we think, to bring the well up to a more commercial state.


----------



## ben_Q (9 August 2007)

DAZT49 said:


> nt,
> good post as usual for you.
> I does seem strange that they would keep flogging para1 if they didnt think it would produce.
> I think you may be a little optomistic with 1-2mmcf/d but hope you are right.
> Maybe the oil component is more important than we think, to bring the well up to a more commercial state.




I also hope that the gas flow from this interval is much higher after the fraccing. Is it normal to do a full flow test prior to fraccing? 

I know that the well is close to a gas transmission line. How far is the nearest oil pipeline? I can't remember this being mentioned in any previous announcement.


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## toc_bat (9 August 2007)

hi all

i am just a casual observer of GDN, and not a very good one as i posted at around 35c mark thinking/saying that it had found its bottom in the downward slide of the SP, 

however now that the SP is so low, in fact last time it hit 17c mark was March 2006, I am thinking that surely it is oversold, but then again not knowing GDN inside out, if this well was to fail, then would 17c be a correct valuation? Even if it is then it couldnt go that much lower even if the well was a total failure, so it would seem that there is a much smaller downside now compared to a potential upside, 

but Im sure you all know this, 

ok bye


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## DAZT49 (9 August 2007)

toc,
I think the fact that the Sp held ok after yesterdays ann, means the market has already factored in that Para 1 is not as we would all had hoped.
Hopefully the SP is somewhere near the bottom, seems to be that way, 18c at 10.13am.
If they can get Para 2 up and moving quickly (Oct) maybe by xmas we can smile again
Also  the immenent u spinoff entitlement/ prospectus/listing should help the SP, tho the unknown is wether punters will dump there GDN stock once they have picked up the U entitlements.
I am hanging in for Para 2 and xmas pudding.


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## new_trader1984 (9 August 2007)

hi ben_q,

The oil interval once tested i dont think was going to be linked to an oil pipeline but instead was just going to truck the oil straight from the well to the market i think. So only real costs would be the trucks to transport the oil. Just its not going to be earning as much as the gas can earn daily but can still produce significant amount to the company over a period of time. Without expenses of the trucks gdn need to produce 86 barrels of oil to equal 1mmcf of gas.

Still producing oil would be good for gdn just gas is what would produce better daily cashflow for the company.

I just read an announcement by avd, todays results from a flow test produced 75mcf or 0.075mmcf so about 4 times less than what the upper barker creek interval flowed at. They also say in the announcement the other 60mcf that was tested prior will also be brought back online so cash will be from 150mcf or 0.15mmcf for a return of  $160 000 a year for the well. The well was a lot cheaper since only was 4000 feet deep but does show that even really small flow rates 1/4 of what gdn has from upper barker creek is still good enough to be productive for the company and the flow rates were after fracturing.


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## DAZT49 (9 August 2007)

nt,
I guess there would be trucking contractors who pick up the small quantities of oil that similar wells in the area produce.
Can you put your post on HC?


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## new_trader1984 (9 August 2007)

Hi dazt49,

They would have trucks in place when they test the oil interval i would of thought. I have read other companies when have done flow tests they sold the oil that has flowed in the test straight away which has provided a small amount of cash to the company. Would think same happens with gdn since the pipeline would take several weeks to connect and they wouldnt waste time missing out on money when can use trucks to get the oil to the market. But if the flow rate wasnt much like 50-100 barrels dont think they would worry about setting up a pipeline for the oil when can just truck the oil and save some money. 

Thats what i was thinking, but just have to see what happens when they test the oil interval.


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## DAZT49 (9 August 2007)

nt,
I am sure they would jump at the chance to get some cash flow via the oil.
SP has held again today. Maybe this is the base...for the time being.
Unless they come out with a better outcome for Para 1 than the market has assumed..which is not much.


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## new_trader1984 (9 August 2007)

Hi dazt49,

Do you think with the amount of time they spent on this well, between flow tests of lower barker creek and to the time they finish flow testing all the intervals would they have an independent person working out an estimate on how many bcf is likely to be produced based on flow results so far from the producing intervals?

If they have been working them out and announce that at the end of flow tests that could see a jump in share price. They wouldnt calculate the intervals that had water even if it was likely to be productive in future wells but they could calculate and estimate on the 5 intervals that are productive in this well. As long as they can say they have 50bcf to be produced from the intervals with successful flow results that should see share price back over $1 i would have thought. Only difference is that the daily revenue would be lower then expected since rate of flow of the gas but this can be increased in future cheaper wells.

They wouldnt of been able to produce any more than 20bcf at most from one well, normally around 10bcf per well i think i have read. So even if they do have 440bcf of gas they would still need over 40 wells to get all that gas. 

Hopefully they can the 2nd well drilling soon with better results.


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## DAZT49 (9 August 2007)

nt,
Think I have posted this before but its worth looking at..
The ann of 12/6/07...
The Pennsylvanian-age Barker Creek was one of the primary targets for Paradox Basin #1.
The well location was chosen as an optimal place to test this deep target due to good seismic
control at this point and coincidence with a large flexure throughout the Pennsylvanian
section. The oil and gas shows encountered at this level are very encouraging and indicate a
further potential accumulation east and up-dip from the well.
This provides a priority target to be tested in the second well location, Paradox Basin #2,
currently being permitted.
A review of the well results in the Pennsylvanian section above the Barker Creek interval,
conducted by an independent consultant, announced on 12 October 2006, concluded:
“This remains one of the most significant wells to be drilled in this region if not in the US
this year.”
From GDN website and from origional Prospectus and part of the above review..
Independent consultants estimate a mid-case reserve target of 440 BCFE of gas, with upside to 3 TCFE (3,000 BCFE) for the maximum 2,000 ha case.

So in answer.Para 1 is the test well so they should be able to extrapolate the size or the reserve.
Cheers
daz


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## new_trader1984 (9 August 2007)

Thanks dazt49,

Will be good if they do tell us how much bcf is likely to be productive, but i dont think they will add leadville to the estimate until they drill with flow results on the next well and same for the akah, pinkerton trail and cane creek intervals. They currently have 108 feet of gas pay that has flowed successfully so an estimate of somewhere between 108-216 and possibly to 300bcf can be announced hopefully. 

then with the second well they can increase that estimate once reach and successfully flow gas at other intervals that didnt flow on this well.

The estimate above is just from using 1-3bcf per foot of gas pay, hopefully it will be somewhere around that amount and they tell shareholders at the end of the first well which hopefully might see a decent price move in the share price.


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## new_trader1984 (11 August 2007)

Hi,

I have read people are saying gdn still has a very high market cap because they don’t have anything of value. At the moment gdn has 25000+ acres of land in utah for oil and gas projects which can possibly contain 4 or more structures similar to the one currently being drilled. The one currently being drilled has been successful since it has got several intervals flowing gas at a steady rate. 2 Intervals had water contact so not possible to be productive from this well but very likely to be productive in the next well when they drill to those intervals especially Leadville further up dip.

The oil interval is going to be interesting to see what results are obtained once tested considering there is a lot of oil being produced in utah and to find 20 feet of oil at around 7000 feet it means shallow drilling for the oil so a lot cheaper to drill and just trucking the oil which only costs involved is the trucks to deliver the oil which shouldn’t be too much. 

In the report that was written by an independent geologist which can be found in the notice of shareholder meeting on the 21st December 2005, the geologist says samples of the gothic shale indicates that it can generate up to 5000 barrels of oil per acre or 12400 barrels of oil per Hectare. Im not sure how many feet of oil pay is needed to be able to produce 5000 barrels of oil per acre but thought that this statement was worth sharing. Since if there is a large amount of oil in that 20 foot column and is productive at good flows then even with a small amount of gas flow this well would still be worth the costs involved in drilling this well. It would have been better if it was a lot cheaper but if can get back 7.5 mill US it would mean the well would have only cost around 10-12 million which is only double the initial amount expected which is still a lot but if any oil or gas is productive from a first wild cat well then the company can say that the well was a success. They will also know a lot more when comes to drilling future wells in the area including where best to place horizontal wells too.

To the statement some others have made on other forums about gdn market cap still high, If you look at other companies they are trading a lot higher then gdn’s current share price and they haven’t got any productive flow rates or mining gold or uranium at the moment.

Looking at CIG it has 800 million shares on issue and current share price around 12 cents, it has an interest in pru which is likely to be in production early next year with their gold projects. If CIG had 180-200 million shares on issue the current share price could be 48-50 cents at moment without having drilled any wells. That’s more than twice what gdn is currently without even drilling a well, but when they do drill the chances of success are very high. 

ADI currently at 65 cents has just over 100 million shares on issue, only 20% of a big project and primary objective didn’t flow gas, the price is 4 times more than gdn but only has 1/5 of the project that has caused the increase in share price without having tested their secondary targets, it may good value still but this is another company where they aernt producing but still 3 times more in price at moment, but if read into all the work that’s happening can see that it could have a high chance of success.

I don’t mean to sound negative on adi or cig since they both have a lot of potential but they both do show that they don’t need to be producing anything to have a high share price. 

Looking at the uranium part of gdn. GDN held the thompson’s project which before spinning off to the new company was going to just sit there since all the money and work has gone into the oil and gas project. By spinning it off into a new company it allows work to start on the project with a team that has been working on uranium projects for a long time and are the only company to be producing uranium in utah currently. 

GDN gets 30% ownership of the new company for just giving them the thompsons project. Now if you think about it the ground that the thompsons project covering 6640 acres must be pretty valuable to be all the other partner wants and in return the other company will offer a project that has currently 1.9 million pounds of uranium found already and aiming to be in production by end of year. GDN didn’t have access to a uranium project which would be in production until this spin off happened. The other partner will also be the main ones running the company, they also offer a mining fleet and personnel for the new company to do all the work on the projects. That’s a lot the other partner is offering gdn for the new company just for one project area over 6640 acres, gdn doesn’t have to do any of the work as the other partner is supplying the mining fleet, the management and an already proven amount of uranium with likely short term production for the new company which will be providing the new company cash flow. That would have to suggest that the current 1.9 million pounds can be increased in the area that the project is in and the thompsons project will substantially increase the 1.9 million pounds again when work starts on that project. If from the 1.9 million pounds that already been found with the new company if $40 dollars was the profit amount after all costs were taken out per pound of uranium then that 30% holding gdn has would be around 22.8 million dollars which would cover the full cost of the wildcat well that has been drilled, and maybe a second well if gdn recovers the 7.5 million dollars. So if looking at it that way then gdn’s first well is completely covered by the uranium projects current 1.9 million pounds of uranium with the 30% holding gdn would have then any success on the first well would be pretty much free, since the uranium project covers the costs of the first well. 

Reason im thinking along those lines is most other companies increase in price based on drilling results or reserves even if not producing, such as pru has over 3 million ounces of gold and is currently over $1 a share but not producing, pru is a good company in my opinion but just showing that a company doesn’t need to be producing to increase in price based on what the company has found. 

So if looking at it that way currently the first well which has successful flow rates even though small is still a success for the company, they currently have 30% of a uranium project currently holding 1.9 million pounds of uranium which may not be much but is a start for a company that hasn’t yet listed. The well is already covered based on return from the uranium project which hasn’t cost them anything but a project on a large block of land that they were not able to do much with while having very little money to invest into the uranium projects. 

These are just my thoughts only just thought to share what I was thinking.


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## DAZT49 (13 August 2007)

nt,
great post .
1.9mlb gives around $200mill ..30% holding gives $60mill lees costs etc is going leave enough for another 10 + wells.
I still believe that the gas is going to be the winner down the track.
We know they have money for Para 2.
If they can confirm 440BCF mid range 3TCF tops as specified in the origional prospectus the SP rebound and bound off the meter.
Fraccing must be finished by now,caculations/colating/analysis ..an ann must could be/should be this week, (I reckon its small c commercial)and hopefully giving us a definate date for Para 2.
 I saw a post on another site saying that the rig was on its way, bit the poster has yet to tell me where he got that info apart from a John (could be John Hasleby..could be John Travolta)
My broker says that float of the spinoff company could be some time away yet (a couple of months).
xmas is getting closer..I think we will like what Santa has in his big red bag.


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## Bignote (13 August 2007)

datz

The value of the u to GDN is imo currently 50%, and not 30%, the value of the U.

It will become 30% after the float, at which time the value can be measured in terms of the new co share value.

I dont have a current value to put on the u, but it may be more like $40/lb in ground X 2.5 m lbs x 50%; allowing for a greater resource than original estimate which was done when value of resource was less, making lower grades less economic to mine.  

This gives about $50m, but does not detract from the original argument that this can pay for a few new wells, if necessary. 

Please feel free to comment.


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## adamwu (13 August 2007)

Just don't get it. If future is clear and positive, why the sp keep dropping? I am in at 21c, but right now it dropped to 15c.


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## DAZT49 (14 August 2007)

bignote,
GDN are 30% stakeholders in the spinoff.
I dont think they would bother to mine the U if it was only $50mill, I reckon $200mill is even too small to be commercial given costs to mine it etc.
However there is no denying it will pay for quite a few gas wells for GDN.
adamwu,
Seems no doubt that sentiment has had a big part in the SP, frustrated punters who had big $$ in there eyes, and thought (along with me) that Para 1 would squirt oil and gas all over Utah.
Management had the same $$ signs, and certainly didnt help matters with vague anns. 
Remember, Para 1 was a wildcat well and a test well for future drilling.
Para 2 has been targeted updip and ,if we can believe management, targeted to be commercial.
Fracc results and assesment of Para 1 MUST be due soon!!!
I have my fingers burnt and crossed.


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## lin (14 August 2007)

GDN makes me crazy
0.135 now~sigh
how come there is still no news about new float? Could I please confirm GDN will give 1 U-share for 4 GDN shares, or just the priority to buy 1 for every 4 shares? Thanks!


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## Broadside (14 August 2007)

Gives you the entitlement to buy 1 share for every 4 shares.  Hard to judge the merits of U float without seeing a prospectus which is, surprise surprise, late.  I do not hold.


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## DAZT49 (14 August 2007)

lin,
yes 1 u share for every 4 GDN
eg 100,000 GDN = 25,000 u shares.
SP is a real bummer, some support at 13c!!!


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## Broadside (14 August 2007)

DATZ you will still need to buy the shares - they won't be given for free as far as I am aware......


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## DAZT49 (14 August 2007)

broady,
Yes you are right of course, I believe its 35c/u share.
The prospectus thingy isnt late, as they never specified a date..but sheite its taking a bloody long time


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## lin (14 August 2007)

thanks mates

I was wrong as I always thought  I would at least get some free U shares, which is the reason I still hold GDN


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## sharemadder (14 August 2007)

wow - now this is really stuffed up.  Management needs to deliver a ann now.  Tell us how much gas from ismay 

13.5c low is sick, real sick - mangement need  :shoot:


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## Broadside (14 August 2007)

I think the prospectus is late or they are waiting for markets to stabilise:  25 July: "UTAH URANIUM PROJECT AND IPO
A timetable for the release of the prospectus (including shareholders’ entitlement record date) is
expected to be finalised this week. The release of the timetable has been awaiting the completion
of legal and technical due diligence that forms part of the IPO prospectus.
No major or unexpected issues have arisen from the due diligence studies so far."

But...in this climate...I don't blame them for waiting, I would do the same.  Maybe they can change the float to iron ore or something sexier than Uranium ....this float has been mooted for some months and there have been a number of delays.  Who would have thought GDN management would overpromise and underdeliver on this?  It would want to be a blockbuster prospectus to reward shareholders who stuck with them, good luck.


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## DAZT49 (14 August 2007)

Until such time as they administer our lethal injection I think we just have to look on the positive side.
Para 1 has .8mmcf/d + xmmcf/d from upper levels.
Oil column yet to be assesed (see NT1984 post 11/8/07)
Para 2 to commence Oct..updip...on the honeypot.
$9mill (roughly) in the bank enough for pipeline, Para 2 and maybe 1 more well.
Income from oil column.
Possible $7mill from legal action. (more wells)
U spinoff will give GDN $60mill (roughly)from 30% stake, enough for 10 + wells.
Most of us are now long term holders (+ 12 months) therefore reduction in Capitol Gains Tax lol


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## lin (14 August 2007)

I remember it cost GND 19M for the Para 1

"reduction in Capitol Gains Tax"- this is very positive


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## sharemadder (14 August 2007)

I can see myself topping up the holdings @ 10c by end of week at this rate.  I believe in the "project".  This well is not a good beginning but as stated for a wildcat well at least we have gas.  Thats a positive  to remind one self.  Next well could prove a lot better.  Emailed GDN management again and probably get the same reply again "zilch"


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## the barry (14 August 2007)

sharemadder said:


> I can see myself topping up the holdings @ 10c by end of week at this rate.  I believe in the "project".  This well is not a good beginning but as stated for a wildcat well at least we have gas.  Thats a positive  to remind one self.  Next well could prove a lot better.  Emailed GDN management again and probably get the same reply again "zilch"




Sold out at the 40 cent mark, looks almost good for a punt again soon. Looking at the chart it looks like we might get to the 5 - 10 cent mark. What would you think was a good buy in point, considering we are likely to see single digits soon?


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## DAZT49 (14 August 2007)

I posted that I had read a post on HC that the rig was on its way..
According to the poster it was a joke.........................ha f ha
Sorry about that guys.


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## sharemadder (14 August 2007)

Datz49 it ok - the SP is what is making me angry.  Constantly sold down.  We need good ismay results.  They must be close to having them.  No news will see this at 10c soon and what of their broker support etc.  There is no support yet we have a well that is flowing gas. Frustrating


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## tropolite (14 August 2007)

Hi...

I've been searching the web for latest news on GDN and I found this great thread! 

Thank god that I'm not the only one that's completely frustrated by the poor sp at the mo and the constant trend down recently.

I agree with sharemadder, DAZT49 not your fault - you were sharing information under the impression it was legit. The nozzle who posted it as a joke should be flushed! 

Well 'make good of a bad' I always say - keeping a close eye on the price and will do some cash sales averaging... it can't hurt coz there's $$ to be made.

Cheers
Tropolite


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## dj_420 (14 August 2007)

the barry said:


> Sold out at the 40 cent mark, looks almost good for a punt again soon. Looking at the chart it looks like we might get to the 5 - 10 cent mark. What would you think was a good buy in point, considering we are likely to see single digits soon?




i have been watching this one from over $1, looking quite attractive now. although sub 10 cents could be seen.

anything speculative has been more than hammered in last couple weeks, so any more red days could see 10 cents be broken.


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## sharemadder (15 August 2007)

sharemadder said:


> Emailed GDN management again and probably get the same reply again "zilch"




Well I got a reply.  Basically news will be released as results become available - can't argue that.  Just have to wait again 

Might go fishing today - cheer me up


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## new_trader1984 (15 August 2007)

Hi Sharemadder, Did the email from gdn say much more besides they will release news when they have some? Since they started testing last thursday would have thought they would know results from atleast 1 of the 3 intervals by now. Did they mention anything on the second well or planned testing for the oil column?

The share price currently is very low for what they have, but also the volume is very low too considering the share price.

I have read land in utah for oil and gas exploration have been purchased in some areas for almost 400 per acre, that would mean the 25000+ acres of land gdn have is worth over 10 million dollars in land value alone. So that would be around 6 cents per share. They currently have 0.8mmcf from gas production from the first well and should be able to get it to 1.5-2mmcf i would be expecting which should give a return of around $5,596,910 if they were to have 2mmcf per day production per year. Might not sound much but it would mean the company be cashflow positive.

The 5000+ acres of land in the uranium project must be worth a fair amount considering everything the other company is offering for that one project. If the other company already has a project with 1.9 million pounds of uranium but that can be increased with more exploration in the area. This would suggest that the thompsons project the only part of the deal in the new company gdn is offering must be substantially bigger then the current 1.9 million pound project right next to the thompsons project. 

The share price before drilling started was around 30 cents, its now 1/3 of that price with knowing everything they do about the first well and that they can get productive flow rates the share price should be a lot higher i would have thought.


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## DAZT49 (15 August 2007)

nt,
flow rates and U jv ann mid next week.
All my other stocks have gone down 50+% in the last few months, GDN is the worst, but still part of the bunch.
Hopefully a recovery in the states may revive our fortunes (lost and otherwise)


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## sharemadder (15 August 2007)

Hi NT1984 and Datz49

First of all just got back from a dabble with the fishing line and caught bugger all 

Secondly I just logged on and saw my small buy order of 5000 @ 10c got filled - wow - I only put that order in couple of days ago after topping up at 15.5c 

Thirdly here is part of John's email - nothing really in it other than still testing flows 



> *As you will know we are currently flow testing the Upper Ismay interval in the current well. We aim for weekly reports unless something exceptional intervenes. We don't release "no news" reports and we don't like to release information that might be misleading in the middle of testing an interval - misleading either positively or negatively. I assure you that the shareholders in the company are kept fully informed. If the information stream seems slow it is because the testing process takes time.*




I firmly believe this is way oversold on what they have - WE HAVE A WELL THAT FLOWS GAS - how much gas, like Datz49 says next week we will find out but we know it 800mcfd minimum.  Then we have the leases + U + iron ore and some gold leases.  10c is really cheap and way below pre drill SP - go figure :screwy:


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## DAZT49 (15 August 2007)

sharem,
Thanks for an uplifting post.
Reading between the lines, as we all try to do..
My snoop ses flow rates mid week.
JH ses 
 "We don't release "no news" reports and we don't like to release information that might be misleading in the middle of testing an interval - misleading either positively or negatively."
I would consider NO GAS IN ISMAYas news and surely if that had been the case they would have no that and have stopped testing by now.
Seems positve to me and a matter of "how much gas". Hopefully 2mmcf/d min to get into the pipeline.
Latest Henry Hub Spot price for gas is $6.86/ MMBtu..how can we convert from our mmcf??


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## sharemadder (15 August 2007)

> *Datz49 said "Latest Henry Hub Spot price for gas is $6.86/ MMBtu..how can we convert from our mmcf??"*




*800000 Cubic Feet of Natural Gas (nat gas ft3) = 824,373,380 British Thermal Units (BTU)*

*824,373,380 (BTU) * $6.86 /mmBTU = $5655 per day*

*Hope that helps*

*10c is a steal - buying more tomorrow at that price*

*Cheers *


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## DAZT49 (15 August 2007)

Thanks maddy,
So are you saying that .8mmcf/d =$5655/day ??
threfore 5655 X 365=$2.06mill/year?
Would love to have some cash to buy in...on a lot of dirt cheap stocks.
report on news tonight ses this volatility could go on for another 2 months.
think I have posted re waiting for xmas and santa


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## somesortoftrader (16 August 2007)

Thanks for all your informative posts guys!! I have been watching GDN slide for ages, and made the jump into the stock yesterday!  I'm in at 12c


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## DAZT49 (16 August 2007)

somesort,
I hope you didnt buy in because of this thread..DYOR.
Was that a good ann this morning???
300MMcf/d =.3mmcf/d doesnt it??
That only gives a total of 1.1mmcf/d.


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## sharemadder (16 August 2007)

Datz49

Not 1.1 mmcfd yet.  The 0.3 mmcfd is the previously reported flow prior to fraccing.  They have fracced successfully and now uplifting frac fluids.  Gas will flow soon and over next 48 to 60 hours they will have a good idea what the 35ft upper ismay zone will flow at. So they still have 0.8 mmcfd.  IMO the 0.3 mmcfd from upper ismay will be upgraded once flow testing is completed.

Regards $5565 US a day - yes that is correct.  The oil column if tests ok will improve the cash flow from this well.  The important thing to remember is the well is flowing gas.  What will the next well flow further updip when they drill the second well which will be shallower?

Gas flowing = the project area is productive 

SP is still @#$% though 

Cheers


----------



## DAZT49 (16 August 2007)

madbugger,
cheers, I have a feeling in my waters that next weeks ann will make us feel warm and gooey.
I reckon they put out that report today to placate the seagulls on HC lol
It hasnt.


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## bigdog (16 August 2007)

Xmas is coming too!!

Dazt49 what next!!

ASX ann today
16/08/2007 Oil and Gas Update
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00748927

• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing continuing completion and stimulation activities. The Company is assessing incremental gas flows from various levels in the well.

• Testing continues on three Upper Ismay gas intervals following successful fracing.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
The Directors of Golden State are pleased to announce that fracing of three Upper Ismay gas intervals was successfully completed.

The intervals are 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet. In a 24 hour test following perforation, the intervals flowed gas at 300 Mcf/day through a 28/64” choke. A slickwater frac has now been completed and frac water is being recovered prior to flow tests.

Results will be released as soon as available.


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## bigdog (16 August 2007)

Unusual for GDN - the SP has risen this morning with rest of market down

 GDN   $0.12  	   	  +$0.01   	  +9.09%   	 	 490,857 shares $55,139 @  	 16-Aug 10:17:03


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## sharemadder (16 August 2007)

:alcohol:Blow the trumpet - GDN goes green for first time in a long time hahahaha celebration time (joke ok).

Maybe Monday will be our day.  That will be 4 days flow testing.

Cheers


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## DAZT49 (16 August 2007)

oh joy, oh joy up 1c I knew it would be all worth it lol
I reckon Weds for ann maddy, according to "my sources"


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## sharemadder (16 August 2007)

Datz49

Wednesday will do fine for me.  I get the distinct feeling from John's email to me that we should get a gas flow upgrade from the fraccing of upper ismay.  From previous discussions they had pointed to upper ismay as being the zone to produce.  Lets hope so as we need some good news.  Anyway at 10c I consider GDN a good risk play especially when there is much to come in way of activities in the near term (i.e. new well, U JV, iron ore etc)  

Wonder when the permit from the BLM will be issued for the second well?

Cheers


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## DAZT49 (16 August 2007)

maddy,
ann of 25/7
"It is planned that drilling of the follow-up Paradox #2 well will begin in early October, contingent upon grant of the Application for Permit to Drill."
I would deduce from this that BLM? has indicated to GDN that they commence
Para 2 in Oct subject to the formality of the granting of the permit.
I reckon we will get that info, along with final flow rates and assessment for Para 1. U spinoff prospectus/entitlement cutoff in the next ann (Wed?)
What was that Dusty Sprinfield song..
Wishin and hopin and prayin and dreamin


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## sharemadder (16 August 2007)

Well good finish when you think what happened to the all ords. Plenty of support it seems around 10c.  To think some would sell when upper ismay is giving up its hidden treasure right at this moment.


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## DAZT49 (16 August 2007)

very happy that the old girl hung on to 11c (cant believe I am saying that after $1.20+!!)
Couple of those twats on HC got on my goat today, usually I just stick em on ignore,but I had to have a swipe.
xjo made a good recovery after being 300 pts down at around 2.30pm. finished down 76.
We are in the hands of the yanks again tonight


----------



## DAZT49 (16 August 2007)

maddy,
re upper ismay..lets hope around another 2mmcf/d of treasure lol.
The ann said 300Mcf/d, is that  for EACH of the 3 levels in ismay ?


----------



## sharemadder (16 August 2007)

I believe that the three levels in the upper ismay flowed combined flow 0.3mmcfd after perferating the casing. What they are flowing now after fraccing only JH and co know but I bet you its a lot more. I really can see a announcement on Monday as that would be about 80 hours flow time which would most likely be more than enough time to establish the after frac flow. But they may flow each upper ismay interval, time will tell. I remain positive it will be good


----------



## DAZT49 (17 August 2007)

Sharemadder,
i posted your email message from JH on HC, hope you dont mind.
First 20 mins from market open looked good, under pressure now.


----------



## sharemadder (17 August 2007)

Datz49

Its all good - that's what these forums are for.

Nice start to the day.  Next week's news is what I am hanging out for 

Cheers


----------



## DAZT49 (17 August 2007)

Seems like we have been saying 'next week' for a year now...hang on...we have lol
Actually GDN is the least of my worries atm I have some BMN, and they have been smashed too, $3.90 a couple of months ago $1.4 atm.
I would love to sell em (only got 14k) and maybe pump the dough into GDN ..IF they can give reassurance of the 440BCF/3TCF reserve. I am not so worried about flow rates at this stage (except for Para 1!!) as they can horizontal drill on future wells if need be.
To quote you..
Gas flowing = the project area is productive.
daz


----------



## moses (17 August 2007)

GDN is showing some great signs of being a bottom pick today. The Neilson SMA chart shows a very significant increase in buying pressure.


----------



## sharemadder (17 August 2007)

Plenty of support today at around 11c.  Nice close which was good to see.  Hopefully we have a full honey pot next week.  Still I am amased it has dropped below the predrill SP by more than 100%.  Need some good news next week on any front to keep the support there.  Cheers all for a relaxed weekend.


----------



## DAZT49 (17 August 2007)

cheers maddy,
Be nice to get away from the screen for a while with a more positive outlook for next week for GDN.
two of my sons are playing guitars in a blues gig on Sunday, Clapton,Hendrix, Gary Moore, BB King etc ..gunna get blasted at that one.
good weekend everyone
Daz


----------



## sharemadder (20 August 2007)

Datz49

Looks like your gos on mid week ann might be spot on.  No ann today so mid week it must be.  Nice start to the week with GDN seems to found its bottom and now SP climbing up.  Ismay be a sweety and spill ya guts :jump:


----------



## DAZT49 (20 August 2007)

lets hope so for the ann,tho then again, given GDN's past..the ann could be xmas lol
Seems the US Fed reserve has taken steps to halt the slide, but I reckon the DOW is gunna fluctuate for some time yet
Anyway I am enjoing seeing a bit of green for a change.


----------



## sharemadder (21 August 2007)

Must be drawing up a announcement now.  On the 16th August they declared fraccing had been successful and uploading frac fluids.  Upload fluids over 24 hours (?) and then have 18th to 21st of August to flow test.  SP holding up ok.


----------



## DAZT49 (21 August 2007)

madbugger,
Hope its soon, I am worried that they have to get another 1.2mmmcf/d out of the ismay to get into the pipeline. But, as I have said before,they must know what they have got and it must be ok or why continue with the testing.
Holding on to that 14c..you go girl!!


----------



## sharemadder (22 August 2007)

Datz49

Midweek ann today? Any more gos on whats the go for an update plus U JV etc. I thought there would of been something first up this morning. Cheers


----------



## DAZT49 (22 August 2007)

Maddy,
Looks like my gos was just that!!
Just shows that even 'sources' close to the action can get it wrong too.
Still could happen today of course, just wish it would happen NOW.


----------



## sharemadder (22 August 2007)

I fear that unless they announce soon all the good gains the SP has made lately will disappear yet again.  Down to 10c again.  I cant see why they need to bundle the announcements.  A drill update will suffice.


----------



## DAZT49 (22 August 2007)

Sp is holding up ok, support at 12c-12.5c.
The ann IS coming, that much we know...with....
Results of Para 1.?
Pipeline update?
Para 2 commencement?
Oil column details?
U spinoff entitlement date.?
U spinoff float date?


----------



## sharemadder (23 August 2007)

Well maybe today will be the day.  if they ann on all the stuff that you say (?) Datz49 then would be a very interesting announcement.  I see the HC crowd throwing punches at GDN again this morning LOL.  I wonder if we will get teh announcement before open?


----------



## DAZT49 (23 August 2007)

Gidday sm,
I dont understand why, if they dont hold, and have no intention of buying, why they would waste their (and our) time posting.
That was my 'dream list' for the ann maddy lol
It would great if it came before open thats for sure.


----------



## sharemadder (23 August 2007)

Datz49 

Are you able to talk to your source today and get a update on what's the go.  I am sure they will provide some update today but if they dont then why the delay?  Questions so many questions.


----------



## DAZT49 (23 August 2007)

ok will give it a bash.
SP looks pretty safe today, cant see it dropping more than a cent , looking at the buy side. And maybe up a cent,1.5 cents


----------



## sharemadder (23 August 2007)

With no announcement today could probably suggest the upper ismay has not really improved in gas flow and they are now targeting another zone or the oil column.  One would think that 6 days flowing gas from the 3 zones in the upper ismay formation would be good enough by now to report what the flow is.  This is really starting to look like horizontal drilling will be required in future wells.  Anyway few hours to go yet.


----------



## DAZT49 (23 August 2007)

sharemadder,
Some nice duckin n weavin by you over at HC
Havent been able to get any gos ATM
Yep, still time today for ann but looking less likely ..11.30ish in Perth isn't it?
Maybe they will release it when they come back from lunch??
I think Para 2 is gunna be our best hope now. Hopefully they can get it started and finished without any of the probs they had on Para 1.
Its too late for them to horizontal drill Para1 isnt it?


----------



## Agentm (23 August 2007)

sharemadder said:


> With no announcement today could probably suggest the upper ismay has not really improved in gas flow and they are now targeting another zone or the oil column. One would think that 6 days flowing gas from the 3 zones in the upper ismay formation would be good enough by now to report what the flow is. This is really starting to look like horizontal drilling will be required in future wells. Anyway few hours to go yet.





are you sure the process would work???  its exacting science.. if its done right you will reap massive rewards, if porosity is no good then doesnt matter how much you throw at it,, its a dry hole..

look at this case study ended last year..  has GDN actually touted horizontals or is it entirely your own idea??  it doesnt seem attractive to others so whats the attraction to GDN doing it? 

all IMHO and DYOR


http://www.netl.doe.gov/technologies/oil-gas/Petroleum/projects/EP/ImprovedRec/15128UGS.htm

Oil & Natural Gas Projects
Exploration and Production Technologies 
*Heterogeneous Shallow-Shelf Carbonate Buildups in the Blanding Sub-Basin of the Paradox Basin, Utah and Colorado: Targets for Increased Oil Production and Reserves Using Horizontal Drilling Techniques
**
DE-AC26-00BC15128* 

*Project Goal*
Increase production and reserves from the shallow shelf carbonate reservoirs in the Ismay and Desert Creek zones of the Pennsylvania age Paradox Formation, in the Paradox Basin of Utah and Colorado. The project proposed using horizontal laterals from existing vertical field development wells to optimize production.
*
Performers*
Utah Geological Survey 
Salt Lake City, UT

Eby Petrography & Consulting 
Salt Lake City, UT

Colorado Geological Survey
Denver, CO

Seeley Oil Company
*
Project Results*
Two San Juan County, Utah fields were evaluated for horizontal drilling potential: Cherokee and Bug, producing from the Ismay and Desert Creek zones of the Paradox Formation, respectively. Three-dimensional (3-D) thickness models indicate five porosity units have an untested northeastern area in the Cherokee case-study field, San Juan County, Utah. Based on Cherokee reserve calculations, the remaining recoverable oil and gas reserves are nearly 168,000 BO and 3 BCFG, suggesting the presence of additional undrained zones. For the Bug case-study field, the volume calculated for net feet of porosity greater than 10 percent is 99,057 acre-feet, as derived from 3-D models. This also suggests the presence of additional undrained zones. The lower Desert Creek may contain recoverable oil and gas reserves of nearly 2,440,000 BO and 5.7 BCFG. It was recommended by the UGS that horizontal drilling techniques be used to tap undrained reservoirs as a demonstration in these fields. 
*Benefits*
Detailed reservoir characterization and analysis of horizontal wells by the Utah and Colorado Geological Surveys will provide information and assessment of horizontal drilling of prospects in the Blanding Sub-basin of the Paradox Basin that small, independent operators could not afford on their own. Work by the geological surveys will not be restricted to individual leases or time constraints and can thus provide a more comprehensive and objective analysis available to all companies working in the area. Methodologies to identify drilling prospects in the over 100 small carbonate mound fields in the Paradox Basin holds the key to recovery of an estimated 200 million barrels of oil. 
*Background*
Most of the Pennsylvania Paradox Formation fields are characterized by high initial production rates followed by a very short production life (primary). Only 15 to 25% of the original oil-in-place (OOIP) is recoverable during primary production with conventional vertical wells. The previous DOE Class II study of the Paradox Basin demonstrated that secondary recovery by waterflood is not as effective as carbon dioxide flooding. 
The small Ismay and Desert Creek fields are at risk of premature abandonment. At least 200 million barrels of oil is at risk of being left behind in them because of inefficient development practices that leave undrained these very heterogeneous reservoirs. Because of the widespread nature of the carbonate mound fields, the Desert Creek and Ismay zones have not been adequately characterized. Small, independent operators of single fields do not have the time, money, or expertise to perform this analysis. The Utah Geological Survey serves the public by conducting regional studies which small companies cannot under take by themselves. 
The proposal suggested a three-phase, multi-disciplinary approach to increase production and reserves from the shallow-shelf carbonate reservoirs in the Ismay and Desert Creek zones of the Paradox Formation using horizontal laterals from existing vertical field development wells: 1) conduct detailed geologic analysis of fields, 2) drill horizontal wells from existing vertical wells to test hypothesis developed in Phase 1, and 3) extended monitoring to determine impact of Phases 1 and 2. 
*Project Summary*: 
Data from representative field and wildcat wells was used to correlate logs and construct regional maps and cross sections of facies for the Desert Creek and Ismay Zones.
A three-dimensional model was constructed of environmental facies and potential undrained zones that may be suitable for horizontal drilling.
Diagenesis has been determined to be the main control of reservoir quality of Desert Creek and Ismay reservoirs.
Reservoir characterization of the Ismay and Desert Creek zones has identified
Potential horizontal drilling targets are based on analysis of the porosity distribution, which is highly dependent on the diagenetic history of each facies.
At Cherokee field the best production zones are related to microporosity in the phylloid-algal mound and crinoid/fusulinid facies of the Ismay zone.
At Bug field the best production zones are related to micro-box-work porosity of the Desert Creek phylloid-algal mound and shoreline carbonared island facies.
Remaining reserves were calculated for Cherokee and Bug fields using the 3-D models.
Determined and recommended horizontal drilling targets, directions, and lengths for Cherokee and Bug fields.
Technology transfer activities over the course of the project - displayed project goals and results at nine professional meetings, ten technical presentations, seven publications (not counting Semi-Annual Technical Progress Reports), one short course, and established and updated UGS project Web site, project page http://geology.utah.gov/emp/Paradox2/indes.htm containing all Semi-Annual Technical Progress Reports and poster presentations. Several press releases were distributed requesting industry proposals for drilling a horizontal well(s) in the Ismay or Desert Creek zones as part of the Phase II Demonstration.
*Current Status (June 2006)*
Budget Period I began April 6, 2000 and will end June 30, 2006. There have been seven no-cost extensions, mainly to allow time to find a new industry partner willing to participate in the field demonstration (Budget Period II). Although the study found horizontal drilling would in economically increasing production and reserves extending of the Bug and Cherokee case-study fields, the operators (industry partners) decided not to participate in the field demonstration. The primary reasons for these decisions were drilling commitments for gas plays elsewhere, the unavailability of rigs, drilling costs way above those at the time the project was proposed, and limited overall budgets of the small operators of the fields. The project team has made presentations to numerous potential industry partners, issued press releases inviting horizontal drilling proposals from operators of fields similar to the case-study fields, and displayed project objectives and goals at various AAPG meetings. The UGS and DOE have decided to end the project, and publish all project results and recommendations in a Final Report at the end of June 2006. *Project Start:* April 6, 2000
*Project End: *June 30, 2006
*Anticipated DOE Contribution:* $358,854
*Performer Contribution: *$668,726 (65% of total)


----------



## sharemadder (24 August 2007)

Still plenty of support at 13.5c even no update on testing of upper ismay.

Regards horizontal drilling.  I have read that type of drilling has been successful is some areas of the paradox basin.

I wonder if testing is still ongoing on ismay?


----------



## DAZT49 (24 August 2007)

Pretty bloody disappointed that no ann has arrived this week.
Unlike me, I sent an 'angry of Melbourne writes' email to GDN. I dont expect to get a reply, but it made me feel better for a couple of minutes, I suggest everyone does the same lol
13.5-14c all day but small volumes, everybody hanging on.


----------



## sharemadder (26 August 2007)

Datz49

Just a thought (trying to be +ve) - if they were testing each interval individually (3 in upper ismay formation) for flows then it could be a 2 - 3 day turn around for each one.  So given they were uplifting frac fluids on the 16th then it could be that we are most likely ready for a ann beginning this week 27th.  They said as soon as results were available they would report them.  Also their email to me in response to delays clearly stated they would report flows once they were accuarate not before.  Even by Friday 24th they had only from 16th to be measured, so thats 8 days for 3 zones to stabilise.  Anyway the SP as someone stated on HC is clearly being supported strongly around 13c.  Monday may be the day.


----------



## DAZT49 (26 August 2007)

sm,
Yeah you are probably right,on the time it takes to test each level.
I did think they would report last week tho.
Hopefully our results/flows/PAra 2 /u spinoff package arrives early THIS week.
Just have resolve to 'work' for a bit longer than I thought(xmas...2006!!)
cheers and good luck
daz


----------



## sharemadder (27 August 2007)

What a amazing open for GDN today  - up 1.5c to 14.5c - some bid jostling at the start 

Richards mates buying up before the big ann LOL 

Bring it on today I hope.


----------



## DAZT49 (27 August 2007)

15c
resistance at 15.5c tho, hopefully it will trade thru that.
xjo+103pts.
Hopefully a good week for us, maddie


----------



## sharemadder (27 August 2007)

Yep - 15c resistance but its good to see some nice bids in at the start.

Bodes well for a good week.

A nice announcement and it could be rapidly back into the 30c bracket.

Now that would be Xmas early for GDN reporting...


----------



## DAZT49 (27 August 2007)

Hopefully, when it comes, we get a trading halt, rather than just an ann.
Trading halt would indicate bigger news than just an ann, which may just give updates of work on site.


----------



## sharemadder (27 August 2007)

Datz49 looks like some serious action on the SP today. Why? insiders loading up and now punters following suit.  Nice ann today please - think good thoughts  think good thoughts  LOL hahahaha


----------



## DAZT49 (27 August 2007)

who knows why these things just 'go' sometimes, beyond my comprehension.
Some big orders gone thru this am 2.5mill in 1.5 hours..
great!!! I love it!!


----------



## toc_bat (27 August 2007)

goodness 19.5c 50%odd all on no ann, but pretty low vol after all only $500,000 odd, which in GDNs history is not much,

anyway i bought this last week at 13c as had been following the saga from when it was 50c previously to the 120c highs, then after seeing scrape 10 last week or week before i suspected it had reached bottom as i thought the trading afterthat showed reall reluctance to sell, i reckoned all the sellers were out by 10c, 

now with no ann in a few days time i fear todays gains could easily erode especially in the current climate andespecially since there are now woners sitting on colse to 100% gain since the low of only what 16of August,

so come on ann!!! or is it all buy rumour sell fact?

bye all

gees about almost ten times as much vol now!!! only like 45minutes later!


----------



## sharemadder (27 August 2007)

toc bat

Can GDN hold its gains I'm not sure like u I believe it needs some +ve news soon.  Some excellent bidding this morning prempting a ann soon as some one on HC said they heard that a midday huge bidding to happen which it did.

Maybe ASX will ask the Q for us soon?


----------



## sharemadder (27 August 2007)

If its oil flowing at the well then even today 57% gain will look like nothing imo.  They had a 6 meter oil column to test.  Maybe they been doing that and will report soon on results?


----------



## DAZT49 (27 August 2007)

sm,
settle down fella, ya gettin all pumped up lol
Concidering 53% gain atm ASX will start stroking there chins I reckon.
I do like your oil theory


----------



## sharemadder (27 August 2007)

Yeah I got to take it easy (crook with the damn flue).  Huge gain today so I little excited as I took a punt when in low teens and even got a small lot at 10c now 20c+.  If its good news or great news I be happy, but it could just be a pump and dump??? or SP just getting back to realistic levels predrill Para #1.  As u know anything possible.


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## toc_bat (27 August 2007)

sharemadder said:


> If its oil flowing at the well then even today 57% gain will look like nothing imo.  They had a 6 meter oil column to test.  Maybe they been doing that and will report soon on results?




close to $2million has traded so far, thats a lot of money to be insider trading i reckon, surely rampat insider trading cant be that easy to get away with, so i am thinking a lot of this is possibly day traders, but would day traders be that gung ho in this environment? mybe theyve been getting cravings and just caved in today,

also so many people sold out of GDN on its way down that i belevie there are plenty of new owners not willing to sell out quickly just yet, but with no ann i doubt it will hold 19-20c mark tomorrow, im considering selling now even, to see a 50%+ result in a week in the current flaky market is very tempting, considering ive seen 50+ amny times and got greedy and started to see 500% only to see 5% in the following few days, also its my old mans money so perhaps a sale is a good idea today, but imagine 5 minutes after i do they go into halt!!! argh but hey i can always buy in if the news is confirmed as good  - no?


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## DAZT49 (27 August 2007)

toc,
classic hold or fold situation.
Do you take 70-80% profit now or wait...in this market...what will the DOW do tonight?
IMO there could be some profit taking later this arvo or am tomorrow.
Do you sell and buy back in on the retraction?


I am an investor..I am holding..for a while yet...


----------



## toc_bat (27 August 2007)

DAZT49 said:


> toc,
> classic hold or fold situation.
> Do you take 70-80% profit now or wait...in this market...what will the DOW do tonight?
> IMO there could be some profit taking later this arvo or am tomorrow.
> ...




questions questions - what else is life about? true true dazt, but it would be nice to grab some profit to offeset the losses of the past month, as far as the DOW ive got a gut feeling (ok no analysis just pure gut) that it is slowly heading up and will be green for a few days before a natural swing into the red, 

but back to gdn, there seems to be so much interest at the start of writing of this post tere were 600,000 odd lined up at 21c wanting to buy and 350,000 odd @ 21.5c wanting to sell, and now i just looked the 21c all gone and 21.5c half gone!!!! surely there has to be underlying good news here, its not just random day trading is it? or then again pre drill price was around 20c, maybe people just saw a real bargain and combined with the 'stabilising' DOW have swooped on it, who knows - i surely dont


----------



## Bushrat (27 August 2007)

Was very oversold especially being so close to real announcements coming..I picked up a stack at 11c the other week, but have no intention of banking a profit...would be kicking myself if I sell and it goes back above $1 as quick as it did 10 months ago....its good price action, just needs to maintain the momentum. I'm hanging on.


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## toc_bat (27 August 2007)

well bushrat im thinking of a sale today and buy back on retrace buuuuuut every time i have tried to be a tricky dicky so far ive come horribly unstuck, 

ive almost concluded it cant be based on impending amazing news as surely someone would be an obvios target for insider trading, ive got a friend who is a co founder of a co that sells inside trading tracking or signalling software to quite a few important exchanges around the world, actually im dying for his co to get listed, anyway from everything he tells me exchanges take it extremely seriosly, i reckon its oversold, plus news is expected, and day trading, but if i see 100% - even 90% today i think im selling


----------



## Broadside (27 August 2007)

I doubt it is just bouncing because it is oversold with impending news...there are 50 stocks with that criteria PLUS they have good management, which GDN clearly does not.  If it is buying today for a good news announcement (1) good news for holders, and well done to you (2) blatant insider trading, and should be investigated (but as usual, watch ASIC come up empty handed).


----------



## Bushrat (27 August 2007)

Is it worth the risk selling and hoping for a retrace? I just think about all those people selling up until the last few weeks...the real announcements could be only minutes, hours or just a day away...why risk it?


----------



## toc_bat (27 August 2007)

y risk it, because ive let a decent profit disappear so many times, and if were in the super bullish market of a month ago id be definitley keeping it, even in t.hat market a 70% rise on one day often saw a retrace on the next, but ill hang on for a while yet see how it pans out till close


----------



## Bushrat (27 August 2007)

I guess, I havent been burnt by this one yet, and will just hang on.., wife keeps telling me, I have to practice patience...


----------



## SevenFX (27 August 2007)

DAZT49 said:


> toc,
> classic hold or fold situation.
> Do you take 70-80% profit now or wait...in this market...what will the DOW do tonight?
> IMO there could be some profit taking later this arvo or am tomorrow.
> ...




Daz,

Only you can answer that based on your trading or Investing plan....

Hence if your asking yourself this question, perhaps a review of your plan may be of great benifit b4 the days close.

SevenFX


----------



## juw177 (27 August 2007)

DING DING DING.
Ann about to come out. Go you insiders, dump it all.
Though if it closes on its high, I am topping up.


----------



## zt3000 (27 August 2007)

Noticed Received .. Gone into Pre-Open ... hrmmm

i wonder ... Trading Halt or Just Annoucement?

We will see shortly


----------



## toc_bat (27 August 2007)

juw177 said:


> DING DING DING.
> Ann about to come out. Go you insiders, dump it all.
> Though if it closes on its high, I am topping up.




hmmm that ann doesnt look anywhere near as spectacular to genrate such a rush, perhaps the one due tomorrow? (US sunday night time) is much more so,

or am i wrong, is 400Mcf/day a bumper crop?


----------



## zt3000 (27 August 2007)

Getting Dumped now ... lol ... i think it was a bit of an anti-climax ... dont know what everyone was expecting but yeah .. not taken as well as it was hyped


----------



## juw177 (27 August 2007)

I went with the herd and dumped it too. Too much inside trading going on for me to stay in this one. Went from 22.5c before ann to 18c a minute after ann.


----------



## toc_bat (27 August 2007)

kinda recovered somewhat, i placed in a sell at 19.5c then changed my mind pulled it too slowly ended up selling about 40% of my holding, but man earlier was this close to selling at .225 !!! hahaha

edit beginning to regret my slow reaction to the rebound! hahaha


----------



## sharemadder (27 August 2007)

IMO

This well which was a wildcat can produce now total 0.9 mmcfd.

There is no minimum 2mmcfd requirement to connect to the main gas transmission line.  Ask JH is you don't believe me.

Next well will target now "productive" formations updip which are considered in a better location (above the water / gas transition line for Leadville)

In any case we could assume they will get approx 1mmcfd minimum from next well.

Invest in the project ground not the singular well.  Plenty of upside here.

The SP is well priced.


----------



## hoppielimp (27 August 2007)

Hello all....

Just wondering if I'm reading too much into the announcement....and this maybe in part a rhetorical question, but why would you set a production casing if the well was not commercially productive ?....

Just my  worth.

Having said that I did sell out of the shares that I bought 2 weeks ago...helps reduce the current loss on the shares i have been holding, for what seems forever....


----------



## DAZT49 (27 August 2007)

hopp,
I think 37 mill bought on SP increase of 69% tells us that everybody thinks the same ie the well will produce.
Possibly another ann before open tomorrow.


----------



## hoppielimp (27 August 2007)

Hi Dazt,

True...I hope the move to production is the 'indicator' of the potential resevoirs in the area....ie.  drill more holes...and up your revenues provided the resevoirs are big enough...because usd 2 million pa production revenue doesn't tickle there share price that much.

Here's hoping...


----------



## bigdog (27 August 2007)

ASX ticket issued "price query"

27/08/2007	Response to ASX Query
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00752654

standard reply: "the company is not aware ....."


----------



## toc_bat (28 August 2007)

juw177 said:


> DING DING DING.
> Ann about to come out. Go you insiders, dump it all.
> Though if it closes on its high, I am topping up.




hi juw

so did you top up? i know 22c isnt exactly at the high of 23.5c but its still very good - esp given the general nervous market,

i sold out for an average of 21c, 

see ya


----------



## juw177 (28 August 2007)

toc_bat said:


> hi juw
> 
> so did you top up? i know 22c isnt exactly at the high of 23.5c but its still very good - esp given the general nervous market,
> 
> ...




I sold during the dump after the announcement then bought back at 24c this morning. I wanted to cry yesterday for selling.


----------



## sharemadder (28 August 2007)

Datz49

Looking real good now 

Glad I topped up in those low teens.  A big buyer is really buying up strong now.  

This week is really like medicine to this damn flu I got. LOL


----------



## bigdog (28 August 2007)

juw177 said:


> I sold during the dump after the announcement then bought back at 24c this morning. I wanted to cry yesterday for selling.




The SP this morning is looking VG up 20%

 GDN   	$0.265  	   	  +$0.045   	  +20.45%	 9,957,478 shares  	 $2,440,026 @ 	 28-Aug 10:15:33


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## DAZT49 (28 August 2007)

maddie,
Certainly enjoying the last 2 days
Guess we would all like to know why it is happening as I dont reckon the ann yesterday was THAT good with .4mmcf/d.
Been watching from the side at HC maddie, some of those guys really p*ss me off, so I try not to post.
Love that green


----------



## bigdog (28 August 2007)

I got in at 40 cents and looking forward to breaking even 

Another speeding ticket!!!

Now up 8.5 cents - someone must know something!!!

GDN   	0.305  	  0.085   	  38.64%   	 	23,357,691 shares  	$6,222,879 @ 	28-Aug 10:25:02 AM


----------



## moses (28 August 2007)

Why sell? This stock has so much to recover and doesn't hit resistance until 30c, and as I write its breaking through that. Up 40% this morning so far, what a corker!


----------



## zt3000 (28 August 2007)

Did they not say in the announcement yesterday that they were completing some 72 test today (ie yesterday). Does that mean we can expect another announcement today or in near future on those results?


----------



## sharemadder (28 August 2007)

all over my face hehehehe.  Buying is incredibly strong.  Risk for the field discovery is very minimum now as the wildcat well is a producer.  I'm a long time holder and topped up several times.  Now very happy.


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## DAZT49 (28 August 2007)

From ann..
"Definitive results will be announced when available."
GDN is hottest stock on ASX atm ie. highest volume and biggest % rise, we are famous lol


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## sharemadder (28 August 2007)

Datz49

I am in awe, really just sitting here in awe.  60 million shares traded now.  Nearly 100 million for last two days.  230% up on my last purchase at 10c.  Wow and double wow.


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## zt3000 (28 August 2007)

As far as i can see there are some juicy sized buy orders going through. Just chomps the selling depth. Amazing ... 63 mil shares @ 18 mill value ... its just crazy at them moment.


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## Agentm (28 August 2007)

zt3000 said:


> As far as i can see there are some juicy sized buy orders going through. Just chomps the selling depth. Amazing ... 63 mil shares @ 18 mill value ... its just crazy at them moment.





so one third of the share registry is turned over.. not many holders left then.. if you add yesterdays lot.. nice pump and dump on 40 bopd!!

take profit perhaps???


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## DAZT49 (28 August 2007)

maddie,
you have obviously acculated quite a truckload congrats!!!
I suppose we all have that $1.30 in mind, I reckon it will pass that after Para 2 comes up with the goods.
GREAT DAY


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## professor_frink (28 August 2007)

morning people,

whilst I'm happy for you all that GDN is finally starting to recover a bit, could we keep the running commentary and cheerleading to a minimum please?

If you guys want to talk about what it's doing today instead of posting up new information about the company, feel free to use the chatroom so that the thread doesn't get too cluttered with general chit chat.

Cheers


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## helpmeunderstand (28 August 2007)

Lets just live in a dream for a sec and pretend that they do find enough to go commercial, what happens then, obviously a trade halt and then what??? How do they determine how much the stock values?


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## DAZT49 (28 August 2007)

prof,
As a long term holder (Sept 05) and after 6 months of SP depression I deserve and claim the right to a bit of jigging when we have 2 days of recovery lol
If I didnt think you were taking the p*ss I would get upset
cheers


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## professor_frink (28 August 2007)

DAZT49 said:


> prof,
> As a long term holder (Sept 05) and after 6 months of SP depression I deserve and claim the right to a bit of jigging when we have 2 days of recovery lol
> If I didnt think you were taking the p*ss I would get upset
> cheers




I'm not taking the p!ss at all DAZT. I am generally happy for you guys that it's starting to recover. It's not fun for me to have to read posts by depressed people who are losing lots of money!

And I am also serious when I say to take it to the chatroom if you all want to run a commentary over today's price action. Commentary on where the company is going is fine. Minute by minute commentary on the price and depth is not


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## DAZT49 (28 August 2007)

prof,
Just checked back a few months to 12/6/07 and I dont see ANY posts by you in that time.(have you ever posted??)
If you would care to go back and read from around that time and before you will see ,for the most part the thread has been pretty good in regards to posts being relevant.
ASF moderators are pretty strict on that point.
In the last few months it has basically been sharemadder, myself and a couple of others have been the only ones that have kept the thread running. 
In the last 2 days the Sp of GDN has jumped over 20 cents with turnover of over 100 mill. GDN was, up until an hour ago the hottest stock on the ASX ie highest volume, and highest % gain.
Tongues are starting to wag. People are excited. People want to talk.
I think we can put the strap back in the desk for a bit.


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## doctorj (28 August 2007)

I think you ought to heed Frink's gentle nudges. 

Excitement is one thing, commentry every time a sale goes through is another.  All we ask is you exercise some restraint - we want analysis and thought provoking discussion, not Richie Benaud meets Rene Rivkin.


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## elcruzy (28 August 2007)

I've also held since the '05, what worries me know is that after all this time it might not reach former highs and is a good time to sell....

Is someone able to buy & sell to themselves without brokerage? ie manipulate the SP by using two separate entities (owned by the same person) and pay very minimal or no brokerage costs. I'm curious as this may allow the millions of share transactions we are seeing.
thanks in advance


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## doctorj (28 August 2007)

Given all the excitement here, I had a look at their recent announcements. 

I'm curious why 400mcf/d is getting everyone so worked up for a company with a market cap of $40 million.  Perhaps I've not read far back enough...


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## Agentm (28 August 2007)

elcruzy said:


> I've also held since the '05, what worries me know is that after all this time it might not reach former highs and is a good time to sell....
> 
> Is someone able to buy & sell to themselves without brokerage? ie manipulate the SP by using two separate entities (owned by the same person) and pay very minimal or no brokerage costs. I'm curious as this may allow the millions of share transactions we are seeing.
> thanks in advance





in my view there is much to be cautious about if this turnover is all over 40 bopd..

your suspicions on the trades are very very astute..  i dont trade in GDN, i watch the pump and dumps and learn from it and how never to be caught up in it..

if you have held this share for the length of time you say you have,, what reserves are you expecting here on 40 bopd?  do you think the sp is reflecting real value or it reflecting something else?  i am interested in your opinion..


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## zt3000 (28 August 2007)

elcruzy said:


> I've also held since the '05, what worries me know is that after all this time it might not reach former highs and is a good time to sell....
> 
> Is someone able to buy & sell to themselves without brokerage? ie manipulate the SP by using two separate entities (owned by the same person) and pay very minimal or no brokerage costs. I'm curious as this may allow the millions of share transactions we are seeing.
> thanks in advance




I believe Brokers are able to buy and sell to themselves .. hence they dont pay brokerage to themselves. Hence manipulating the price .. or volume at least. However, I dont believe this is legal.


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## elcruzy (28 August 2007)

zt3000 - yes that is what i've heard from my friend who works in back office for a large financial firm. very small or flat rate brokerage to large clients is not unheard of.


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## new_trader1984 (28 August 2007)

Hi, yesterday after the high volume went through before and after the announcement which was nothing to get excited about i looked at the last months trading.

Yesterdays 37 million was only 1 of 4 days in the last 12 months that has been close to the same volume 2 of those days was back in october when over 2 days the large traded volume pushed the price to 1.26.

Since the 31st july up to friday the 24th of August the total volume was about the same volume as yesterdays trading. If you look at the volume as the share price fell considering the prices it wasnt very much volume when there is 180 million shares on issue if everyone was selling out like its been mentioned a lot. 

Todays volume is the highest gdn has ever had in one day and still has 3 hours to go, there has to be a reason for it since nothing like the last 2 days has happened on the other previous announcements when a flow rate of 0.2 0.3 and 0.3mmcf were announced. 

I would of thought high volume would have happened when it was around 10-12 cents but the days at those prices it was mostly 1-2 million share volume or less on some days which isnt much when the shares were only 10 cents.

Yesterday in the closing auction over 900 000 shares were bought at 22 cents the ones that bought in the auction did well after todays trading since it opened higher from open today.

If we are 2 months away from drilling the next well what has got buyers interested in this stock all of a sudden, since its been similar news for the last couple of months?

Thanks.


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## sharemadder (28 August 2007)

Well someone got to say it - 100,000,000 shares just turned over.  This is incredible and absolutely amazing.  Party time :alcohol::band LOL

Now we wait who's doing the buying???


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## hoppielimp (28 August 2007)

Has anyone noticed how the intervals are reported ?  Its a minor thing, but its been bugging me....

The intervals are demarked by depth, from shallower to deeper, however the middle interval is reported deeper to shallower ie. 9732'-9727'

Does someone check the reports before it goes out or does JH just sign and post it to the asx ?

Sorry just me being picky.

Well hopefully the oil interval is next, since they are working bottom of the well up, and believe oil interval was reported 9411'-9431' ....  here's to a higher sp and hopefully the share rally doesn't go


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## Mr Right (28 August 2007)

zt3000 said:


> I believe Brokers are able to buy and sell to themselves .. hence they dont pay brokerage to themselves. Hence manipulating the price .. or volume at least. However, I dont believe this is legal.




I dont know what is going on but would the brokers spent so much time buying in and selling out if there wasnt something behined that id driving it.

I dont know what!!!!!!


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## DAZT49 (28 August 2007)

IMO..
This buying is for the main a large group of investors, in at a heavily discounted SP.
..maybe that the U spinoff is their main target.
..maybe they have 'the good oil' (so to speak) on the U and its reserves.
By buying heavily into GDN they get a huge number of U entitlements at .35c
maybe giving them a strong push at a takeover at a much cheaper entry than the float price (say $2).
Then (cringe) the day after entitlement day they dump GDN to pay for the U company


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## GOSAFAS (28 August 2007)

Basically, just on the potential gas reserves the sp has to be worth at least 80c and thats probably cheap.

Other factors are -

a) Expanded gas resource
b) Potential oil
c) Uranium factor

So, for mine on paper this share looks like an absolute steal at today's sp of 33.5c.

Correct me if I'm wrong - I'd be interested to hear other opinions.


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## toc_bat (29 August 2007)

GOSAFAS said:


> Basically, just on the potential gas reserves the sp has to be worth at least 80c and thats probably cheap.
> 
> Other factors are -
> 
> ...




GOSAFAS, how did you make that calculation?

My calculation went along the lines of this, 

I relied on a few posters estimates that the wells gas income potential is about 5000USD/day, which about $2.25M / pa - AUD, 

Given that it cost them around $9M to drill this well, granted the contractor went way over budget due to some mistakes, $2.25M/pa does not seem like much, and a very optimistic P/E of even 20 or say 25 then that would value the co at $50M odd, or about 50c,

bye

PS and i still sold out at 22c !!! damn as i didnt think it would happen so fast !!! ay karamba


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## bigdog (29 August 2007)

ASX ann today

Second ticket this week
29/08/2007	Response to ASX Query
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00753334

ASX details guidelines of making aware of information and providing information that has material effects.

GDN states that it complies with ASX rules!


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## sharemadder (29 August 2007)

Ok, so GDN again say "we know nothing" but given a down day on the ASX GDN is now consolidating nicely around 30c and building yet again for another leg up.  How easy is it for GDN themselves to track daily movements of shares on the registry to identify if someone or co is building large stake?


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## elcruzy (29 August 2007)

very easy. every director receives a list of who is buying in and out of their company. note that it does not show the price, only the name/entity and quantity.


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## Agentm (29 August 2007)

sharemadder said:


> Ok, so GDN again say "we know nothing" but given a down day on the ASX GDN is now consolidating nicely around 30c and building yet again for another leg up. How easy is it for GDN themselves to track daily movements of shares on the registry to identify if someone or co is building large stake?





i think your missing the point here,, the ASX simply dont believe GDN, they are investigating the whole thing,, and its very easy for them to find out who bought before the announcement.. 

this isnt the only time this has happened.. these guys are very uncooperative as you can see by their answers.. lets see where this one goes..


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## sharemadder (29 August 2007)

Frankly for me, all I care for atm is the SP stabilises at around 30c.  I have no doubt there is something amiss in the recent extremely high turn over of shares.  Who's driving it is what I want to know.  Now if it is a large buyer building a stake well that's good, tightens the registery and maybe they are playing for a slice of the assets (U, oil, gas IO or whatever).  If it's say CK Locke playing it up like they played it down (well imo of course) then WTF.  I bought heaps more between 10 and 15c so 30c is now great for me.


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## Broadside (29 August 2007)

they could certainly do with tightening the registry given the whole registry has more than turned over this week.  ASX should look closely at who bought prior to first announcement, but if they were smart they would have disguised their identity.  Given ASIC's strike rate for successfully prosecuting insider trading, I very much doubt the insiders would be losing any sleep.

Still, the whole thing smells very bad, all the way up, all the way down, and now this latest episode.


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## bigdog (29 August 2007)

Agentm said:


> i think your missing the point here,, the ASX simply dont believe GDN, they are investigating the whole thing,, and its very easy for them to find out who bought before the announcement..
> 
> this isnt the only time this has happened.. these guys are very uncooperative as you can see by their answers.. lets see where this one goes..




these guys are very uncooperative as you can see by their answers.. lets see where this one goes

these guys are real estate salesmen!!


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## sharemadder (29 August 2007)

Richard is a realestate salesman.  JH is a geo.  Someone has GDN SP firmly in their grasp between 30 and 31c.  Huge volumes last three days.  regards ASIC and ASX they are powder puffs.  *Yes lets see were it goes.  *GL to LT holders


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## new_trader1984 (29 August 2007)

Hi, after the recent trading last few days there has been a large accumulator mentioned. There are 2 possibilities if this is true, eclipse currently earns 16.67% of the total earnings after drilling of 2 wells they get this 16.67% because when the 2nd well is completed gdn wont only have one structure of 2000Ha but they will have over 25000 acres which is more than 12000 HA of land in utah which could hold upto another 3-4 stuctures that could be as good or better than the current structure. The one that gdn is working on at the moment may not sound the best by a lot of people based on results so far, but this was a wildcat well to find gas shows and obtain infomation on the strucutre that was drilled which they have now got. They also know where it is better to drill to reach specific targets such as leadville pinkerton trail barker creek and the Ismay formations.

If eclipse believes the rest of the land in the area is worth more than the current 16.67% holding they might be buying larger amounts in gdn. I know that once a company holds 5% they have to tell the market but is it possible if eclipse is a large company with lots of smaller subsidiary's, such as gdn's us subsidiary is golden eagle exploration, could they have been buying upto 5% using each one to gain a large holding in gdn without needing to let anyone know immediately?

The other one that might be interested in buying more into gdn is delta petroleum. They currently have been drilling in paradox basin with 9 wells planned for 2007 in the area. They have also drilled on a state lease for a discovery well and then are planning to drill on a federal lease 2 miles north of the discovery well on the state lease. delta holds 88000 net acres in the paradox basin and plan to have 2 drilling rigs working on one project. They have 3 seperate projects all being drilled this year in paradox basin. Thats a lot of land to have in the paradox basin and maybe they want to get more land in the area. DHS drilling who did the drilling for gdn are owned by delta petroleum, that would suggest delta could find out all about gdn's well, not sure whos doing the testing but based on drilling the first well maybe they are aware of the potential for the area. 

These are just my thoughts and nothing more but while talking about a big accumulator they are the 2 that i would think would have the most interest in gdn at these prices.

People are saying that gdn spent 20 million on the well, if gdn recovers 7 million its really only about 10-12 million US the well cost still a lot but it was going to cost around 5 million to drill the well so only double and lots of companies do go well over budget on planned wells so this isnt rare when drilling for oil and gas.

Also the ones that are saying gdn need to recover this amount before being profitable, all investors and traders would of known there was a chance of success and chance of failure on a wildcat well, so by buying into gdn knowing this all that money could of been spent on an unsuccessful well, so any income that is earned from this well and future wells is revenue since they dont need to make up the amount that the well cost since that was going to be spent whether success happened or not.

Just thought to share my thoughts after the recent trading the last few days.


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## sharemadder (29 August 2007)

NT1984

I am a investor in GDN not trader so I think on similar lines to you.

In regards to the GDN Paradox lease.  The wildcat well has proved the area is productive for gas.  Risk is now very little when they begin to drill the structure over with further wells.  They know they will get gas.  This well has been very expensive but also extremely successful regarding wildcat status and new Gas project that can be developed.  Further wells targeting known productive zones can be linked for the gas hub.

When I spoke to JH about 3 months ago he spoke in depth about Delta's success.  He said we can achieve the same if this well can produce gas.


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## new_trader1984 (29 August 2007)

Thanks sharemadder,

Thats why i was thinking delta might be interested in getting a bigger percentage in gdn since they already own a lot of land in the paradox basin im sure they will want to keep increasing on the current 88000 acres. Now they know that gdn have successful flows even if its smaller than we were all hoping for it shows that the structure is productive and gives them reason to consider looking into gdn's acerage a lot more. It would help them know what is happening with the drilling when its a drilling company they own thats drilling the gdn wildcat well. 

One part that im not sure about if a takeover was to happen considering the share price at the moment would they get away with a very cheap take over bid if this was to happen for the shares under 1 dollar or would they have to pay a lot more. Just for all long term holders wouldnt want to be taken over for such a small amount.


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## sharemadder (30 August 2007)

I really hope its not a takeover but just stake buying.  Not sure how a takeover would work as Delta (being US co.) would have to get permission first from ASIC or relevant goverment body for foriegn ownership (I think anyway).

The real high volumes last three days are hard to decipher.  Yes I know there are short term traders in there but the support around 30c was unbelievable.  IMO I think we will need another capital raising soon which doesnt bother me to much as they will need further capital to continue to develop the Paradox Basin structure and connect to the gas hub.  The sudden rise in SP and volume maybe something to do with this.  GDN could be employing there sponsor broker to drive up the SP to a suitable level for such a raising.

In any case many theories but no one is really sure until it is announced.

Today will be very interesting given the DOW climbed beautifully last night.  We could see the SP continue its climb upwards towards whatever their (whoever they may be) target price.  I'm guessing 50c ish.


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## DAZT49 (30 August 2007)

I dont know much about the market, but GDN over the last few days has been
a real mystery.
I dont subscribe to the GDN management/ASX conspirosy, or a few of the other wild ones getting around, even tho I posted one a few days ago lol
The water torture goes on (well..gas/oil/u/iron ore/gold torture)
Domani,domani.


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## shanty (30 August 2007)

0.50ish? Maybe a trifle low? How about this? Uranium is the 'Holy Grail'. One needs four GDN shares for right to purchase one 'U' share. Value of 'U' share after IPO say two dollars. Therefore one GDN share has a potential value of 0.50 (as you said). But 'U' share costs 0.35. So subtract (round number) 0.10 while the GDN shares will still have a residual value, after the sell off following 'record date', of 0.20 (which was and could be again the price/value pre-spudding).
Thus 0.50 minus 0.10 plus 0.20 gives 0.60.
If they manage to reach 0.60 prior to record day I shall sell and avoid the hassle! Who knows!!!


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## DAZT49 (30 August 2007)

shanty,
I do think that GDn will take a pounding after the entitlement date, unless the next ann is really something special.
i am in two minds..
1. Sell GDN on entilement of U spinoff shares.
2. Hang tough till 2nd well is under way.
I do like 2. If Para 2 comes up with the goods, the SP will take off.


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## shanty (30 August 2007)

Aaah! I should have said, I would try to have my cake and eat it! Sell two thirds (held some since the 'beginning' so average already under current price) but hang on to 100,000 for the very reasons you refer to under two. Have a nice day!


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## toc_bat (31 August 2007)

shanty, dazt,

the record date has not been published yet for the U IPO or has it? Last mention of it i can find is that it is yet to be finalised, this from an ann in late June

bye


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## sharemadder (31 August 2007)

Well after some extreme searching on the BLM web site LR2000 public search software I think I found Golden Eagles APD for Paradox #2 on federal land (See Below). Just thought you all may be interested. Remember the State of Utah does not manage APD's for wells on Federal or Indian lands, that's the BLM's job. The Case Disposition is AUTHORIZED so this means they are still working through it. Trying to find more information on the status atm. Cheers all. 

GOLDEN EAGLE EXPLRN LLC – HOLDER – 281001 - UTU082648 – CR – AUTHORIZED
GOLDEN EAGLE EXPLRN LLC – HOLDER – 287001 - UTU083377 – CR – AUTHORIZED
GOLDEN EAGLE EXPLRN LLC – OPERATOR – 318210 - UTU084382X – CR – AUTHORIZED


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## shanty (31 August 2007)

toc bat,
not to my knowledge, hence my reason for considering a deviation from Mr Buffett's bible of "make a plan and stick to it".
These nice people at GDN could drive anyone to drink.Or a change of plan.

What a way to go, after all, it's only money!LOL

Maybe today's the day for big ann???


----------



## shanty (31 August 2007)

Share madder,
many thanks for your efforts, truly greatly appreciated.
I wonder if there is a connection between the delay in announcing a 'date of record' and the permit approval?
If there was approval, the rig could be moved, a date given for spudding etc and the share sell off should be drastically reduced?N'est pas?


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## sharemadder (31 August 2007)

Hi,

Just on the first two serial number I quoted a couple posts ago (082648 and 083377) they are for road and water access (rental as well) issued by the BLM for Paradox #1 because GDN had to cross BLM land to get to the Utah State land.

The third serial number UTU084382X unsure of yet.

The uploaded pdf file shows the Utah State land as light blue and basically the rest is under BLM control.  The area which is shaded yellow is the Golden Eagle Exploration lease (marked UTU084382X).


----------



## toc_bat (31 August 2007)

shanty said:


> toc bat,
> not to my knowledge, hence my reason for considering a deviation from Mr Buffett's bible of "make a plan and stick to it".
> These nice people at GDN could drive anyone to drink.Or a change of plan.
> 
> ...




Hi shanty, 

well his is what i found, from the ann on 5 June 2007: "_It is intended that the record date for shareholder entitlements will be 10 July
2007._"

and in the latest ann to mention the IPO and record date this, from teh 25 July 2007: "_A timetable for the release of the prospectus (including shareholders’ entitlement record date) is
expected to be finalised this week_"

So as far as i can see the record date has not been established,

also shanty how did you come to this figure of $2 per U share after IPO - 'Value of 'U' share after IPO say two dollars.' 

The prospectus is not out yet is it? So even the inital price of price of 35c a share for the IPO, I am wondering is that a guess or has it been stated somewhere?

bye


----------



## DAZT49 (31 August 2007)

the entitlement date cant be released until the prospectus is released.
The 10th July date was amended to around the 24th july.
Then in the ann of 27th July..
"A timetable for the release of the prospectus (including shareholders’ entitlement record date) is expected to be finalised this week. The release of the timetable has been awaiting the completion of legal and technical due diligence that forms part of the IPO prospectus.
No major or unexpected issues have arisen from the due diligence studies so far."
Since then....nuthin.


----------



## DAZT49 (31 August 2007)

sharemadder,
Nice little teaser you dropped over at HC last night.
Reckon the price could pull back a bit today with some profit taking.
Thats ok by me as the SP was getting a bit hot IMO.
Start back up next week...on good news??
The DOW held up not too badly last night.
Toc,
I have seen $3 mentioned for float of u spinoff.
daz


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## sharemadder (31 August 2007)

Hi Datz49

Yeah couldn't help myself .  I did email JH about the oil though but no reply yet.  I thinking we may get a ann today.  Cheers.


----------



## toc_bat (31 August 2007)

DAZT49 said:


> sharemadder,
> Nice little teaser you dropped over at HC last night.
> Reckon the price could pull back a bit today with some profit taking.
> Thats ok by me as the SP was getting a bit hot IMO.
> ...




Dazt, yeh but a price of $2 or $3, are these figures just mayde up on the fly by posters to forums or has some analysis been done? are they HC figures??? , hehe LOL


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## DAZT49 (31 August 2007)

Toc,
Can't remember which thread it came from.
This is dragging on isnt it?
Maddy,
not holding my breath (again) for an ann today.


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## sharemadder (31 August 2007)

Datz49

Have you contacted your sources again to try and get some sort of update (Lock Stock and Two Smokin Barrels)? I would luv to be a fly on the wall with what they think about last 4 days trading activity.

Cheers


----------



## DAZT49 (31 August 2007)

sm,
Will wait to see if there is an ann today and then try my man in Havana.
He was a bit miffed when I mentioned his info was going on these threads, so i am a bit hesitant to call.


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## toc_bat (31 August 2007)

Dazt

Hey come tell us who your sources are, go on itll be just between you and me and sharemadder, honest, but in all seriousess, that makes you an insider LOL LOL LOL ( i have to add the LOL cos last tiime i said that some guy took it really bad thought i was seriously suggesting he was guilty of insider trading)

I have only recenlt traded GDN for the first time, 13c - 22c - yes i wish i held, and now am not sure if it will fall over or keep going and wild estimates like $3 for an IPO post lisiting dont help!! hehe, if that were really true surely the lister would endevour to capture some of that value before at the offer stage, but the reason why sold is i have thought that GDN gets traded in very odd and sus ways, i think it is just unfortunate that it gets famous with day traders and there share registry is so loosly held, but it does suffer from strange manipulations it doesnteven have to be insiders, just a few tradersget together and decide they are going to work a stock, GDN sems to be a goodone for that kind of thing

ok bye


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## sharemadder (31 August 2007)

Thanks Datz49

A Private Message via ASF is ok if you get some info.  Minor dip then buy again later today??? Shame to see drop after stella volume churns at 30c+


----------



## DAZT49 (31 August 2007)

sharemadder,
Its just trading normally ie up sometimes ,down sometimes, sideways sometimes.
Long as the total of the up sometimes is greater than the total of the down sometimes...we can get sideways at the pub at the end of the week.
Seriously, I reckon there could be a few days of consolidation (sideways)before another move.
By the way,toc just had a message pulled.
Good morning moderators.


----------



## DAZT49 (31 August 2007)

Toc,
Good to see you back.
I think if you try and base your trade on the wisdom on these type of threads
you are gunna get seriously burnt..or make a fortune lol
We are just trying to gather as much info/gossip as we can to fill in the time between GDN's anns lol


----------



## somesortoftrader (31 August 2007)

Well Daz it worked for me... bought 15/8/07 for 0.12, sold 29/08/07 0.30.. have to have a win occasionally though!!


----------



## DAZT49 (31 August 2007)

somesort,
good on you, you can have a relaxing weekend, not thinking about bloody GDN lol
My patience WILL be rewarded.
cheers


----------



## Agentm (31 August 2007)

dat.

why didnt you sell out at .34 and wait till it gets back to .10 and buy in again?  i am just curious why you didnt join the pump and dump?


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## shanty (31 August 2007)

Hi Toc Bat,
Well you upset my weekend somewhat!! Not really! (Joke)
I couldn't find my meandering calcs in my old pad so I  set off afresh.Here's an outline.
The AU$2.00 came from an extrapolation, acreage, 2,703 ha, should give 300,000 tons (my first minor mistake, I used imperial tons but these were US tons), at 0.3% which is a little over 6lbs per ton, the spot price, now lower (today US$90.00 per lb but note that Tom Albanese (Rio ceo) is very bullish, recently affirmed his company's intention to look for opportunities to double their U buisness, ) suggests a base value the JV. Where the rub comes is how many shares? I shall not bore you with my machinations, but I came up with 125,000,000. There is an immediate deductable for the two leases, Daneros and Geitus of US$10,000. Furthermore there will be a 15% deducted from income for previous lease owner. BUT, never the less, this should give exposure to a much larger advanced project (we were told) and it is all going to take place in a supportive jurisdiction. And anyway after you've acquired your JV share out you still have Paradox Basin # 2 to be drilled in a very sexy position based on the extensive information gleaned from PB # 1. Can't be bad can it?...
Today I would like to suggest a conservative AU$1.65.for a JV share subsequent to the IPO.
I rest my case (for what it's worth) have a nice weekend.


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## DAZT49 (1 September 2007)

agentm,
I am an investor, not  a trader. My 'bank' is not large enough for me to take any quicky trades, tho I would like to sometimes.
Long haul for me, at least till some results from Para 2.
Things could change of course..


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## sharemadder (1 September 2007)

Morning Datz49

Trust you enjoyed a few coldies yesterday at the pub.

JH hasn't replied yet to my email regarding testing the oil column.

Been very interesting week.  I do hope we start to get some good information next week not just on Para#1 but also on the U spin off entitlement.

Very good resistance at 25 to 27c range yesterday afternoon.  I think it will bounce up on Monday probably back to 30c even with good volume.  The DOW up is encouraging for ASX on Monday.

Did you get hold of your contact 

Cheers


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## DAZT49 (1 September 2007)

sm,
yep , had a few coldies with'the boys' but have to put in a few hours work this am.
The close at 25c last night was ok, could have slipped further.
No contact with 007 at this stage.
Going up for a coffee.
cheers
daz


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## new_trader1984 (1 September 2007)

Hi,

Today i went through the trade analysis for the last 5 days for gdn and put in a table of the volume at each of the prices over the 5 days. The highest volume at one price over the last 5 days was at 33 cents with 33,405,974 shares traded over 3 days which was the highest volume for any price interval in the last 5 days. Anyone that bought at that price would of had to sell at either 33.5 or 34 cents since for every buyer that bought shares at 33 cents the total of volume of 33.5 and 34 was equal to 33,780,897 shares. If all this volume over the last 5 days really was just traders like it has been said many times on another forum, there was very little profit for any buyers that bought in the 30s which is where most of the volume was.

the total volume between 29 and 34.5 cents in the last 5 days was 189,672,543 shares. With that type of volume if its all day traders they wernt making much profit for all the people buying in the 30s and since most of the volume was in the 30s over the last 5 days it would suggest that most traders either made a slight profit, broke even or had lost during the week. Just these volumes got up to the 30s pretty quickly on a lot lower volume and buyers continued to keep buying in the low 30s. 

The high volumes didnt start until the price was 29 upto 29 cents the highest volume at a single price was 4,819,846 shares traded at 22cents the rest of the price levels never went above 5 million shares until 29 cents. 

If it is traders why didnt they do this when it was at 10 cents or the few weeks it was trading at 15-20 cents why did it start this week and push the share price up over 200%?

Just the volumes dont make much sense to be so high in the 30s when every seller needs a buyer and for the volume to be as high as it has been means there is a lot of buyers around willing to pay 30 cents for the shares. There will be many who made large profits but the buyers in the 30's wouldnt have made much of a profit and thats the part that is interesting to look at after seeing the volumes at those prices.

On the delta petroleum website they have a presentation which has a few slides of the exploration and development projects they have in the paradox basin which is mentioned to be all above 100bcf prospects but on the headings of the development and exploration potential they suggest the projects that delta has and not meaning paradox basin but all their projects have potential to be tcf size projects. That isnt a ramp thats just what is said in the presentation for august 2007.

A question i do have while take over ideas have been mentioned is if a company like delta wanted to gain a large share holding of a company but without going over the 5% to show they have been buying can they use all their subsidiaries to each buy 4.5% but since all owned by delta it would mean delta could have a large control over a company? Delta has 8 Subsidiaries plus delta petroleum if each of the 9 companies were to get 4.5% of a company such as gdn then that would mean they could hold 40% of a company without actually legally having an obligation to submit a substantial holding notice?

Im not saying they have even looked at gdn other then drilling the well through the dhs drilling company delta owns but is it possible for a company to use the subsidiaries to gain control of a company or since it all goes back to one company they are still obligated to make a substantial shareholding notice to shareholders?

Thanks any thoughts would be appreciated.


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## sharemadder (1 September 2007)

NT1984

I don't think it was all traders.  I think there has been some company buying heaps but until we see a notice we wont know.  I don't think they would try and hide their holding either so if it was Delta, Eclipse, White Canyon, other affiliates such as Shumways or other co or person I'm sure they would of pretty much bought what they wanted and happy to state so to.  Your also right on the volume theory as well.  I don't think it is a take over but just a large stake buy probably for the U spin off entitlement and the upside for Para#2.  Next week hopefully the co will announce something of substance about both.  The mentioned forum you say stinks for trying to have a reasonable objective conversation as when GDN or any other company for that matter goes down / up the leaches arrive to stir up the conversation. Cheers.


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## hoppielimp (3 September 2007)

Hi NT,

Thanks for your post, interesting read on volumes and price.  As for subsidiaries of Delta buying up GDN, I think they would have to report it to the ASX, as if you note with other companies on the ASX, some of the substantial holdings breakdowns have several companies/trusts listed on the notice, so I would assume it would be the same for Delta aswell.


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## DAZT49 (3 September 2007)

I have a feeling that we wont get final results for Para 1 till early next week.
Guess that means the Sp will drift downwards, which is disappointing.


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## shanty (3 September 2007)

Hi DAZT,
Maybe! You are usually right. But the  last three anns went like this.
Aug 07 a Tues. eight days to Aug 15 a Wed. then twelve days to Aug 27 a Mon. Add minimum eight days. That would be Sep 04 a Tues. Average of M,T and W is Tue. But average of 8 and 12 is 10. Wow! Thursday!


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## DAZT49 (4 September 2007)

shanty,
And Thursday is.........PAYDAY!!
Seriously..if you count up the number of anns, and allocate a day for each ann (ie Mon, Tues etc) and divide the number of odd days ie Tues, Thurs, by the even days ie Mon Wed Fri you get....
0.9 which is the some of all the gas to this point ie 0.9mmcf/d.
How freaky is that. lol


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## sharemadder (4 September 2007)

Hi Datz49

No ann today  you think.  Maybe see bounce today on the SP 

Anyway the two things Im hanging out for are the U entitlement prospectus (thats taking long time to come out) and the permit for Para#2 (thats taking for ever).

If it bounces then it will be bullish sign on the charts if not then bearish until a decent announcement comes out.

Cheers


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## DAZT49 (4 September 2007)

sm,
A couple of posts ago I said early next week..If you catch my drift.
Cant see that the price is going to do much but drift backwards, tho if word gets out that the ann is good it will climb.
As you say, plenty of upside to look forward to with Para 1 results/Para 2 soon/ U spinoff/iron ore/gold/frankincense/mirr.


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## Bushrat (4 September 2007)

An interesting opening building now...could be a green day...waiting waiting for an announcement, any announcement.


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## DAZT49 (4 September 2007)

Could be a good morning session.
IAP now 26c. One order for 500k upped the bid from 25c to 26.5c, obviously doesn't want to miss out.


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## sharemadder (4 September 2007)

Sellers still very strong holding it down although its green.  If no ann till next week will struggle to stay up unless news is +ve and the regular insiders buy their fill towards end of week.


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## kelvin8r (4 September 2007)

Hey sm, datz, toc and the rest,

Just thought I'd let u guys know im really enjoying yours posts and updates! I decided to buy myself a small amount of GDN shares to hold onto so very interested to see whats going to happen.

Keep up the good work.

2 X  up


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## DAZT49 (4 September 2007)

westinghouse,
Welcome to the club.
I reckon your timing could be perfect.
1. Ann soon on Para 1 flows= small 'c' comercial.
2. Oil column to be assessed ? barrels/day.
3. Para 2 to commence in Oct?, and said to be more directly targeted.
(Para 1 was a wildcat well placed to test as many zones as possible,hence so deep, didnt get the result we all hoped for but signs for Para 2 are good and could be wizzbang)
4. $9 mill in the bank, enough for Para 2 and pipeline?
5. Legal action set to recover $12 mill (a couple of more wells)
6. 40 wells planned.
7. U spinoff prospectus due with upgraded forecasts of grades and size of reserve.
8. 1 for 4 entitlement @ 35c/share for GDN holders at cutoff date, this has a nice potential profit on float of U company.
9. GDN will have 30% of u company, income for more wells/exploration.
10. Iron ore prospects.
11. Gold prospects.
Bloody hell I am getting MYSELF excited lol
cheers
daz
PS K8or there will be counter arguments posted by others and that is good.


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## sharemadder (4 September 2007)

Datz49 we have lift off again.  Fierce sudden buying on no ann again.  Seems to have cemented bottom of 22.5c.


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## Bushrat (4 September 2007)

Dazt49......has the 35cps for the uranium spinoff been confirmed?? if so where? what will the price be for other punters? has an entitlement date been advised yet?


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## DAZT49 (4 September 2007)

bushrat,
I was given the 35c figure by C.K.Lockes when the spinoff was first announced to the market.
It will all come out with the entilement date details u spinoff prospectus.When ???
What the float price will be is anybodys guess but they are upbeat about the grades and reserves of uranium, so hopefully,even tho spot price for u is down a lot, people will bee keen to jump on and force the SP up.
GDN 27.5c atm..yeah baby yeah


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## sharemadder (4 September 2007)

Datz49

This buying IMO is real organized and well disciplined.  They bought it up heavy from the teens and then allowed it to drop and now back into it again.  Are the hills in Utah glowing.  They may be purchasing heavy for the U entitlement.


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## kelvin8r (4 September 2007)

A little bit of late domination. Very good to see, im sure you guys would be very happy with whats unfolding here. I reckon I could feel your smile from here daz lol


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## juw177 (4 September 2007)

sharemadder said:


> Datz49
> 
> This buying IMO is real organized and well disciplined.  They bought it up heavy from the teens and then allowed it to drop and now back into it again.  Are the hills in Utah glowing.  They may be purchasing heavy for the U entitlement.




Yep, and those are the guys I have followed. I bought when they bought, sold when they sold and now I have bought again. This rally is on VERY low volume compared to the previous moves, which means the sellers are exhausted but it can also show low demand.


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## sharemadder (4 September 2007)

Yeah I think they allowed the sellers to be exhausted given it was a huge hop last week from 13c to 34c.  I think they were buying them too otherwise we would of seen the bottom line drop to around 15c but it really went flat at around 22c.


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## bigdog (4 September 2007)

Great finish for the day up 8.5 cents

10 millions shares sold in the last hour

 GDN   	$0.31  	   	  +$0.085   	  +37.78% on high of   	 $0.31 and low of   	 $0.225  	 20,032,660 shares 	 $5,482,301  @	 04-Sep 16:10:52


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## GOSAFAS (5 September 2007)

Looks like the gas flow is positive from yesterday's trading. Back to $1.20 maybe? Wonder when the announcement is coming?


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## sharemadder (5 September 2007)

Most likely early next week which is the gos on the grapevine.  Strong interest also is the rumor for the U JV spinoff coming soon.  Many see the next well "Para#2" being better positioned to target Leadville deep formation for mother load of gas.  Strong buying last 7 trading days without ann so expect someone or some company wants in big time.  All IMO of course


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## kelvin8r (6 September 2007)

Morning Guys,

Just reading about the takeover that Russian company Norilsk Nickel has made for LionOre. Anyone got any thoughts on what this could mean for the JV LionOre has with GDN?


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## sharemadder (6 September 2007)

Another greatstart for GDN today. 10 million + volume and high 31c.

One huge buyer also today *10:34:37 am 1,743,073 shares $522,922* which knocked out *22 sitters at 30c*. Wow that's confidence.


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## juw177 (6 September 2007)

sharemadder said:


> One huge buyer also today *10:34:37 am 1,743,073 shares $522,922* which knocked out *22 sitters at 30c*. Wow that's confidence.




And there are equally huge sellers that knock out support lines. This stock is being traded like crazy. Take caution.


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## kelvin8r (6 September 2007)

Seem to be holding steady at 29c as soon as a seller comes on they're snapped up. Looking forward to see what the ann. brings hopefully early next week?


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## sharemadder (7 September 2007)

Big buyer rocked up again and taking large slabs SP rocketing up.  Well done to those holding long on this one.


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## bigdog (7 September 2007)

SP GDN		 $0.27		 -$0.03	 -10.00% after high of 	 $0.31	 and low of $0.26	 20,465,638	shares $5,888,352 @	 07-Sep 14:34:33

ASX ann
07/09/2007		Oil and Gas Update

Oil & Gas Update 

• Paradox Basin #1 gas discovery well, Grand County, Utah, has finalised current completion activities. The well has been shut in pending analysis of results. 
• A 72 hour flow test on three Upper Ismay gas intervals produced a gas flow of 340 Mcf/day. 


PARADOX BASIN #1 OIL & GAS WELL, UTAH USA 
The Directors of Golden State Resources are pleased to announce the completion of the current phase of workover operations on the Paradox Basin #1 Gas Well, Grand County, Utah. 

At completion of a 72 hour test of intervals in the Upper Ismay section, gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) with water produced at 2 bbl/hr (barrels per hour). The flow test followed successful fracing of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet.  

Down hole gauges were set in the well prior to shut-in and will be retrieved in early September.  Flow test and pressure build up data will contribute to an economic analysis of the well, in particular whether production is independent of, or conditional on the next well, Paradox Basin #2.  

Preparation continues for the commencement of drilling on Paradox Basin #2, to be drilled on a site one mile (1.6 km) from the current well. A timetable for this second well will be announced once dates are firm.


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## sharemadder (7 September 2007)

So this well has total 840 mcfd of gas.  Appears they are not testing the oil shows atm.  Will know if they will proceed with getting this well tied into the main line soon but doubt it until Para#2 is drilled.  It seems they have suggested this in their ann today.  Also they seem very confident that they will be drilling Para#2 soon (timetable to be announced once dates are firm).  Still need a ann on the JV spin off prospectus - cant be to far away.  SP held up well again.  Some huge buys earlier on in the day and plenty of support after the ann although the ann was fairly scarce of info.

Cheers


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## new_trader1984 (7 September 2007)

Hi, todays announcement even though is still not much of a gas flow from the intervals still must be good enough for a lot of investors since the drop in share price wasnt that much when only 2 weeks ago gdn was at 10 cents and earlier this week was around 22 cents.

In todays announcement and several others when reporting on the upper ismay intervals they always make it clear that there is 3 intervals being tested, they say the total number of feet between the 3 but is it possible that when they say they flowed gas from the 3 intervals and give the flow rate of 0.34mmcf that it is 0.34mmcf per interval and there is 3 of them that flowed similar results which would mean 1.02mmcf for the upper ismay intervals in total if flowed all together? If its this way then a combined flow rate of 1.52mmcf for the well with barker creek flow rates added. 

They have set down hole gauges and are meant to be retrieved early september if they are on time when they say early september they should be able to tell us some more news next week? The results from the gauges will help decide if the well is economical alone or will need to drill the 2nd well before going into production.

Hopefully if they can tell us that the well is economical then the project has a commercial amount of gas even though at a low flow rate from the first well.

They planned to drill the 2nd well in early october hopefully this will happen and it wont be long before the 2nd well will start to be drilled and maybe reach leadville and get better results for gdn.

They did make a comment that the flow rate was stabalised which is the amount they told us. If you look at todays BUR announcement on their first well where they drilled a horizontal well and meant to of hit a hot spot they have a stabalised flow rate of 1.9mmcf per day after originally having a flow rate of 3.324mmcf in july.  GDN isnt that far behind at 1.52 if the 3 upper ismay levels are all 0.34mmcf each and can be combined with barker creek, would be good to know if the upper ismay is 0.34mmcf in total between the 3 or each interval since its not very clear with the recent announcements.

Also in today's announcement in the first paragraph they say gdn has completed the first phase of the workover operations. They still havent tested the oil which if they plan to test would be after the results from the gauges i would have thought. Also on another website lynden ventures, they had similar flow rates on one of their first wells which is now being developed into a multy well project in the paradox basin. In the announcement where both wells are mentioned including the first well which flowed at 0.3mmcf, they say additional operations are under consideration to optimize flow rates, im not sure what can be done to increase flow rates from the current levels but if one company is looking at optimizing the flow rate then maybe gdn could look at that in the future too?

I have mentioned before about the recent volumes, between 29 and 34.5 where there has been a large amount of trading happening has the most volume on a daily basis. 

On the 28th of August, the first day from when the high volume started that 30 cents was reached. The total volume that day was 133,734,335 shares traded and between 29 and 34.5 cents 114,110,492 shares were traded which means only 19,623,843 shares were bought and sold between 23 and 29 cents that day. 

On the 29th of August a total volume of 49,673,253 shares was traded and 49,004,468 shares were traded between 29 and 34.5 cents.

On the 30th of August the entire days trading which was 24,691,814 shares were all trading in the range of 29.5 and 33.5 cents for the day.

On the 31st of August a total volume of 12,671,875 shares were traded with the highest volume for one price was at 28.5 cents with 2,277,014 shares traded. Between 29 and 30 cents a total volume of 2,081,095 shares were traded.

The 3rd of September was the first day since the 27th of August when the high volume started that the price didnt go above 29 but the volume was a lot lower then on previous days at only 7,092,578 shares traded.

The 4th of September a total volume of 20,032,660 shares were traded between 22.5 and 31 cents. the volume traded between 29 and 31 cents was 7,643,411 shares. The largest one price level was 29 cents with 2,537,995 shares traded. 

The 5th of September a total volume of 18,426,479 shares traded. Between 29 and 32.5 cents a volume of 15,940,441 shares traded. 

Yesterday the total volume was 15,833,791 shares between 26 and 31 cents. Between 29 and 31 cents a volume of 13,097,168 shares traded. 

Ive looked at the total volume from the 28th of august when gdn reached above 30 cents on high volume up to yesterday. The total volume between 28-08-07 to 06-09-07 was 282,156,785 shares. Out of this amount 206,945,046 shares were traded between 29 and 34.5 cents and 75,211,739 shares at prices below 29 cents since the 28th of August. 

This doesnt mean anything just thought to show the high volumes mostly have been bought and sold around the 30 cent mark in the last 2 weeks, there has to be more than the small gas flows reported so far, atleast there seems to be some confidence in the stock for the price to trade around 30 cents in such high volume compared to the low volume when was 10-15 cents.


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## sharemadder (9 September 2007)

NT1984

The 3 upper ismay levels are a combined 0.34mmcfd each I think and then added with barker creek 0.50mmcfd (lower and upper) they get 0.84mmcfd total.  I'm happy that a least they got something on the first well.  

Not sure if they will test the oil shows yet.  They certainly didn't say anything again about it so I'd say probably not in this well.

The turnover of shares over last two weeks has been incredible that's for sure and 26.5c is a lot better than 10c although if it goes back down that way again I will certainly buy more.  200 million + traded over 29c is big given 194 million on the register 

The first wildcat well although not outstanding in flow does prove there is gas in them hills so further drilling will most likely prove the same albeit at a lower cost than this one.  I think the first well should of only took 90 days to drill without problems, if they can drill in 90 days second well from October it should be finished by Jan/Feb 08.

What I want next is the timetable for spudding Para#2 to be made known.  I have searched the UDOGM data bases for Golden Eagle Exploration LLC applications and can't find a new application or any other for Para#2 only Para#1.  I even emailed BLM who can't find application by Golden Eagle Exploration LLC for Para#2.  I emailed GDN to advise the status proper and no reply yet 

That U prospectus is long over due too


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## sharemadder (11 September 2007)

From this mornings Australian


Golden State Resources (GDN) 24.5c 

LIQUIDITY isn't exactly a problem for this reformed Perth gold explorer turned US gas play, with huge daily turnover as folk punted on the progress of its gas drilling program in Utah. 

On August 28, 134 million shares changed hands. Golden State attracted two stock exchange price queries within days as the stock roared up from 13c on August 24, to last Tuesday's high of 31c. 

Alas, Golden State last week announced only marginal flows from its first well in Utah's Paradox Basin. Gas flowed at 340,000 cubic feet a day, accompanied by liberal flows of water, compared with company expectations of 400 mcf. 

According to the company. further flow tests will determine whether the well is economic, or conditional on the results of the next well, Paradox Basin 2. 

The first well, sunk to an unusually deep 15,000-16,000 feet, took one year and $21 million to drill. In comparison, a recent hole to similar depth in the Gulf of Mexico produced more than 100 times more gas. 

Golden State holds a 100 per cent interest in the first well, but the Denver-based Eclipse Exploration has the right to earn a 16.67 per cent interest after the second well is drilled. 

Paradox Basin is a known oil and gas province, with more hydrocarbons than Utah wives: at least 170 producers already are tapping estimated reserves of one billion barrels (oil equivalent). 

People talk of Golden State sitting on a $US4 billion bonanza, but they've got to find the stuff first. We rate the stock an avoid, although it looks like a fun one to trade. 

Golden State also plans to spin off its (and Utah's Golden Canyon Exploration's) uranium assets, but the timetable is unclear. Uranium floats are passe, but with the Russians coming for our yellowcake maybe it can still get away OK


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## DAZT49 (11 September 2007)

Maddy,
Probably a fair appraisal of the situation, but as you know they have neglected to show flows from lower levels ie total .84mmcf/d , you would think they would DTOR!!
Havent been posting lately as nuthin to add, and its gettin me down.
daz


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## sharemadder (11 September 2007)

Datz49

Slow times can be stressful or just plain boring and frustrating when waiting for news but out of the blue we could get something of significance in the way of U JV news etc.  In anycase in quiet times like these better not read to many posts as others will help you to stay down  LOL

Better to enjoy the sunshine, do something ya like and play the waiting game.

My only sticking point at the moment is I can't find the application for Para#2 on the Utah Oil/Gas Dept databases.  Going to do another search today as they update them every day.

Cheers


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## sharemadder (11 September 2007)

Hey Datz49

This morning price action must of put a smile on your dial :bonk:

Looking to fire up big time today


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## DAZT49 (11 September 2007)

YEAH, WHATS GOING ON 29c HIGH?? THATS THE PUZZLE ISNT IT, WHY IS IT HOLDING ON SO WELL IF THE RESULTS FOR PARA 1 ARE MEDIOCRE AT BEST.
GUESS ITS THE U THING DRIVING IT AT THIS STAGE, AT LEAST UNTILL PARA 2 SPUDS.


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## DAZT49 (11 September 2007)

Chartwise IMO the SP has been in consolidation since 28/8.
Until we get an open and close above .345c or below .23c we dont really have trend either way.
We do have a 1,2,3 low within the consolidation, which is good.
A breakout of .325c up  (or a breakout of .22c down )could be significant."


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## sharemadder (12 September 2007)

Hi Datz49

Very slow today, might test that 23c again.  Not sure if it will break below it though.

Still no ann on the U JV?  Surely thats got to be sorted by now.

Cheers


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## DAZT49 (12 September 2007)

sharemadder,
well its 1.09pm and the SP is hanging in at .255c (-5c)
Interest seems to have dried up atm with ONLY 1.8 mill sales on 106 trades.
Dont think it will go below 25c and maybe finish square on the day.
At level 5 on depth we have 2.33mill bid 3.07 mill ask, so slight pressure on the SP but nothing to write home about.
Not even going to mention when the FINAL flow readings/ u spinoff/Para 2 commencement bla bla bla will be out.


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## juw177 (12 September 2007)

Hey sharemadder and DATZT4, I am following this stock as well, but why do you guys make so many posts about these slight SP movements. If it is such a great company like you say and you are just holding for the longer term, why not just sit back and let the price do what it wants to do?


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## DAZT49 (12 September 2007)

I guess, because the situation is sort of on a knife edge at the moment (waiting for final reports etc), that slight changes, either way in the SP can have a big bearing as to where the Sp might go. Given support and reistance levels.
Also (and I take it you dont hold) its nice to get reassurance from fellow holders in these times.
If it wasnt for the "small talk", these forums would find it hard to exist.


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## DAZT49 (12 September 2007)

juw177,
If you look back 4 posts to 12.32 pm yesterday, you will see its not all froth and bubble.


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## shanty (12 September 2007)

Hi dazt49, I guess you are right about the "small talk" but sharemadder's remark about the absence of a drilling application from our "friends" makes me very nervous. What's the consensus chaps?


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## new_trader1984 (12 September 2007)

Hi, the directors must still have some confidence in the company since we havent been seeing any directors selling their shares. If they wernt able to get the 2nd well permit they would know after the last few months trading that the share price would drop a lot more if the permit wasnt given to them.

Ive gone back and looked at all the directors holdings currently

Lewis cross bought 50 000 shares at 82 cents but hasnt sold them this is the only shares he holds in gdn.

John hopkins who has resigned still holds 986,667 shares at final directors notice, not sure if he had to say if he sold them or not after he resigned but the final directors notice said he still held those shares.

Katrina hopkins holds 58,334 shares and hasnt been mentioned that those shares have been sold.

John hasleby holds 1,473,335 shares and 7,500,000 director options at an exercise price of 20 cents.

Richard sciano holds 6,561,800 shares and 6,900,000 director options exercise at 20 cents.

If they didnt think they would get the 2nd permit which would cause the share price to fall wouldnt they be selling and taking whatever amounts they can get before the price fell further?


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## new_trader1984 (13 September 2007)

Hi, ive just been looking on the net for flow rates in the paradox basin and found a website that talks about the rockies region dominates the US in giant field discoveries.

http://www.hgs.org/en/articles/printview.asp?38

This document talks about horizontal drilling which hopefully gdn will be looking at doing for their 2nd well like adi is planning to do.

There is one paragraph that i thought was interesting which talks about the largest oil field discovered in last 10 years and the resovoir is only 10 feet thick.

The largest oil field found in the last 10 years is Cedar Hills in North Dakota and its companion, East Lookout Butte in Montana. This field has been developed with horizontal drilling of an extremely thin (less than 10 ft) reservoir. 

This field had been drilled and abandoned on several occassions before the discovery because of non economic flow rates. The horizontal drilling has then made it possible to be economic.
The approximate outline of Cedar Hills-East Lookout Butte field at year-end 2000 (Fig. 6b) had expanded dramatically due to the horizontally exploited Red River “B” zone compared with the pre-1990 boundary (Fig. 6a). Some 669 horizontal wells have been drilled, resulting in 626 productive completions ranging in true vertical depth from 8,800 to 9,500 ft. Estimated ultimate recovery is now expected to exceed 130 million bbl of oil. 

The paragraph above mentions that 10 foot column is expected to produce more than 130 million bbl of oil. The porosity is at an average of 18% which is 3 times more than what the oil column gdn has is, but our oil column is twice the size of the one at cedar hills. Im not saying that gdn's oil column will be any good but just showing that with horizontal drilling that even small columns gas or oil can become very productive for companies.

There are also other wells drilled in different basins in the rockies region which had initial flow rates of 300-400mcf but now have a lot stronger flow rates and have a large estimate of recoverable gas.

Thought to share this as it might be of interest to some others.


----------



## Bushrat (13 September 2007)

ShareMadder.

When looking for Pardaox 2 drilling try Golden Eagle Exploration or Jake Oil... Jake Oil lodged the doco's to Utah Oil gas and Mining for Para 1....its difficult finding this information, but i believe it is all there to be found..still holding, still confident...waiting waiting waiting. Must Practice Patience

anyways....heres a link to 189 page doco for the application for Para 1.   http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/well_data_lookup.cfm


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## sharemadder (13 September 2007)

Bushrat

The database has Golden Eagle Exploration drilling Paradox Basin #1 and no application for #2.

Jake Oil of Utah have three wells in the Carbon County - one which is spudded, another approved and not yet spudded and the other new application not yet approved.

I have emailed GDN management a few times on this issue with no reply. Thats not strange for them as they do that often which is a pain in the back side for holders especially LT ones.

I don't doubt they will drill a second well as why would the BLM lease the land for Oil and Gas exploration if that land wasn’t available for exploration. 

Just doesn’t make sense considering the lease holder has to pay annual rental fee’s that cost about $1.50 acre. There may be some sort of stipulations they are working through like environmental issues etc but I thought there should still be a new application (yet to be approved) in place within the database. 

Alas GDN management haven't replied to my email about that even after I contacted the BLM in Moab, Utah who replied and said there is no outstanding applications for Golden Eagle Exploration.

Any other ideas please let me know.

Cheers


----------



## shanty (13 September 2007)

GDN responses, out of umpteen (polite) enquiries only two responses. Most recent enquiry concerning absence of #2 application, as a Cajun would say, da same result, nuttink.
That's not funny, it's sick. It tends to bring my mind back to little flurrys of share movements and resignations in the past


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## sharemadder (15 September 2007)

People we have a Paradox Basin 2 well application in the system   So this proves they are reading our emails HAHA.  Bring it on.


```
43-019-31556-00-00
 GOLDEN EAGLE EXPLORATION, LLC
 PARADOX BASIN 2
 Oil Well
 New Permit (Not yet approved or drilled)
```


----------



## DAZT49 (15 September 2007)

sharemadder,
Good snooping, cant see any dates, is there anyway of checking out when they made the application?
I think the permits only last for a year dont they?
daz


----------



## sharemadder (15 September 2007)

Hi Datz49

13th of September permit applied for.  For GDN to state October for spudding Para#2 (ann earlier on) I believe that any conditions (right of ways etc) that had to be met must of be done already.  Probably statutory obligations now (i.e. public notices in newspapers) before approval given.  

Given there confidence also in securing rig it is probable late October for spudding (dependent on permit approval of course).

Once firmer dates are announced I think SP will break out on the usual predrill hype (I hope so).

I emailed them back and thanked them for the permit application :casanova: and said "now what about U prospectus update" LOL.

I'm very happy now the permit has been applied for.

Cheers


----------



## DAZT49 (15 September 2007)

Sharemadder,
I am a bit shocked that the application was only made 2 days ago
Cant imagine that the permit will take less than 30 days for approval, so IMO they wont spud till ealy Nov.


----------



## sharemadder (15 September 2007)

Datz49

All I can think off is that any predrill conditions have been met. Also as pecora on HC said the well is only 1.6km from Para#1 and hence right of ways, water usages etc have already been dealt with under Para#1. In other words only new obstacles would of had to been attended to.

Cheers


----------



## DAZT49 (15 September 2007)

Agree about pre drill information. They wouldnt have to reapply for other permits again.
Taking a while for final results from shut in of Para 1, it's got to be that if we stop expecting an ann, we won't be let down lol
ONE DAY all will be revealed (results para 1/Para 2/U spinoff/iron are/gold/oil/is there a god etc,etc,etc)
cheers
have a good weekend all.
daz


----------



## shanty (15 September 2007)

Would just like to add that I also received an informative response BUT would like to express my thanks to you chaps for your efforts on "our" behalf. "You good people you!" As a well known character once said.
Do have a great weekend


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## sharemadder (16 September 2007)

Hi guys, found this on the BLM web.

Daneros Mine Project environmental scoping started 12th of September. Looks like they are serious about getting the mine up and running.

ENVIRONMENTAL NOTIFICATION BULLETIN BOARD 
Project Name: Daneros Mine Project 
NEPA Log Number: UT-090-07-43 
Field Office/Code: Monticello Field Office-UT090 
Contact: Ted McDougall 
Phone Number: 435-587-1512 
File/Serial Number: UTU-74631 
Document Type: Environmental Assessment

White Canyon Exploration, LLC (Operator) is proposing to reopen an old mine for the purpose of producing uranium ore. The operation would disturb less than five acres of surface, the majority of which has been disturbed by previous operations. 

Status and Date of Action: Plan of Operations Completeness Review and EA Scoping started 9/12/2007


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## DAZT49 (17 September 2007)

seems ,now that Para 1 is "finished" that they have got moving on permits etc.
I suppose Para 1 has been a bit all encompassing for them for the last year.
I would have thought that the u thing could have been started earlier, unless its a manpower issue.
Good snooping again maddy!! With good news too, I reckon they will have to get an ann out soon


----------



## sting (17 September 2007)

Datz is it good news when a director sells over 6 mill shares..is it the start of rats deserting the sinking ship???? I hope not

SEMPER UBI SUB UBI


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## DAZT49 (17 September 2007)

sting,
I dont think its the start of armageddon lol
Maybe he needed the dough for a new Ferrari.
Seriously, I sent a "angry of Melbourne" email, so I am SURE he will answer.
He can, of course, do whatever he wants with his shares.
Maybe there is a change in directorship in the air, and he is selling now, before a good ann when the SP will rise.
That way he cant be in trouble with ASIC for insider trading.
Now there is a theory.


----------



## bigdog (17 September 2007)

Details of director selling in ASX ann who sold almost ALL of his ordinary shares in range of Sept 11 25 to 29 cents or minimum of $1.6 million

Richard this will not look VG if GDN has a bad announcement shortly with SP dropping!!!
-- Does GDN have governance rules for directors to follow when buying and selling shares??

*17/09/2007	 	Change of Director`s Interest Notice*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00759801

CHANGE OF DIRECTOR’S INTEREST NOTICE – APPENDIX 3Y
We attach an Appendix 3Y relating to a change in director’s interests for Mr Richard Sciano. In order to exercise options in the company and having regard to the taxation implications on the sale, Mr Sciano has sold 6,545,500 ordinary shares in the company at market prices. The trades were mostly achieved off - market.

Date of change - 11 September 2007

No. of securities held prior to change
*Richard Sciano:*
16,300 Ordinary Shares

*By 4 Australia Pty Ltd:*
1,170,000 Ordinary Shares

*By Auctor Group Pty Ltd:*

5,375,500 Ordinary Shares
2,300,000 Director Options Class C
2,300,000 Director Options Class D
2,300,000 Director Options Class E


----------



## sharemadder (17 September 2007)

Bigdog

One crucial thing in the ann you mentioned.

That was "In order to exercise options in the company and having regard to the taxation implications on the sale"

So what options is he talking about. The ones he still holds, does he intend to convert them or some other options maybe converted prior?

If its money into GDN's account, well whats wrong with that.

Regards capital raising I have always said this could be on the cards depending on how much money is left in the bank.

Cheers all.


----------



## sharemadder (19 September 2007)

Another great start to the day helped by a good close on the Dow.

This is obvious that there is support at about 25c which is good.

Now where's that capital raising, should be here soon


----------



## DAZT49 (19 September 2007)

SM,
Pretty tight range of support /resistance. On my charts resistance at 26c is a real sticking point tho this doesn't reflect on buy/sell depth atm.
It is certainly being bought!!
I have sent off quite a few emails to GDN over the last few days,re anns of results/para 2 /u thing etc,unusual for me to take such action, as I appreciate that these things take time.
Cant get on to HC this morning, aer you having probs?
daz


----------



## sharemadder (19 September 2007)

Yeah cant get onto HC and now Comsec won't let me log on 

I still believe GDN have bright future even though I would like some more changes such as a experienced Oil and Gas Engineer appointed to the board.

GDN have some excellent assets just the management style is not very good.

Still no ann yet on anything, damn


----------



## DAZT49 (19 September 2007)

Heres another one of those triangle thingys I am so fond of lol
Solid resistance (26c) higher lows and dropping volume = breakout of resistance equal to the height of the triangle.
Its only minor, but in this case it would be a breakout of the 23c-25c bind we have been in for the last few days.
As usual IMO and DYOR.


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## sharemadder (19 September 2007)

Datz49

In regards to Paradox Basin #2 well application their is a comment made by BLM in comment section which says;

NEEDS EX LOC INFO & DESIGNATION OF OP FR WELLBORN SULLIVAN B&T:

You any good at interepting that?


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## DAZT49 (19 September 2007)

sharemadder,
Why dont you email them (BLM) and ask?
You have had answers from them before havent you?

NEEDS EX LOC INFO & DESIGNATION OF OP FR WELLBORN SULLIVAN B&T:

Needs extra location information & designation of operation from Wellborn Sullivan Beer & Tchips???


----------



## sharemadder (19 September 2007)

Datz49

Comments regard Wellborn Sullivan are corporate lawyers who looking after the legal requirements / issues for the well.

Corporate Underwriter. *Wellborn Sullivan* 

Located in the heart of Denver's financial district, Welborn Sullivan Meck & Tooley is a prominent Rocky Mountain law firm combining global experience with personal attention to provide comprehensive legal services related to business transactions, corporate law and finance, natural resources, and litigation.

821 Seventeenth Street, Suite 500
Denver, Colorado 80202
Tel:  (303) 830-2500
Fax: (303) 832-2366
123 W. 1st Street, Suite 710 
Casper, Wyoming 82601


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## DAZT49 (19 September 2007)

sharemadder,
i did google the name and saw Wellborn at Univ of Utah/law.
B & T are obviously partners (now Meck and Tooley.?/)


----------



## sharemadder (19 September 2007)

B & T now Beer & Tarts

hmmmmmmm yummy

Think I will get me sum, no Tarts though, the war office would kill me 

Any thing coming from your contacts on what the blazes is happening with the U prospectus etc???

More info regards the law firm

Welborn Sullivan Meck & Tooley is a proven leader in oil and gas law. The firm advises clients domestically and internationally on all legal matters related to oil and gas development. Our oil and gas practice covers all aspects of acquiring and developing oil and gas properties, including: 

Structuring and documenting transactions
Title work and due diligence
Federal and state oil and gas leasing Private and federal unitization matters
Federal, state, Indian, and fee royalty valuation
Colorado and Wyoming Oil and Gas Conservation Commission matters
Land use and practice before local governmental agencies
Litigation including dispute resolution involving preferential rights, farmout agreements, royalty payments, securities and shareholder litigation, geological data and prospects, environmental and land damage claims, seismic licenses, and title
Appeal of federal and state agency decisions
We advise clients on natural gas issues, including contracting, gathering, transportation, marketing, and processing. We also practice before state and federal regulatory commissions.

*We negotiate and draft:*

Asset or stock purchase and sale agreements
Joint venture agreements
Operating agreements
Exploration agreements
Seismic agreements
Secondary and tertiary recovery agreements
Services agreements
We often represent multinational corporations, and help to evaluate international exploration and production opportunities and assess environmental issues related to oil and gas operations.

*Highlights:*

Assisted oil and gas companies in IPOs, mergers and acquisitions, and asset sales and dispositions involving approximagely $3 blllion over the last 2 years.
Assisted Whiting Petroleum Corporation with the acquisition of properties from Celero Energy, LP for approximately $800 million.
Advised management group in structuring oil and gas exploration and production companies operating in the U.S. and Canada and financing in excess of $70 million in the aggregate.
Advised Carbon Energy Corporation in connection with merger into subsidiary of Evergreen Resources, Inc.
Handled $16.5 million acquisition of oil, gas and CBM assets in Appalachia involving properties in 6 states.


----------



## DAZT49 (19 September 2007)

After my last "insider info" about the news "midweek" i am a bit wary of my broker mate lol
In hindsight he did say to me last time (a couple of weeks ago)that it could be "some time yet" for the prospectus. Maybe I should have listened closer. At least that "some time yet" should have turned into "sometime soon"lol


----------



## sharemadder (20 September 2007)

Some interesting information about distances on Paradox #2

According to Google Earth Para #2 is about 1.22 km's from Para#1 in a SSW direction.

For the environmental argument about the Delicate Arches being too close to Para #2 they are about 11.54 km's away in SW direction.

Also Delta have three wells recently approved in Grand County to the NW of the Delicate Arches with the nearest being  Greentown SALT VLY ST 25-12 which is 27.92km's away. 

Both the Golden Eagle Exploration and Delta well applications are outside of the Arches National Park boundaries.  See the attached file.

Cheers


----------



## DAZT49 (20 September 2007)

SHAREMADDER,
nOT QUITE SURE OF YOUR POINT.
WAS THERE INFO IN AN ANN ABOUT HOLDUPS BECAUSE OF ENVIRINMENTAKL ISSUES?? I CANT REMEMBER.
IT DOESNT HAVE TO BE A NATIONAL PARK TO HAVE ENVIRONMENTAL ISSUES,
OR ISSUES WITH THE LOCAL INDIAN COUNCILS.


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## DAZT49 (20 September 2007)

PARA 2 WAS SPECIFIED AS BEING 1 MILE AWAY FORM PARA 1
A MILE IS 1.8 KM NOT 1.22KM, THAT 580 METRES DIFFIRENCE, QUITE A WAY.
MADDY, WHEN YOU FOUND THE APPLICATION FOR PARA 2 DIDNT IT HAVE THE COORDINATES IN THE COLUMNS?
APART FROM INTERESTS SAKE I AM NOT SURE WHY WE ARE CONCERNED WITH THIS.


----------



## sharemadder (20 September 2007)

Datz49

Sue12 on HC made a bold statement and continues to do so that because of the Arches National Park being in direct line of sight the second permit would not be issued.  This is not the case.  I was told some time ago that environmental issues may of been the hold up with the permit.  I dont think this is now the case but rather GDN didnt apply for the permit until recently (i.e. this month).


----------



## sharemadder (20 September 2007)

> PARA 2 WAS SPECIFIED AS BEING 1 MILE AWAY FORM PARA 1
> A MILE IS 1.8 KM NOT 1.22KM, THAT 580 METRES DIFFIRENCE, QUITE A WAY.




Datz49

I have used the exact coordinates and it is not 1 mile but 1.22 km's to the SSW of Para#1.  It also only 220 meters odd from the nearest dirt road.


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## DAZT49 (20 September 2007)

SHAREMADDER,
THE SP HAS HELD PRETTY WELL AT 24C-25C FOR QUITE A FEW DAYS, AND IMO MOSTLY BUYING NOT SELLING ,A SIGN TO ME THAT THINGS ARE OK AND ANTICIPATING SOME GOOD NEWS ....BUT WHEN LOL
I PUT S12 ON IGNORE MONTHS AGO.


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## sharemadder (20 September 2007)

Dat49 ok but do you know your CAPS are ON and YOU are SHOUTING at me 

Sue12 I usually have on ignore but just lately had him off.  I think I will put him back on.

Cheers

PS Have a good day


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## DAZT49 (20 September 2007)

MADDY...I WANTED TO MAKE A POINT!!!!
No not really, in my work everything is in caps, I get the shouting comment a lot in my emails lol
SORRY...I mean ..sorry.
ps even if you are right you cannot win with s12


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## new_trader1984 (20 September 2007)

Hi sharemadder,

Have you noticed all the delta petroleum wells besides the 2 wells that were abandoned and the one thats location was abandoned were all confidential wells?

Since the last update on paradox basin 1 on the 5th of August there has been 2 new permits submitted, 15 approved permits that havent started drilling and 6 different wells that are currently drilling.

They have had small flow rates too on some of their wells but seem to be willing to drill a lot of wells and they aernt that far from gdn's 2 wells.

The closest wells of delta petroleums were the salt valley wells which have 3 wells drilling and to be drilled near each other which is only about 14kms from gdn's wells.

The closest greentown wells is about 85kms away from paradox basin where they have about 16-18 wells all planned to be drilled or currently drilling using 2 drilling rigs.

Delta petroleum seem very interested in the paradox basin even with some problems they have had recently. 

I also tried to find out about the wells lynden ventures is involved in but on their website they never mention the name of the operator they are working with for the wells in the paradox basin just that it is a second tier texas based oil and gas company, or the name of the wells they are drilling.

Why would both companies keep the information confidential if like others say on other forums that there isnt much in the paradox basin. Just a lot of wells being drilled and not willing to share much details to even shareholders of what is happening with the projects. Delta petroleum dont update their shareholders much from their website with reports just quarterly reports with the details of what is happening with the projects they are working on.


----------



## sharemadder (20 September 2007)

NT1984

IMO you hit the nail on the head.

Look a long time ago JH told me about Delta's discovery to the west of us.

He was hugely impressed and said a operator like that would not be planning to drill like mad and spend from memory a budget of around 48 million US $ unless they were confident there was a lot of gas there.  He told me they had wells planned very close to GDN.  This of course is now confirmed by just looking up the Utah oil and gas data search and also their latest announcements about exploration in the Paradox.

There main issue has been the casings have partially collapsed I think on two Delta wells as they were underrated for the salt intrusion formations, they must be p!ssed of with that now they have to restore the already proved producing wells.

Hence GDN he told me needed to finish the Para#1 well because even though Leadville was too deep the upper zones have produced gas and this means the area has greater exploration potential.

Lyden ventures like wise are on the ball too.  From memory they have entered old wells and got them to flow and now plan to drill many more wells.

This is why I am confident that GDN have a gas field and have drilled on the lower and less preferred site for what ever reason God only knows.

Now GDN will get the second Permit IMO very soon.  They have employed a very good law firm to address any issues called Welborn Sullivan and complete the permit.  The issue that has been raised about the Arches National Park are crap and are old (from the Para# 1 application) and were addressed by the BLM and put to bed (Read the PDF file on Para #1 from the Utah oil and gas web site on Para#1 files link).

Why they have left it so late to apply for a Permit for Para #2 I don't know but the Para#2 well is only 1.22 km's away from Para #1 as per coordinates from Utah Oil and Gas web site and Google earth.  So any right of way issues and water issues are really null and void.  The nearest road is only 220 meters or so to Para #2.

once the Permit is approved for Para #2 then I believe the SP will climb.

Cheers


----------



## sharemadder (21 September 2007)

Attached is a XLS file with Delta's permits for Grand County.  They do have quite a few which are worth a lot of $$$.  Drilling APD like that must be something is good in the Paradox Basin.  

Cheers


----------



## new_trader1984 (21 September 2007)

Hi sharemadder,

Where do you find the comments for the well permits the well data search website i been using doesnt have a comments section.

Thanks.


----------



## sharemadder (21 September 2007)

NT1984

Go here http://ogm.utah.gov/oilgas/DOWNLOAD/downpage.htm

Download the Well Data, click run and it will self execute to your desktop.  Then open data table with MS Access or another database program.  Sort AtoZ the well name so you can find the Paradox Basin 1 and 2 wells.  In the tables to the extreme right are the comment sections.  The comment section for Paradox Basin #2 has changed but it is in code 

Also the databases are updated daily so good to keep a eye on them.


----------



## new_trader1984 (21 September 2007)

Thanks sharemadder,

Do you know what Bh 9/18 is for paradox basin 2?


Have you noticed on the presentation and in the article link i posted on hc about the utah hingeline. There was a comment made about the exploration in that area too. This is a comment made from the article.

The analyst noted that the latter category includes no value for the company's significant exploratory potential in the Columbia River Basin or Utah Hingeline plays.

There has only been one well in the utah hingeline which is currently drilling.

That is 3 areas in the paradox basin that seem to be recognised as having lots of exploration and development potential.

How much would each well cost to drill about 12000 feet i thought maybe 3 million dollars each but it would be more than that wouldnt it?

Thanks.


----------



## sharemadder (21 September 2007)

NT1984

IMO $3 million for each well is about right plus more to frac etc after drilled to TD 12000ft.

Not sure the comment Bh 9/18 means other than 9/18 is the date of entry.  Every time they make a comment the date is put in.  BH = ???

Cheers


----------



## new_trader1984 (22 September 2007)

Hi some of the photos below are where some of the wells that are currently drilling or have been approved or new permits for drilling in grand county utah.

There is about 15-18 greentown wells in one area which can be seen in the photos where they are all bunched together, some of the other photos show them more spread out to show just how many wells that delta does have planned for that one project.

There are also many wells planned and currently drilling by tidewater which is to the right of the greentown project and just above the 3 salt valley wells by delta. 

There is one well called joseph which is to the bottom left on one of the photos this is the first well drilled on the utah hingeline project which by an article by a brokerage firm suggests the area has lots of exploration potential.

There is a photo on the tidewater website but need to sign in to see the prospects which does show where the wells are for tidewater delta and paradox basin, which tidewater refers to both delta’s wells and gdn’s well near by when they talk about the many prospects they are working on in grand county.

Paradox basin 1 well is 10.38 miles or 16.71Km from the location of the black hat prospect well which is waiting to be drilled currently. They are looking at testing the honaker trail formation up to 10 000 feet where gdn had minor gas shows.

Another prospect tidewater has is the old sagers prospect which is near the black hat well and only 16.61km from paradox basin 1. A 16000 foot well will be needed to test the deeper potential of the old sagers prospect.

Tidewater also has plans to drill in the northern paradox basin where lynden ventures also has acreage and drilling prospects. The target is for a large amount of oil at a depth of 7600 feet.

Drilling by delta petroleum has validated the potential for gas and condensate in the deeper paradox formation between 12000-16000 feet in a fractured black shale prospect. This suggests that maybe this company might be planning on drilling several 12-16000 feet deep wells to test this prospect.

Tidewater has 150 000 acres in one prospect and 70 000 acres in another both in grand county utah.

Another prospect by tidewater is the Thompson canyon deep gas carbonate prospect. When they mention this prospect they show an image of the gdn paradox basin well #1 which is nearby to their prospect.  A comment made on the website is “The seismic amplitude anomalies that are believed to be associated with carbonates and over-pressuring offer the potential for very large per-well reserves”.

On all these prospects that are mentioned they don’t say very much about the projects just enough to have some idea of why they are looking to drill in those areas. They also mention gdn and delta petroleum a few times when talking about the deeper than 7500 feet well projects. Looking at the google earth photos where some of the recently drilled or applied for permits are for tidewater shows a large number of wells are slightly above paradox basin wells and mostly in the middle of the greentown and salt valley prospects that delta petroleum are currently working on which by the locations of the number of wells they have a lot of interest in the projects. Since no smart company would be spending 3 million plus on each well when could easily run to 5 million or more each and have more than 20 wells planned in the area if they didn’t have good reason to be spending so much time and money on the projects.

Tidewater has 10 prospects in grand county utah, 5 are deeper than 7500 feet and the other 5 less than 7500 feet.

The first photo shows the greentown wells delta petroleum has planned and are currently drilling where they have 2 rigs in place. The picture shows 20 yellow markers and 4 that are dark these are all the wells in that area that are planned to be drilled by delta.

The second photo is a closer image to show where the paradox basin wells are to the greentown salt valley and tidewater wells are. To the top left you can see a group of markers in a dark shade which is where the large number of wells on the greentown prospect are. This photo just shows how many more wells are planned and most of the ones in this photo are by tidewater.

The 3rd photo just shows where the joseph well is which is a new exploration project on the utah hingeline compared to where the other prospects are further to the right.

The 4th photo is just a photo which can show the locations of the majority of wells for tidewater, delta petroleum and gdn’s wells to give an idea of just how many wells are being drilled between 2 companies.


----------



## DAZT49 (23 September 2007)

nt,
You obviously have lots of time on your hands!!!!
Thanks for a very interesting post.
Cheers
daz


----------



## sharemadder (23 September 2007)

NT1984

Excellent post dude, luv it .  GDN have huge exponential value here.  Although not cashed up like Delta, GDN can still get there albeit well by well.  I think they will now go for Leadville again on Para #2.  90 days to drill without hiccups and about $3 - 5 million to complete.  Worst case we get 840 mcfd again from upper zones but because it is further up dip would expect higher yield (gas rising to top of traps) from upper zones.  Leadville still unknown but they stated expect formation to be 1000 ft higher and above gas / water transition zone.

Anyway its because of the intense action by Delta earlier on that made me decide to stay put with GDN as the area is certainly got potential.  IMO anyway.  Bring on the Permit approval and spud this lady well!  

Cheers all


----------



## sharemadder (23 September 2007)

NT1984

Another Google Earth pic of the ridge elevation between Paradox #2 and the Delicate Arches. You can see that the ridge clealy blocks out the Arches view to Paradox #2. The greenie arguement about the Arches could be in view of the well therefore the permit will not be approved are not valid. The Delicate Arche have a elevation of 1470 mtrs with a maximum elevation of surrounding view points of around 1490 mtrs (best I could find). Cheers.


----------



## new_trader1984 (24 September 2007)

Thanks sharemadder for the image of the arches.

While we are all waiting for an announcement i have been using google earth some more. I found a list of oil and gas fields for grand county utah. I think most are only small fields, but there was 3 that have a large number of producing wells. Bar x gas field has 39 producing wells currently but that doesnt include shut in wells. Bryson canyon has 36 producing wells. Greater cisco has 75 producing wells. 

http://www.lat-long.com/ListLocations-1-Utah-Oilfield.html the link is where i found the latitude and longitude of the fields to put into google earth. 

The markers in orange are of the oil and gas fields that i could find that are currently producing gas or oil from. There is also a few markers in orange that are of the wells that are producing.

The markers in red are of all the fields in grand county that i was able to find.

You can see at the bottom of the page an orange marker near the yellow markers where tidewater has permits to drill that orange marker is a recent producing well for the greater cisco field. That well isnt far from paradox basin wells at only 32.58Km.


Just thought to share what i have found since it shows there is a lot of production in the area for oil and gas and with delta and tidewaters recent large number of permits going through it atleast can offer confidence knowing companies as big as them are willing to spend so much money near by to our wells.


----------



## DAZT49 (24 September 2007)

sharemadder,
thanks to you and Nt for some great posts.
Are you able to "export" those settings and post them??
You may have read over on the "dark side" that I emailed GDN ..again.
Makes me feel better anyway.
daz


----------



## sharemadder (24 September 2007)

Datz I have sent you a copy of the Google Earth folder link which should give you the map page + place markers.  Cheers.

PS GDN must have plenty of hate mail now 

Cheers


----------



## DAZT49 (24 September 2007)

Sharemadder,
thanks for the link, My para 2 is a bit futher southwest than yours but close enough.
21c atm and I am not comfortable
I see EGO is like a shadow of GDN, Overtime on the drill,hold ups ,breakdowns and poor gas shows and still drilling to intersect there target.
Even there thread sounds like GDN lol


----------



## sharemadder (24 September 2007)

Hi Datz49

Yep EGO looking like GDN all over  or should I say 

I only hold small amount so not fussed but I see some are working O/T on venting there spleens.  

I haven't emailed GDN yet but thinking of sending one off soon.  Probably tomorrow.  I wonder if they meant 'early October' not September about pulling gauges??? just a thought.  They are sloppy with their announcements.  No changes on permit application data for Para #2 since 18/9.

21c today hmmmm those that bought RS shares off market must be pissed off that they now have paid a premium of some 40%.

Oh well, back to waiting.

Cheers


----------



## Bushrat (25 September 2007)

I think they meant early October...I'm sure they dont know what day of the week it is, the last announcement was on 17 September but it is dated 7 September on the bottom. They really are pretty hopeless when it comes to announcements and it provides no confidence to those holding. I sent them an email last week and no response..


----------



## DAZT49 (25 September 2007)

Dont think it is Oct.
They would have noticed that mistake and they are able to amend an ASX ann.
I have given up guessing when any ann will come.


----------



## hoppielimp (25 September 2007)

Hi Guys,

As for the last ann Bushrat, the date on announcement is consistent with the date on GDN letter which is the 7th.  The 17th is the Directors interest ann.

Although I do agree that GDN's attention to detail is lacking.  I've mentioned it before on the interval reporting not being consistent.  However this is all minor stuff, and I hope we are investing in GDN for the drilling opportunities and finds....not their ability to proof read announcements.

//edit
I think they meant October too...and just forgot about it....I hope


----------



## sharemadder (26 September 2007)

Hi all

I see Richard has converted some of his options (2.3 million) but not the full lot, still 4.6 million to go. Looks like he is not going to convert those.

His holdings now as follows. 


*Richard Sciano: *
*16,300 Ordinary Shares *
*By Auctor Group Pty Ltd: *
*2,300,000 Ordinary Shares *
*2,300,000 Director Options Class D *
*2,300,000 Director Options Class E *


So it appears he has some confidence at 20c SP.

Cheers


----------



## hoppielimp (26 September 2007)

Hi Sharemadder,

Do you know what Class D, Class E Options are ?  I was trying to find out, just incase there is some bearing on how they are converted etc...etc...

I guess the conversion injects some capital back into the company, which is always good.


----------



## shanty (26 September 2007)

Hi Folks, these shares, D and E would seem to be those unlisted director's shares which, as I understood it, were subject to a sp hurdle. They were granted on May 22nd 2006. Hurdles per tranche were 0.30, 0.35, 0.40, 0.45 and 0.50 cents. They were exercisable, as mentioned, at 0.20 cents.
Thus imo the share price for D and E must reach 0.45 and 0.50 respectively before they can be exercised.
The only reference to these letters that I can find is in the ann for app.3B dd 4 dec 2006.


----------



## hoppielimp (27 September 2007)

Hmmmm, thanks Shanty


...I presume that the share price does not necessarily have to maintain those levels....just hit thos targets ?   GDN was up at about $1.26   or there abouts...briefly


----------



## shanty (27 September 2007)

Hi Hoppie,
Yea! Maybe that's how it works. I was thinking the sp had to be at the specified level when the oppies were exercised.
Maybe one of the more knowledgeable dudes would be kind enough to clarify??


----------



## new_trader1984 (27 September 2007)

Hi, i just saw the new report by delta petroleum, they mentioned in the report the drilling budget for 2007 is 250 million for all their projects which would include the greentown project. 

Currently samson federal 28-11 well and greentown federal 35-12 wells are being drilled at the moment with completion results to be release in the 4th quarter report. 

They are also about to start drilling a well in the utah hingeline, the well is federal 23-44.

I also saw this powerpoint presentation by tidewater oil and gas 

http://energy.ihs.com/NR/rdonlyres/816AB997-C3D0-47BD-B5D7-20DEEAB274D0/0/NAPEPresentation_rev.pdf

In presentations by both delta petroleum and tidewater oil and gas they mention tcf potential. Not saying gdn will be the same but looking at where tidewater and delta have all the wells drilling and new permits and being close by and the amount of money they are both likely to be spending in the area it would show that there must be a lot of gas in the area even though the recent wells are only showing very small flow rates.

Thought it was worth sharing about deltas current drilling in grand county utah.


----------



## Bushrat (28 September 2007)

Status of Paradox 1 well has just been updated to PRODUCING on the Utah Oil and Gas website....
http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/scan_files.cfm?fileno=4301931455

which suggests the well is economic..announcements should be forthcoming..SP seems to have stabilised and formed a base around 20c.


----------



## DAZT49 (28 September 2007)

Bushrat,
Good snooping!! Can you find the application and status of Para 2 on that site?
Bring on the ann.


----------



## sharemadder (28 September 2007)

Thanks Bushrat.

I see the Full Statutory Accounts are out as well.  Looks like 8 1/2 cash at 30 June 2007.  I'd say cash burn since then of around $6K to $8K a day for current work over rig so another $600K - $800K burn last 90 days.  Plenty of money in the pot.

Cheers


----------



## Bushrat (28 September 2007)

Well Status for Pardox 2 is still set to New Permit (not yet approved or drilled). The permit shouldn't be too far off, due to the close proximity to Paradox 1, and most of the hoops and hurdles should have been cleared under the umbrella of Paradox 1.
Heres hoping, we can get some announcements and confirmation of progess.


----------



## bigdog (28 September 2007)

last ASX ANN 07/09/2007 Oil and Gas Update

Today ASX ANN
28/09/2007	 	Full Year Statutory Accounts
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00763951

*The Full year accounts includes update:*

*Review of Operations*
Golden State Resources Limited is an active oil & gas and minerals explorer in Australia and the USA. The Company acquires and operates projects, in its own right and through joint ventures with other companies, in areas assessed to have a high probability of discovery and profitable production.

*Oil and Gas – Utah, USA*
During the year, Golden State completed its first well on the Golden Eagle Prospect. Wildcat well Paradox Basin #1 was completed to a depth of 16,471 feet (5,020m).

The company is exploring 10,457 hectares (25,937 acres) of State and Federal Government oil and gas leases in south-eastern Utah, in the USA, from Denver-based Eclipse Exploration.

Eclipse Exploration has the right, after the company drills the first two wells on the prospect, to back in for a 16.67% working interest. Golden State is entitled to 100% of production income until completion of the second well or 12 months after completion of the first well, whichever is sooner. All leases will have a net revenue interest of 78%, after relevant government and third party royalties.

Perforation and fracing operations were completed on the most prolific gas shows encountered during the drilling of Paradox Basin #1. Several zones that showed initial promise and were flared during testing went to water and were abandoned. The interval that presents the best potential for production is the Upper Ismay section, where gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) with water produced at 2 bbl/hr (barrels per hour). The flow test followed successful fracing of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet.

Economic assessment of the gas flows encountered during drilling is continuing. Permitting for the pipeline connector and for the second, follow-up well to Paradox Basin #1 is being accelerated with a view to commencing Paradox Basin #2 once permits are received.

The confirmation of gas flows from this wildcat well was a good exploration result for the Company, and increases the likelihood that good gas flows can be obtained from subsequent wells, sited with the benefit of the information gained from this first well.

In addition to the Golden Eagle target, there are several other targets on the leases that will be assessed in due course. The company will continue to assess other gas and oil opportunities as they arise.

*Uranium – USA*
Golden State owns approximately 7,000 acres of mineralized mining claims and mineral leases in the Thompson Uranium District of Utah, USA. Significant uranium and vanadium mineralization has been indicated on the Company’s leases by previous diamond drilling.

During the year the Company completed an agreement where the Thompson uranium assets and the White Canyon Project of Utah-based uranium explorer and miner White Canyon Exploration LLC are intended to be spun off in a new ASX-listed uranium mining and exploration entity. The arrangement is subject to a Memorandum of Agreement between Golden State and White Canyon Exploration, details of which are contained in the Company’s 3 May 2007 announcement. White Canyon Exploration’s principals currently operate, under contract, Utah’s only producing underground uranium mine.

The projects are in an arid desert region of the Colorado Plateau, in south-east Utah, near the towns of Moab and Blanding.

As part of the Company’s due diligence process on the White Canyon Project, a limited drilling program was completed at White Canyon. Drilling confirmed the location and grade of the Daneros ore body, previously defined by historical drilling, and upgraded and increased the area of the higher grade zones defined by that drilling. Several historical drill holes were twinned by new holes with exceptional results, increasing the U3O8 grade while confirming depth and thickness. New results included 2.4 m @ 0.84% U3O8 (DAN001) and 2.3 m @ 0.71% U3O8 (DAN003).

Uranium mineralization in the Thompson deposits occurs in the Jurassic Morrison Formation, in four sandstone lenses and in conglomeratic sandstone, as the mineral carnotite (hydrated uranium potassium vanadium oxide).

Vanadium is a valuable by-product of treatment of uranium ores from Colorado Plateau deposits.

Uranium deposits at White Canyon are hosted by flat lying sandstones deposited in ancient river channels at the base of the Triassic Chinle Formation. 80% of Utah’s historical production of 130 million pounds of U3O8 came from the Chinle Formation

*Minerals – Australia*
Golden State’s Australian minerals exploration activities have been targeted on its land holdings in the Leonora, Laverton, Menzies and Johnston Range (Marda) districts of Western Australia. Evidence of significant gold mineralization has been discovered in the Leonora, Laverton (England & Kelly Well), Menzies and Johnston Range projects and exploration is ongoing.


----------



## new_trader1984 (28 September 2007)

Hi there is one part in the report about the paradox basin that i dont think the company has mentioned before.

In addition to the Golden Eagle target, there are several other targets on the leases that will be assessed in due course. The company will continue to assess other gas and oil opportunities as they arise.

We know they have 10457 Ha or over 25000 acres of land in the paradox basin. Since the target they are drilling currently is only on 2000 HA of the total amount gdn have that leaves the possibility of 2-4 more structures on the land they have. Would be good to know just how close the land gdn has is to the tidewater and delta petroleum wells that are only about 20-25km away. 

The comment above might suggest they already know of several more targets but need to assess them before releasing any information about more possible structures for gdn.


----------



## sharemadder (28 September 2007)

U JV IPO update announcement 4:11pm

The release of final details, including timetable, of the spin-off of the Company’s uranium assets has been delayed awaiting:

1. Execution of formal agreements with the vendors. The formal agreements replace the Memorandum of Agreement originally executed with the vendors. Delays occurred pending resolution of US taxation issues for the vendors.

2. Lodging an application for a waiver with the Australian Stock Exchange to use historical reserves and exploration data in the prospectus to be issued in conjunction with the entitlement issue to Golden State shareholders.

The formal agreements have now been executed. It is expected that any further issues will be resolved shortly. 

A further announcement will be made upon resolution of ASX requirements.


----------



## alcy (28 September 2007)

I dont understand what they are trying to do?

2. Lodging an application for a waiver with the Australian Stock Exchange to use historical
reserves and exploration data in the prospectus to be issued in conjunction with the
entitlement issue to Golden State shareholders.

What does that mean?


----------



## shanty (28 September 2007)

Hi Sharemadder, may I, very politely! Suggest that if one uses projected expenditure when guesstimating funds available for future work, shouldn't one also take account of the ????? payments of $0.35 per U share?
What is your guess as to how many holders will take the plunge. Have a nice weekend.


----------



## sharemadder (29 September 2007)

Shanty

My guess regards the take up of entitlements for the U IPO will be 100% even if small time shareholders don't take up all their offer.  Just like the 30/06/07 option expiry scenario when everyone was saying they weren't going to get all them options converted, well hello  they did thanks to Macquarie Equities.  The IPO imo will be fully subscribed.

Alcy

The previous drill data / reserve estimate by previous owners was not JORC compliant.  Why, not totally sure.  That's why as part of the due diligence process the new partners needed to twin drill the holes and confirm the grades and depth. They did this to confirm the old data and resource estimate BUT need to do some more work (infill drilling at closer drill spacing) to get the resource to a qualified JORC resource.  What they want to do is get a exemption from the ASX for IPO to quote the existing resource estimate for the IPO.  They ned to convince the ASX that the old estimate is qualifable or other words true and correct using what ever method the Yanks used to get to that estimate.  This is the final hurdle by the sounds of it.

As I said before the IPO is going to happen and Daneros Mine will reopen (all IMO of course).  White Canyon LLC are doing their part at the moment by doing such things as completing the environmental study with the BLM (they started this mid September).  The contractual agreement between White Canyon and GDN is now done (No longer a MOU which is great).  All in good time we will have a IPO.  At least now GDN management have listened to their shareholders and provided updates on the progress of different matters to us .

Cheers


----------



## alcy (29 September 2007)

Thanks sharemadder, lets hope everything goes well, because I BOUGHT IT AT 0.265. In the other hand my NAL aint doing too well either. 



sharemadder said:


> Shanty
> 
> My guess regards the take up of entitlements for the U IPO will be 100% even if small time shareholders don't take up all their offer.  Just like the 30/06/07 option expiry scenario when everyone was saying they weren't going to get all them options converted, well hello  they did thanks to Macquarie Equities.  The IPO imo will be fully subscribed.
> 
> ...


----------



## DAZT49 (29 September 2007)

I emailed BLM in Utah yesterday re Para 2 application. (See sharemadders post on 15th Sept)
Obviously I couldnt ask if the application had been approved as I would have thought that would be confidential info until published.
This,in part is there reply.
"Approval time for a drilling permit is dependent on several factors, so
it's difficult to give you a good answer to your question regarding a
typical approval timeframe.   If a drilling permit is submitted with
 all of
the required information included and the information is accurate, it
 cuts
down on processing time.   Every permit application must also go
 through
the National Environmental Policy Act (NEPA) process.  The amount of
 time
required to go through this process will vary depending on the
 sensitivity
of the location of the drilling proposal.
If we receive a complete, accurate permit and the location is in an
 area
with few environmental concerns, a permit approval may take as little
 as 30
- 60 days.  If not, the process may take many months.  If we are unable
 to
get accurate information for a proposal, a permit can also be rejected."

I think it has been posted that there were no environmental issues, so best case scenario is approval for Para 2 on 15th Oct.


----------



## sharemadder (29 September 2007)

Hi Datz49

First thing, I have replied to your email 

Second it great when they reply to your emails hey.  At least the information you got tells us they can approve a permit in 30 days minimum.  So does that mean the GDN boys mean what they say that they are fast tracking the permit approval (maybe 30 days from 15 Sept).

I hope so.

Still a bloody waiting game


----------



## shanty (29 September 2007)

Sharemadder
Thanks for response. But I note that my original comment was ambiguous.
I was thinking that the number of entitlements taken up could provide a value for the retained one third of the JV.
This should considerably increase the attraction to punters should GDN decide that a capital raising was adviseable. Thus, along with the other developments, helping to dismiss the negative vibes being spread in some quarters as to GDN's financial condition. Sort of "cash in the bank" without, necessarily, calling it in.Does that make sense?


----------



## DAZT49 (1 October 2007)

This from Saturdays Age in Melbourne. Business section under Directors Trades/Purchases in Own Company.
Note Mr.Sciano's purchase, dont know if was off market, but presume it was.
2,300,00 for $460,000


----------



## hoppielimp (1 October 2007)

Hi Dazt,

Wasn't that just the conversion of the options rather than a 're-purchase' of market GDN shares ?


----------



## shanty (1 October 2007)

Hi Hoppie, Daz,
surely that is RC exersizing his right to convert his tranche C options?
However I do not see this as negative compared with an open market purchase. It is cash in the bank for GDN and indicates his belief that the shares are more likely to go North rather than South. He should know and 'every-body' says what a shrewd chap he is.


----------



## DAZT49 (2 October 2007)

I thought it may have something to do with his options, but I thought he sold them for 'tax purposes'??
If his dealings have added a few sheckles to the GDN bottom line I see this as a positive thing.
RS has been hammered by posters calling him a crook etc. Maybe they dont know what they are talking about


----------



## new_trader1984 (2 October 2007)

Hi, both wells by gdn they are calling oil wells not sure why but if you look at deltas salt valley first well which is about 14kms from paradox basin well 2. 

This website shows that proved reserves for the salt valley prospect is 200 000 bbls or 200 Mbo and total proven reserves of 585 Mbo over a 200 acre area. Delta has working interest of 7100 acres in the salt valley prospect. The wells are being drilled to about 8200 feet.

Looking at gdn, they had a 20 foot oil column at 9411 feet. They said the next well which is targeting leadville a 1000 feet higher, that would mean the oil column could be at around 8400 feet which is close to the same depth as deltas salt valley prospect with proved reserves from the first well. GDN has over 5000 acres in their project. 

Also if you look at the presentation on the delta website on page 13 it shows the 5 prospects in the paradox basin. It shows greentown and salt valley are development projects but they also show the other 3 prospects they have. The fisher valley prospect is to the right and a bit further south of gdn's wells, this shows that gdn's land is in the middle of 2 prospects that delta are interested in and one that is already proven to be oil productive.

http://stocks.us.reuters.com/stocks/fullDescription.asp?rpc=66&symbol=DPTR.O

http://energy.ihs.com/NR/rdonlyres/BAE9DF2F-46A5-47C5-B89B-9E4BA24AAEA1/0/AAPL_Final_012007.doc

http://governor.utah.gov/rdcc/Y2007/07-8478.pdf

These 3 links are where i found some of the information about delta, delta petroleum has recently applied to build a 16 inch steel gas pipeline which is to be used for the production from the greentown and salt valley prospects, since they have 3 more prospects to look at i would assume the pipeline would be close to all 5 which would also mean the pipeline is close to gdn's wells too. This might benefit gdn when they start producing to possibly use the delta pipeline.

Something i did notice in some earlier reports by gdn when they announced the depleted gas levels in the alkali gulch and pinkerton trail. They said it is better to test those intervals as a cane creek play with horizontal drilling in future wells.

This suggests they were already considering horizontal drilling for atleast 2 different intervals back in May and they might be planning to do that on the 2nd well possibly.

Just some thoughts from what i have read.


----------



## DAZT49 (2 October 2007)

Another quality post again by you Nt!!
I think we are sneaking up on this thing, if they can just get Para 2 spudded soon I think the results could be quite good.


----------



## bigdog (2 October 2007)

There is a US share forum for DPTR (Delta Petroleum Corp) that you may like to communicate with.  There were a few articles on GDN back in late 2006

"rosesny_1" was a poster to GDN on ASF

http://www.investorvillage.com/smbd.asp?mb=969&pt=m


----------



## new_trader1984 (2 October 2007)

hi bigdog, thanks for the link to the forum.

I read some interesting posts on the dptr forum.

A couple of comments thought might be interesting to post.

Best news that I hadn't seen discussed was both Encana and Petro-Canada are drilling next to the Greentown State finds. Guess the blow-out generated some interest." In addition to Petro-Canada and Encana, Standard Energy CORP has been trying to get a permit to drill close by. Delta's infrastructure costs will be huge in the Greentown area as they will only have perhaps 6 to 10 wells to connect by the time they get the pipeline done. But if Encana and Petro-Canada have success in the area, Delta can perhaps get them to connect to their pipeline and pay a tarrif. 

That was from a post on the dptr forum just shows there are some large companies in the area to gdn.

The salt valley wells are expected to produce 200 000 barels of oil each over the life of the well.

This is another part of a post

Delta is still predicting that the wells will cost between $3.0 and $3.5 million and will produce on average 6 BCF. Delta has more than 300 net wells to Delta which comes out to about 1.8 TCF to Delta. I believe that it is very possible that these wells will produce on average more than 6 BCF but even at 6 BCF, a price of $3.5 million makes them extreemly economic. Many wells that are being drilled today yield 0.5 BCF per million dollars spent to drill. These wells will yield 2.0 BCF per million dollars or about four times as economic as many wells drilled today. 

I realise this is not about gdn but this is showing the potential of the area since they are only 20km's away. GDN has 25000 acres and atleast 3-4 more prospects of similar size to the first one which could contain large amounts of gas too.


----------



## new_trader1984 (3 October 2007)

Hi, i just checked the utah blm and paradox basin 2 is approved for drilling.

Hopefully they will start drilling very soon now the permit is approved.


----------



## hoppielimp (4 October 2007)

Yeeha.....let the wild ride begin once more....

Approved permit (APD); but not yet spudded.


----------



## DAZT49 (4 October 2007)

Hopp,
The roller coaster continues. 
Whether the approval is market sensitive and should be announced is debatable,but I hope, for us market basket cases, they do.


----------



## new_trader1984 (4 October 2007)

hi sharemadder,

I sent an email last night to the email you gave me and got a reply.

A little confusing though, when i sent the email paradox basin well 2 was still new permit on the website. Marie who i sent the email to said at that stage when i sent the email that the BLm has not recieved an application for permit to drill yet since on federal land. This was because i asked about the files not being on the oil and gas website in utah which has 189 page document for paradox basin 1 which was last updated august 7. Marie says they havent recieved an application to drill but the state of utah oil and gas website says the paradox basin 2 well has been approved and pecora gave the link where it shows the application was approved 4 days after the application was recieved and was approved on the 19th of September.

Hopefully it has been properly approved, but since it was 15 days ago when was approved to drill i would have expected gdn to announce this since they said in previous reports as soon as application to drill was approved they would start drilling the paradox basin well 2.

The state of utah website says paradox basin 1 is producing but in our reports from gdn says the well was shut in with down hole gauges.

GDN hopefully will start explaining whats really happening soon. Almost a month since the last oil and gas update.


----------



## DAZT49 (4 October 2007)

new trader,
i had a similar confusing reply from Marie, maybe they are typical beaurocracies and one dept. doesnt know what the other one is doing.
A poster on HC ses RC told him there will be an ann tomorrow.
I will believe that when I see it.


----------



## new_trader1984 (4 October 2007)

Hi dazt49,

I saw the post hope they do update us tomorow, would be good to hear they have a drill rig ready to move onto site. I am waiting on some news to explain why it says they are a producing well but gdn tells us the well is shut in.

This is a photo of some producing wells in the lisbon field in some of the intervals we are drilling. There is one that has produced more than 26bcf of gas and still producing from leadville currently at just under 2mmcf per day. In december it was producing above 3mmcf and when first started was producing at 7mmcf per day. The well originally was producing from mccracken but now moved up to leadville. The well has also produced over 179000 barels of oil too.

Other wells in the area that are in green have produced 300-400 000 barrels of oil plus lots of gas.

The lisbon d-616 well which you can see in the photo has produced 1.7million barels of oil and 20bcf of gas.

Those wells ar about 100kms from the paradox basin wells.

The wells to the left of paradox basin are in the cane creek formation and havent produced as much gas as the lisbon field but they are only 40kms away and are still producing. The cane creek formation is the one that is best drilled horizontally, but thought worth showing since shows even more wells in the area are very productive.

Just thought to share this while waiting on the next announcement.


----------



## sharemadder (4 October 2007)

NT1984 and Datz49 

It is all really too confusing and the company should provide an update.

One would trust I think the Utah State Oil and Gas Website for correct information.  

I found the BLM disjointed.  My first email was passed around about 4 times before it got to Marie.

GDN do need to announce something to clarify whats the go.

How it may of hapened imo is any permit requirements (they would know that from previous well application) would of been attended to prior to submitting the new well aplication.  

These off course would be in the required submitting format and drafted by appropiate contract suppliers.  Some reports can take considerable time to produce.  

I also note that GDN have a well known law firm "Welborn Sullivan" who work in this sort of practice doing the permit application for them.  When the permit for Para#2 first appeared on the website after much complaining by myself and others it said the division was waiting on Welborn Sullivan for the particulars of the permit (location etc.).

IMO I seriously believe the items (whatever they were) were attended to prior to the application.  teh application was submitted in a complete form and approval was expedited because of this.

Hence after my long winded typing GDN could confidently announce some time ago that a rig was being secured for a expected October spud.

We need GDN to announce the APD for sure but dont be surprised the announce also that they will be quickly moving to spud phase for Para#2.

Anyway here's hoping guys.

Cheers


----------



## explod (4 October 2007)

A very sorry state of affairs.  I am sure the chart will give plenty of notice if and when.
....................................................................................................


----------



## sting (8 October 2007)

To help alleviate the boredom maybe we should run a pool on when the next announcement will be... time and date

I pick wed 10th oct at 1430hrs aest... please note i did not select what yr...

SEMPER UBI SUB UBI


----------



## DAZT49 (8 October 2007)

Put me down for 9.58am on 17th Oct. 
First well is commercial but not enough to be stand alone. It wiil be combined with flows from 2nd and subsequent wells. IMO


----------



## kelvin8r (8 October 2007)

hahaha nice work sting

i'll have a crack at thurs 11th at 11:43am but then again i dont even think the board members would be able to pick when the next ann would be


----------



## Bushrat (8 October 2007)

i'm outta this today..could've got out near 30 and kicking myself for not doing so...cant trust the management of this co...they may get the results, but when they do..can they be trusted...I dont believe all information positive or negative has been released...entry price of 11 out at 20, could've been better, but i can sleep tonight....good luck holders.


----------



## new_trader1984 (8 October 2007)

Hi,

This company seems to have a good project for their oil and gas, since just looking at some of the wells that have been large producers in the area and the 2 companies tidewater and delta petroleum drilling close by to gdn's wells they must be in a good area for success which hopefully will be seen in the 2nd well.

The directors do have to start informing shareholders with more details. Its been over a month since the last update on the oil and gas project and since then the oil and gas website for utah has said paradox 1 is a producer but gdn's reports say its shut in with gauges in place but they havent told us anything more about them yet.

The approval for paradox basin 2 was on the 19th of September, but shareholders have still not been told that the 2nd well has been approved. 

In some previous announcements they said as soon as the application was approved they would start drilling straight away, the application was approved 19 days ago and still no news on if they even have a rig ready.

In the report on September 7 they said preperations continues for commencement of drilling paradox basin 2 but still no firm dates.

The directors need to start answering some of these questions with the agm getting closer, especially when they said they plan to start drilling well 2 mid october.

Hopefully a report will be out this week with answers to a lot of questions shareholders have.


----------



## DAZT49 (9 October 2007)

nt,
While i am sure we will get an ann....one day... I am not so sure we will get
"answers to a lot of questions shareholders have" lol
I am getting a bit nervy with the SP popping under 20c all the time.


----------



## diddy (10 October 2007)

well we have an announcement of some sort anyway
doesnt really help 2 much in the short term

DATE OF ANNUAL GENERAL MEETING
The Annual General Meeting of Golden State Resources Ltd will be held on Wednesday 28 November 2007.

also ummm
what was the final estimation of the gas in the basin, caus i found some article just surfn thro, and it said 4 billion barrels of gas. is gas measured in barrels for 1 and how do they measure if a well is economic or not just by pressure or flow of gas?

y is the company refering to the well as oil? is this just an admin issue or are they refering 2 something not yet disclosed. because gas sits on top of oil, so depending on level of the drill is it possible that oil is down there and they just arent reaching it?

also i notice they said they were getting a fair bit of water per hour, now coming from such a distance under will that effect the operation of a working well if it ever does go in to commerical operation? as depending on pressure and temp it freezes the well.


----------



## sting (10 October 2007)

With regard to the ongoing pool ..see above.. yesterdays announcement of the AGM does not count as it was an ann with no information... wait  out.... nearly ALL the ann this mob put out have no information ...........


----------



## DAZT49 (10 October 2007)

It was a Claytons ann..the ann you have when you are not having an ann.lol
Notice they were not game to say where or what time.


----------



## nahman (10 October 2007)

Frustrating wait, only part good news is that there was a decent interest in volume yesterday and possibly again today, all over a useless announcement


----------



## sting (10 October 2007)

Datz as soon as they ann details of the timings of the AGM im on the net booking my flight... wont do any good as im not a major shareholder but will make me feel better telling them face to face what I think of their reporting system.


SEMPER UBI SUB UBI


----------



## nahman (11 October 2007)

New announcement up, almost useless again except theres a positive note of the permitting process progressing. Seems like another wait to come.


----------



## sharemadder (11 October 2007)

It really was a announcement about nothing that we didn't already know.

Although I find it strange that they have a APD at state level but not Federal (BLM).  This is to say the least Stupid of the USA government agencies especially after inquiries to the BLM always ended with referring me to the State web site to see the status of the well application.

Another month waiting here we come...


----------



## DAZT49 (11 October 2007)

What was the point of that ann??Obsolutely about nothing
I guess I am gunna have to tap out another email to Ricky baby.


----------



## bigdog (11 October 2007)

DATZ49

Agree short on details

I will post ASX ann words
11/10/2007	Oil and Gas Update
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00768819

*Oil & Gas Update*
Paradox Basin #2 Well, Utah USA
The permitting process for the follow-up well Paradox Basin #2 is progressing. The State of Utah has approved the Application for Permit to Drill. Once the permit receives approval from the federal Bureau of Land Management, site works will be commenced on the drill location and access.

Paradox Basin #1 Shut-In Well
The Company is undertaking studies on the economics of putting Paradox Basin #1 directly into production or delaying until the completion of Paradox Basin #2.


----------



## nahman (11 October 2007)

Is it me or is there a deliberate dumping of shares particularly around the 19.5-20c mark to keep the SP down? Something is definitely happening


----------



## sharemadder (11 October 2007)

nahman

I think a capital raising is on the cards hence the dumping to keep it at 20c.  Just a opinion.

The permit approval process is weird as I thought without BLM approval how can the State give it as it is on Federal lands which the BLM handle.

I don’t understand why they need two approvals (State and BLM) when the State site rules brochure says the BLM is responsible solely for Federal and Indian lands and approvals not the State. Then I speak to the BLM and they say what application and check the State web site in future. The State website clearly indicates the APD is approved??? Good to see the USA government same as ours, f^@#'d up.

RS is really turning out to be a jerk who obviously can't deliver. We need a new Director of substantial character with oil and gas experience. 

Although I am pissed of with the waiting for Para#2 to spud I do believe there is a pot of gold at the end of the rainbow, just not sure if RS can deliver it. 

Cheers all.


----------



## Mousie (11 October 2007)

sharemadder said:


> nahman
> 
> I think a capital raising is on the cards hence the dumping to keep it at 20c.  Just a opinion.




Sorry newbie question:

Why dump due to pending cap raising (if this is indeed the case), and who could be doing this? Current major shareholders/sophisticated investors/directors who wish to get more shares for lower prices?

Cheers


----------



## nahman (11 October 2007)

Mousie said:


> Sorry newbie question:
> 
> Why dump due to pending cap raising (if this is indeed the case), and who could be doing this? Current major shareholders/sophisticated investors/directors who wish to get more shares for lower prices?
> 
> Cheers




well raise capital through shares = greater access of funds for the company, that is what investing is after all, and secondly it would be the larger shareholders, the directors most likely, wouldnt be the average joe blow as the average joe blow would like to see the share price rise dont you think?
keep in mind the more $ you have the more power you have in determining the share price


----------



## nahman (12 October 2007)

Whats the probability of the number of hatemail the company will receive will triple before the release of a useful announcement? Perhaps we should use technical analysis to determine some sort of breakouts or trends in this. At this rate i wouldnt be surprised SP will fall down to 15 cents within the next week or two.


----------



## sharemadder (15 October 2007)

GDN down she goes again, maybe 10c again. This Directors are sad, sad people. They have promised much but delivered nothing for a long time. I can see why many scorn this mob and have left the building. 

On a +ve note you can now download Paradox 2 well files including the apllication that was drafted 1st June 2007.  It appears that they have waited to submit the complete package so the well apllication can be expedited as per the Government Directors (Utah Oil and Gas) letter to all Well Operators last year.


----------



## sharemadder (15 October 2007)

Oh there is also a letter from the BLM dated 19th Sept stating they have no objection to the well at this time. (Formal federal approval still required - see last page of files)

Leadville depth is proposed 13,300'

TD 16,000'


----------



## DAZT49 (15 October 2007)

sharemadder,
Do we know when they made the application to the gov. body??
If it was at the same time as the BLM application (13th Sept) and we allow a best case of 30 days for approval by the gov. body, it means we MAY have notice of approval in the next couple of days.


----------



## new_trader1984 (15 October 2007)

Hi sharemadder thanks for the post about the files on paradox basin 2.

With the letter from the BLm saying that there are no objections for the para 2 well and utah having approved the drilling of paradox basin 2 on 19th september why would the federal approval of the well be taking so long? Its been a month since they applied for the well hopefully sometime this week the federal permit will be approved.


----------



## DAZT49 (15 October 2007)

In a reply to an email Marie Mcguan from BLM said..
"If we receive a complete, accurate permit and the location is in an
 area
with few environmental concerns, a permit approval may take as little
 as 30 days."


----------



## alcy (15 October 2007)

02:42:32 PM 0.180 1,000 
02:41:21 PM 0.175 4,000 
02:36:17 PM 0.180 1,000 
02:29:36 PM 0.175 15,100 
02:14:46 PM 0.180 6,000 
02:06:46 PM 0.180 6,487 

I dont understand the reason behind for someone to buy 1000 shares to keep the SP above 0.175?... he done it 3 times today.


----------



## alcy (15 October 2007)

AGAIN! But with 500 this time

Last 10 Trades
Time Price Quantity 
03:18:58 PM 0.180 500 
03:17:53 PM 0.175 19,100 
03:14:47 PM 0.175 50,000 
03:06:46 PM 0.175 30,900 
02:42:32 PM 0.180 1,000 
02:41:21 PM 0.175 4,000 
02:36:17 PM 0.180 1,000 
02:29:36 PM 0.175 15,100 
02:14:46 PM 0.180 6,000


----------



## nahman (15 October 2007)

reason: limit hit, signals insititutional investors, announcement coming very soon.  (may not necessarily be correct but its a trend you find on some stocks)
if you havent noticed GDN is extremely manipulated.

03:59:21 PM 0.175 32,000 
03:59:11 PM 0.175 20,000 
03:58:32 PM 0.175 120,000 
03:58:00 PM 0.175 28,000 
03:58:00 PM 0.175 7,000 
03:37:02 PM 0.180 200 
03:32:48 PM 0.175 37,000 
03:32:48 PM 0.175 38,000 
03:22:45 PM 0.175 57,000 
03:18:58 PM 0.180 500


----------



## renmc (15 October 2007)

Hi guys

I feel your pain. I had 50k in this at .245, iIgot out at a 4k loss as this a frustrating dog. I would be down 16k today if I were still in. 

I bought into irl with the money and im up already. I bought 168000 irl at .25 and for this I will receive 1 for 1 share at .20 and a free extra attaching option at .20, so 336000 shares at .20 and its price has remained .25 even after the rights issue closed.

I was always told to never realise loss but if you have another sure thing I think it is wise. I could not sleep with GDN as it offers little or no hope for the future. I bought it just before they closed paradox basin 1. happy as larry to be out as they are hopeless, I called their office many times and they never replied. Hope it goes up for you guys, if it breaks even, run.


----------



## DAZT49 (16 October 2007)

I sent another email to Marie McGann of BLM, asking for an update on the Para 2 application, ...
"Hello Marie,
I sent you an email on 28th Sept regarding this application
43-019-31556-00-00
GOLDEN EAGLE EXPLORATION, LLC
PARADOX BASIN 2
Oil Well
New Permit (Not yet approved or drilled)
to which you replied (see below)
I wonder If you can futher update me on the application, as it has been
approved by the Utah Division of OIl, Gas and Mining.
http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/scan_files.cfm?fileno=4301931556
Thanks"

Her reply????
"The BLM has still not received a drilling permit application for the
Paradox Basin #2 location."
What IS going on
I have forwarded this email to GDN this morning


----------



## Sean K (16 October 2007)

Hope you long termers are managing here.

Looks like another good example of why having a sell plan in place using price action is warranted...

Good luck.


----------



## Bushrat (16 October 2007)

Management treating the shareholders like mushrooms, keep them in the dark and feed them BS...going to be an interesting AGM.


----------



## DAZT49 (16 October 2007)

kennas, bushy,
The chart looks sick but squeezing bolly bands and oversold RSI are signs of a breakout to the upside IMO
The long downtrend reflects the frustration of punters for the lack of frequent, accurate and honest reports.
I still think the potential for finding commercial quantities of gas in the Paradox area is good, I also think there will be upside (be it short term) for people who take up the u spinoff entitlements. 
The other side of the equation is management and the poor record they have for keeping the people who have financed the project (us) informed.
Bushy, I cant see that things will change at the AGM, unless there are some large holders who can flex some muscle, they can fend off the small punters.
And in the Australian way, apathy will keep the "most indignant posters" away.


----------



## sharemadder (16 October 2007)

Hi Datz49

Yep, the BLM still waiting for the application although they do know about the well as they replied to the State Utah Oil and Gas dudes on the 19th Sept saying they do not have any objections (at this stage) to the well.

Once they get the application they will do a site visit and check all the API details supplied to the State Division and rubber stamp it.  IMO of course.

BUT what we want is the GDN Directors to get of their butts and submit the application.  Another thing though we must remember the API is already 1/2 way there through the Approval process and it was expedited very quickly (6 days) through the State Division.  My money is once they submit it to the BLM same deal will happen.

In the mean time SP goes down and another buying opportunity presents itself as we know the IPO for the U JV will arrive soon and POL are presently doing JV stuff on the Iron Ore development.  It also goes to say that punters will flock to GDN once Para#2 spuds.

Still crappy management style who have allowed serious decay of SP through mismanagement.

Cheers


----------



## DAZT49 (16 October 2007)

sharemadder,
I just can't believe they wouldn't have the application in
I have defended management in the past, but they are starting to get on my goat:


----------



## DAZT49 (16 October 2007)

I recieved this email, in answer to my email to GDN this am..
Dear........
I'm not sure what your motives are, but Marie McGann IS assessing our permit application.  Unlike Australia, the BLM is able to be sued by the public. Any undue interest by members of the public might encourage excessive diligence by the BLM and the possibility that the permit may go to a public hearing, adding time to the permiting process. 

If this is your objective then you will already know this, so I apologise for teaching you to suck eggs.

regards,

John Hasleby
Vice President - Exploration

Its great to see the attitude that the VP has to his shareholders, the ones paying for the project, and his renumeration.


----------



## sharemadder (16 October 2007)

ouch, JH is angry LOL.  

*If JH and RS did their job properly they wouldnt have shareholders chasing information for themselves.*

Hell, the shareholders knew the APD for Para#2 was approved by the State Division a week before the company even announced it.

*A tip for JH and RS in case they are reading this - more information and make that detailed!*

JH grow up.

Datz49, I guess your not on the Xmas list now.


----------



## DAZT49 (16 October 2007)

Maddy,
My blood has been boiling all day.
I did reply to his email, and managed, just, to keep my temper.
Dont think I will recieve a reply to that one.


----------



## DAZT49 (16 October 2007)

He said 
"Marie McGann IS assessing our permit application"
Well..
Her reply to me landed in my inbox at 7.44am this morning, why would she lie.
If the information was confidential, surely she would have said that.


----------



## sharemadder (16 October 2007)

Datz49

I would say that Marie has been in contact with JH and discussed why she is getting so many emails lately from GDN shareholders.  Hence why JH has emailed you with a nasty reply and probably regurgitating what Marie said about "...public hearing...".  Sounds like Marie may of said, "stop these annoying f$ckers contacting me or there will be serious delays..."

Anyway no stress its in hand.  

GDN need to keep us regularly updated even if its just Permit progressing etc.  Not make us wait a month without telling anyone what the progress is so we then have to start to do our own searching for information.

If shareholders are pissing JH off well he should start to share a little more regularly.

Cheers


----------



## DAZT49 (16 October 2007)

I dont know whether to post my reply to him, it was quite reasonable as I didnt want to be too negative.
At the end I said..
I do, constructively, suggest that the announcements to the shareholders be more frequent and contain more information than currently occurs.
Yours faithfully
..
P.S. I choose to ignore your "suck eggs" comment.


----------



## Jight (17 October 2007)

Hi,
First time post so be easy on me
My question is that is it worth waiting?
I jumped in at 0.220 and it has been for at least 2 weeks, nothing but decline.
I know most of people here is waiting for the permit and some positive ann to come out.
Even if it does, how much revenue are we expecting does anyone know?
I made some profit on TLM last couple of days, but getting drag down by GDN as well 
anyone really positive about the stock?
cheers
J'


----------



## DAZT49 (18 October 2007)

jight,
You must have done some research before you bought in.
If you go back read a few months worth of posts on ASF I think you will get a feel for where we are at.
Am I positive about the stock? Yes.


----------



## sharemadder (21 October 2007)

Datz49

Heard anymore from JH regards your response to his email?

GDN SP now plunges until we get either Paradox well #2 is a goer or the U JV ann.  Maybe 10c bottom before bounces.  Good level to put a buy in.

Waiting again 

Cheers


----------



## new_trader1984 (21 October 2007)

Hi, has anyone looked at the top 20 holders for gdn between 2006 and 2007?

I was looking at the 3 different top 20 lists which has been released since march 2006. The latest top 20 which was in the annual report released last month there is 12 new holders including the top share holder which is comsec nominees who hold 5,882,720 shares.

ANZ nominees which were listed in a 2006 top 20 is in 3rd on the top 20 and have added another 2,899,141 shares to their holding to have a total of 3,841,239 shares. Silverstone investments were shareholders last year they had 936,667 shares and 666,667 options which if converted all options they would have 1603334 shares but by the 2007 top 20 they have 1,345,334 shares which means they sold 258000 shares or options but is still an increase in holdings of 408667 shares. They also currently still hold 2,000,000 more unlisted options too.

Having 12 new top 20 holders and 2 that increased their share holdings has to offer some confidence in the projects since all of those new top 20 holders have bought in between august 2006 and august 2007. 

It would be good to know when some of these top 20 shareholders did buy the shares since it wasnt until may that the share price was under 50 cents in 2007 and a few days from october 2006 to January 2007 that it also went below 50 cents for a couple of days.

If any of those 12 new large holders bought between october and may they would have had to pay atleast twice the current share price. 

Im not sure if any of those new holders have a good track record of investments, i have been told that they do seem to know what they are doing with their investments but then everyone can make a wrong choice too every so often.

Just thought to share my thoughts on the new top 20.

Dazt49, You seem to get replies from john, he hasnt responded to my emails over the last 12 months have you had any luck finding out if they plan to do any testing of the oil column? 

Thanks.


----------



## sharemadder (21 October 2007)

NT1984 yeah checked that out when the annual report came out.  Top 20 looks mighty strong.  We need Para#2 to spud soon to give the SP a rally.


----------



## DAZT49 (22 October 2007)

Sharmadder, nt,
No havent heard from JH since he told me to suck eggs.
IMO (lol) we SHOULD get some kind of an ann this week.
Marie Mcgann said 30 days minimum, which passed on the 15th Oct, also 
we are lead to believe that there were no objections to the the application.
Cant see that the SP will slip to 10c if they get out an ann out, even if the ann only tells us that the aplicationj has been fully approved, it should get back to the low 20's and maybe higher if they can give a specific spud date
...........of course this is just a recurring dream I have.
Good luck this week, DJI down 360 pts...Aussie market will hopefully put up a battle, but I can see it having a big drop today.


----------



## sharemadder (23 October 2007)

Datz49

The GDN threads getting very quiet.

What can I say but :swear: 

We await the BLM final authority for well approval.  At least they said they didnt have any objections during the State process of approval.

Just waiting some more...

Cheers


----------



## edorion (23 October 2007)

long time reader... no time poster.
nice little move up now.
seller thinning out? or is something on the way?

also, is there any way of finding out the mean value of stocks ie: how many were purchased and still hold when the value was still 20+? I only ask as with GDN's drop bellow 20 you would think that people are taking losses... and a fairly large one considering the volumes.


----------



## sharemadder (23 October 2007)

Hi edorion

I think BLM have given final approvals in support of their letter to the State Utah Oil and Gas Division regards Para#2 well approval.

In GDN fashion though probably wont hear anything about it for ages LOL

Here's hoping anyway we get news soon.

Cheers


----------



## nahman (23 October 2007)

sharemadder said:


> Hi edorion
> 
> I think BLM have given final approvals in support of their letter to the State Utah Oil and Gas Division regards Para#2 well approval.
> 
> ...




Seems like something is definitely up large volume higher price than as of the late few weeks


----------



## diddy (23 October 2007)

Hey guys curious to what u guys think of this rally

Is this someone manipulating the share hold and by buying in big volume trades and creating a buying rally, then selling off the shares in smaller quantities for profit as ppl rally on expectation
or
Some information is unofficially floating around and we r none the wiser

Also u had those trades of like 100 shares per trade earlier in the week trying to keep the share price steady


----------



## nahman (23 October 2007)

diddy said:


> Hey guys curious to what u guys think of this rally
> 
> Is this someone manipulating the share hold and by buying in big volume trades and creating a buying rally, then selling off the shares in smaller quantities for profit as ppl rally on expectation
> or
> ...




Most likely both, there has been some funny trades as well:

Buyers
Number Quantity Price 
5          999994 0.190 
7          391145 0.185 
6          419354 0.180 
9          695000 0.175 

 Sellers
Price Quantity Number 
0.195 100000 1 
0.200 508784 16 
0.205 336284 10 

   Last 10 Trades
Time Price Quantity 
02:25:18 PM 0.190 3 
02:25:18 PM 0.195 100,000 
02:25:14 PM 0.190 2 
02:25:09 PM 0.190 1 
02:23:56 PM 0.195 4,709 
02:23:56 PM 0.195 45,291 
02:23:39 PM 0.195 10,000 
02:22:26 PM 0.195 44,709 
02:22:26 PM 0.195 50,000 
02:22:26 PM 0.195 15,000

Bollinger bands been slightly tightening too, there is a possible breakout providing theres some worthy news, however might be too early to speculate.
Almost 10 million in volume as well. 
Exciting stuff!!


----------



## DAZT49 (23 October 2007)

Bloody hell, Ive been siiting here for days/weeks waiting for something to happen and when i go out for 2 hours I miss everything
About 8 mill sales after 1 pm.
Ann due??? I doubt it, given the p*ss poor record.


----------



## edorion (24 October 2007)

my idea of the up day yesterday may have something to do with people trading cycles as the spike last year started at the same date as yesterdays mini jump. 

thoughts? (it's all guess work but nice coincidence)


----------



## diddy (24 October 2007)

nah donno about that 1, i no ppl go on patterns but thats a pattern of no substance 
i was more looking at the book value of the company on commsec, i was gonna buy again when it reached 15.5c i missed out sadly. BV was like .85 or .9 or something to memory @ 16.5c, was looking fairly safe for investment as it would have support if it fell any lower, then to add to that a pending announcement of some sort. 

but i donno


----------



## DAZT49 (24 October 2007)

The spike 12 months ago was due to a very upbeat ann on 24/10/07
which included this..
"The well is drilling on towards its main targets, which have been interpreted from seismic
data to have the potential to contain up to 3 TCF of gas, the Barker Creek
(estimated depth to base 12,730 feet) and the Leadville Limestone (estimated depth
of top 13,700 feet). The Leadville Limestone hosts the Lisbon Oil & Gas Field, 80 km to
the south. The Lisbon Field has produced 54 million barrels of oil and 750 BCF of gas, at
current prices equivalent to a gross income of A$10 billion.
It is anticipated that the well will reach the primary objective Leadville Limestone within 7 days"
THATS why it took off.
Don't think we will get such an ann today, not until Para 2 hits the same zones ..with no water.


----------



## kelvin8r (24 October 2007)

Hey Datz, how are ya. I can see alot of people getting frustrated on this one, me included! haha

I've seen BLM come up a few times, can you tell me what this means?

Cheers mate


----------



## DAZT49 (24 October 2007)

k8Tor,
BLM is Bureau of Land and Mines. We are waiting for their approval for Para 2.
If you go back thru some of sharemadder posts you will be able to pick up on it.


----------



## kelvin8r (24 October 2007)

Yeah have been watching this thread for a few months now, brought a small amount back in aug. been very interested in what you guys have had to say. Not very many happy campers atm. what are your thoughts on the near future?


----------



## DAZT49 (24 October 2007)

fridgy,
I am still very upbeat on the project in the Paradox basin.
That basis ann of 24/10/06 still holds IMO.
If only they can get Para 2 spudded, it would ease a lot of angst that punters have. A couple of years down the track GDN will be big.
In regard to management, I have defended them on numerous occasions, but
I recently had John Hasleby call me an "eggsucker" so I have swung 180 deg.
They are poor managers they have little business acumen they have no PR skills and they treat thier shareholders with disdain.
I do hope they get their comeupence at the AGM.


----------



## Jight (29 October 2007)

Pretty quiet here last couple of days...
anythoughts
on the recent SP movements?
I realized buyer is catching up abit, but still not much move on the SP 
since last week jumped to 19.5 cents and back down to 18 today...


----------



## DAZT49 (29 October 2007)

Its quiet because we are waiting,waiting,waiting. 
Sp had support at .185c over the last 3-4 days but gone under that now, next support at .175c, could dip to .16c IMO


----------



## bigdog (30 October 2007)

ASX ANN for Annual Accounts

Would you believe announcement being made - they must have been all working on the annual accounts!!!

No dates for second well!!!

30/10/2007	 	Annual Report to shareholders (50 pages)
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00776716

Chairman's address:

Dear Shareholder,
This has been another eventful year for Golden State Resources Limited. The Company completed its first wildcat well on Pennsylvanian and Mississippian targets in the Paradox Basin of Utah. Gas shows were intersected over a thick sequence, indicative of the great prospectivity of the part of the Paradox Basin tested. This first well has been shut-in pending analysis of the most optimum mode and timetable for production, which may include waiting for the completion of the second well planned for the prospect. Permitting is proceeding on this second follow-up well, which will be sited with the benefit of the results from Paradox Basin #1.

During the year the Company took the opportunity to leverage its Thompson, Utah uranium assets into a venture with a local uranium miner, with the resulting potential to provide a faster path to uranium production.

Our partner, a Utah-based uranium miner and mining contractor, brings mining expertise and mining leases with historical high-grade uranium ore bodies (non-JORC compliant) that we hope will become the core for early development and production in Utah.

The new venture will be subject to a spin-off of the combined assets into White Canyon Uranium Limited.

It is intended that, following the previously announced 1:4 entitlement issue to Golden State shareholders and a public offer, the Company will be listed on the ASX.

Golden State and our Utah partner will each retain 25% equity in the new entity.

The combination of large uranium mineralized exploration acreage, local knowledge, demonstrated exploration and mining expertise, an established uranium mining jurisdiction and proximity to permitted uranium treatment mills will give White Canyon Uranium an early opportunity to establish production and aggressively increase its resource base.

Work also continued on the Company’s 100% owned gold properties in WA’s Eastern Goldfields, where encouraging results were received from the Leonora and Laverton Gold Projects. Established gold mineralized zones were infilled at Leonora and new zones were defined at Laverton. Exploration will be accelerated during the coming year to take advantage of the resurgent
gold price.


----------



## DAZT49 (30 October 2007)

Another cut and paste job, from origional prospectus.
Guess its just legal requirement for ASX.
Maybe now this is out of the way we may get a more thorough update (Am I kidding !!)
Notice in the ann for the AGM that only Richard Sciano is up for re-election.


----------



## bigdog (1 November 2007)

TWO ASX ANNs Oct 31

*31/10/2007	Quarterly Cashflow Report*
*Total: cash at end of quarter (item 1.22) $3,868,000*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00778127

*31/10/2007	Quarterly Activities Report*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00778217

*For the Three Months ended 30 September 2007*

*HIGHLIGHTS*

*Golden Eagle Oil & Gas Prospect, USA*
• Testing of Paradox Basin #1 has been completed. The well is shut‐in pending production.

*• USA Uranium Project*
• July 2007 drilling confirmed the location and grade of the Daneros ore body, previously defined by historical drilling, and upgraded and increased the area of the higher grade zones defined by that drilling.

• A prospectus for the spin‐off of the Company’s uranium assets is finalised and awaiting clearance by the ASX on the use of historical “reserve” estimates. Golden State shareholders have a 1 for 4 priority entitlement to subscribe for shares in the capital raising for the new company.

*GOLDEN EAGLE PROSPECT ‐ ONSHORE OIL & GAS, UTAH, USA*
• During the quarter the current phase of completion operations on the Paradox Basin #1 well, which reached total depth of 16,471 feet (5,020m) during the previous quarter, was concluded at the Golden Eagle Oil & Gas Prospect in Grand County, Utah.

*Intervals tested since the last quarterly report were:*

Akah interval 
• Following fracing, the Akah interval from 10,815’ and 10,850’ flowed water, and was abandoned.

Upper Ismay interval:
• Following a successful slickwater frac of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’– 9760’, totalling 35 feet a flow test was conducted. At completion of a 72 hour test, gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) through a 28/64” choke with water produced at 2 bbl/hr (barrels per hour).

Well Shut‐in
• The well was completed for production and shut‐in.
• Gauges were set in the well prior to shut‐in and later retrieved. The Company is assessing the economics of the well, in particular whether production is independent of, or conditional on the next well, Paradox Basin #2.

Paradox Basin #2
• The confirmation of potential gas production from this wildcat well is a good result for the Company. Permitting for the pipeline connector and for the second, follow‐up well to Paradox Basin #1 is proceeding. Preparation continues for the commencement of the second earning well, Paradox Basin #2, to be drilled on a site one mile (1.6 km) from the current well. A timetable for this second well will be announced once permits are granted by the issuing authority.


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## DAZT49 (1 November 2007)

Nothing new in the ann, apart from the fact that they have burnt about $5mill in the last quarter..where did that go???Does that mean Para 1 cost $28 mill??
At that burn rate the company is gunna be bust about half way thru Jan 2008.
I am close to getting out of GDN, only down $61k


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## new_trader1984 (1 November 2007)

hi dazt49,

One part in the quarterly report that is new is the prospectus is completed and waiting for asx to allow the historical resource to be allowed in the prospectus report.

Could the money raised from the new company help towards the drilling for gdn's second well?

its been over 40 days since the state government gave approval for the second well not sure why its taking so long for the federal approval.


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## DAZT49 (1 November 2007)

new trader,
Not quite new, in the ann of 28th Sept..
Uranium IPO Update
The release of final details, including timetable, of the spin-off of the Company’s uranium assets
has been delayed awaiting:
1. Execution of formal agreements with the vendors. The formal agreements replace the
Memorandum of Agreement originally executed with the vendors. Delays occurred
pending resolution of US taxation issues for the vendors.
2. Lodging an application for a waiver with the Australian Stock Exchange to use historical
reserves and exploration data in the prospectus to be issued in conjunction with theentitlement issue to Golden State shareholders.
The formal agreements have now been executed. It is expected that any further issues will be
resolved shortly. A further announcement will be made upon resolution of ASX requirements


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## diddy (1 November 2007)

hmmm 5.5 mil on exploration 
but i would presume that is not just golden eagle project, but a large amount went to the Uranium drilling programme but then again im not sure how old the research is to that program and what additional drill work has been added to the already existing historical data.
i would assume admin costs r gonna increase next 1/4


----------



## olenkaa (5 November 2007)

what is the future for GDN? is it a long term stock? I personally believe it is...
Thank you 

Bought at $0.245...


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## Sean K (5 November 2007)

olenkaa said:


> what is the future for GDN? is it a long term stock? I personally believe it is...
> Thank you
> 
> Bought at $0.245...



Why do you believe it's a long term stock olenkaa? Why did you buy it? You're sitting on a bit of a paper loss at the moment, why hold? Would be nice to hear your perspective. Cheers.


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## DAZT49 (5 November 2007)

olenkaa,
Good luck with your "speccy" investment.
In spite of the first wildcat well not producing the result we all hoped for, it did have sufficient info to suggest other wells may be able to tap into the
huge 3 TCF potential resource (See geologists report in origional prospectus)
The next well (Paradox 2)is said to updip and better sited for actual production.
That potential resource is why I still hold.
We dont have sufficient information on the uranium spinoff to make a judgement on its potential to be commercial at this stage, we can only go by what has been announced already and ,it seems, it will be viable.
The reticents of the GDN directors to give us this information, along with plans for Para1 and subsequent permit approval and spud date information for Para 2 is very frustrating for holders, long and short term.
I dont like the management of GDN, they have proven themselves to be "amatuerish" at best and downright dishonest at worst.


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## hoppielimp (5 November 2007)

Hi Olenkaa, Hi Kennas,

Agree with Dazt, in that this is a speccy and always has been. The find on their wildcat is somewhat of a bonus, whether it is deemed commercial or not I guess many shareholders are still awaiting the results of the shut-in which were supposed tbe known early sept (although no mention which year - sorry a few of us have become cynical about management).

As Dazt said Para 2 maybe more fruitful given that Para 1 has given some good indicators of where the gas could have migrated to.  My thinking of GDN is that the gas is there, however this area is known for low porosity levels (I believe its about 5%), which means ultimately, if the gas is down there, they are going to have to drill lots of holes or do some creative horizontal drilling (which can be done) to extract it at a reasonable rate.

Longterm ?  Yes I hold and have been holding, not so much on current findings, just a belief that there is something down there given the region and it will come to fruition at some point.  As explorers there is no progression that you can follow so I am a longterm holder just due to the nature of exploring.

Upside ?  If it is there, many projections were done at about US$4/mcf of gas...which required around 400 bcf tbe commercial.  Gas is running close to US$8/mcf so I guess half the find is required.

The U spinoff I guess is another bonus....with much of the worlds Uranium mines either seriously delayed or incapacitated by some natural event, the fact that their JV partner is already mining in the region would presumambly mean that the ability to get up n running is much greater given that there is someone who knows what they are doing already, with a potential destination for the U mined.

Am I frustrated...yes...but maybe this is the one worth waiting for....


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## DAZT49 (6 November 2007)

hop,
If you check out the Anylists Report by CK Locke in June 06 (On GDN website)
you will see that they thought they needed 50BCF to be commercialwith a midrange target of 440 BCF and potential upside of 3 TCF.
From the reort..........
"GDN anticipates the prospect may hold up
to 3 TCF of gas equivalent with a mid-target
of approximately 440 BCF plus liquids with
an assessed probability of success set at
over 19.5% by the company’s geologists.
With GDN’s equity of 83.3% in the Golden
Eagle prospect; GDN believes the company
can potentially offer great leverage of
success. A mid-case potential discovery of
440 BCF of gas would equate to a
significant move to GDN’s share price on
the ASX.
A minimum case of 50BCF currently is
potentially economic. Even based on this
alone it technically values the GDN share
price at $1.00 to $1.50."
Now that is at 2006 gas prices from memory it was below $4.
the current Henry Hub Oct average price is US$7.18 (this morning 7.15am EST)
http://www.oilnergy.com/1gnymex.htm
As I said in my last post..This is why I hold.


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## hoppielimp (6 November 2007)

Hi Dazt,

Yes you are correct...50 bcf to potentially be commercial.  Sorry...what I read and what I type seem not to match these days.

Gas price of close to USD8/mcf was a futures price....I think current December price is USD 7.99/mcf..but the price is only as good as when the wells start producing! ... but at least its a few dollars more than the original gas price that was used at the beginning of this venture.

So if it holds, then maybe only 25 bcf to prove up 

Oh well wait and see...and wait abit more...maybe...

Anyone going to go chew some management ass in Perth at the agm ?


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## Rob 17 (7 November 2007)

Ive held this stock for six months now. Got it in the mid 20's. Thought of selling a million times but am holding off. Its the type of stock that can take off in just one day.

When we finally get parra 2 approved it should draw some much needed attention to the stock.

As a shareholder i made contact with them once regarding some concerns and got no where. I feel they are frustrated just like us shareholders.

Waiting Waiting 
DYOR


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## Sean K (7 November 2007)

Rob 17 said:


> Its the type of stock that can take off in just one day.



It's the type of stock that can tank in just one day too. 

Please stick to providing balanced, objective, factual information in the posts, thanks.


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## DAZT49 (7 November 2007)

Kennas,
God you are pedantic.
Check out the last 20 posts, all pretty much on subject and relevant.
You pick one line from rob 17 's post and wield the big stick.
This thread is going ok, loosen up.


----------



## sharemadder (7 November 2007)

Hi Datz

Well we are all still waiting for the BLM approval  and the IPO.

Havent said much lately as very little to say until GDN get cracking.

I cant make the AGM as I am away working.  Pity because thats one AGM I would like to be at, not to berate the Directors but to ask questions and listen to what direction they plan to go with the Paradox leases.

Cheers


----------



## shanty (7 November 2007)

Hi Daz, appreciated your last comment but have a minor bone to pick. Why did you support my getting stepped on by tcf re Johnston Range? If you two read the 2007 report... Anyway I checked this out with Lion Ore when there was that Aussie kefuffle a few months back and was assured that nothing had changed. Furthermore GDN say they're spending money there. Comment please.
Re Hoppie's question, are you going to the agm? I have a bunch of potential proxies if you would like to avail yourself of them. I sure would appreciate getting to know actually what occurs at this coming agm. I did try to find out what happened at the last one, no luck, but I am sure there was an 'oddity'. Water under the bridge.
I should say that I have received a couple of responsible and polite email responses from JH over the last year so I am by no means totally antagonistic towards our management, it's like 'they' say "they're no where near as bad as some but they could do better"
Let's be fair, that %18 probability referred to by Lock Stock and whatever has got to be better now because of the knowledge gained from #1(imo!). THe Uranium JV has the potential (imo!!), looking at the participants, to be a blinder. As 'they' say "courage mon brave" it'll all come right in the end. They'll probably carve that on my box!


----------



## shanty (7 November 2007)

Hi Mad, concur with your comments re agm. Have proxies to add a little weight to some one 'we can trust' to ask the right questions and , hopefully provide us with  some factual feedback.


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## DAZT49 (7 November 2007)

shanty,
Can you give the post number re tcf and johnston range? I am old and decrepit and my memory is shot.
I havent decided on attending the AGM, cant justify the cost of aifares accomadation,beer..to my missus, but I may go, as I have another AGM I can attend on the friday.
I do have my proxy form, so If I dont go, my votes will still count.


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## shanty (7 November 2007)

Hi Daz, you don't wanna know how old I am!
tcf post 2253618
daz       2253901
don't strain yourself, water under the bridge, I'm listening to a lovely lady , jessi colter, so I'm at peace with the world. For the moment anyway! Cheers.


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## shanty (12 November 2007)

Trust y'all had a good weekend?
A little assistance re Iron Ore etc.
Please read page 5 of GDN 2007 Annual Report, also:
Polaris Metals September 2007 quarter activities report.
Have a nice day!


----------



## sharemadder (13 November 2007)

Hi all

GDN up a little today 15% 

Consistent steady buys

Hmmm wonder if someone taking punt on events soon to be released 

Anyway back to waiting on this one.

Cheers


----------



## new_trader1984 (13 November 2007)

Hi,

I just had a question thought to ask while there is no news for gdn lately.

If a company such as delta petroleum that is worth over 1 billion dollars and has plans to spend more than 100 million in the next 12 months and put in place their own pipeline that crosses gdn's land was to want to acquire 50% of the projects gdn has on all 25000+ acres not just the 5000 acres for the paradox basin wells currently, would the value of the company increase by much?

What are some thoughts of what kind of value would be placed on gdn if delta wanted to be a partner with gdn on their projects in utah?

Just thought to ask the question since if you look at deltas presentations gdns land is pretty much in the middle of the 5 projects delta has in utah currently. It was also deltas drilling company that drilled the first well too.


----------



## diddy (13 November 2007)

hmmm it refuses 2 hit that 15.5 cents mark ... does any1 have 2days trade quantity figures ... was there any funny business and signs of market manipulation?


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## sharemadder (13 November 2007)

NT1984

And what a good thought that is.  If it was to ever come to fruitition then with out a doubt GDN SP would increase sharply because a cashed up and experienced explorer could really make something really happen, dare I say it, quickly, and professionally with GDN and their respective leases.

I still say GDN has huge upside on the leases they have but whilst they go it alone there will always be huge risk and costs drilling in Utah.  Makes sense they would or could partner up.  Maybe they are just doing something like that similar to their Utah U leases.

Here's hoping a update comes before the AGM.

Cheers


----------



## new_trader1984 (14 November 2007)

Hi sharemadder,

Any thoughts on the trading the last 3 days, low of 16 cents monday on 1 million shares today finished at 19 cents on 2.5 million shares with 376000 shares being bought after 4pm at 19 cents. I would have thought with no news the share price might of kept falling.


----------



## sharemadder (15 November 2007)

NT1984 

Strange trading again hey.

Could be the punters at work but there is also a number of things in the wind such as:

1. The BLM have approved the Federal Permit side of things (as we know they had no objections to it when it went through the State division).

2. The ASX have relented on the JORC compliance waiver (doubt it) on the prospectus for the new Uranium JV with USA miner White Canyon LLC.

3. There is a sniff of a capital raising coming and the Directors (or who ever) wants to get a better placement price.

4. They have found that Para#1 is good to go for piping up (doubt it as 340mcfd is rather small for justifying the pipe yet).

5. A major such as Delta is interested in becoming the farmin operator for the GDN leases (as we know Delta surround GDN and plan to blitz the area with drilling over next 24 month period - 21 atm planned wells).

Just waiting for Directors to ann something before agm which I believe they will most likely do.  Guessing game atm.  They certainly not talking to any shareholders at all that I know off anyway.

Me I just sitting tight on my shares and willing to hold through, no drama there with that.

Cheers


----------



## new_trader1984 (17 November 2007)

Hi, the last few days i have been looking at delta petroleum to see what is happening with the projects in paradox basin which is 20-80 kms from gdn's wells. They have drilled 2 completed wells in greentown project with several others being drilled currently, the first 2 wells were 7.5 miles apart from each other but both intersected same formations gas intervals and pressures which on both wells caused collapsed casings. The same happened with the first well on the salt valley project which is 20km's from gdn. Both projects are now considered development projects not exploration projects. From what i have read the pressures on the 3 wells over the 2 projects all had very high pressures of around 8000psi which the wells were only designed for pressure upto 5000psi. 

http://finance.google.com/group/google.finance.658574/browse_thread/thread/1a5f4cc4204bf30e

The article above talks about the 8000psi pressure that was encountered and caused the casing problems for the greentown wells. In that message in the above link they say 2tcf could easily be reached at greentown.

That may not have anything specifically to do with gdn but considering it happened at the salt valley project too which is close to gdn it is possible that gdn might also experience similar pressures in better placed wells. If you go about 80-100kms south of where gdn is drilling the lisbon wells are still producing at 5-6mmcf per day after 40 years of production. So with long production below gdn's land and high pressures not far above gdn's land could suggest that in other parts of gdns 26000 acres there is a good chance of high pressure to produce good daily flow rates.

With the greentown project being 7.5 miles apart between the first 2 discovery wells it shows that the gas and oil is over a large area and not contained in one small area which is why i think they are confident of greentown being a large gas find.

http://www.investorvillage.com/smbd.asp?mb=969&mn=5464&pt=msg&mid=1367355

The link above was a post on investor village for delta petroleum it might be of interest to some.

http://www.investorvillage.com/smbd.asp?mb=969&mn=5106&pt=msg&mid=1263209  This link mentions greentown project could have 300 or more wells drilled on it.

The high pressures in the wells to cause casing problems i thought was interesting and worth sharing.

This is something i found posted on the investor village forum back in 2006 when everything was going well for gdn.

I agree that DPTR is not only the big play in the Paradox, it's the big play in the entire USA right now. I do hope though that DPTR, should Golden Eagle prove to be another big play, gets into that as well. It's in both DPTR and GSRCF's interest. 

I still think there is a good chance of this happening but maybe larger companies are waiting for gdn to drill the 2nd well and see how that goes before trying to get involved with gdn's 26000 acres. Deltas drilling company was the one that drilled the first well and possibly drilling the 2nd well so that also may benefit delta in decide whether to get involved or not. Not sure of privacy issues regarding the well though for gdn since its on the utah oil and gas website where the details go so maybe the drillers dont have to keep the info found from drilling quiet but not sure. 

Just thought some of the links might be of interest to some considering the position of gdns land to deltas 5 projects and the lisbon wells.


----------



## sharemadder (17 November 2007)

NT1984

*First off all a great post with some excellent information and detail.*

Second I still believe GDN hold some great land in the Paradox Basin which holds great potential.  Para#1 is a producer, not much but still can flow gas.  It as we know also hit a 6mtr oil column that was not tested.

My bet is they will test the oil shows further in the next well updip on Para#2.  Also it is probably a good given that the next well will hit a lot more gas as it is in the same structure 1.6km's away and 1000 ft shallower.

If they hit something sizable I'm sure Delta may (I say may) opt to offer a farmin which would be great for GDN.  Interesting hey that Delta's proposed pipeline will run right through GDN's leases.  Very convenient for GDN to connect to.

Cheers


----------



## new_trader1984 (17 November 2007)

hi sharemadder,

At the moment i think gdn only have the golden eagle project land which is about 5000 acres but once the 2nd well is completed then gdn will have all 26000 acres, i think delta would wait until they could do a deal to have access to all the land gdn has.

Im not sure how much further north towards the salt valley project gdn's land goes but would be interesting to see if the land we have is closer to the salt valley project aswell as a large amount of the acerage further south.

The oil columns by gdn's first well and the salt valley project does seem to be at similar depths and with delta thinking all 7100 acres of the salt valley project will contain oil it might continue over into gdns land which might be another reason for them to want to get involved. By the delta website over 200 acres they can prove up 1 million barrels of oil i think. They also say they believe the full 7100 acres could contain oil, which maybe the drilling by gdn may have offered confidence in thinking oil could cover the 7100 acres they have in salt valley and continue into our area. Thats how i am looking at the oil column though.

Theres some 3d seismic being done in the salt valley area i think i read last night. Maybe that might show how large an area the oil might cover.

If delta does become partners with gdn they might be able to start looking at other structures over the 26000 acres since then the companies would have the money to start drilling at a faster pace using more than one rig. 

gdn has 26000 acres so thats about 100kms square, that would go all the way down to the lisbon wells about 100kms away that have been producing for 40 years. Unless the first well was on the edge of the land gdn has its likely to go right up to where tidewater and deltas acerage is too?

Would be good if gdn starts to share some news since the land they have is in a really good area for the companies that are drilling in the same area to be spending so much money.


----------



## sharemadder (19 November 2007)

NT1984

I didn't realize they only had 5000 acres with the other 21000 acres dependent on the completion of the second well. I know that eclipse had a 16.67% backin if GDN completed 2 wells, was the acreage thing tied to that?

In any case if Delta were to get involved as well then GDN's share could drop to about 41.67% (100% - 16.67% / 2) depending on Delta's contractual demands. 

I suppose though if Delta was on board as the Operator the wealth of experience, knowledge, rig ownership etc would be more than adequate for compensation.

Man I wish they would give us an update soon.

Cheers


----------



## new_trader1984 (19 November 2007)

Hi,

The 2nd of June 2005 farm in agreement announcement mentions they need to drill 2 test wells and repay back sunk costs to obtain the 26000 acres of land. Not sure if that has changed after the costs involved with the first well though. It was only 1.25 million for each well in sunk costs that had to be paid to recieve the 26000 acres but started with the golden eagle project over the 5000 acres. They might have all the land now though.

The announcement on the 25th of November 2005 talks about the land they have. If you look at the map on the 2nd page of the announcement which shows the leases they have you can see the lease 84159 which could be where the first well was drilled and the 2nd well planned. That leaves the lease 76326 which looks to be close to the salt valley project delta petroleum has made the oil find a development project.

The leases which covers the larger area of the acerage that gdn has 75761 and the other smaller leases below it i think are outside the golden eagle project which allows for more possible discoveries. Especially since further south is moving towards the lisbon wells which have been producing from leadville for a long period of time.

I did read on the investor village forum where someone believes south and to the east in our direction has bester chances of gas and oil compared to the direction royalite has just acquired land to drill which is to the left of the greentown project, doesnt mean they dont have a good chance of finding gas in that direction just that the person believes there is a better chance towards gdn's land atleast thats how i read it. Delta does have 3 more projects further south and to the right of gdn so that might be true what that person suggested.

I think the land and the 16.67% back in for eclipse was on the agreement that gdn drill 2 wells but the costs for the first well since went a lot longer then expected and cost a lot more this might have changed.

If delta was to become partners with gdn over the full 26000 acres there is benefits and negatives to the deal. Depending on if delta got 25 or 50% partnership.

It would reduce gdn's current share so would need to have a bigger find to get to same price as a smaller find would do with 100% ownership. The price of gas has also increased so a 50bcf find isnt necessary now and maybe a 25-30bcf find would result in a similar value.

The benefits of having delta as a partner would mean a large cash flow would be available more rigs to drill at the same time since delta wouldnt take things slow which can be seen by all the wells they have planned to drill and have been drilling recently in the greentown area. They would also have the trucks to transport oil if a pipeline wasnt in place for the oil. They would also be able to start work on other parts of the acerage and find other potential prospects that may contain a large amount of oil and gas. 

Im not sure why gdn waited until mid september to apply for the 2nd well permit and we are now still waiting to be approved by the federal department. Atleast with delta they make sure the applications are done well in advance so nothing prevents them from starting drilling as soon as they are ready to move a rig to the new site. GDN should have applied for the permit back in may and no delays would have happened when finished the first well to start drilling the 2nd well.

The oil column that delta has found if the oil is found on all 7100 acres that would mean the salt valley project could contain upto 35 million barrels of oil. Since they mention that they have proven reserves of 1 million barrels of oil over a 200 acre area. Since this is at the same depth abouts as what gdn's oil column was if its intersected at a 1000 feet shallower on the 2nd well then there could be a connection between gdn's and deltas 2 oil columns maybe. Could be wrong but since at same depth and close by it might mean that the oil find delta has could continue over onto gdn's land?

Theres only 8 trading days before the agm they would want to share some news by then since its been a while between any nws besides the quarterly reports. Today its been 2 months since the state gave approval for the 2nd well would have to be close to being approved by the federal department hopefully.


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## sharemadder (19 November 2007)

NT1984 and Datz

Any you guys attempted to contact GDN lately to see if they will put out a announcement before agm?  Have tried but no replys.

Cheers


----------



## hoppielimp (27 November 2007)

Hmmm, and the AGM draws closer.

I was having a shower this morning and was thinking about Eclipse's right to buy back in 12 months after the completion of the first well, or on completion of the second well.

Now I think GDN haven't gone ahead with production of the first well because the capital expenditure outweighed the current financial status of the company, so better to wait and spend on the 2nd well.

But I'm wondering why everything else is taking sooo long.  Do they want the 12 months to run out so Eclipse has to make a decision to invest and pump capital into GDN giving the company for operating cash ?

or is GDN banking on their current performance and then Eclipse may not exercise their buy in option, and really there is a very real potential for huge earnings so GDN can keep it all to themselves ?

Just wondering about what seems to be a 'go slow'...


----------



## bigdog (28 November 2007)

GDN management are very poor on informing shareholders on what has been or is happening with NO updates since October 11!!!!

Looks like nothing is happening at GDN except the SP continues to fall!!!

Did anyone attend the AGM???

Below are the ASX announcements of recent:

28/11/2007	 	Results of Meeting	
31/10/2007	Quarterly Activities Report	
31/10/2007	Quarterly Cashflow Report	
30/10/2007	 	Annual Report to shareholders	
30/10/2007	 	Notice of Annual General Meeting/Proxy Form	
11/10/2007	Oil and Gas Update	
09/10/2007	 	Date of AGM	
28/09/2007	Uranium IPO Update	
28/09/2007	 	Full Year Statutory Accounts	
26/09/2007	 	Change of Director`s Interest Notice


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## hoppielimp (29 November 2007)

Yes all very frustrating BD.....although reading through the Annual Report (I'm reading it very often to glean some sort of insight or make my own up in absence of any), Net assets are some $34,497,154 which would indicate a Net Asset value of about $.177 per share (undiluted, I think there is another 17 Million unlisted shares //edit share options).

Only reason I can think of why it is trading below this level is opportunity costs.

Maybe good things come to those who wait...and wait...and wait...and then I could be wrong.

and no, I didn't go to the AGM.


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## sharemadder (29 November 2007)

New uranium IPO website up http://www.whitecanyonuranium.com.au/

Apparently full submission made to ASX and now waiting on ASX to approve and list IPO.

Need a company update really to advise status of both the IPO and Para#2.

Waiting...yes waiting.

Checked the Utah website for more information at http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/well_data_lookup.cfm but no update to scanned files since BLM said they at that stage had no objection to the proposed well.

Cheers to long term suffering holders like me


----------



## new_trader1984 (29 November 2007)

hi sharemadder,

yesterday gdn was at 14.5 today went to 16 cents, is it going to be just traders making the price move up and down in small amounts until early next year when gdn starts to do some work?

I am surprised gdn decided they dont need to provide a presentation to shareholders like most other companies seem to be happy to do. GDN really needs a new management team that knows what they are doing.


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## sharemadder (29 November 2007)

NT1984

Yes agree, new management.  They really need a oil and gas engineer of substance to take over GDN assests management in Utah and leave JH for the rest of resources.  JH imo could stay on but RS needs to go.  Wrong man for this industry - no real hands on experience and a classic bull**** artist.

I would love to see a ann on a update of things but not holding breath just me shares.

Any more news on Delta building that pipeline?  Wonder if they have started drilling yet on all those well applications they had approved.

Cheers


----------



## new_trader1984 (29 November 2007)

delta seems to have been drilling 2 more new wells meant to provide update in the 4th quarter on how they go, but delta doesnt provide much infomation on any of the wells they are drilling in paradox basin. Not sure of anything more about the pipeline but i would think they would want to get things moving as quick as possible so they can produce from the wells drilled so far.

They might have an update next week on the greentown project.

I read on the investor village forum petro canada has got some permits in the area near delta petroleum.


----------



## BBand (2 December 2007)

Looks like the calm before the storm. something has to give. - now forming a BB throat on the weekly.
When it does breakout:
Using Fibonacci retracements on the daily chart:
1st target - 0.379
2nd target - 0.548
3rd target - 0.684
4th targert - 0.820
good luck
Peter


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## new_trader1984 (3 December 2007)

hi glowinthedark has posted tonight that the prospectus for whitecanyon is available to download at the website.

GDN holders have until 28th december for their 1:4 entittlement offer then the public has to 28 january for the rest of the shares.


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## Curly Joe (3 December 2007)

Lodged 3 Dec
Record date for GDN holders 12 Dec
Priority offer closes 28th Dec
IPO close 24th Jan 08
Allocation of shares 31st Jan 08
Trading to commence 7th Feb 08
Wasn't it great of JH and RS to give us this info lol
Plenty of info in the prospectus for you techy guys.
The size or the resource sounds small to me 1.9mlbs X $93/lb=$93mill.. that cant be right.


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## new_trader1984 (3 December 2007)

The 1.9 million pounds is the minimum where they say its in excess of that amount, also I think when the amount was worked out it was on higher grades.


On page 11 of the prospectus it has use of funds where gdn is repaid 3.39 million dollars if we currently have 3 million that would provide at least a good starting amount for the 2nd well? So they wont need to get as much funding for the 2nd well with more shares issued.


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## Curly Joe (4 December 2007)

nt,
I think they need $10mill for Para 2, so IMO they will issue new shares.
Whether they will get enough of them sold is another thing.
Curly


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## bigdog (4 December 2007)

ASX ANN 

04/12/2007	 	Lodgement of Uranium IPO Prospectus
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00791257

The Directors of Golden State Resources Limited ("the Company") are pleased to announce that an initial public offer Prospectus has today been lodged with ASIC for White Canyon Uranium Limited.

White Canyon Uranium is currently a partly-owned subsidiary of Golden State Resources. The issue will raise up to $19.5 million, by the issue of up to 78 million shares at a price of 25 cents, to acquire remnant exploration interests and to fund the exploration and development of its US uranium projects.

White Canyon Uranium Limited has a 100% interest in a substantial landholding in the established uranium-productive Colorado Plateau province in southeastern Utah in the United States of America, and holds the right to acquire 100% of additional lands that contain historically defined uranium deposits.

Golden State Resources shareholders have a priority entitlement in the issue, on the basis of 1 White Canyon Uranium share for every 4 Golden State Resources shares registered as at 5 pm on 12 December 2007 ("the Record Date"). Golden State shareholders wishing to acquire additional shares beyond their priority entitlement may subscribe for shares in the public offering under the Prospectus. Members of the public may also subscribe for shares in the public offering under the
Prospectus.

A copy of the Prospectus is attached. An electronic version of the Prospectus is available for download at www.whitecanvonuranium.com.au. The prospectus will be mailed to all Golden State shareholders with holdings registered on the Record Date. Printed copies of the Prospectus will be available from Golden State Resources at its address below.

*Indicative dates are:*
Record Date 12 December 2007
Opening date 14 December 2007
Closing date of Priority Offer 28 December 2007
Closing date of Public Offer 24 January 2008
Anticipated date of Allotment 31 January 2008
Anticipated Listing Date 7 February 2008


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## hoppielimp (4 December 2007)

I wonder why the float is not being underwritten ?

Is it because:

- does the company save money by not having anyone underwrite it ?
- or are institutions just not interested with this management/venture ?
- the management are confident of the likely subscription ?

Everything in the prospectus highlights this is not JORC compliant. Even 1.9 Million is not historical figures, but is made up some historically defined and part 'potential' (693,000 lb) ?

at the end of the day total shares on issue will be about 180-190 million
I'm feeling queasy and diluted already...

Anyone with other thoughts ?


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## new_trader1984 (4 December 2007)

hi, 90 million shares wont be allowed to be sold for a minimum of 2 years which is the 50% held by shumway and gdn. Shumway will have a value of 11,417,500 dollars worth of shares once it is listed. Not an amount someone with as much experience as they have would be throwing away without being confident of the company being successful. He is also the one with the drilling rigs and drillers that are willing to work on the projects. GDN also gets back 3 million which will be a good start to getting some money back for the oil and gas wells.

I dont like the idea that its gdn's directors running the company though but hopefully shumway will have a lot of say in the new company being the operational director.

the 1.9million pounds if they can get that as a minimum jorc compliant and depending on costs involved to get into production should see atleast a decent return on investment. Maybe they are thinking that they will be able to prove up 1.9 million pounds on the 2 smaller projects and with that alone could make the company's share price at 25 cents worth buying into the company before any work starts on the thompsons project which is the biggest project of the 3 and with the most potential for a large resource. They might have spoken to some of the top 20 since they aernt limited to the 1:4 offer since can buy in the public offer in january too and with it being in utah with a partner already producing uranium might offer confidence to larger shareholders.

Just my thoughts on the new company.


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## bigdog (4 December 2007)

ASX additional announcement

04/12/2007	Replacement Uranium IPO Prospectus
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00791730


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## new_trader1984 (7 December 2007)

Hi, i have been reading a few websites about uranium and also looked at the message board for delta petroleum. One post on the dptr forum has mentioned that a horizontal test well is targeting the cane creek play. They believe the reservoir at greentown is better then the one at the bartlett flat project. Thought this was worth mentioning since on the first paradox basin well they mentioned of a couple of intervals that had depleting after initial gas shows when drilling had suggested 20-30 foot interval was best tested using a horizontal well.

I have also been looking at the uranium projects since any good news with the company might help gdn's share price move too.

There is a company called uranium king which has a couple of uranium jorc compliant resource estimates in 2 projects for a total of 6.1 million pounds of uranium. One project has just over 1.5 million pounds of uranium at a grade of 0.07%, i think the 1.9 million pound non jorc compliant resource the new company have mentioned had an average grade around 0.3% so about 4 times better grades. The other project that uranium king has is in new mexico with a resource of 4.5 million pounds at a grade of 0.12%. Im not sure on how uranium resource estimates are worked out but if the new company used a lower grade couldnt that increase the resource by 2-3 times the current size?

Just thought in comparison of the new company and uranium king which has had a share price of above 1 dollar earlier this year might be of interest to some considering grades between the 2 companies. Uranium king is merging with monaro mining early next year with a target of having a resource of 20 million pounds from the current 6.1 million pounds they have over the 2 projects. They expect to be in production by 2009. 

Any thoughts on if this new company can get a jorc resource and be at a production stage in the same time frame? Earlier this year when it was first mentioned that was one of the benefits people saw in the new float the short time frame to reach production.


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## Broadside (7 December 2007)

new_trader1984 said:


> Any thoughts on if this new company can get a jorc resource and be at a production stage in the same time frame? Earlier this year when it was first mentioned that was one of the benefits people saw in the new float the short time frame to reach production.




I had a cursory glance at the prospectus, it doesn't look to me like they will be producing any time soon, nor indeed whether the 1.9m lb "resource" will be economic.  For GDN'ers who were holding out for this float.....dudded (again).

This was being pushed hard on the forums (hotcopper anyway) 6 months ago as a spin off capable of producing Uranium in 2008.


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## new_trader1984 (7 December 2007)

hi broadside,

Do you have any views on the different average grades for a company that has stated they will be the next uranium producer on the asx trading at 55-60 cents but was at above 1 dollar before a merger announcement. The grades were 0.07% for 1.5 million pounds and the other was 4.5 million pounds at 0.12% which is around 2.5-4 times lower grades then the average grade they say was used for the resource estimate on just over half a hectare. The thompsons project which is where the potential for the company is meant to be has 7000 acres of land with some high grade results.

I dont like the management team that makes up the white canyon project but michael shumway has experience in uranium mining and his family been mining for 3 generations. Leaving the management team out of it why would that guy offer drill rigs and crew and 2 smaller projects just for the thompsons land if there is nothing there? It wouldnt make sense if there is 0 benefit for him when the 2 projects were a private company wouldnt he of been best staying with what he had before this deal happened?

No one likes the directors of gdn because of what they did with the gas project and no news being released but there has to be something of interest to michael shumway to agree to this deal. Just a lot of money and time wasted that he could of spent in more profitable ways considering this company is going to be a dud.

and im not ramping just trying to make sense of the 2 companies that i have mentioned and comparing them.


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## Broadside (7 December 2007)

I just don't think there is enough information newtrader to make an informed opinion.  Every deposit is different as are the economics.  You can have high grade low tonnage or low grade high tonnage as you see in Namibia, both can be highly economic.  As for this float....I can't see any estimated costings in there at all, no scoping study, nothing to hang my hat on.  The resource itself is pretty small...it would need to be highly profitable to justify mining it.  Maybe that will happen, I just don't know.  The GDN management make this poison to me, maybe the outside expertise they bring in will be the salvation for it.  Good luck if you choose to subscribe, or via your GDN shareholding.


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## sharemadder (11 December 2007)

> The GDN management make this poison to me, maybe the outside expertise they bring in will be the salvation for it. Good luck if you choose to subscribe, or via your GDN shareholding.




The sp clearly demonstrates either their was very little interest in taking up entitlements for U ipo or many people already got a load of shares but at a substantial higher price and just cannot sell without a huge loss.

RS is poison for GDN.  JH should get rid off him and get a more experienced director particularly with proven management in oil/gas experience.

The Paradox leases are imo still very valuable.  They have proved there is gas there.  A farmin would be nice to reduce the risk. 

I am still undecided in taking up the ipo with the only saving thing I can think off for the ipo is Mike Shumway.  Why he wants RS involved who has no industry experience is beyond me.  Then again maybe Mike has a plan like when he bought up many expired U leases in Utah prior 2000.


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## new_trader1984 (11 December 2007)

hi sharemadder,

I was reading on the weekend that mike shumway works for denison mines which owns the white mesa mill. They also buy the ore per tonne based on uranium grade and pay a certain amount per tonne for delivery costs too. 

http://www.denisonmines.com/content/uranium/WhiteMesaMill.cfm?catid=1278 down the page they have a section called ore buying program and there is a link for uranium ore buying schedule. Would having mike shumway who works for denison mines be able to get better prices with the white mesa mill?

Thought it was interesting seeing that he works for the company that owns and operates the processing mill in utah.


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## sharemadder (11 December 2007)

NT1984

G'day mate, hope you have a good Xmas and new year break and a safe one at that.

Regards Mike Shumway, he is certainly well connected both in the corporate and local government circles.  Have read some interesting stuff on him.  Your article was also good.  As the manager of this dig I hope he can shake rattle and roll because RS and JH cant.

Mikes long standing involvement in U mining is very commendable but I still ask this whole IPO thing - WHATS IN IT FOR HIM (soz for the caps).  Why would he join up with GDN.  Does he want to get his hands on Thompson leases???  Can he see huge upside here, what does he know about the history of Thompson leases / ringtail mine etc.  Does he have a hidden ace on whats in them hills?

He is the only thing that would convince me to invest in the IPO. 

RS can kick the bucket far as I am concerned :behead:  

BRING ON PARA #2 drilling i say, thats what I want for Xmas.  The IPO can go in the chrissy sock but the Para #2 spud under the Xmas tree (that's were all the big pressies go.

:dance:

Cheers


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## Wysiwyg (11 December 2007)

There won`t be any take up of the Uranium diversification on my behalf.They went for the market eUphoria and caught the tail end of it.If there is another market eUphoria then they might get noticed.


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## new_trader1984 (11 December 2007)

hi sharemadder,

thanks hope you have a good christmas and new year too.

about the 2 directors john and richard, i think it was mentioned on the other forum after the agm that richard had to go out of the room to speak with john to get some basic answers to some questions. It shows that there is not much communication between the 2 directors and its john who knows everything that is going on and he is the one that wont tell shareholders any news on the wells or upto date on other projects which isnt good. Might be best taking them both out of the company and getting directors with oil and gas experience especially since thats the direction gdn is meant to of been going in. Im surprised the top 20 didnt chose to vote at the agm and remove atleast one director and get someone better in place. The 12 new top 20 shareholders i dont think got in at prices under 20 cents and i think atleast 25-30 cents was the minimum price that they got their shares at, but thats just what i think about the new shareholders in the top 20. Just thought they would have wanted to remove a director if not doing a good job for their investment. 

para 2 should of been spudded months ago but john or whoever is in charge of applying for permits waited until september 4 months after testing started and a month after testing finished before even applying for the next permit other drillers have their permits applied for and approved before previous wells are completed. Hes letting our investment do nothing for months while we wait for the approval to be given which isnt good.

Mike shumway must see something significant in the thompsons project and i guess he would know a lot about that area from past workings in the area. He has offered 2 small projects which is only about 1 hectare for the 2 smaller projects compared to the 7000 acres that the thompsons project has but he might be able to get the smaller projects up and running in a shorter time frame for even a small cashflow for the company which could help with the thompsons project. From what i read mining at deeper levels past 170 meters is completely untouched which might be what mike shumway is after plus there should be a lot of uranium in the shallower levels based on the grades found on some of the holes drilled at other times. 

I used the whitecanyon website to send an enquiry last week to ask 3 questions im still waiting for a response, considering they would want to get people interested you would think they would take 2 minutes of their time to answer the questions. 

In the last month there has been only 9 days of trading thats broken the million mark the other 14 days were all under 1 million shares traded thats going back to the 9-11-07. Considering there is over 190 million shares on issue and only 35 million is held in top 20 thats a lot of shares that would be traded outside of the top 20 but no significant volume is happening in the last couple of months. If this company is as bad as people keep saying wouldnt the volume be higher on a daily basis for the longer term holders to get out and move on to make their losses back on other potential investments?

There is a lot of potential in the paradox basin and from the companies like delta encana petro canada that are starting to drill in the area this might suggest there is something worth holding for, we could all be wrong since big companies get it wrong too but there is a lot of things happening in utah to do with oil and gas wells which suggests that many companies think the costs involved to get to the gas will be worth it in the long term.

On the uranium subject, i dont think they are concerned about not getting the 70 million shares subscribed to. I guess that like mike shumway did this deal with gdn that some american investors might also buy shares into this company because of what he might be able to offer as utah is picking up and is expected to get very popular for uranium explorers in the next couple of years. I was thinking maybe the reliance company that is supplying the drilling rigs and crew might choose to buy shares into the new company, but thats the only reason i can see why they are so confident the company will be subscribed to. Based on forums no australian shareholders of gdn want this new company but then maybe some of the larger banks that have shares in gdn might choose to buy into the new company too. 

Hopefully some news is announced soon for shareholders.


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## rottodiver (12 December 2007)

where do we find the list of the top 20 share holders?i know i have seen it just cant remember where


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## new_trader1984 (12 December 2007)

hi rottodiver,

on page 47 of the annual report has the top 20 shareholders. They hold 34 million shares in total.

Comsec nominees holds 3.03% and has 5,882,720 shares.


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## new_trader1984 (14 December 2007)

Hi, i just read the update on paradox basin for delta petroleum and reading a forum on investor village which has some good posters on the greentown project which is near gdns area.

A couple of posts that i thought were a good read were one by amstocks82 message 9950 history of greentown prospect and possibilities.

The post offers a lot of info on the greentown prospect which might not be of interest to people holding gdn but i thought it was interesting. The post talks about the high pressure wells that news has been announced on, the update today also said they had another high pressured well. They are expecting to exceed 6bcf per well at greentown too. 

The paragraph below is part of the post 

The upper untested zones would be referred to as the Ismay and Desert Creek formations. The descriptions for the Ismay and Desert Creek formations from other locations in the Paradox don’t fit match the logs that are available in the vicinity of the Greentown Prospect. The descriptions are mainly of predominantly limestone or dolomite formations. But in the Greentown area, the lower Ismay formation was described in an older well nearby as friable siltstone and black shale. The Desert Creek formation was described as being medium grain tight sandstone with interbedded black shale. This is a much different description than I can find printed anywhere else. 

Im not sure if our area is similar to the greentown project but this paragraph was of interest i thought, They talk about the desert creek and ismay zones being black shale and sandstone, in a report on 27-10-06 the announcement said the barker creek formation was made up of sandstone dolomite and black shale. If deltas area and gdn's area is similar to each other couldnt there be the chance of high pressured formations like delta has found on future wells? They did mention one well in the latest update for delta didnt have high pressure but still is hydrocarbon bearing in all intervals drilled so far.

Considering about 100kms south of gdn's wells that the lisbon wells have produced large amounts of gas and oil per well there must be some strong pressured zones in utah and maybe gdn might find it on future wells.

If you read the post above there is more info about why black shale is a good petroleum producer.

The other post i thought was also good was one by oilfndr message 9998, the post was mostly about the geologist talking at the conference call yesterday but the part i thought might be of interest is the comment about how far the greentown play might go.

Some geologists have suggested the Greentown play will extend further SE to the Cane Creek play near Moab. 

Moab from looking at google earth looks like it is in the middle of gdn's acerage and if so that statement above is suggesting the greentown play which is meant to be quite big from what some people are saying would cover a large portion of gdn's land.

There are lots of good reading on the investor village forum but thought some might be interested in what i found on that forum which might be similar to what gdn might find if they can start getting things moving along. Also delta will have a temporary pipeline in place by 2nd quarter next year which can produce 25mmcf of gas per day.


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## sharemadder (14 December 2007)

NT1984

Good information hunting there.

GDN has very valuable Paradox leases.  What's holding it back is they need to spud Para#2.  Until that happens we are stuck in the mud (excuse the pun).

Delta's news is exciting and confidence building that GDN's Paradox leases are actually worth exploring.  We did actually find gas just not enough in the first well.  The second well hopefully will have the goods.

Come on JH get that drill spudded for all our sakes!

PS JH dump that looser RS asap as well.


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## new_trader1984 (14 December 2007)

hi sharemadder,

About the directors i think since john doesnt have any experience in oil and gas but does in mining he would be better for gdn and wcu by being a full time director for wcu and gdn find a director that knows a lot about oil and gas projects for gdn since gdn is meant to be mainly an oil and gas company. Its been 3 months now since the approval by the state for the 2nd well not sure why the hold up in approval though.

Delta and lynden ventures both use multiple zones to produce decent flow rates. Delta's greentown 32-42 well produced 2mmcf of gas from 8 out of 12 intervals. GDN would of had about 1mmcf if they used multiple formations to get a decent flow rate. $6000 a day is still over 500 000 since they stopped testing until now which could have been used to help to drill the 2nd well. I think there was something mentioned about needing 2mmcf to be able to put it to a pipeline but there might of been ways around this, but there was nothing stopping them from producing oil using trucks if had a decent flow rate for the oil column.

The oil column we never heard anything more about once it was put behind casing which wasnt good considering it might of been possible to truck the oil out and might of been able to provide some cashflow too.

There might of been reasons why both these things didnt happen but if there were good reasons for it they should of told the market.

There was a conference call that goes for a while but can be listened to on the delta website there is meant to be a lot of talk about the greentown project near the end which might be worth listening to, i havent listened to it yet.

Hopefully some news on the 2nd well permit comes through soon.


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## sharemadder (18 December 2007)

NT1984

Well not much buying depth left and with current market doom and gloom maybe will hit that bottom again of 10c like it did early on in the year.  

Surprised that directors not providing update on current operations.  Need to know what the hold up is on the Paradox #2 well.  BLM said 30 to 60 days for the federal permit approval process if everything is in order, well we past that.

If it gets to 10c and providing one has faith they will drill the second well could be a good profit maker on drill hype alone.

Cheers


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## hoppielimp (18 December 2007)

Yes it could be a good buy...I bought last time at 10 cents and sold at 20 cents...just to minimise the paper loss on my other GDN holdings....

Everytime I look at GDN...I get abit delirious.  I laugh I cry, laugh again and then log out before I do anything crazy on the my online account...like sell or buy...


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## new_trader1984 (18 December 2007)

Hi, last night an update for delta petroleum was released on a well they drilled called federal 28-11, this well is 85kms from gdn's paradox basin 1.

http://www.deltapetro.com/PressRelease/HTM news/2007/pr121707.htm

The link above is the release from delta petroleum. The well started flowing at 4.32mmcf over the first 24 hours and 794 barrels of 60 gravity oil. Over the first 48 hours the well produced 7.5mmcf and 1379 barrels of oil. The flow rate was from 1 interval that was only partially drilled since the high pressures prevented them drilling further. This was an open hole test and was un-stimulated. Delta plans to recommence drilling the rest of the interval and further deeper intervals. This is the same interval that caused the blowout on the 36-11 state well, the pressures were also similar to what was found in the 32-42 well. This well has 15 higher intervals that will be tested also once they finish drilling.

I thought this news was worth sharing since they have had very high pressures on many of the wells except for one but still had lots of oil and gas shows but not as high pressure such as this one and the 36-11 wells. If they can get around 4mmcf per day from a un-stimulated interval there is a good chance of some very high flow rates for that well once all intervals are tested.

On investor village a message by amstocks82 is worth a read its message number is 10156.

GDN might be lucky and find similar type of pressures on the 2nd well once they drill hopefully. 

Just thought some might be interested in this news.


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## Rob 17 (18 December 2007)

I wonder what the people at Golden State Resources do all day. The management are woeful in informing shareholders on the progress if any on anything they do.  

They should have shareholders interest at heart and do everything possiable to get parra 2 progressing ASAP.

The shareholders communications policy says that  the company secretary and the directors are available to respond to shareholder
questions in writing and by telephone. 

I must give them a call to see weather they are still on this planet . 

DYOR


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## new_trader1984 (18 December 2007)

hi rob 17,

They never answer emails, and dont seem to have any interest in doing the right thing for shareholders. The only reason people are holding these shares are for the projects and eventually something good needs to happen, the directors being replaced with more experienced ones would be a good start for gdn.

I sent an email enquiry from the white canyon website almost 2 weeks ago asking 3 questions that can be answered in 1-2 sentences each, probably take 2 minutes of their time to respond to the questions and i still havent recieved anything. In the enquiry i even mentioned i was considering buying into the ipo if could find out these answers, the decission for them to not answer the email shows they dont want the ipo to be fully subscribed or they know that there are big investors that are interested in subscribing to the company and dont care if smaller shareholders want to buy the shares.

Hopefully some good news comes out soon for shareholders.


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## hoppielimp (20 December 2007)

Has anyone received any info on the priority share offering for whitecanyon ?  I have receivde nothing as of yet, but the priority share offering closes on the 28th Dec...

Anyone got anyone info ?


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## kelvin8r (20 December 2007)

Hey Hoppie

I got my prospectus today in the mail. havent opened it yet, not sure if i can even be bothered reading it. they obviously cant be bothered keeping us informed with whats going on.

what are your thoughts on white canyon


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## hoppielimp (20 December 2007)

Hey kelv8r,

I'm not sure, I think I will subscribe.  I think Shumway tossing in Daneros and Geitus to get at GDN's Thompson project is a smart move.  Given that Daneros and Geitus are only a total of about 1.2sq km and has historic 1.9 mill lb of u308....this is in comparison to the Thompson tennements of 27sq km.

Now the small histroical figs from Thompson seem alot less than Daneros and Geitus, I think some results are about 0.10%, The White Mesa Mill still buys at about $55 per tonne for that sort of grade and $281 for 0.35%.  Some results at Thompson are about 0.8% (Sorry don't know what White Mesa Mill pay for that grade as it is not published).

The interesting thing about all this, is I guess that I don't think White Canyon is out to become a producer like Paladin or the like...I think they just want to mine...and the Dennison link with Shumway to the Mesa Mill finds a home for all this ore.  So it becomes a volume business of dig and transport.  White Mesa Mill also pay some transport costs too...150miles = $22.50 per tonne.

Its alot of guess work, but I think its worth a punt, not that I'm a big fan of some of the GDN Management, but hopefully they are doing what they should have been doing with the Golden Eagle project...teaming up with people who know what they are doing.

I wish everyone luck on what ever they decide on White Canyon.  At least we all have one thing in common....GDN....


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## new_trader1984 (21 December 2007)

Hi, i just saw this article its about arrowhead energy teaming up with liberty pioneer energy to drill the paradox basin. They are aiming for delta petroleums play in paradox basin after the latest flow rates released earlier this week. They are planning on raising 300 million dollars just to spend on this one paradox basin area. 

There is a quote by managing director of arrowhead energy where he says the reserves were descrived by delta petroleum as "immense".

Thought it was worth posting since it shows there is a lot of people watching the paradox basin and willing to spend a lot of money in the area. 

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20071220&id=7967882


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## qr2007 (24 December 2007)

Hi

I have just received the Prospectus of White Canyon Uranium Limited. Any suggestion on what to do with this offer???? 0.25/share ??? will it be another GDN??? 
Thanks


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## yawomanjas (24 December 2007)

I also got my priority letter..I threw it right in the trash....several reasons why....

1. poor performance of parent company in terms of SP and management
2. raising too much 17.5 mill bucks...= increased selling pressure
3. poor performance of uranium IPOs of late...last one I know of was MEU which was a spinoff from MOX...it sucked on open, opened below issue price and has remained down ever since....


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## Rob 17 (24 December 2007)

Im down significantly on GDN  I couldn’t careless about the offer.  Don’t like the way the company is being run. (GDN)  Updates and progress are too far between. In my opinion these guys can’t be trusted.  They couldn’t even get the mail out right. They would have trouble tying up a shoe lace.  

DYOR


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## Wysiwyg (24 December 2007)

Got the prospectus today too.Two things come out of the P 1 drill.

1) Eclipse Exploration Corporation didn`t come down with the last shower.
2)the rig operators new exactly what was in the hole. 

I suppose the lesson was ... treat every report as a grain of salt.The louder they squeal the less interest there is.Can`t help feeling conned


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## tropolite (25 December 2007)

Hi all
I don't normally chime in on this type of thread but feel as though I need to.

Got my Prospectus last week and for the reasons already stated in previous posts I'm not buying in either. Throughout this whole thread there's discontent of GDN's responses and lack of general management performance.

They haven't done a very good job for my investment $$. I'm looking for better strategic management and a company that I can 'trust' to invest my hard-earned dollars. This one will be a 'wait and see'.

Good luck for those who choose to take up the offer.


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## bigdog (25 December 2007)

Received my Prospectus yesterday and I am not interested in providing more of my money to the GDN directors to feather their nest (the no news people)!


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## qr2007 (27 December 2007)

Hi all,
Thank you very much for your feedback. I totally agreed with you guys regarding their management team.
Thanks again.


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## new_trader1984 (28 December 2007)

hi, i dont trust the gdn directors either, its been more than 3 months since state gave the approval for 2nd well and we still dont know why there is a hold up for the federal approval which if there was delays they could have told us.

Both directors need to be replaced.

About the uranium ipo, why would they decide to not have it underwritten? I would think mike shumway would have a fair say in the decissions towards listing considering the amount he has invested into this new company. He wouldnt want it to fail since he would lose out on the thompsons project which was the only reason he went along with joining up with gdn for this new company.

Does gdn want the ipo to fail, which if they are expecting gdn to buy into this company to make up a large part of the holding, they should have realised the way they have treated shareholders in gdn that most wont be investing in the new company. 

The only other thought would be after talking to brokers and funds they might have some interested in buying into the new ipo but then they wont let them hold any more than 5% from the initial ipo purchase which isnt a good idea since at the moment they would be struggling to find anyone to invest in the company. Could they have decided against an underwritter since they might have some american investors that want to buy into the ipo? Not sure if that would happen but there might be some american investors that want to hold shares because of mike shumways involvement.

In the prospectus they say the companies value is around 31 million dollars at end of june 2007, not sure how they worked that value out and would think its mostly to do with the land value and past workings that have already happened, but to get a possible value of the share price would people use the full number of shares or use the shares available for trading since there is just over 90 million shares that cant be traded for 2 years. 

Im not buying into the ipo either, just trying to work out why even mike shumway has agreed to let the ipo go without being underwritten with the amount he has involved. He would have looked at the way gdn has treated its shareholders i would of thought before agreeing to joining up with gdn.


----------



## sharemadder (30 December 2007)

NT1984

I emailed them today just asking for an update on the status of the permitting.  Not sure when their offices open again but it was only one simple Q.  

I hope they reply as I think they really need to provide a market update on the Paradox.  If no reply will send registered letter just to make sure they aint dead 

Cheers


----------



## tropolite (30 December 2007)

sharemadder said:


> NT1984
> 
> I emailed them today just asking for an update on the status of the permitting.  Not sure when their offices open again but it was only one simple Q.
> 
> I hope they reply as I think they really need to provide a market update on the Paradox.  If no reply will send registered letter just to make sure they aint dead




Hi sharemadder... I really hope you do get a reply. Considering the last update we've had on the drills were in the Quarterly report lodged end of October (which was for the quarter ending Sept 30!) - what's up with that!? 

Actually I'm kinda hoping there has been a crisis with the company heads (I hope nothing more serious), as that would explain A LOT. 

I'm just so glad the other shares I hold are with real companies that keep you up-to-date on a weekly basis, even just to say - nothing happened due to rain. At least you know how your money is working.

Let's all hope that GDN makes a New Year's Resolution to make good on their company policy... 'If shareholders have any questions to call or email and we will answer'. Not much to ask for surely.  

Happy and Prosperous New Year all...

Cheers
tropolite


----------



## new_trader1984 (30 December 2007)

hi sharemadder,

Hope you do get a reply for your question but im not sure that they will reply.

I sent 3 short questions using the uranium website where it says to send an enquiry, the questions were simple how many rigs would be used at the start, who would prepare reports for shareholders and how long before a jorc estimate could be released. Atleast 2 of those questions can be answered in 1-2 words each and it was sent over 3 weeks ago with no reply.

Hopefully something changes soon and they give us an update on the drilling since they have been getting paid for doing nothing for last 4 months, dont know how many other drilling companies can get paid for not doing any work especially for a public company.


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## elcruzy (2 January 2008)

i just looked at the prospectus' glossy pictures and realised where my hard earned dollars went....i think they have been spending all their time on this. suffice to say i threw it out unread.

i'd be surprised if GDN are just waiting around for the 2nd well permit approval there must be something else, does anyone know if thats all GDN is waiting for? seriously if we are paying for a drill rig to just sit around..


----------



## new_trader1984 (3 January 2008)

hi, does anyone think some news might be released soon, the directors havent told the shareholders much and they should update us soon on the paradox basin well permit.

I was looking at the market depth today, at 2 different times i added the top 5 amounts of shares on each side. 1 time at 8 35 and another at 9 10 just after the first 172000 shares were traded after open. 

At 8 35am the buy to sell side in shares was 3.16 times more shares wanting to be bought then sold. The average buyer to seller for the shares were 2.77 times more per average purchase.

At 9;10am the sell side had slightly decreased but the buy side had added another 400 000 shares to the top 5 amount even after the first 170 000 shares were traded. The buy to sell ration for the shares were 3.67 times more shares on buy side to sell side in the top 5 prices. The parcels for each buy purchase on average had also increased and the shares per buyer to seller average was then 2.83 times more for each buy purchase.

None of this means anything and currently the share price is back at 12.5 cents but there is interest in the top 5 buy prices compared to sell sides, but there isnt any reason for the interest in gdn at moment.

just thought to share what the buy and sell sides were like as it might be of interest to someone. 

Hopefully an update will be provided soon on whats going to happen with the paradox basin.


----------



## Rob 17 (3 January 2008)

I would not read into it too much. It happens often with GDN's depth. It’s as unreliable as the management. (IMO)

------------------------------------------------------------------------
NT1984

I emailed them today just asking for an update on the status of the permitting. Not sure when their offices open again but it was only one simple Q. 

I hope they reply as I think they really need to provide a market update on the Paradox. If no reply will send registered letter just to make sure they aint dead 
--------------------------------------------------------------------------

Any reply??  Stupid question 

The only thing I can think of is GDN directors are trying to frustrate small shareholders so they sell out.  Surely the Top 20 shareholders would find the lack of disclosure unacceptable.  

DYOR


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## Sean K (7 January 2008)

Some courageous holders here since last April.

Is this an example of emotion getting in the way of analysis?
Hope in the way and logic?
Faith in the way of reality?

Good luck to longs.


----------



## cyberonyx (9 January 2008)

*ipo status*

I sent in my cheque for the whitecanyon ipo yesterday. Anyhow.... they cashed it today so, as a shareholder to other shareholders, make of that what you will. They are obviously still at work.

cheers


----------



## sharemadder (10 January 2008)

I agree at work and business as usual.

Just wish they would keep the market informed on Para#2 federal permit progress.  They probably have it approved already but need more cash to do drill (circa $5 to $9 million) and waiting for IPO to list so they get access to some more funds owed to them.  Farmin can't be out of question thats for sure.  Wonder if they have approached anyone lately.

Very slow this one .

Cheers


----------



## new_trader1984 (10 January 2008)

hi sharemadder,

If they havent spent much money from the last quarter which they havent done anything to really spent any of that money and with the ipo listed they recieve 3 million so they should have 6 million to drill the well which is enough to drill the 2nd well without any problems. I think it is about 5 million per well to drill that was what it was meant to cost for the first well i thought before all the delays.

Delta has just added 684 million dollars to their bank account if in feb the vote goes through to allow tracinda corporation to buy 35% of the company. This is meant to be used to increase drilling in the paradox basin and for the pipeline and everything else they need to do. This will also give them funds to approach other companies to be partners with and being close by gdn should be a possible target by delta. I guess they aernt in any hurry to approach gdn but i still think its a possibility.

Do you think we would get an announcement saying how much of the 49 million shares provided for gdn shareholders to have first chance to buy at have been taken up or would just wait until after the subscription is finished on the 24th to tell us?


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## sharemadder (10 January 2008)

G'day NT1984

Delta is a nice farmin partner if they want to.  Thats a great little secret there hey.  I would welcome their experience, management as operator and money to drill GDN's paradox leases. 

Delta's success so far in the Paradox is huge major + for GDN confidence on their leases.  

I really think GDN will get similar results.  First hole was on outer edge of the first structure to drill.  Second hole should hopefully be more well positioned to bring in the bacon.  They hold nice large parcel of land that Delta I think would want to have access to.

If Delta build gas line through GDN's holding then another huge + for GDN to plug in to.

I think GDN will hold off announcing anything until the IPO is fully subscribed or closes.  

GDN money spent last quarter should be at minimum. 

For the record I think IPO will be fully taken up if not by entitlements but by others especially foriegn investors such as USA and Canada investors.

GDN will come through after IPO finishes with money to drill next well.

Happy to hold this through.

Cheers


----------



## rottodiver (15 January 2008)

Does anyone know if gdn have any requirement by the asx to answer questions from shareholders  or are they allowed to just disappear. I too have emailed them asking when to expect to hear some information about the drilling, as yet no reply!!!


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## sharemadder (15 January 2008)

Well they havent answered any of mine for some time now.  

Wait and see wait and see thats all we ever do but I'm sure we will get something for the quarterly report due soon.


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## tropolite (21 January 2008)

Are the bells tolling?

With the deafening silence from this company, quite clearly not giving a crap about its business partners, or another word for it shareholders, what else do we make of this? With the continual slide into oblivion of its market surely any company of diligence that has a future worth others taking note of and investing in, surely would give 'some' or 'any' simple notification as to its current status.

Is it time to cut losses, say g'bye to a hefty loss, and invest in another that truly does see shareholders as partners and treat them as such. With no announcements for 3months (or more), what else are we supposed to think? 

This is just my rant and thoughts - does anyone have anything of substance to sway these and to have more patience with GDN.   

Cheers


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## sharemadder (21 January 2008)

> Are the bells tolling?




Maybe its dead already and we are awaiting a resurrection.  Must be difficulties with Para#2 permit approval on the Federal side (BLM) side of things, and / or simply no money.  One day they will have to talk, Qrtly due soon.


----------



## Rob 17 (21 January 2008)

Im starting to think this company will fold.

No news for a long time and no reply's to emails.

These guys suck


----------



## elcruzy (21 January 2008)

kennas said:


> Some courageous holders here since last April.
> 
> Is this an example of emotion getting in the way of analysis?
> Hope in the way and logic?
> ...




it is called GREED. I was too greedy seeing $40k+ in paper profits and didnt sell both time the SP went $1++ now we are all waiting for that again before we can contemplate selling...with times as it is, i dont think even speculation will bring this to 50c so we all have to be in it for the 2nd drill results. 

my guess it will be around june08, they need funds and wont begin drilling until they do. we also have to consider that they sued the drill operators so its a tense relationship. i'm guessing part payment upfront etc. meaning more delays to spud date...


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## sharemadder (21 January 2008)

Rob

It wont fold, they have 25% of WCU ipo.  We should hear more on that after closing date 24th Jan.  

If the BLM refuse the permit apllication totally (without retification process) then they will simply have to drill another target on state lease.

I understand money may be tight but if WCU lists (there is no reason why it wont get enough subscribtions here or overseas) then they will pick up about $3 million in cash.  

Need an Ann. for sure but +ve!!!


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## sharemadder (21 January 2008)

> it is called GREED




Yeah tell me about it - DOH!!! 

Now do we take a punt and but $10K worth because "its at rock bottom price"


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## tropolite (21 January 2008)

sharemadder said:


> Yeah tell me about it - DOH!!!
> 
> Now do we take a punt and but $10K worth because "its at rock bottom price"





I believe Sharemadder, that is the $10,000 question. And that will only be answered the very next time we hear from the other sections of GDN's management.


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## bigdog (24 January 2008)

ASX ANN can you believe it or not!

 24-01-2008 01:47 PM  	 GDN  	  Capital raising completed
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00805614

Golden State raises $2.03 million in share placement to complete vendor payments for the Golden Eagle Oil & Gas Prospect, and for working capital

Golden State Resources is pleased to announce that funds of $2.03 million have been raised by the placement of 29,000,000 shares at a price of 7 cents per share.  Each share shall have one free attaching listed option exercisable at 20 cents and having an expiry date of 30 June 2009. The issue of the shares is within the company's 15% placement capacity.  The issue of the options is subject to the approval of Golden State Resources shareholders which will be sought at an extraordinary general meeting of shareholders.  A notice of meeting will be circulated to shareholders shortly. 

The shares and options are to be issued to various sophisticated investor clients of Cunningham Securities Pty Ltd (“Cunningham”) of Perth. The Company will pay Cunningham a commission of 6% of total funds raised.  

The proceeds of the share placement will be applied to the final vendor payment of US$624,912.59 due to Eclipse Exploration Inc on 15 February 2008, pursuant to the Company’s farm‐in agreement for the Golden Eagle Oil & Gas Prospect, Grand County, Utah.  The balance will be used for working capital.


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## sharemadder (26 January 2008)

Nothing to worry about I think just because they have extended the public offer. They are chasing every dollar they can get including over subscriptions. 

They have proved they can raise money which is good. The recent raising ($2 mill) is a confidence booster as it means they are still serious about the lease potential and drilling paradox #2. 

Maybe drilling ann. soon for Para#2 because why else would the recent participants in capital raising give money to GDN.

Investment agencies still want to put money in.

At <8c GDN was cheap. They will drill this next well. So the sp will go up. Also GDN's share of WCU is significant. 

Time is what is killing us all.


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## Sean K (26 January 2008)

sharemadder said:


> At <8c GDN was cheap. They will drill this next well. So the sp will go up. Also GDN's share of WCU is significant.
> 
> Time is what is killing us all.



Under 8 cents is cheap? What intrinsic value do they have that leads you to this conclusion? And why will the sp go up when they drill. Haven't they been doing such things since they were $1.20?


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## sharemadder (26 January 2008)

When they drill the punters will be on it, gamblers gambling will give rise to the sp, simple really hey.

People looking at Delta's huge success nearby and yes hoping GDN will see the same on their next drill.

Regards <8c cheap.  25% WCU exploration and mining development plus Paradox leases exploration potential.  

Also small rally Friday now 9.3c.  If you bought some traders at <8c like me then sold some like me >8c then you would of made a profit like me.


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## helpmeunderstand (29 January 2008)

have been waiting quietly and patiantly for GDN return to at least 1.2, they better get there soon as patiant is getting low!


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## bigdog (31 January 2008)

Today's share price is looking very good with high of 12 cents!!
-- what is happening?

GDN   	 $0.105  	   	  +$0.017   	  +19.32%   	 high of  $0.12 low of 	 $0.087  	 2,915,218 shares	$303,394 @	 31-Jan 12:02:02


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## diddy (31 January 2008)

:bananasmiahhh good 2 c a date
drilling set for march and we have conformation that they are looking at making the other drill set economic operational pending the installation of the pipeline connector but not til paradox 2 is complete. i guess this would suggest if they get the prediction right about the gas reserves they can focus on the most economical site then the money made in revenue can be then spent on the set up of drill site 1 but if they bung up with the predicted results in paradox 2 they can cut our losses and focus on paradox 1 to recover the losses

ok this is a good question they spent $170 000 this quarter on admin costs ... thats almost half of the 12 month costs of $380 000, who got a pay rise :knightrid or have they been pushing papers thro government making more jobs or have they included the costings of Uranium IPO Prospectus in that? Caus I would have thought the prospectus costs would of went on to the new company :horse:

so what are our predictions for here with the market as is? as this is a small company all the floaters should of been scared off already and at one stage 6.5 cents was very attractive which was below 0.4 book to market value and with a date now set, will this company's SP react with the markets up and downs or will it react on its own performance now?


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## sharemadder (31 January 2008)

diddy

Personally I reckon will will see a sharp rise tomorrow but hugely sold into as those who have been locked in for sometime try to escape with their shirts on as not willing to risk Para#2 not coming off.

At least Para#1 is shut in as a producer  

Para#2 permit Federal approval delayed due to BLM site visit.  Basically the rules of the Permit offices (federal and State) is get in line and no que jumping.

$2 million cash plus what they get as payment from WCU ($3 million from memory) should get the action happening.

They have also proved they can raise cash even during very dark times.  Further capital raising may happen if required.

Cheers


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## sharemadder (31 January 2008)

> plus what they get as payment from WCU ($3 million from memory)




ipo for WCU item 2.9 table

*Repayments of Loans for Vendor payments and Exploration costs to Golden State

$3.39 million

Its all looking good.


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## new_trader1984 (31 January 2008)

Hi,

After the ipo for wcu goes through gdn should have about 5-6 million for the next well.

The 3.39 million from the ipo that is given to gdn, the 2 million they already have at end of quarter and the 1 million left after pay the final payment to eclipse and the 6% they paid to the brokers who did the recent raising.

After the final payment to eclipse on 15th of Feb they should have the full 25900 acres of land in paradox basin.

I also read on the investor village forum for dptr that they have increased their land holding in paradox basin mostly in the salt valley and gypsum area for them. The salt valley project is the closest to gdn only about 20kms from gdn. Thought it might be of interest being close to gdn.


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## sharemadder (31 January 2008)

Hi NT

Looking good now.  BLM sign off soon and away we go.

Punters will be back in probably tomorrow.

I think a lot of people dont understand how much $ Delta is committing to the Paradox / Salt Valley exploration over next couple of years.  The budget is huge.  Hopefully GDN leases will give up the same sort of potential.

Cheers


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## new_trader1984 (31 January 2008)

hi sharemadder,

Have you seen the deal delta did at the end of december but waiting for shareholder approval. A company named tracinda is buying 35% of the company for 684 million dollars they offered to pay 19 dollars a share and at the time it was around 15-16 dollars at market prices.

The deal is to help develop and accelerate the paradox basin projects, i think most of the funds are meant to be towards the paradox basin.

It doesnt mean that our area will be as good as the greentown project but since its near by any news like that i thought is worth looking at. Just shows there are lots of people interested in the paradox basin recently.


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## Rob 17 (31 January 2008)

Interesting how volume  and the share price increase before an announcement   is released to the market in the afternoon.

Surely there must have been a leak. Is this the definition insider trading?    What action will be taken if any?  

I hold a large parcel bought at .20 cents so hopefully the share price will start to rise. Hope the management will be more transparent in the future to. I won’t be holding my breath though.

DYOR


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## diddy (31 January 2008)

hey guys did our good old Director, Sciano buy $40k of GDN shares (378,000 @ 10.5c) on his own terms or did he recieve them as a package thro his director contract, cause i dont c any restrictions on them
http://www.asx.com.au/asxpdf/20080131/pdf/31777dxyb19t0c.pdf
this is directly after the quartly statement release


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## new_trader1984 (31 January 2008)

hi, the shares he bought today is what he purchased on market today, he bought them for his auctor group holdings.

GDN have results with the project in western australia due soon, they never seem to release news on that project except in quarterlies. Were we told they would be drilling this quarter 36 holes?

The project is only in early stages but shouldnt they be keeping shareholders informed on any news that has to do with the company?


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## elcruzy (1 February 2008)

i'd like to get excited but just bear in mind that they are most likely extending the IPO because they are absolutely struggling for investors especially with the way GDN is managed. Lets not gloss over the recent hammerings the stockmarkets been taking too.

secondly NEAROLOGY the classic term for uranium/iron ore/oil&gas tenements staked by lesser companies.

someone once said on this forum that the directors are just glorified real estate merchants....

i hold shares +18months ago. never sold (and very jaded). lets just wait for the 2nd drill results but i wouldnt let NEAROLOGY or this extra cash from a lame IPO pump anyone up.


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## tropolite (14 February 2008)

This is like playing Snakes and Ladders... without Ladders to be found!



Without being totally negative - I'm sick of GDN gropping for loot with their IPO extensions and withholding ANY info about what THEY are doing!!? 

Especially having investments in other companies making announcements on a daily basis and having no real need to. 

All I can say is "What The!?"


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## tropolite (15 February 2008)

Sorry - forgot to add for newtrader_1984.

The 36 holes are reported in the Quarterly Activities released 31/1/08 under RC drilling, page 2.


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## sting (19 February 2008)

19/02/2008  White Canyon Uranium IPO achieves minimum subscription 

So it seems that their are still fools out there willing to throw money at these guys who in my opinion couldnt organise a piss up in a brewery.

I still hold in this stock purely because im not prepared to accept the loss that I would take just as easy to let it sit and either watch it dissapear up its own proverbial or go ahead enough to make it worthwhile to sell out even if its at a 10% loss.

I did have hope of a recovery as I was encouraged to buy this on the advise of a well known broker who as been mentioned in this forum previously this was in my early days of trading when I trusted so called experts.

SEMPER UBI SUB UBI


----------



## helpmeunderstand (4 March 2008)

Are we going to get an announcement regarding the second well, when is that suppose to start? Does any one knows how long it suppose to take?


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## sharemadder (10 March 2008)

Gag, Delta hitting the Paradox Basin hard with that recently raised $650 million raised. Plenty of drilling to come. Hope GDN can find a rig in this bonanza drilling time. 







Sample of Drill locations around GDN (includes Delta, Running Foxes and Fidelity) Search of the DOGM Utah database see Delta and Running Foxes especially have several active well APD's.


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## sting (2 April 2008)

In the last qtrly report regarding paradox basin #2 they advised that drilling will commence in March, but I admit they didnt say which year but not a sound from them surely all government inspections/approvals should be completed by now. I've contacted them regarding an updated to recieve a recorded message " We are out of the office and will return your call" as of yet no return call maybe they all down super cheap buying up oil to pour down a dry hole :

Has anyone else heard or recieved any update on PB2 ?

SEMPER UB SUB UBI


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## rottodiver (2 April 2008)

they are probably on a world trip with all the money they scammed from wcu... i too have had no reply..... they would have to be the worst company listed on asx for letting there sharholders know what is happening.... but there is a little bit of movement with the directors buying more...... that is the only positive i can see at the moment!


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## blues (2 April 2008)

I spoke to RS from GDN about 2 weeks ago and for what is worth he said that they should have BLM approval in the next few weeks and drilling wouldnt commence for approx. 2 months after that. He said it would take time to get things organised. That few weeks is about up but going on their past performance on wouldnt rely on anything they had to say!!

Cheers


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## Sean K (5 April 2008)

This is quite possibly the second best ramped stock on ASF. No matter how low it went, the more holders supported it. A bit like ERN. A bit like FSN. Maybe also BCI, or AOE. Actually, anything that our old mate Chris has ramped the past year! DYOR. Best return has been AGM which is .... negative...!!! even with a takeover!!! LOL


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## bigdog (10 April 2008)

AS ANN today 
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00831287
*Paradox Basin 2 gas well location inspection completed *

*Paradox Basin #2 Gas Well Location Inspection*

The Bureau of Land Management has completed its inspection of the location for the second well, Paradox Basin #2, at the Golden Eagle Prospect, in Grand County Utah.

Paradox Basin #2 is a step-out well one mile southwest from the successful wildcat shutin well Paradox Basin #1, completed in late 2007.  The new well will test a similar Mississippian Pennsylvanian section up-dip from the section tested in the first well.

Golden State is proceeding with sourcing a drilling rig in preparation for the anticipated grant of the permit for this second well, which will test the size and extent of the gas field located by Paradox Basin #1.


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## sharemadder (10 April 2008)

Great ann.  Now the ball is moving in the right direction.  Anticipate possible capital raising too.  Lets get this drill in the ground!


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## Rob 17 (11 April 2008)

sharemadder said:


> Great ann.  Now the ball is moving in the right direction.  Anticipate possible capital raising too.  Lets get this drill in the ground!





I agree. They will have to get the share price moving in the right direction to do a capital raising.

I think the last captial raising was at 7 cents so those people are breaking even at the moment. 

I got a 20000 parcel at .20cents so im going to hold on till parra 2 is underway. Not worth selling out now. 

DYOR


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## Sean K (11 April 2008)

sharemadder said:


> Great ann.






Rob 17 said:


> I agree.




Why exactly?



> *Paradox Basin #2 Gas Well Location Inspection Completed*
> 
> The Bureau of Land Management has completed its inspection of the location for the second well, Paradox Basin #2, at the Golden Eagle Prospect, in Grand County Utah.
> 
> Paradox Basin #2 is a step out well one mile southwest from the successful wildcat shutin well Paradox Basin #1, completed in late 2007. The new well will test a similar Mississippian Pennsylvanian section up dip from the section tested in the first well.



Perhaps those in the know can explain how the Paradox Basin #1 was successful, and how this directly relates to GDN.

Cheers.


----------



## bozesprint (15 April 2008)

#1 was a relatively successful well:  

It was exploratory so there are some related cost i.e. extensive logging, possibly cores, extended flow testing, slower drilling.  The final published rates have the makings of an economical well for this part of the country (pipeline dependent).  The company just needs to be smarter about how they drill it.

Whoever made the decision to mill the DP should be fired.  They should have sidetracked and finished the well.  The 3 months and related stock decline was not worth it.

They should also publish the frac jobs that they performed.  It would be interesting to see what kind of investment they made there.  My guess would be not much as far as size of job is concerned(GDN mo).  For tight wells in that area of the country a frac job size/quality is directly related to production.

Also I am disappointed in that it seems that they are not being aggressive enough in there exploration phase.  Even in some of the best areas of the world companies come up with a dry-holes.  You need to punch in several to see what you have and be able to asses.  If GDN believes that what they have is a good prospect and they don't have the capital to move forward properly they need to find an investor.


Conclusion:
Drill more see if the lower (initial prospect) targets are hydrocarbon containing.

If not then drill to 2700m and produce intelligently from the zones that you have already proven.  Also you can't just have one rig out there drilling in a low rate field.  You need to have several.


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## rottodiver (22 April 2008)

well this is interesting, looks like the old gdn leak is at it again!! any one know why the sudden rise??


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## pilots (22 April 2008)

Well!! Should they get the permit, what will they use for money to drill the well?? It was one of the best ramped stocks last time, could they do it all over again? I for one hope they don't use the same rig or drilling team this time if they get it together. One thing that scares me is you have a lot of burnt holders waiting, they will ramp the hell out of this if it looks like they could get some of what they have lost back.


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## helpmeunderstand (26 April 2008)

Is GDN going to repeat last years rampup? would it reach the $1 mark again?

Does any one knows if they already got the ok to start driling?


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## pilots (26 April 2008)

GDN still don't have a permit to drill this well, the well site has some environmental troubles to over come yet(I read this on another forum). Second, by now they will be very short of money. GDN tells us they will get money back from Weatherford for the drilling muck up, Weatherford will win any time they are taken to court, GDN will not have a hope in hell of winning a case, once any thing goes past the rotary table you have payed for it, that stuff up, is all GDNs. As to the first well, the flow rate is so low I cant see how they can say it is commercial. I will still watch this lot, remember, CAZ,GDN,CVI, they are all good, if you got out at the right time, you will have made a killing.


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## tropolite (2 May 2008)

So, with the latest announcements from our much beloved GDN today what does that hold in store for us?

Seriously, what *does* that mean for us plebs... we are always being innundated with an abundance of details it's SO hard to keep up...

(sorry if you feel an air of sarcasm in my post)  

Cheers


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## tropolite (16 May 2008)

Okay... now I'm really confused.

Did I miss an announcement or something? WTF?

Don't get me wrong - I love seeing the volume @ 5.2Mil with a high today of 
.120, a 14+% increase today... but why?

Does someone who has more of an understanding of this beast called the ShareMarket tell us??? PLEASE????!

Ta  

Have a great w'end

tropolite


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## rottodiver (16 May 2008)

All I can say is I am glad they are able to rise and stay there... it is frustrating but it is a step in the right direction.....


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## helpmeunderstand (18 May 2008)

Does any one know if they got the drilling permit? are they going to strat drilling soon? they were supposed to start last month.

God............................ it will be really nice to hear anything from the management, may be we should send them the link to this forum so they can understand what we are going through!

lets hope that simley will get through the brick wall some day!!


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## sharemadder (18 May 2008)

BLM responded 17/05/08 WST to my email sent 16/05/08 asking for any publicly available information regards the permit apllication progress for Para#2.

See below, reply was short and sharp but not sweet.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

*The Paradox Basin #2 permit has not yet been approved by the BLM. The company has been advised of deficiencies in their permit and have been given a time frame to correct them.
*


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## sharemadder (18 May 2008)

I have also emailed our company directors in response to my last communique with the BLM, asking them -

*When do you anticipate the deficiencies in the permit application for Paradox #2 to be addressed?*

*What is the given timeframe to correct them?*

*What is the amended, proposed & anticipated drilling month to spud Paradox #2?*

Of course they will reply with plenty of information and may even inform all shareholders by way of a ann. on Monday what is happening.

What a good bunch they are.


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## DAZT49 (19 May 2008)

I can't believe it is taking so long to remedy the requirements of BLM.
How long is now since the inspectors were on site?


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## sharemadder (19 May 2008)

dazt49

First of all  welcome back

Second they were on there 10th April I believe.

BLM want certain things added I believe to the original permit application.

I give GDN 3 months from 10th April only because they are so damn slow.


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## DAZT49 (26 May 2008)

anybody know how to convert mmcf/d to MMbtu?
Need it to work out potential earnings for Para 2 if it gets 2-3mmcf/d.
Henry Hub prices are for MMbtu.
http://www.wtrg.com/daily/gasprice.html


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## hoppielimp (26 May 2008)

Hey Dazt, following from Energy Info Administration,


 Btu - One British thermal unit (Btu) is the heat required to raise the temperature of one pound of water by one degree Fahrenheit. 

 Therm - One therm equals 100,000 Btu.  

 Mcf - Mcf is the volume of one thousand cubic feet of natural gas and equals 1.031 million Btu on average.

//edit  Sorry this link is probably easier..

http://www.eia.doe.gov/kids/energyfacts/science/energy_calculator.html#natgascalc


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## sharemadder (26 May 2008)

Dazt

1 Mcf = 1.026 MMBtu (approx)

Source http://www.energy.rochester.edu/units/conversions.pdf

1MMBtu = US11.25 (average henry hub price for May to date)

Source http://www.oilnergy.com/1gnymex.htm#daily

So

340 Mcf = 348.84 MMBtu * US$11.25 = US$3924.45

So for Para#1 if it flows 340 mcfd then it makes US$3924.45 less costs, taxes and royalties.

Hope Para#2 hits the jackpot at 2 MMcfd or more then its well HELLO $$$


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## shanty (26 May 2008)

Hi people, good to read all the positive vibes.
Why do I keep remembering the utterances of a couple of 'loudmouthed' HC contributors re. "no permit because of enviromental problems" a few months back???


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## pilots (26 May 2008)

Shanty, what we want is positive announcements from GDN as to when they will get the permit, and what is the hold up with the permit,is it a environmental problem they have? if it is not environmental, what is the hold up?


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## hoppielimp (27 May 2008)

I can't remember, ever seeing in any announcement, but can anyone recall if a target reserve or quantity was ever put forth, apart from specualtion ?

Anybody ?

I think another leak seems to have sprung towards the close of today aswell


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## sharemadder (27 May 2008)

Below link refers to table information regards 2003 average costs of drilling onshore wells in USA.

Para#1 was TD of 16471 feet

Para#2 is susposed to be TD of 15500 feet (1000 feet less than Para#1 as updip in location)

We are looking at $3 to $5 million US plus inflation from 2003 to drill Para#2 and complete it.

http://pangea.stanford.edu/ERE/pdf/IGAstandard/SGW/2006/augustin.pdf


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## Bomber27 (27 May 2008)

Plots,

You must have a lot riding on GDN? I can understnad your frustration. I guess you are like all the other investors that got caught up in the hype and just held on.

I still hold a heap, well not that many now as my average buying price was 50c.

I want this one to go big aswell. I know they have a heap of potential but again the funds they need is going to be the almighty ruler.


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## pilots (27 May 2008)

Bomber27. I hold none, I watched GDN go up and down, it was one of the best ramped stocks around at the time. GDN was better than TV most nights, what was good to read what down rampers would say,  then wait for the team to try and take them apart. Just now we have many Australian teams in the USA trying to find what the Americans could not find in their own back yard. GDN biggest trouble was that they new nothing about the oil game, that in its self was a recipe for disaster.


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## diddy (6 June 2008)

what the chances that someone is buying as many shares as possible up to the 15.5 threshold then letting it fall, then repeating it.

what are the calculated figures which can be made from the 15.5 to have it as a upper limit threshold of purchase?

could someone be using this as a profit taking op.?


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## Rob 17 (2 July 2008)

Does anyone have any news on parra 1. Is it online yet?

Are we still waiting on approval for parra 2? I wonder whats taking these guys so long? 

Havnt had any updates for ages. Great way to run a company 

DYOR


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## sting (2 July 2008)

Rob 17 said:


> Does anyone have any news on parra 1. Is it online yet?
> 
> Are we still waiting on approval for parra 2? I wonder whats taking these guys so long?
> 
> ...





I get this scary feeling that GDN is being abandoned for its more profitable offspring. Surely by now the environmental concerns have been addressed if they are able to be. Cant help feeling certain brokers ramped this up last yr and now it has returned to where it should be. I bet those who participated in the capital raising are wondering what their money has gone into.


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## bigdog (4 September 2008)

Was there every any news on recovery of costs from the drilling screw up?

ASX ANN today
*Progress Report:
Paradox Basin #2 Oil & Gas Well, Grand County, Utah*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00877105

The Paradox Basin #2 well will be drilled on a site one mile (1.6 km) from the previous successful Paradox Basin #1. The new well will test a similar section to that in Paradox Basin #1 in a shallower, more structurally advantageous position. Multiple targets will be tested over a 5,000 foot (1,500 m) thick section, from the Upper Ismay zone of the Pennsylvanian Paradox Formation, through to the Mississippian Leadville Formation.

*Well Permit*
Golden State Resources is pleased to announce the US Bureau of Land Management (BLM) has concluded the public comment process for the proposed Paradox Basin #2 well, Grand County Utah. One detailed submission was received from the public. 

Prior to progressing the grant of the permit, the BLM has elected to seek comment from local Native American tribes under the consultation requirements of the National Historic Preservation Act. This consultation is normal at an early stage of the development of oil and gas projects. The BLM has informed the Company that the consultation process will take at least 30 days.

*Well Funding*
A funding facility to top up the Company’s reserves in preparation for drilling the new well is being arranged and will be finalized in the coming weeks. The funding facility is subject to shareholder approval.

*Drilling Rig*
The Company is proceeding with sourcing a suitable drilling rig for the well. An announcement will be made once a rig is contracted.


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## pilots (4 September 2008)

Bigdog, GDN won't get one red cent from Weathford, once a tool has gone past the R Table you have paid for it, you won't find any one that has sued,  and won a down hole case. I note we still DON'T have a permit yet. I find it strange that you get more info from a poster on HC than you get from GDN, I wonder why that is???


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## goodhotels (20 October 2008)

Doe's anyone have any idea on how long the native american tribes process will take and is there a link to see its progress? I will try to get in touch with RC maybe i can get further info. There's gas down ther they just need to drill.


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## Wysiwyg (20 October 2008)

goodhotels said:


> Doe's anyone have any idea on how long the native american tribes process will take and is there a link to see its progress? I will try to get in touch with RC maybe i can get further info. There's gas down ther they just need to drill.




No.Not right now.

What do you see in GDN? Do you know their recent history?Sitting on a trillion cfg. are they????????


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## goodhotels (21 October 2008)

They have already drilled 1 well and unfortunately they stuffed it up.I cannot quantify the amount but its certainly worth more than 5 cents a share.


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## upndown (24 October 2008)

Spoke to the company this week.Permit has been granted.Will be announced next week,hopefully Mon/Tues.Will be spudding very quickly.


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## BESBS Player (14 November 2008)

Decided to accumulate some GDN over the few weeks around the mid 5c range. Hoping that a little (even 10%) of the same frenzy that surrounded Paradox 1 will surround Paradox 2 once drilling if finalised and spuds. Good thing with this mob...even a fart is released to the market as a significant gas show so announcements can get things moving!

Bring on the spudding announcement


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## BESBS Player (17 November 2008)

Noticed that Oiler's Weekly have commented about GDN, Paradox 2 and possible BESBS action coming up. Looks like GDN is building slowly. Glad I bought in while mid-5c but this GDN will need an announcement about spud dates soon to keep any momentum.


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## BESBS Player (29 November 2008)

Liked the announcement that Paradox 1 will get a workover and Paradox 2 to drill. SP eased with action unlikely until early 2009 but is again hovering around the 6c mark. Happy to wait for this baby ...Holding...DYOR


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## BESBS Player (18 December 2008)

Announcement out yesterday:

_PARADOX BASIN #1 – Development rig mobilised
Work-over operations on the Paradox Basin #1 gas discovery well have commenced. A workover rig is currently onsite. A pressure survey has been run and flow testing on the presently perforated intervals in the Ismay Formation will commence shortly. The tests are required to be witnessed by the Bureau of Land Management.
The Ismay Formation was previously tested at rates of 0.501 MMscf/d from three perforated
intervals. The intervals were 9727’ to 9732’, 9740’ to 9760’ and 9850’ to 9860’.
After the initial flows test are completed the well will be reperforated with high density deep
penetrating charges over the zones 9747’ to 9770’, 9783’ to 9800’, 9810’ to 9818’, 9830’ to
9842’ and 9850’ to 9860’ before retesting.
Initial development work on the Paradox Basin #1 confirmed the well is a potential commercial gas production well.
The additional programme will test previously indicated pay zones and perforate additional
potential reservoir zones interpreted from reassessment of geophysical and geological data
for the well. The work is part of the data aquisition necessary to assess the well for production.
Future work on Paradox Basin #1 could include a large fracture stimulation as well as reentering deeper gas bearing zones.
PARADOX BASIN #2 – Deep rig available
Paradox Basin #2 was spudded last week  with the emplacement of conductor casing on the location. A top-drive drilling rig is available to commence drilling operations on the well.
Golden State Resources will issue further updates on the Paradox Basin #2 well when a
contract is signed.
Paradox Basin #2 is located 1.6 km (1 mile) south of the Paradox Basin #1 discovery well._

January 2009 might be interesting... Holding GDN.


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## muzzza (18 December 2008)

BESBS Player said:


> Announcement out yesterday:
> 
> _PARADOX BASIN #1 – Development rig mobilised
> Work-over operations on the Paradox Basin #1 gas discovery well have commenced. A workover rig is currently onsite. A pressure survey has been run and flow testing on the presently perforated intervals in the Ismay Formation will commence shortly. The tests are required to be witnessed by the Bureau of Land Management.
> ...






Interesting BESBS.. You don't mind these companys hoovering around the 4-6cents mark..... hehehehe


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## pilots (18 December 2008)

The flow test to day said 500psi, what a joke, if it was running a 2inch choke it still would not be a well. 
It looks to me that they will try to talk no one,, up and hope that will give them the money for no two.


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## BESBS Player (18 December 2008)

Hi Pilots.

I'm sure that is what GDN management will do...promote any results from Paradox 1 as a build up for No.2. As I said in an earlier post and I quote 

*"Good thing with this mob...even a fart is released to the market as a significant gas show so announcements can get things moving!"*

True to form, GDN SP up to 7c...I'm almost 30% now on ave. 5.3c buys. This one will fluctuate but continual good press releases will get some attention, regardless of how flimsy they might actually be. Happy to let this ride for a while.


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## BESBS Player (18 December 2008)

muzzza said:


> Interesting BESBS.. You don't mind these companys hoovering around the 4-6cents mark..... hehehehe




In this market Muzzza, I find it best to be patient and keep to simple rules for BESBS/sell during drill plays:

1. Buy small cap with SP within 10% of annual low (preferably near record low).
2. Must have drilling action coming up in the next few months.
3. Must have past record of investor interest in bigger projects
4. Prefer cash at hand (why I like LKO at present).
5. If funding is unclear, is the potential there for irrational buyers to run the SP regardless.

IMHO, and with no guarantees, I think LKO and GDN fit for me.


All the best with your investments,

Cheers,
BESBS Player


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## muzzza (18 December 2008)

BESBS Player said:


> In this market Muzzza, I find it best to be patient and keep to simple rules for BESBS/sell during drill plays:
> 
> 1. Buy small cap with SP within 10% of annual low (preferably near record low).
> 2. Must have drilling action coming up in the next few months.
> ...




Thanks for your time and insite BESBS. I really appreciate it. Its nice to be able to get some information from someone who knows something about the product.. Ill keep an eye on this one.. Best of luck with your investments too.


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## BESBS Player (20 December 2008)

A nice finish to the week. GDN bounced up to 8c before settling at 7.4c (up from 7c at yesterday's close). Next week should continue to be interesting on the GDN roller-coaster. Hanging on


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## shanty (21 December 2008)

To Pilot,

Would you be kind enough to explain to an idiot what the size of the choke has to do do with the flow? Surely a 'larger hole' only means less pressure and, if any thing, somewhat increased flow. Are you an expert in hydraulic engineering?


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## helpmeunderstand (21 December 2008)

muzzza said:


> Interesting BESBS.. You don't mind these companys hoovering around the 4-6cents mark..... hehehehe




obviously you have not seen the GDN history, 2 years ago it was hoovering around the low numbers and in a few good months it made it to over $1 atlesast twice, so if history thought us anything is that it repeat itself, lets hope that by the mid/end of 2009 things are going to be the same!


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## pilots (21 December 2008)

*Re: GD - Golden State Resources*



shanty said:


> To Pilot,
> 
> Would you be kind enough to explain to an idiot what the size of the choke has to do do with the flow? Surely a 'larger hole' only means less pressure and, if any thing, somewhat increased flow. Are you an expert in hydraulic engineering?




Shanty, if it was a two inch choke you would have no PSI, that tells you you have very little gas down hole, most gas wells flow around PSI up to as high as 20,PSI.
I am not a engineer, have worked on gas/oil wells.


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## pilots (21 December 2008)

Shanty, last post wrong, should read, if you had a two inch choke you would have no PSI, this tells me you have next to no gas in that well.
Most wells run at from 1500 PSI up to 20,000 PSI.


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## BESBS Player (23 December 2008)

So far so good. Although drilling has barely scratched the surface and we have a gas show that has not yet been subjected to more stringent testing, GDN now up to 7.5c . If we get another announcement that is viewed positively by the market, I reckon 8c is more than likely by the week's end. Need the announcement though.

Happily holding GDN (in at ave. 5.3c)


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## pilots (23 December 2008)

BES, Drilling has not started yet, all they have done is set a conductor pipe, this can be done with a water well rig.
GDN don't even have a rig signed up for the contract yet.


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## BESBS Player (24 December 2008)

Fair point, Pilot.
Got excited - should have stated work-over has commenced.

Punters continue to keep the GDN bandwagon rolling...finished 8c today. 
Reckon it might ease a little if no further announcements for a while. Knowing GDN, they'll be trying to get some positive news out there. 
Holding on for the ride...


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## pilots (24 December 2008)

Bes, I think you will find that, if the work over is no good on well No.1, it will be hard to get No.2 started.


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## BESBS Player (24 December 2008)

G'day Pilots.

In this market, I agree. Without good/promising results from Paradox 1, getting funding for Paradox 2 will be tough. 
Remember that BESBS stands for Buy Early Sell Before Spudding. In this case, I am happy to hold some for a bit longer but will be taking profits along the way. I'm no 'double or nothing' type. At present, 55% profit is pretty good in this market. I'd even look at selling out and then re-entering prior to drilling if all looks OK. Need to find out again how long the current workover is planned to take.

Still in and watching happily for the moment.
PS> Got to 8c on the dot, as predicted on the 22/12

PSS> Keep up the posts, Pilot. It is good to have a poster who sees the potential downside and states it in a clear, non-emotive fashion that I can use as a sounding board. Have a good Christmas.


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## pilots (24 December 2008)

BES, I do find it strange that this was not all tested when the last rig was on the well, GDN last time could not tell a oil rig from a 747, I would hope this time they hire some one who knows about the oil game.  Will be back in 3/4 days, you have a safe and happy Xmas.


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## BESBS Player (30 December 2008)

Amazing what a couple of bottles of St. Henri can do! Had sold a few GDN but decided to sell back to a free-carried parcel in GDN. Last batch went at 7.5c yesterday. Happy to lock in profits around 40% at this stage. Good results from the workover and GDN might well go for a run and if it does, I still have the free-carried parcel. If results are disappointing, the SP might drop as funding Paradox 2 could become problematic. 

Still hoping for a great announcement but taking the safer option...


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## pilots (30 December 2008)

It is not looking good just now, by now they know the flow rate, if it was any good they would be screaming it from the roof tops.
Lets say the flow rate was poor, they have had more than enough time to frack it, and flow test, this is my bet only, IT IS NOT LOOKING GOOD.
If they can't make the first well work, it will be VERY hard to get the money for the second well.


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## sharemadder (30 December 2008)

The flows they are testing is the ismay only.  1 of 7 significant zones.  Not the primary target "Leadville" either.  1mmcfd is ok for one zone of interest.

Para#2 is near the fault and is said to be in a better position for porosity and pearmability.  Leadville is the primary target.

Para#2 will be funded.  I am told they have the funds if required now.  They are waiting for better sp, hoping Para#1 is better so less dilution.  In any case Para#2 is a given to be drilled.

Why because the multiple targets can be tested properly not like Para#1 which most of it was damaged during hanger recovery.

Cheers


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## pilots (31 December 2008)

The story about the recovery of the casing hanger damaging some of the zones is BS.
Get then to tell you how it would damage the zone.


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## sharemadder (31 December 2008)

Pilots 

I disagree with you 100%

Anyway we wait for the next ann.

Para#2 will tell the whole story when complete whether the lease has the goods.

Enjoy New Year's celebrations safely everyone.


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## pilots (31 December 2008)

What was GDNs old saying, TWO MORE WEEKS.
The story about the zones being damaged is wrong, you see the well was cased, the whole time they was fishing, how would the zones be damaged. I believe that was a good story at the end of the well to justify the fact that the well was a duster.
As for drilling No two, the hard part is what will they use for money??
Have a safe new year.


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## BESBS Player (1 January 2009)

Won't matter too much for me.

Profits locked in for a free-carried parcel. If the results are good, then SP increase is a bonus . If Pilot is right, then I jump quickly and still make some good (although less) money.

Still hoping that the announcement is good news!


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## sharemadder (3 January 2009)

Pilots

The well flows gas, how can it be a duster?  Save, its not proven commercial gas flow yet.  So that is what Rick at GDN is testing, reservoir potential and whether they can flow more gas from further stimulation techniques.

Gee's u really bad on GDN.  Thinks are turning for GDN for the better imo.

Doing what some have and locking in free carried parcels is smart.

Regards raising capital, they will raise more money easy as they have always in worst conditions than this when ****e hit the fan on Para#1 and delays.  Got to have some faith mate that things going to get better.


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## pilots (3 January 2009)

Any well drilled will flow gas, getting it to be commercial is the hard part, this new round of fracking will add more cost to the well, should they ever get it to flow commercial, the well can NEVER pay for itself. You should only flog a dead horse for so long.
Good luck with your trading this year, we all deserve it after what happened last year.


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## pilots (5 January 2009)

Sharemadder, they have had all the time they need to frack and test, if we don't get good news by the end of this week, you can kiss the first well good buy. If they can't get the first one commercial, I don't hold any hope getting the money together for the second one.


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## Agentm (5 January 2009)

pilots said:


> Any well drilled will flow gas, getting it to be commercial is the hard part, this new round of fracking will add more cost to the well, should they ever get it to flow commercial, the well can NEVER pay for itself. You should only flog a dead horse for so long.
> Good luck with your trading this year, we all deserve it after what happened last year.




not true, no one can say for certain beforehand if a well will produce commercially or not after a frac stim, generally a fracture stimulation will result in improved flow rates from a well as long as its designed correctly and undertaken correctly for the specific formation its being targeted for. it can take many goes to get it right. 



pilots said:


> Sharemadder, they have had all the time they need to frack and test, if we don't get good news by the end of this week, you can kiss the first well good buy. If they can't get the first one commercial, I don't hold any hope getting the money together for the second one.




pilots, unless your really sure about timings in well operations then statements like that are not going to sound very accurate. you can spend many many weeks on a frac exercise or just a day.. what type of frac is planned for the well? is it simply a mini frac to test the zones or is it a full scale operation?

a formation will either indicate it can flow or not depending on a number of circumstances. in any drilling exercise or fracture stimulation there are plenty of things to go wrong and its always a case of trial and error.  having hydrocarbons present in a formation and wanting to flow freely is ideal. if formation damage is suspected or fracture stimulation is common for that formation then its not unreasonable to expect improved flow rates from such an exercise.  a fracture stimulation is only done where the probability of success is justifiable and an reasonable odds of success is anticipated in most circumstances.

i agree nothing has gone right for gdn and its had volumes traded like no one has seen on a small cap oil explorer.. some days i look at the trades and think "pump and dump" myself..  this stock has had many issues and problems thus far, and no one knows for certain what the formation is capable of producing. imho the biggest problem for gdn was the exaggerations of the progress reports during drilling where the term "commercial"  was used on many occasions yet to this day it appears the outcomes of all the zones appear to differ. that in itself makes it hard to understand the validity and motivations on the reporting as far as i am concerned.. and has made investing in gdn impossible for me..


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## pilots (5 January 2009)

Yes, GDNs problem I think was the fact that never had a clue about the drilling game, and as a result of this, they them self was screwed as well as the share holders.


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## Agentm (5 January 2009)

i think most people may agree with you pilots , it was perplexing me what was going on hence i stayed out of the share no matter what.. 

good timing,, some results have come through..

the well appears to have had low pressures needed swabbing on clean up, and obviously didnt clean up well enough to warrant flowing it any further, the results would indicate whether they would warrant any further frac operations in the future, it appears they may want to consider it..  

i have no idea if the 2200 psi shut in or the 300 psi on flow is an improvement or not from previous operations? anyone know?

PARADOX BASIN #1 WORK‐OVER
Golden State Resources has completed the re‐perforation and testing of Paradox Basin #1. The shutin tubing pressure increased to 2200 psig before the well was swabbed and a clean‐up flow commenced. Indications are that additional permeability was encountered. The principle objectives of the operation have been met and operations were suspended at 8pm on 31 December.

The well was flowing at 500 Mcf of gas per day with a 300 psi tubing pressure and was still cleaning up when the operations were suspended. The results of the testing give Golden State Resources further impetus to commence planning for a fracture stimulation that would be undertaken in the
northern spring.

Data from the test are being analysed and gas compositional data will be provided to prospective gas gatherers. The work‐over also provides sufficient data to enable the permitting of the production connector pipeline to be completed.


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## pilots (5 January 2009)

If you have to swabb a gas well it's a good chance it is going to be a dud, any shut in well will have up to 3000psi shut in PSI, this is just normal formation PSI, when a gas well flows at 300PSI you can forget it. Looks like they now have a WA partner, I hope they know about drilling, how ever that won't give them all the money they will need.


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## sharemadder (5 January 2009)

Pilots

Money is no issue, they have plenty on tap now and there is a whack of options expiring June 2009.

Para#2 is the main game now.

Para#1 will be frac'd again later but for now emphasis will now move to Para#2.


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## Agentm (5 January 2009)

pilots said:


> If you have to swabb a gas well it's a good chance it is going to be a dud, any shut in well will have up to 3000psi shut in PSI, this is just normal formation PSI, when a gas well flows at 300PSI you can forget it. Looks like they now have a WA partner, I hope they know about drilling, how ever that won't give them all the money they will need.




swabbing and 300 psi is indeed very poor in terms of what you need in a well to produce commercial flows.  the results of the frac would give them more data to work with and better frac designs or models to consider later, sounds like a mini frac? 

the results would have been extremely disappointing to anyone.  but there is not enough technical data nor anywhere enough time for any analysis to conclude if the well is a dud or not imho..  but it looks very bad imho.. 300 psi would not have been the numbers they would have been after..


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## pilots (5 January 2009)

The bit I don't like is this fracking cost the world, trust me you can spend as much on a frack as it would cost to drill the well, I am not saying this has happened with GDN.
If I was running GDN I would try to get drilling under way before I gave out any crap reports on the first well. With a bit of luck the ramp team will get on board and this will move the SP. I would want to know the big rig was ON SITE AND DRILLING before I would look at them.


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## pilots (5 January 2009)

The market thinks it is still a no go. GDN must give us some numbers, and facts if they want the market to fall in love again.


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## sharemadder (5 January 2009)

This is being capped at 8c pilots.

Been like this for a few trading days.

Hits 8c and then big seller appears to hold it.

First capital issue must be near before Para#2 deep drill starts.


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## BESBS Player (10 January 2009)

Interesting comments on this thread. Good to read.

Tend to see both lines of argument as valid. GDN have screwed up in the past. Paradox 1 does look dicey to me. Yet as Sharemadder suggests, Paradox 2 is the main game now and like any drill, there is always the potential (although the odds clearly differ depending on the target at hand) riches at the end of the drill bit.

Glad I sold to a free-carried parcel back when the SP was near 8c. Reckon this SP will tread water and/or slowly edge back toward 5.5c while the funding deal is completed, then start to run again later in the first week of February. If it does, might top up again as a quick BESBS play going into paradox 2 .


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## pilots (16 January 2009)

sharemadder said:


> This is being capped at 8c pilots.
> 
> Been like this for a few trading days.
> 
> ...




Well whats the hold up this time, we have the lease ready, PLENTY of rigs stacked around that neck of the woods, people tell me we have all the money we need, so just wait two more weeks, getting sick of that old saying.


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## BESBS Player (16 January 2009)

Looks like GDN has slowly drifted as I suspected. Hovering between 5.6c-6.1c at present.
Sub 6c, I suspect that this might provide a 2nd bounce BESBS play as we enter Paradox 2. 

Holding a free-carried parcel


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## bozesprint (18 January 2009)

*Testing*

I see a lot of questing about the flow rates and production pressures on #1.  I see 500Mcf as being a very good number for this area without a fracture treatment.  We are talking about micro-Darcy perm and therefore lower rates without help.  

Many operators just to the east would deem a well at $6.00 gas that IP'd at 1000Mcf to be a success.  These wells are drilled to 2700m with 5 to 8 fracs.

As far as the 300psi is concerned I see no reverence to how they were testing the well and what tubulars were involved.  They were probably flowing up casing did not have any assist.


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## BESBS Player (22 January 2009)

Just as I thought on previous posts, GDBN now struggling to hold at 5.5c. Until we get through the first week of Feb, reckon 5c is very likely. 

DYOR.Just MHO.


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## pilots (31 January 2009)

GDN,You have to hand it to them, no mater what they touch turns to trouble, they have trouble with the TBG, why did they not pull it out and fix the problem, or was the problem the fact that the TBG was full of sand. Next they say the completion fluid was lost in to the formation, this is seen as increased permeability,BS, this is all so seen as NOT HAVING ANY GAS PSI TO PUSH IT OUT OF THE HOLE. No matter what, the numbers for the first well is that it is no way ever going to be commercial. Going to be VERY hard to find the money now.


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## pilots (12 February 2009)

Just had a look at the photo of the rig, hope it is still rigging up, as that photo has NOT got a top drive, have we been screwed again????


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## bigdog (13 February 2009)

pilots said:


> Just had a look at the photo of the rig, hope it is still rigging up, as that photo has NOT got a top drive, have we been screwed again????





ASX ANN Feb 12
12/02/2009 	Paradox Basin No 2 Update
http://media.wotnews.com.au/asxann/00926586.pdf

PARADOX BASIN #2 UPDATE
Unit Drilling Rig 234 has commenced drilling of Paradox Basin #2.  Rig 234 is a modern top drive capable of drilling and completing the well to 16,000ft. The well is scheduled to take 110 days to drill and test. 

Drilling operations are being managed by F.J. Brown and Associates incorporated in Texas.  

Golden State Resources Limited has recently engaged RPS Energy to conduct an independent resource assessment of the Golden Eagle gas field. 

Paradox Basin #2, the second well on the Golden Eagle gas field is planned to further appraise the extent of gas bearing horizons in Pennsylvanian and Mississippian reservoirs, and is expected to test the Leadville Limestone 600ft higher than Paradox Basin #1.  

Paradox Basin #2 is located closer to known faults and is more likely to encounter fracture enhanced porosity, which is a consideration in the placement of potential naturally productive wells.

The Golden Eagle gas field was discovered in 2006 when Paradox Basin #1 produced gas from three separate zones within the Hermosa Group of the Paradox Basin.  Gas was produced on test from the Upper Ismay Formation, and the Barker Creek Formation. 

Golden Eagle gas field is a deep tight gas accumulation located in the Paradox Basin in Grand County Utah.  The structure remained one of the largest untested features in the basin prior to Paradox Basin #1.  Most structures in this prolific basin were drilled in the middle of the last century.  

Golden Eagle gas field is a high relief structure containing numerous gas zones in low porosity sediments over a 1705m (5594’) section extending from the Upper Ismay Formation at 2964.8m (9727’) to the Pinkerton Trail Formation at 4669.8m (15321’).  Structural closure exceeds 600 metres.  

Gas is reservoired in a variety of rock types with typical porosity below 8% and low permeability. Independent Log analysis of the Upper Pennsylvanian confirms the presence of 15.5m of net gas pay. Additional gas bearing zones occur in the Lower Pennsylvanian, Pinkerton Trail and Alkali Gulch Formation. The Mississippian Leadville Limestone was not effectively evaluated by the first well.


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## pilots (14 February 2009)

Big dog, have a look at the photo, no top drive in the mast, a swivel on the ground, you don't use a swivel with a top drive. I worked with a driller called Big dog in Malaysia was that you??


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## bigdog (14 February 2009)

pilots said:


> Big dog, have a look at the photo, no top drive in the mast, a swivel on the ground, you don't use a swivel with a top drive. I worked with a driller called Big dog in Malaysia was that you??




Hi Pilots,

Sorry, but I am not your driller.

Top drive -- what am I looking for?

The photo is dated Feb 9, 2009 - at least they got the date right!


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## pilots (14 February 2009)

Big Dog, go to Google, enter Top Drive, they have some good photos of them.
Just looking at the GDN rig I cant see that it EVER has had a top drive, you can have them installed but that takes a Long time. 
If that rig has a Top Drive why do they have a swivel on site, you can't use both of them.


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## pilots (14 February 2009)

BD, You will all so see in that photo, that they have no track to run the Top Drive, Now look at the photo of the rig you see on the right hand side two white tanks, on the ground in front of the first tank you see a yellow thing on the ground, that is a swivel, that tells me that rig has NOT been using a Top Drive.


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## bigdog (14 February 2009)

Pilots

FJBROWN website can not be accessed - thought I may find the same pic here!

http://www.macraesbluebook.com/search/company.cfm?company=700216

Website:  	www.fjbrownassociates.com


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## Wysiwyg (14 February 2009)

The drill rig is a Continental Emsco D3 diesel electric drilling rig with a depth capacity to 16,000 feet.

http://www.unitcorp.com/casper.html


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## pilots (20 February 2009)

Looking at the last photo I would say they are Air drilling. This will be why they have made so much hole this fast.


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## bigdog (26 February 2009)

ASX ANN Feb 25

PARADOX BASIN #2 UPDATE

Golden State Resources Limited has run 13⅜” casing to 3,806’. The well is currently circulating through the stage tool waiting for the stage 1 cement to set, prior to cementing the upper stage. The well is expected to drill out of casing once the second stage cement has set. 

Operations on the Paradox Basin #2 well are proceeding ahead of schedule. Unit Rig 234 drilled to the surface casing point at 3,806’ in approximately 7 days and has run the 13 ⅜” casing and set the first stage of two stages of cement.  The second stage cement is expected to be completed today before continuing to air hammer drill in 12  ½“ hole to approximately 6,000’ before switching to a conventional mud system and rotary drilling. 

Current operations are eight days ahead of schedule and are 16 days ahead of the equivalent operations in the Paradox Basin #1 discovery well.   Rig 234 has performed reliably through‐out operations with minor lost time due to a minor electrical problem. Minor time losses have also been attributed to reliability of the air hammer. 

Paradox Basin #2, the second well on the Golden Eagle Gas Field, will appraise the extent of gas bearing horizons in Pennsylvanian and Mississippian reservoirs. The Mississippian Leadville Limestone is expected 600 ft higher than in Paradox Basin #1.  

The well is also located closer to known faults and is more likely to encounter fracture enhanced porosity, which is a consideration in the placement of potential naturally productive wells on the nearby Lisbon Field. 

Timeline
•         Permit  -- Completed 
•         Site works completed -- Completed 
•         Select spud rig -- Rig 234 
•         Spud -- December 
•         Deep drilling rig on site -- February 2009 
•         Drilling -- 80 Days 
•         Testing and completion -- 20 days 
•         Potential first production -- August 2009


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## pilots (27 February 2009)

*Re: GD - Golden State Resources*

The market thinks this is still a dog, don't for get that the first well is a duster, yet the company is still telling us that they have a gas field.
It is frustrating that they don't tell us the truth, they should of told us they was air drilling.
It still looks to me that GDN still have NO ONE who's knows any thing about drilling a well.


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## Agentm (27 February 2009)

pilots, the first well had hydrocarbon shows, it was the directors that put the bold word *commercial* in all their releases.  which sent the sp up to $1 and more then crashed and burned thereafter.  within the industry no one liked the reporting used and no one gives them and credibility for doing so either..  the damage to the credibility of the entire small cap oil explorers really was hiyt hard by those wild claims..  if they claim to have a gas field then so be it, are they claiming to have a commercially viable gas field?

its clear the first vertical well was not commercial, the releases were very misleading,  and its clear now the decision to drill out the cement rather than a simple sidetrack was a critical decision that cost a bundle.. and the evidence so far only shows the rock is hydrocarbon saturated. its worth nothing unless you can extract it at commercial rates, which with a vertical well is unlikely, then in any case the company will need a lot of capital in the future to fund the development program.. i see this current well as a exploration well, if it finds suitable hydrocarbons that it believes can be extracted at commercial rates, imho the plan would be for further capital raising and for perhaps alternatives like expensive horizontal drilling to be explored.. but you would want an experienced operator in that play to be on the job..


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## bigdog (3 March 2009)

ASX ANN today - reports drilling ahead of schedule by approximately 4 days!!

03-03-2009 09:27 AM  	 GDN  	  Paradox Basin No 2 Update 

PARADOX BASIN #2 UPDATE 

The Paradox Basin #2 appraisal and development well on the Golden Eagle Gas Field in Grand County Utah is currently at 5051’ (1540m). Operations are proceeding ahead of schedule by approximately 4 days.  In comparison to the Paradox Basin #1 well the current operations are twelve days faster. The look ahead is to switch from the air hammer to normal rotary drilling.  

Drilling operations on the Paradox Basin #2 appraisal and development well are proceeding ahead of schedule by approximately 4 days. Unit Rig 234 drilled to the surface casing point at 3,806’ in approximately 7 days and has run and cemented the 13 ⅜” casing.  The well is currently at 5051’ (1540m) and is switching from the air hammer to normal rotary drilling.    

In comparison to Paradox Basin #1 current operations are ahead by at least 12 days of the equivalent depth.   The drilling rig is performing well and we look forward to continued improvements in performance throughout the well.   

Paradox Basin #2, the second well on the Golden Eagle Gas Field, will appraise the extent of gas bearing horizons in Pennsylvanian and Mississippian reservoirs.  The first appraisal zone will occur below the next casing and based on penetration rates in analogue wells this should occur in late March or early April.


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## BESBS Player (9 March 2009)

Shouldn't be too long now until we get to the zones of interest. Any sign of a gas show and we should see a bit oif interest in the SP.

Happy to hold my free-carried parcel at this stage...


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## sharemadder (9 March 2009)

All time drill record for GDN, 19 days ahead of schedule, amazing.

End of week then casing before entry into Ismay.


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## bigdog (11 March 2009)

ASX ANN today
11-03-2009 10:09 AM  	 GDN  	  Request for Trading Halt 

The trading halt is required to allow sufficient time for an announcement to be made by the company in relation to a report issued by RPS Group Plc.

RPS Group Plc is a global consultancy that is conducting an independant valuation of the Golden Eagle project and its Gas-Initally-In-Place (GIIP) estimates.

11-03-2009 10:04 AM  	 GDN  	  Trading Halt 
Trading Halt issued


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## BESBS Player (11 March 2009)

Just starting the _interesting _bit of the journey but liked today's announcement (as did the market). This ride could be fun...

Happily holding a free-carried parcel of GDN


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## bigdog (11 March 2009)

*What does "The results confirm Golden Eagle as a new field discovery which has confirmed discovered gas and significant upside potential" really mean???*

*Why did not GDN request an US company to conduct the review?
-- RPS is a West Australian Coy!*

Todays ASX ANN
11-03-2009 02:54 PM  	 GDN  	  Independent auditors report on Golden Eagle Gas Field 

The Directors of Golden State Resources Limited are pleased to announce the completion of an independent audit of the Golden Eagle gas field in Grand County Utah by RPS Energy.  The results confirm Golden Eagle as a new field discovery which has confirmed discovered gas and significant upside potential 

Hydrocarbon in place estimates for the Golden Eagle gas field where prepared in accordance with SPE/WPC/AAPG/SPEE Resource Management System (PRMS, 2007), by a team of independent experts from RPS Energy. The results confirm the large potential of the Golden Eagle gas field. Full details are provided in the Opinion letter.   

In accordance with the above standards of resource management the Gas Initially in Place (GIIP) is categorised firstly into confirmed discovered gas which has been produced on test and is supported by petrophysical data. Both the Barker Creek and Ismay Formation accumulations fall into this category. The second category is undiscovered gas. Undiscovered gas represents zones which have not produced gas on test but which have strong indications of gas initially from ditch cuttings and petrophysical evaluation indicates contain movable hydrocarbons.  

The GIIP is estimated at Low volume and high confidence (P90), Mid volume and mid case (P50) and High volume lower confidence (P10) levels. These divisions reflect the expected ranges in key parameters such as areal extent, thickness, porosity, and hydrocarbon saturations.  

The Paradox Basin #2 well will appraise both the discovered and the undiscovered GIIP and once completed will extend the area attributed to the P90 estimate which was determined by using a 640 acre area around the Paradox Basin #1 discovery well. Successful tests in the Alkali Gulch or Leadville Formation would move their respective GIIP into the discovered category.  Paradox Basin #1 did not  successfully test the Alkali Gulch or Leadville Limestone. On completion of Paradox Basin #2 the additional data recovered will enable the resource estimate for Paradox Basin #1 to re‐defined at the Alkali Gulch and Leadville levels.


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## bigdog (12 March 2009)

bigdog said:


> *What does "The results confirm Golden Eagle as a new field discovery which has confirmed discovered gas and significant upside potential" really mean???*
> 
> *Why did not GDN request an US company to conduct the review?
> -- RPS is a West Australian Coy!*
> ...


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## pilots (12 March 2009)

This should come under the heading of JOKE.
They drill ONE well, it was a expensive duster.
Second well drilling and they call it a gas field. We as yet have no gas,how can it be a gas field??


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## pilots (13 March 2009)

26 Units of back ground gas, you will find that in ANY hole you drill ANY place.
How that can be price sensitive is truly unbelievable.


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## bigdog (13 March 2009)

Golden State Resources like any company needs promote their company.

The review was by RPS (a local West Australian Coy).

Mr. Rick De Boer (Executive Director of Golden State Resources Limited since December 2008) recently held the position of Geological Manager with RPS Energy


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## bigdog (13 March 2009)

pilots said:


> 26 Units of back ground gas, you will find that in ANY hole you drill ANY place.
> How that can be price sensitive is truly unbelievable.




There was not much reaction after todays ANN
GDN   	$0.064  	  +0.003   	  +4.92%   	high of 	0.067  248,209 shares  	$16,119  @	13-Mar 11:15:43 AM

13/03/2009 	Paradox Basin No 2 Update

DRILLING STATUS REPORT – 13 MARCH 2009  

Paradox Basin #2, Grand County, Utah 


The Paradox Basin #2 appraisal is currently at 7877 feet (2401m) and running in hole after a bit change and full inspection of the drill string 

The next casing point will be below 10000 feet and Golden State expect to reach the casing depth early next week 

 Levels of background gas have increased with up to 26 units and increased levels of connection gas. Locally traces of ethane have been detected.   

Unit Rig 234 continues to outperform the drilling plan and is currently 25 days ahead of the equivalent depth in the Paradox Basin #1 well.


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## BESBS Player (13 March 2009)

G'day Bigdog.
True, not an amazing reaction but I'm happy to take any SP rise in this market. Interesting to see what announcements will be forthcoming as they drill deeper, and how the market responds. Wonder if we will get a few GDN 'specials' - the old 'fart is a strong gas show' hype to get the SP moving before results? Hope so 


Still holding my free-carried parcel


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## BESBS Player (16 March 2009)

Looks like the interest is returning now as we get closer to the business end for GDN. 7.5c today... I smell more profits   Knowing GDN, the ride will be a roller-coaster but news soon will hopefully provide plenty of big peaks!

Holding GDN


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## bigdog (17 March 2009)

The Business Spectator reports (via Wotnews Australia  Daily News Report)

http://www.businessspectator.com.au...rces-has-595k-loss-Q7G2T?opendocument&src=rss

Golden State Resources has $595k loss

Source: News Bites

Golden State Resources Ltd reduced its loss to $595,000 in the half-year to December 31, 2008 from a previous $734,000 loss, on revenue up 38.8% to $93,000.

There was no dividend.

Cash was down 25.4% to $1.5 million.

The company continues to explore 10,457 hectares (25,937 acres) of state and federal government oil and gas leases at the Golden Eagle Oil & Gas Field in Grand County, Utah, in the USA.

STOCK DASHBOARD: March 16, 2009

Golden State Resources

Closing Price: 7.50c

Price change from previous trading day: 15.4%

Relative Strength (6 months percentile rank): 93.3

Market capitalisation: $23.7 million

Turnover volume: 4,276,706.0

Volume Index (1 is average): 3.3

Turnover value: $309,659.7

Turnover period: 11 months

Value of $1,000 invested 1 year ago: $1,027


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## bigdog (18 March 2009)

ASX ANN today 

*GDN is on the move at 12 feet per hour with more news at the end of the week!!

Lets hope GDN report this like they did back in 2006!!*

18-03-2009 08:41 AM  	 GDN  	  Paradox Basin No 2 Update 

*DRILLING STATUS REPORT – 18 MARCH 2009 * 


Paradox Basin #2 Well, Grand County, Utah  The Paradox Basin #2 appraisal and development well is currently in the Pennsylvanian Honaker Formation  at 8,452 feet (2,571m) and Drilling ahead at 12 feet per hour 

Golden State Resources expects to reach the next casing point late this week. After logging and setting the casing the well will test the first objective the Ismay Formation in late March or early April. 

The Ismay Formation will be penetrated below the elevation of the previous discovery well to test the lateral and vertical extent of the gas accumulation

Levels of background gas continue to increase with depth.  

The purchase of the 9 5/8” casing represents the largest single cost outlay for the well and is a key milestone in both the operations and funding of the well.


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## BESBS Player (21 March 2009)

Its been a good week for GDN. The SP has risen around 1c, volumes are reasonable and news is being reported frequently to the ASX. Happy to hold and watch at this stage.


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## BESBS Player (24 March 2009)

Nice to see GDN crack double figures and reach an intra-day high of 10.5c. Given casing is ahead, wondering if we might see a bit of profit-taking while other punters try and climb aboard ready for when the drill hits the target zones. While I am continuing to hold my free-carried parcel from the P-1 workover, I'm not sure the SP rise can continue without a little dip shortly.

JMHO...


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## bigdog (25 March 2009)

ASX ANN 
25-03-2009 09:40 AM  	 GDN  	  Paradox Basin No 2 update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00939199

The reporting season for GDN is underway; lets hope the drill bit does not get jammed!!!

DRILLING STATUS REPORT – 25 MARCH 2009  

Paradox Basin #2 Well, Grand County, Utah 


Paradox Basin #2 has reached a depth of 9,710 feet (2,960m) in 39 days  

At the intermediate casing depth of 9,800 feet (2,987m), the well will be logged before running the casing. Logging and casing are expected to take approx. 5 days  

Drilling should resume early next week. The well is expected to intersect the top of the Paradox Basin sequence at 10,100 feet (3,078m) with the first objective the Ismay Formation at 10,700 feet. 

The Paradox Basin sequence contains 8 major objectives in the Pennsylvanian and Mississippian over a 5,000 foot (1,542m) interval 

The objectives are the Upper and Lower Ismay, Desert Creek, Akah, Barker Creek, Alkali Gulch, Pinkerton, and Leadville formations 

The well is currently ahead of schedule and under budget


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## bigdog (27 March 2009)

ASX announcement today
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00939813
27-03-2009 09:42 AM  	 GDN  	  Progress on Weatherford Litigation 

*Potential money in the bank!!!*
*Weatherford claimed that it had successfully set the liner hanger and released the running tool prior to cementing operations, but Weatherford now admits that it did not do so. Golden Eagle is seeking a jury award of damages and recovery of its costs against Weatherford in excess of US$6 million.

There has been no movement in todays share price!!!!
GDN   	0.089  	  0.000   	  0.00%   	high of	0.091  	 	1,309,374 shares 	$117,632 @ 	27-Mar 10:56:25 AM *


ANNOUNCEMENT – Progress on Weatherford Litigation

As disclosed within the 2008 Annual Report, Golden State Resources commenced legal action against Weatherford U.S., L.P. to recover damages caused by Weatherford U.S. L.P.’s failure to properly conduct its liner hanger operations on the Paradox Basin #1 Well. The Company’s US operating subsidiary, Golden Eagle Exploration LLC, maintains in that action that Weatherford failed to set the liner hanger and failed to release the running tool prior to the commencement of cementing operations. While performing the liner hanger operations, Weatherford claimed that it had successfully set the liner hanger and released the running tool prior to cementing operations, but Weatherford now admits that it did not do so. Golden Eagle is seeking a jury award of damages and recovery of its costs against Weatherford in excess of US$6 million. 

Subsequent to pre-trial depositions conducted in Utah in February 2009, the Company presented Weatherford with a settlement proposal. The Company wishes to advise that it has received a counter offer from Weatherford that is unacceptable. The Directors have therefore resolved that this matter shall proceed to trial, which is now scheduled for October 2009.


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## bigdog (1 April 2009)

ASX ann today (last update report issued 25-03-2009)
01-04-2009 08:25 AM  	 GDN  	  Paradox Basin No 2 update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00940952

DRILLING STATUS REPORT – 1 APRIL 2009 
Paradox Basin #2 Well, Grand County, Utah 


Intermediate casing has been set and cemented at 9 ,800 feet 

Wireline logging has confirmed Paradox Basin #2 intersected the top of the Paradox Basin sequence at  9,738 feet (2,968m), 352 feet higher than expected  

The look ahead is to drill‐out the casing shoe, then to conduct a formation integrity test before running cement bond logs  

Drilling is expected to resume within 24 hours of completion of cased hole logging   

The first major objective, the Upper Ismay Formation, should be reached later this week  

The Paradox Basin sequence contains 8 major objectives in the Pennsylvanian and Mississippian over a 5,000 foot (1,542m) interval  

The well is currently ahead of schedule and under  budget


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## BESBS Player (1 April 2009)

*[*]The first major objective, the Upper Ismay Formation, should be reached later this week * 


Happy with progress to date, BD. Should have some announcement by early next week (if not earlier). Although I am already free-carried on this, I'll be watching for the Ismay result. Positive/gas and I'll keep riding, anything disappointing and I'm out of here.

Good luck to all holders.


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## bigdog (3 April 2009)

BESBS Player said:


> *[*]The first major objective, the Upper Ismay Formation, should be reached later this week *




BESBS - yes getting closer 
"Currently the well is drilling at approximately 30 feet per hour and is expected to reach the first of eight gas objectives later today or over the weekend, depending on the drilling rate."

ASX ANN today
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00941836
Drilling Status Report – 3 April 2009
Paradox Basin No 2 update

After successfully setting the intermediate casing, drilling operations have resumed on the Paradox Basin #2 gas appraisal and development well 

Casing and logging operations were completed without incident in approximately eight days as per the schedule 

Currently the well is drilling at approximately 30 feet per hour and is expected to reach the first of eight gas objectives later today or over the weekend, depending on the drilling rate.  

The Paradox Basin sequence contains 8 major objectives in the Pennsylvanian and Mississippian over a 5,000 foot (1,542m) interval 

The well is currently ahead of schedule and under budget


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## pilots (3 April 2009)

I note to day they say if this No 2 is commercial they will bring a test rig in, and test the well, tell me this, why don't they take the test rig on to the first well and get it to flow gas, every one tells me it is commercial, then why ain't we selling it??? If they stated to sell gas you would see the SP go north over night, could it be that the first is NOT commercial??


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## BESBS Player (5 April 2009)

Hi Pilots,

Not sure although I always get the feeling that P-2 is the real hope for GDN.

At one level, for me, your question is irrelevant as I do not plan to be around for re-testing Paradox-1. I already have a free-carried parcel and am watching for the Ismay results. I have not had a great deal of confidence in GDN management and plan to either jump very early this week (if results are negative) or watch for a run and then jump if results are good. 

Should be interesting to see how it unfolds...


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## pilots (5 April 2009)

BESBS,, The first well is still a joke to day,(we won't talk about the COST) they bring in a work over for testing, next they say the TBG has a blockage, it could be sand, or when they ran the TBG in the hole was the TGB over torqued, the FIRST thing you do after running TBG is to run a gauge ring to make sure all is API, when I asked if they ran one they did not know, now when they found that the TBG was in trouble WHY did they not pull it out of the hole fix it, and go back to testing.
Until they give us on paper flow rates over a proper test you have NOTHING.
This story on this well is all ways the same we cant test this because this was broken, now we cant test the well because the TBG is half blocked.
What a lot of people are thinking is that as they have not been able to test the well they don't have to tell us it is a duster.
The first well only got to its top price with the help of one very good ramper, had he not been on board for the first well I don't think it would have made 50cents. Watch your stop loss.


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## bigdog (6 April 2009)

ASX ANN today "Gas shows were encountered" so far so good!
06-04-2009 08:31 AM  	 GDN  	  Paradox Basin No 2 update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00942141

PILOTS - can you help with unit findings?

DRILLING STATUS REPORT – 6 APRIL 2009  
Paradox Basin #2 Well, Grand County, Utah

Paradox Basin #2 is currently at 10,300 feet (3,139m) in the Upper Pennsylvanian Paradox Formation above the first of eight gas objectives, the Ismay Formation, which is expected at approximately 10,550 to 10,800 feet.  

Gas shows were encountered at 10,110‐10,112 feet in the Paradox Formation

Gas levels reached 621 units from a background level of 21 units. The chromatograph recorded high levels of methane at 46,628ppm.  

A second show occurred between 10,252 to 10,276 feet with the gas level reaching 85 units from a background of 11 units.  

Currently the well is tripping in with a new bit.  

The Paradox Basin sequence contains 8 major objectives in the Pennsylvanian and Mississippian over a 5,000 foot (1,542m) interval. 

The well is currently ahead of schedule and under budget.


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## pilots (6 April 2009)

Bigdog you get background gas on EVERY well that is drilled any place, as long as the formation  has porosity(porous), as well as a cap rock to trap the gas or oil, the readings they have are normal. What we have to see is the flow readings at the end of the well, they can do a DST when they are drilling, this will tell you they have gas/oil, what you need is the final flow readings from the end of the well, the test can run for weeks some time.
This is a wait and watch game, keep your finger on your stop loss.
You all deserve some good luck after the first well, hope you get it.


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## bigdog (7 April 2009)

GDN was very strong on reporting for Paradox Basin #1 

PILOTS: Another ASX ANN today!!
SP closed at 0.10 cents yesterday and today Pre-Open   	Indicative Price: 0.12

07-04-2009 08:40 AM  	 GDN  	  Paradox Basin No2 update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00942556

DRILLING STATUS REPORT – 7 APRIL 2009  
Paradox Basin #2 Well, Grand County, Utah 

Paradox Basin #2 has penetrated the Upper Ismay Formation at approximately 10,340 feet (3,152m) and encountered significant gas shows of 398 and 787 units in the Upper Pennsylvanian Ismay Formation. The level of gas shows is higher than shows observed in the Ismay Formation production interval in Paradox Basin #1. 

The first Upper Ismay Formation gas show displayed a sharp increase from 26 units to a peak of 398 units. The gas is primarily methane (40,177 ppm) with lesser ethane (743 ppm). The show persisted for 32 feet from 10,336 to 10,368 feet.  Lithology consisted of sandstones and shales. The sandstone has fair visual porosity. 

The highest gas reading of 787 units at 10,387‐10,392 feet (5,079‐5,084ftSS) occurred in coarse grained conglomeratic sandstone with good visual porosity. 

The Ismay Formation in Paradox Basin #2 contains a higher percentage of marine sandstones, which are interpreted as near shore bar deposits that are highly prospective as reservoirs. 

 The Paradox Basin sequence contains 8 major objectives in the Pennsylvanian and Mississippian over a 5,000 foot (1,542m) interval. 

The well is currently ahead of schedule and under budget.


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## bigdog (7 April 2009)

GDN SP up 3 cents
GDN   	0.13  	  +0.030   	  +30.00%  high of 	0.13; ..   	6,629,575 shares	$840,337 @ 	07-Apr 10:07:55 AM

Todays volume after 5 minutes trading has exceeded the daily volume now for the past 19 trading days below:

Volume is very good on opening
Date  	Close  	Volume  
06-Apr-09	5.27	1,349,904
03-Apr-09	5	1,007,930
02-Apr-09	4.7	689,870
01-Apr-09	4.6	1,850,073
31-Mar-09	4.52	3,242,940
30-Mar-09	4.27	3,678,803
27-Mar-09	4.45	4,842,076 highest
26-Mar-09	3.93	1,933,731
25-Mar-09	3.6	945,463
24-Mar-09	3.5	769,002
23-Mar-09	3.33	213,912
20-Mar-09	3.17	1,412,368
19-Mar-09	3.05	345,624
18-Mar-09	3.04	704,030
17-Mar-09	3	397,806
16-Mar-09	3	783,953
13-Mar-09	3.05	819,719
12-Mar-09	2.95	835,385
11-Mar-09	2.78	545,196


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## edogg75 (7 April 2009)

Great call BigDog.

The key resistance at 11c has been smashed on open.

Clear run to resistance at 16.5c imo.


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## Agentm (7 April 2009)

bigdog,  


if a company can put out a release on the asx and  compare gas shows between wells without even elaborating on all the factors that could contribute to the change the readings, and without a disclaimer.. then your going to do fine with this share for sure..  i noticed gdn withheld mud weights on both wells so it would be impossible to conclude anything at all from the release today.. other than a gas show was higher in one well compared to the other..  


well done to all holders, the share is ripping away on a gas show!!  


http://72.14.235.132/search?q=cache...ts&cd=18&hl=en&ct=clnk&gl=au&client=firefox-a


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## BESBS Player (7 April 2009)

So far so good. Loved the announcement today. Positive news yet nothing in it to allow too much critiqueing. Given this, reports of strong gas flows will keep GDN moving northward. 

As I quoted earlier,

_"I already have a free-carried parcel and am watching for the Ismay results. I have not had a great deal of confidence in GDN management and plan to either jump very early this week (if results are negative) or watch for a run and then jump if results are good. "_

Given today's news, I'll be watching but definitely staying in.

Disc: Holding GDN at Ave. 5.8c


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## Agentm (7 April 2009)

besb. 


the industry requires under the Listing Rules covered in chapter 5, that a person with 5 years minimum degree in geology, geophysics, petroleum engineer or similar, can sign off the reports. most oil companies use one as a standard on all reports involving any aspect of drilling and exploration

There is a reason for the requirement, it prevents information that can be misconstrued or misinterpreted from going into reports and minimise any possibility of a share rising 50% and trading 35 million shares on a gas show.

its great for the ones selling, but i question if the ones buying are getting a good picture about the gas shows?  in the absence of a sign off by a geo i am not certain i can rely on what is being reported in the right context.

great to see the sellers making a killing here..  many got in very low for this journey.. and the daily reports are absolute gold..


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## BESBS Player (7 April 2009)

Agree 100%, AgentM.

I don't think there is a lot of information in the GDN reports. However, as a short-term play, they are gold as the only information released is usually positive and hard to measure. That is why I was saying there was $$$$ to be made here a few weeks back when I averaged in at 5.8c. 

I suspect more to come tomorrow as we get further into/through the Ismay formation...

Still holding GDN


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## Agentm (7 April 2009)

the report is clearer now that the next announcement has come through after close.

hottest stock on hc .. gdn got 97,000 views today and 335 posts so far.. well worked imho.. only a few posts here interestingly

ABN 39 063 074 635

Dear Sir/Madam,

PLACEMENT

Golden State Resources is pleased to announce that funds of $770,000 have been raised by a placement of 7,000,000 shares at a price of 11 cents per share. The issue of shares is within the company’s 15% placement capacity.
The shares are to be issued to various institutional clients and sophisticated investors. The company will pay a 6% commission of total funds raised. The proceeds of the share placement will be used for working capital on the Golden Eagle Oil & Gas Prospect, Grand County, Utah.
Yours faithfully,
Ranko Matic
Company Secretary


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## bigdog (7 April 2009)

Agentm said:


> the report is clearer now that the next announcement has come through after close.
> 
> hottest stock on hc .. gdn got 97,000 views today and 335 posts so far.. well worked imho.. only a few posts here interestingly




*Agentm: you forgot to report todays 50% increase in the closing SP with high of 0.160 (+60%)

Today there were 1000 trades and volume of 43,350,544 shares was the highest volume since Sept 2007

GDN   	0.15  	  +0.050   	  +50.00%   	high of  	0.16;..  	43,350,544 shares  	$6,025,676  @	07-Apr 03:57:07 PM*


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## Agentm (7 April 2009)

bigdog, re the 50% increase.. i mentioned it today.. what are you talking about? its not like there are 500 posts here today to sort through

the cap raising should pay for another 7 - 14 days of drilling costs. you can look at around $50 - $100k per day. running it close to the wire here. i expect many more raisings will occur. its very expensive to drill a well and this one is no exception.   

the same pattern of massive pump and dumps and cap raisings will be the norm from start to finish.. i imagine the last raising will be to less sophisticated holders like anyone one holding at the end..

we all expect many more reports daily from now on.. watching with interest on who is playing it the best so far myself. its not rocket science stuff to figure out how to play it at all.. i like the way besbs is playing it and a few on hc.. but the soph holders are doing the best by far imho.. the brokers are legends here imho

good luck to all holders.


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## eMark (7 April 2009)

Sheesh after a 50% rise today, what can the punters expect tommorrow?

Especially after that placement announcement.


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## TATES23 (7 April 2009)

Id be wary this has happened before!! GDN has burnt many people in the past with these "gas shows" and reports !! A company run by dodgy directors!!


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## pilots (7 April 2009)

TATES23 said:


> Id be wary this has happened before!! GDN has burnt many people in the past with these "gas shows" and reports !! A company run by dodgy directors!!




TATES23, It would not surprise me that you are all being taken for a long ride AGAIN. 
One, what the hell do they need 750,000K for, that won't even pay the work over bill on the first well.
Two, the first well was heavy mud, this well is under balanced, you WILL get a lot more gas/oil influx coming in to the well, this must happen.

Now wait for the next bit change, see if they say this,  "due the high influx of gas on the bit change we could not go back to drilling until we circulated all the gas out of the well". This is what you post when you want to ramp your share price up.

 On a normal rig we would slug the whole with 30/50 Bbls of heavy mud b4 the bit change, this keeps the gas out on the bit run.
Lets just wait and see what they post on the next bit run.

Don't forget this is a gas show, NOT A GAS FLOW.


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## DAZT49 (7 April 2009)

oh dear I see the same drampers from HC are over here with there drudgery.
I was hoping for a more reasoned forum.


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## pilots (7 April 2009)

Sorry 49, but I DON'T post on hot whoppers., you would know well, that any one who make the ramp master look bad get banned for life.


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## ben_Q (8 April 2009)

I can see one order for 1.2M shares @ 16.5c pre open.
I wonder if that will still be there at 10am?


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## Agentm (8 April 2009)

pilots said:


> TATES23, It would not surprise me that you are all being taken for a long ride AGAIN.
> One, what the hell do they need 750,000K for, that won't even pay the work over bill on the first well.
> Two, the first well was heavy mud, this well is under balanced, you WILL get a lot more gas/oil influx coming in to the well, this must happen.
> 
> ...




interesting comments pilots

re the first point, i think its amazing that a rig operator will drill and get paid on the drip feed..  its highly unusual to get a rig operator to drill without cash up front. these small cap raisings so far wont cover the rig costs. let alone any expensive cleanup operations and workover ops. if the well needs to be fracced then its going to cost millions more again.. being up for 100% of the costs and not having the capital for it makes these weekly cap raisings a big distraction.

Pilots, you say the first well was using much heavier mud weights and the second is underbalanced? can you confirm where that info is available?  i gather that using lighter mud weights and drilling underbalanced is to decrease risk of formation damage. It would be very easy to misinterpret the release yesterday on that basis. i agree with you on the gas shows, obviously there would be a massive difference in gas shows with underbalanced drilling. imho the small increase experienced in yesterdays reported gas show whilst drilling underbalanced is not a very promising sign,  the shows should have been many many times that and also some flaring would be preferable surely? I wonder why it wasnt mentioned in the release?  i notice they also dont put any time stamps on their releases, so you dont know at what time the in UTAH the report relates to, could be 24 hours earlier for all anyone may know.

they dont seem to have an independent geo signing off on the reports, so you have to rely on the qualifications of director signing  the report. so what geological background has the director got?

it remains an extremely high risk stock at the moment.. good luck to all holders


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## BESBS Player (8 April 2009)

Hi AgentM,

I think your comment is important:  "*it remains an extremely high risk stock at the moment.. good luck to all holders". * This is also why I like Pilots posts. He presents the down side clearly and with some emotion - always a good reality check in this game. We need all sides to be informed...

If you treat GDN with this in mind, it can be a money tree. Without care, tree falls on top of you!

At this stage, the announcements have not really provided much detail at all but we do know that GDN want the SP rising so it is easier to get interest and attract funds. With this in mind, one knows that management will attempt to portray announcements in the most positive way possible under law. This helps to create confidence for speculators like myself that the SP is likely to creey a little higher still on a future announcement.

For me, the safest way to play GDN has been

1. Get set at a low price (5.8c ave) and get free-carried during Paradox-1 workover. This is the insurance or safety net required to play with sharks.
2. Watch the news on the Ismay formation. As soon as the announcements look neutral/bad (by this I mean the way GDN word them, not simply a lack of detail as there is often not much information in them anyway), I'm gone.

I'm still in and watching...


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## bigdog (9 April 2009)

*WOW: Three ASX UPDATE ANN in four days which market or traders seem to like!!

GDN SP $0.16 +0.015 +10.34% high of $0.17; .. 14,952,505 shares, $2,416,915 09-Apr 11:24:52 AM*

09-04-2009 10:19 AM GDN Paradox Basin No 2 Update
http://www.asx.com.au/asx/statistics...idsId=00943377

DRILLING STATUS REPORT – 9 APRIL 2009
Paradox Basin #2 Well, Grand County, Utah

Expert opinion confirms that Paradox Basin #2 encountered the Upper Ismay Formation at 10,270’ (3130.3m) and that three of the four reported gas shows are in the Upper Ismay Formation

Paradox Basin #2 is currently at 10,611’ (3234.2m) and drilling ahead at nine feet per hour

Connection gas and trip gas to 5102 units has been recorded after tripping back in hole and the mud weight has been increased to 8.8ppg

Since the previously reported gas shows the levels of background gas in the Upper Ismay Formation have ranged from 40 to 170 Units

The look‐ahead is to continue drilling to 13,200’or the top of the Alkali Gulch salt before running 7” casing

Prior to casing the well will to test the Lower Ismay, Desert Creek, Akah, Barker Creek, and Alkali Gulch formations above the Alkali Gulch Salt

The well remains ahead of schedule and under budget


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## pilots (9 April 2009)

So the mud WT is only 8.8, is it any wonder they have gas in the mud, I think it was about 9.5 last time, take care, this has ALL the hall marks of a ramp.


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## pilots (9 April 2009)

Just worked out the Bottom hole pressure, it is only 4536 PSI, If this is a gas Field as some people are saying, it will be one of the weakest ones around.
Watch your stop loss.


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## pilots (9 April 2009)

If they was using 9.5 mud now the BHP would be 5241 PSI, So you can now see why you have more gas coming in, this is back ground gas, you get it on all wells, the flow test is what you need to look at. Have a good easter.


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## BESBS Player (9 April 2009)

In keeping with my conservative BESBS style, I sold out of GDN today. Managed to get out at 15.5c average after an entry at 5.8c (see earlier posts) so very happy with the result - around 170% profit.  
I can still see potential in the SP if future announcements are positive but can also see the other possibilities as Pilots has pointed out. 

For me, the locked in profits are too tempting as they can be used to get set in other plays. Easter and the week following should be very interesting for holders - good luck to those hanging on and I do hope that the SP rises much further for you all. 

No longer holding...


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## Wysiwyg (9 April 2009)

BESBS Player said:


> In keeping with my conservative BESBS style, I sold out of GDN today. Managed to get out at 15.5c average after an entry at 5.8c (see earlier posts) so very happy with the result - around 170% profit.



Well done with your besbs strategy,   watching this thread as we have some residual shares at 50c from the Paradox 1 run. Must be close for this run to retrace.Hope not but it happens more often than not. 

Worst case scenario is there won`t be producing gas in P. 2 and the directors take a bow then exit stage right.

Best case scenario is they tie in with P. 1  and start production.


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## Agentm (9 April 2009)

i agree on your conclusions pilots, the results are not very good so far at all

well done besbs


delta petroleum has stopped on the paradox basin.. too frustrating for them they say.. imho they should know..

http://www.reuters.com/article/pressRelease/idUS10278+03-Mar-2009+PRN20090303

Paradox Basin, UT, 70% WI - In the Greentown area, the Company initially
targeted intra-salt clastic intervals on the Greentown Salt Anticline because
several older wells experienced significant gas shows while drilling.  Delta's
initial two wells experienced flow rates of 5 Mmcfe/d and 5.3 Mmcfe/d from the lower clastic intervals.  The wells were located approximately seven miles
apart and the clastic breaks correlated very well suggesting lateral
continuity.  The third well drilled in the project area tested 1,946 Bo/d and
11.6 Mmcfe/d during a 72 hour flow test.  Subsequent wells were drilled and
completion efforts of individual clastic intervals yielded mixed results. 
There are numerous individual clastic intervals yet to be completed.

Results from activity at the Greentown project have been frustrating at best,
but drilling by other operators continues on leasehold immediately adjacent to
Delta's.  The Company's Paradox pipeline and processing facility
infrastructure are well positioned if additional production is established by
Delta or others in the play.  *The Company has decided to temporarily suspend capital expenditures in this area*, but outside operator activity should provide new and important information that will help determine the project's potential.  In the future, Delta plans to complete several clastic intervals requiring minimal capital investment in each of the five remaining wellbores


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## BESBS Player (9 April 2009)

Thanks for the compliments, W and AgentM.

Hoping that this one will work out well for holders but am not totally convinved as yet (hence my departure).


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## bigdog (10 April 2009)

Press reported:

http://www.proactiveinvestors.com.a...-of-gas-in-upper-ismay-at-paradox-2-1205.html

*Thursday, April 09, 2009
Golden State Resources ups the ante with high levels of gas in Upper Ismay at Paradox #2*
by Proactive Investors 

Golden State Resources (ASX:GDN) has advised of the following progress of Paradox #2 well in Grand County,Utah:

Since encountering gas in the Upper Ismay Formation, Paradox Basin #2 has required a bit change and is now back on bottom drilling ahead at nine feet per hour. Very high levels of trip gas were observed at 10,569’ with 5102 units. Trip gas is the result of formation gas entering the mud. Ditch gas levels below the previously reported show zones remained above 30 Units with peaks of 155 units over the interval 10,524’ to 10528’, 170 units at 10,547’ and 131 units at 10,560’.

A stratigraphic expert on the Paradox Basin has reviewed the formation tops in the Paradox Basin #2, and correlated against Paradox Basin #1. The review indicates that the Upper Ismay Formation was encountered at 10,270’ . The position of the formation top confirms that three of the previously reported gas zones are in the Upper Ismay Formation. The gas shows could indicate a continuous accumulation within the proven Ismay Formation production zone.

Golden State Resources considers that the shows encountered are significant and will be further evaluated after the next logging run and tested after completion of the well. The next logging run will occur prior to setting casing above the salt. Seven inch casing will be run at 13,200’ or the top of the Alkali Gulch salt.

Proactive Investors Comment:

Speaking with Rick De Boer (Chief Geologist) indicates the results are exciting.  The high level of trip gas or formation gas entering during drilling at 5102 units indicated a "significant influx of gas", or in Rick's words, a "significant slug of gas".  Clearly alot of gas coming out of the mud.  These levels were not expected in the Upper Ismay Formation and a huge plus.

Ditch gas is likely similar to #1.  It could be that they are already in Hovenweep and in the Lower Ismay.

Clearly, it's way to early to say whether gas shows to date are commercial, but it looks very positive.

Rick is "looking forward to getting to the lower zones".  With these kinds of gas shows this early, who wouldn't?


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## pilots (10 April 2009)

Bigdog, If I was running GDN I would have sacked the nob who wrote that report, or I would have sacked the Chief Geologist.
If the Geo can't tell from the cuttings in the mud returns, what we are drilling in, HEAVEN HELP THEM.   Now as to the 5000 units of trip gas, I have had trip gas that high that we could not record it, the well was a duster.
What we need is the real numbers for the flow test on No1, we did not get that on the first well.


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## diddy (12 April 2009)

what figures do we need to make this or 'these' wells commercial? 
what is the minimum to breakeven?

pilot do you recommend any good reading avaliable online so i can learn oil/gas economics for the purposes of avoiding rampd shares?


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## bozesprint (13 April 2009)

If GDN produce anything comparable to Delta they will have an economical field.  Currently with Gas prices at $3.40 it is hard to produce in this area, but as reserves dwindle and with the rig count in the states down 60% over last year the price will go back up to the $6/7 range.  Which will pan out if they can pick up a 3.0MM/day well.

Low formation pressures are normal in UT,CO,WY, and they are drilling in extremely tight rock.  We will just have to wait and see what rates they can come up with.  

Unfortunately in order to make a good well they will have to identify the most promising zones and frac.

If they pick up any oil especially rates like Delta connected with we will all be looking good.  Even at $50.0/bbl.


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## pilots (13 April 2009)

diddy said:


> what figures do we need to make this or 'these' wells commercial?
> what is the minimum to breakeven?
> 
> pilot do you recommend any good reading avaliable online so i can learn oil/gas economics for the purposes of avoiding rampd shares?




Diddy, you will find that all oil/gas shares get ramped at some time, HC is the best place to see good ramping at work.


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## pilots (13 April 2009)

What a weekend on Hot Whoppers.
Dazt49 is playing T4P old game, boo hoo, if you don't get rid of the down rampers I won't post here any more, good by Dazt49.
Did you see T4P post, was he was down ramping GDN????, T4P at long last has found out the the Oil/Gas game is not as squeaky clean as he thought, WELCOME TO THE REAL WORLD Mr T4P.


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## Agentm (14 April 2009)

bozesprint said:


> If GDN produce anything comparable to Delta they will have an economical field.  Currently with Gas prices at $3.40 it is hard to produce in this area, but as reserves dwindle and with the rig count in the states down 60% over last year the price will go back up to the $6/7 range.  Which will pan out if they can pick up a 3.0MM/day well.
> 
> Low formation pressures are normal in UT,CO,WY, and they are drilling in extremely tight rock.  We will just have to wait and see what rates they can come up with.
> 
> ...




cant agree with you bozesprint. delta are not exploring the paradox, they want nothing to do with it, too tight and too unpredictable.. they are hoping others will drill any then use their pipelines, but apart from that they have no further interest in the paradox despite some vey impressive wells..

gas shows have been recorded at extremely high levels as recorded in this study

http://www5.egi.utah.edu/Geospatial_Data/UHOC/Schamel,_2006.pdf

i think the reports from gdn are telling the tale of how the rock is. very tight and no real evidence of any change from before.  

as exciting as these reports are made to look, they are not objective, certainly not neutral and not assessed nor are they examined and passed over by a geo. so the updates come from someone with no experience in the industry,  asking you to believe that something compelling is there by comparing gas shows during drilling. which are not worthy of comment unless you get the formation actually flowing at you.. and without any evidence of the well wanting to flow during drill bit changes nor during the drill. even with the very low mud weights they are using,  the news is not good at all, and it should carry a huge disclaimer that gas shows mean zip here.. other than showing hydrocarbons are present, as already known in the other well.  

there  are more targets to drill into.. i hope the holders get some good news soon.


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## blues (14 April 2009)

I think you will find Delta are developing the Greentown field in the Paradox Basin and in their latest presentation they talk about having a number of different prospects in the Paradox Basin.

GDN is a high risk play with doubtful management based on PB1. I dont know much about the Basin but the GDN share price is always easy to read. Buy well before spud and wait for the fireworks to start and then get out. I bought in at 5.5c and I am now free carried. I will let it ride for the next few weeks and then jump off.

The GDN thread on HC shows you everything that is wrong with that site.

Cheers


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## pilots (14 April 2009)

Agentm, The biggest reason that Delta are not drilling any more is they found that all the wells they drilled in the Paradox told them it is all fracked, with many faults as well, this means you can't plot just what spot to drill. 
They say this morning that the mud has muted the Gas, what Gas, the mud is not as heavy as they used in the first well, they should have more Gas now. The last few reports are telling us how far ahead we are at drilling, BS, the drilling rate now is what you see on a normal rig, the first well was a joke.
The biggest trouble with GDN is the rampers at Hot Whopper, look at New Trader telling us that trip gas and connection gas are not the same gas.
 Never be fooled by the fact some one is going to run casing, I have seen casing run on wells,  that had no hope of Oil or Gas, but it did give some people time to unload all the stock they was holding.
 I am not saying this will happen with this well, watch your stop loss, as this will crash fast at the end.
A 10% profit is a lot better than a 80% loss, it was only the greedy that lost last time.


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## new_trader1984 (14 April 2009)

Pilots, i NEVER said it was different gas i said the definitions in the oil and gas glossary which i linked at the bottom of the post along with a couple of other links for where i got the definitions from gave 2 different descriptions of what trip gas is and what connection gas is.

I also asked if there was much difference between the 2 in the same post.

I also just posted the differences from the first well to the 2nd and the better gas shows compared to first well whether it is productive or not is not what i had said i just stated the difference between the 2 and so far at pb2 the announcements are showing better gas shows. I also put what a gas show is by definition by the oil gas gloassary too in one of the links.

If you think im a ramper on the other forum thats your opinion i just stated what i have read between the 2 wells drilling at similar levels.


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## pilots (14 April 2009)

Sorry, mis read your post, trip and Con gas are the same gas and come from the same place in the well, you just get more on a trip, the first well looks like it has more Gas than the second one at this time, good luck with this one, you all need some after the last nightmare.
 I am surprised the ramp on the big U is not under way.
At long last T4P has found out that the Oil/Game is not as it should be.


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## bigdog (15 April 2009)

PILOTS: what is your call on this ANN?

Another GDN ASX update ANN
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00944184

15-04-2009 10:05 AM  	 GDN  	  Paradox Basin No 2 Update 
DRILLING STATUS REPORT – 15 APRIL 2009  
Paradox Basin #2 Well, Grand County, Utah 

Paradox Basin #2 has encountered a two significant new gas shows one with 545 units in the Chimney Rock Formation from 11,274’ to 11,296’. This show came from a good quality Sandstone reservoir with good visible porosity.  

Gas show of 426 units in the Chimney Rock Formation from 11,228’ to 11,241’. This show came from a sandstone interval with fair to good porosity.  

Paradox Basin #2 has encountered a new potential gas zone within the Golden Eagle gas field. The Chimney Rock Formation was encountered at 10,986’ ( 3,348m) 

Paradox Basin #2 is currently at 11,368’ (3465m) and drilling ahead in the Pennsylvanian at approximately 8 ft/hr.

GDN   	0.14  	  +0.005   	  +3.70% @ 	15-Apr 10:36:13 AM


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## pilots (15 April 2009)

bigdog said:


> PILOTS: what is your call on this ANN?
> 
> Another GDN ASX update ANN
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00944184
> ...




Bigdog, you can find gas in any place you drill, what you want is commercial gas, what they are telling us is nothing, they seem to want to keep telling us how well they are drilling, that is BS, the well they are on is how any well should be drilled.
This well is running under balanced compared to the last well, there for we should have a hell of a lot more gas than last time, to me it looks like we have LESS gas than last time. You still have plenty of time yet with this one, if I was holding I would get out b4 any testing starts, should the test prove they are commercial, you will have time to get back in. The biggest trouble with  GDN is that, any thing the ramp team on Hot Whoppers gets on, you must be very careful with.  Don't forget, the ASX here was the last to know of any bad news on the last well.


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## pilots (15 April 2009)

Bigdog, I screwed up, see your post above.
Don't have a clue what I did, to have that happen.


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## BESBS Player (16 April 2009)

G'day all.

Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit. 
The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial  Sense the GDN announcement has the same prospects!

I wish all holders every success and a multi-bagger BUT tread carefully GDNers as I don't like the way this is appearing to unfold.

Not holding GDN


----------



## Wysiwyg (16 April 2009)

BESBS Player said:


> G'day all.
> 
> Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit.
> The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial  Sense the GDN announcement has the same prospects!
> ...





A smug gloat topped with arrogance always comes back to bite. Be ready for the next game. 

......................


----------



## pilots (16 April 2009)

BESBS Player said:


> G'day all.
> 
> Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit.
> The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial  Sense the GDN announcement has the same prospects!
> ...



BESBS, A very smart move, what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, this lot are as bad as the back slapping brigade on Hot Whoppers, you must only post good news.
You won't go broke taking a profit, smart move BESBS.


----------



## DAZT49 (16 April 2009)

The mods have gone crazy on HC and the mods have gone to sleep on ASF.
Pilots how can you keep posting add nauseum,such utter drivel.
kennas where are you??


----------



## pilots (16 April 2009)

DAZT49 said:


> The mods have gone crazy on HC and the mods have gone to sleep on ASF.
> Pilots how can you keep posting add nauseum,such utter drivel.
> kennas where are you??




Dazt49, What I have posted is FACT, should you want to read drivel, you should go over to a forum that posts things like, what will it close at today, I am going to load up on this as soon as my money comes in, I will be buying big time, this will rocket up on close. But the one I like best is ""I have a gut feeling on this''.
I do feel a little sorry for you this time as it is lacking the help of T4P, even T4P has found out the Oil/Gas game some times bends the truth.  Good luck with your shares.  PS, I still post on your beloved forum.


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## Agentm (16 April 2009)

pilots said:


> BESBS, A very smart move, what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, this lot are as bad as the back slapping brigade on Hot Whoppers, you must only post good news.
> You won't go broke taking a profit, smart move BESBS.




not sure what drivel datz is talking about pilots, keep posting here please your very welcome as far as i am concerned. i cant see any breach of any regulation here, i noticed tangrams has been heavily moderating datz and many others on hc.. and posted some ASIC guidelines also to make it clear that its being watched closely! 

pilots, when you say there finishing job, do mean a completion was done at the start of the drilling on par 1?  can you elaborate what processes were that were done on the well?

i still agree with your sentiment on the reports, the mud weights seem very low and the shows they are comparing to other wells 60 miles away, they dont disclose what mudweights they were drilling with.  i have seen plenty of regional logs which are off the dial compared to the small shows this well has with very low mud weights. to me the reports show the formation is just as tight as it was before.. and not very promising on the first target..


i keep comparing the reports and data to anything regionally and i think gdn have very little to crow about myself, i think the reporting still leaves a lot to be desired myself..


----------



## Sean K (16 April 2009)

DAZT49 said:


> The mods have gone crazy on HC and the mods have gone to sleep on ASF.
> Pilots how can you keep posting add nauseum,such utter drivel.
> kennas where are you??



Fortunately, there are many ASF members who assist moderating this site by their constant questioning and requests for further information to justify positions. Not much slips through actually. Rampers and downrampers are very quickly identified and realise their place may be elsewhere.


----------



## pilots (16 April 2009)

Agentm said:


> not sure what drivel datz is talking about pilots, keep posting here please your very welcome as far as i am concerned. i cant see any breach of any regulation here, i noticed tangrams has been heavily moderating datz and many others on hc.. and posted some ASIC guidelines also to make it clear that its being watched closely!
> 
> pilots, when you say there finishing job, do mean a completion was done at the start of the drilling on par 1?  can you elaborate what processes were that were done on the well?
> 
> ...



Agentm, the fishing job was At the start of the well, what happened was they had one of the cones on the drill bit come off, this was due to the inexperience of the drilling crew. They retrieved the cone and went back to drilling OK.
I like the bit when they compare the well with one 60 miles away, we drilled out of Derby, we had five producing wells all around us, we drilled a DUSTER.
One of the troubles with drilling is to know just where the fault lines are, GDN are surrounded with them. Dazt49 and his mates are not happy with me from back when I posted that CAZ could not win,(they lost).  I then got a tip from a good friend that GDN was a good buy, I did no research, when I looked in to them, I got out, made a lot of money thanks to T4P. 
 Along comes CVI, when they posted how they would do this and that in Angola, I knew this was just a scam, and I told them so, now if you really want to up set a ramper, just tell the truth, CVI then dropped from 30c down to 1c.  The way some of them talk you would think it is all my fault that it crashed. What I must say is that Raks and Nicky6 have both Apologized to me for what was said, not all the ramp tean are bad.


----------



## DAZT49 (16 April 2009)

kennas you have to admit, you arnt as hard on posters as you used to be
I was suspended from HC because I had the caps lock on and the mod said I was shouting, now thats tough
Agentm,
I have no beef with you, and I will point out what drivel I think pilots is on about.when I get time to go over a few posts
pilots,
What was your nic on HC, your style is familiar but I just cant pick it out.


----------



## pilots (16 April 2009)

Hell!!,.   DAZT49, If I told you, you would DOB me in and I would be barred for the seventh time, I will let you work it out. have a good day.:


----------



## pilots (17 April 2009)

So we have a significant gas find, how difficult would it of been to have said, we have x no.units of gas? The word significant lets your mind run wild. Would I be considered cynical if I thought we needed to raise more cash?


----------



## DAZT49 (17 April 2009)

pilots, 
I thought you were a bit of a stickler for accuracy and you want them to shoot a figure from the hip!!
They stated in the ann that they needed time to evaluate the results to make an informed ann.
IMO someone got wind of it and thats why we had a quick trading halt just after open.
Those trades may be looked at by the ASX as insider info trades.
Crikey..I am putting up a conspirosy ...one of my pet hates !!


----------



## Wysiwyg (17 April 2009)

pilots said:


> So we have a significant gas find, how difficult would it of been to have said, we have x no.units of gas? The word significant lets your mind run wild. Would I be considered cynical if I thought we needed to raise more cash?




What is this `we` business? I thought you were the thread downramper playing the reverse psychology game.


----------



## pilots (17 April 2009)

DAZT49 said:


> pilots,
> I thought you were a bit of a stickler for accuracy and you want them to shoot a figure from the hip!!
> They stated in the ann that they needed time to evaluate the results to make an informed ann.
> IMO someone got wind of it and thats why we had a quick trading halt just after open.
> ...



\\

One must look after ones mates Have a look at the last well.
Why have a trading halt at all, just tell the truth


----------



## bigdog (17 April 2009)

ASX UPDATE ANN Today:

*GDN   	0.17  	  +0.030   	  21.43%   	@ 17-Apr 02:52:30 PM*
--- the market has reacted to this ANN!!!

Pilots: we value your comments please.

Refer ANN for details of individual results!

17-04-2009 02:27 PM  	 GDN  	  Paradox Basin No 2 Update 
DRILLING STATUS REPORT – 17 APRIL 2009  
Paradox Basin #2 Well, Grand County, Utah
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00944953

Paradox Basin # 2 has intersected a significant gas interval and traces of oil show associated with a drilling break in the Pennsylvanian Barker Creek Formation. 

Gas levels increased from a background of 12 to 25 units to a peak of 1042 Units and 103,690 ppm Methane. 

Shows are present in heavily fractured sandstones and siltstones over the interval 11,602’ to 11,621’. Abundant crystalline calcite, which is believed to represent fracture cement was observed. 

Traces of oil fluorescence with a yellow/green cut were associated with the gas show.


----------



## pilots (17 April 2009)

bigdog said:


> ASX UPDATE ANN Today:
> 
> *GDN   	0.17  	  +0.030   	  21.43%   	@ 17-Apr 02:52:30 PM*
> --- the market has reacted to this ANN!!!
> ...




 Remember that first well, we had a twenty foot column of oil, we never did find out just what happened to that. Now the big news is that we had to have a trading halt for 1042units, back up the hole we had over 5000units, nothing like a trading halt to ramp up the SP, I think they are going to ask for more money.


----------



## DAZT49 (17 April 2009)

Pilots,
You are so predictable, when they are producing from Para 2 in July you will still crying foul.
I am interested, do you hold?
I still havent worked out your HC alter ego.


----------



## sting (17 April 2009)

BUGGER.....

Sold out on tuesday except for a small free carried parcel for 15.5 which i thought was good concidering i paid less than 6 cents.

I should have known these blokes are good at running it up tho i thought ppl have worken up to them.


UBIQUE


----------



## pilots (17 April 2009)

DAZT49 said:


> Pilots,
> You are so predictable, when they are producing from Para 2 in July you will still crying foul.
> I am interested, do you hold?
> I still havent worked out your HC alter ego.




When they are producing in July, come on mate, you are on drugs or are a payed ramper. Tell me what happened to the 20foot oil zone on the first well??


----------



## DAZT49 (17 April 2009)

See ,unlike you I dont make unsubstantiated statements:
From Operations Update on 17 Dec 2008
CURRENT TIMELINE – Paradox Basin #2
● Permit  Approved
● Site works  Completed
● Well spudded  December 2008
● Deep rig mobilised to site February 2008
● Estimated total drilling time  90 days
● Testing and completion  20 Days
● FIRST POTENTIAL PRODUCTION August 2009
....
The drill is 19 days ahead of that schedule, production could be in July.


----------



## DAZT49 (17 April 2009)

Oh and who gives a fig about the oil in Para 1, or the oil in Para 2, they are insignifigant amounts, its the gas that is the target.


----------



## Agentm (17 April 2009)

DAZT49 said:


> See ,unlike you I dont make unsubstantiated statements:
> From Operations Update on 17 Dec 2008
> CURRENT TIMELINE – Paradox Basin #2
> ● Permit  Approved
> ...





datz, can you fill me in here,  are you saying that this current show is going to produce commercial gas from the para 2 vertical well?

are you sure its feb 2008 the rig was mobilised?

tia


----------



## DAZT49 (17 April 2009)

agentm,
Looks like some typos from GDN secretary, I hadnt noticed that lol.:
And yes of course they will produce from this well it wil be a company maker IMO .
When they re work Para 1 it is going to come up with the goodies too.
It always had them, just the drill was horrendous.


----------



## DAZT49 (17 April 2009)

agentm,
Trying to trick me hey?
"are you saying that this current show is going to produce commercial gas from the para 2 "
I am talking about the final , tested Para 2 , not these initial flows, tho they could go close to being enough to being commercial.
But no, the whole shebang agentm


----------



## DAZT49 (18 April 2009)

pilots said:


> What a weekend on Hot Whoppers.
> Dazt49 is playing T4P old game, boo hoo, if you don't get rid of the down rampers I won't post here any more, good by Dazt49.
> Did you see T4P post, was he was down ramping GDN????, T4P at long last has found out the the Oil/Gas game is not as squeaky clean as he thought, WELCOME TO THE REAL WORLD Mr T4P.




pilots,
Give me the post numbers where you reckon is said these things.
I posted 5 times on the 11th...nothing there.
I posted 13 times on the 12th when there was some argy bargy, but I never threatened not to post or to leave HC.
In none of the posts did I say..
"if you don't get rid of the down rampers I won't post here any more"
Why are you lying to guys on ASF.


----------



## DAZT49 (18 April 2009)

pilots said:


> BESBS, A very smart move, what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, this lot are as bad as the back slapping brigade on Hot Whoppers, you must only post good news.
> You won't go broke taking a profit, smart move BESBS.




agentm,
You posted that you wonderered what 'drivel' I was on about.
Heres another one from pilots.
".what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, .."
check out..
http://www.goldenstate.com.au/pdf/GDN_5_Dec_06.pdf
and
http://www.goldenstate.com.au/pdf/GDN_11_Dec_06.pd


----------



## DAZT49 (18 April 2009)

second link doesnt work..
 this or go to GDN website and check out ASX announcements for 11th Dec 2006
http://www.goldenstate.com.au/pdf/GDN_11_Dec_06.pdf


----------



## Wysiwyg (18 April 2009)

If I remember correctly, you and Sharemadder appeared last time GDN was in decline, pushing how wonderful it all is. Holding a faint flicker of hope something out of the normal will happen.


----------



## DAZT49 (18 April 2009)

wisywig,
No beef with you but..
Whats yr point?
At least I try and back up my posts with some kind of rationale.
Apart from slagging off at management a couple of years ago I have never doubted the potential of the Paradox Basin.
cheers
P.S. Sharemadder and I were right all along too, just look at what is happening.lol


----------



## wktswkts (18 April 2009)

Well after re reading all the posts again here on asf from xmas - reminds me why i never bothered to post here even when Para 1 was underway.

Day traders whinning and patting on the back, gonna do this gonna do that, o yeah my fav - para 1 being a duster, plus more nonsense of Para 2 not going to even start drilling.  LMAO.   Surprised there is no mention of the oppies not being converted in time, seeing as ppl posting they sold out before 20c heads has arrived.

With all GDN's failings combined previoulsy and the chit calls made by others here and HC - now look where they are.

Interesting times ahead of us over the next 4 weeks - If things continue to go smoothly and this overall well does become commercial - i would be expecting GDN to be producing this year. (doubt August despite being ahead of schedule).

Good luck to those with the balls and sense to be holding.


----------



## DAZT49 (18 April 2009)

wkts,
Exactly what I mean by drivel.
But you do get some good info on these threads in spite of the endless dramper/ramper goings on.
I get sucked into them because I cant stand those "its a duster" "they went fishing and didnt tell the ASX' posts..I just have to have a go back at them, cant help myself...and then I get cranky at home lol
I will stick with my July for production, its my birthday in early Aug and I will be having a ripper if that happens.


----------



## pilots (18 April 2009)

DAZT49 said:


> second link doesnt work..
> this or go to GDN website and check out ASX announcements for 11th Dec 2006
> http://www.goldenstate.com.au/pdf/GDN_11_Dec_06.pdf




Mr 49, the fishing job I am talking about was at the start of the first well, not at 15,000Ft, ask T4P about it, he is a little up set about that.


----------



## pilots (18 April 2009)

Wysiwyg said:


> If I remember correctly, you and Sharemadder appeared last time GDN was in decline, pushing how wonderful it all is. Holding a faint flicker of hope something out of the normal will happen.




Dazt49 has been grounded for a few days at Hot Whoppers, thats why he is here telling us about this wonderful well they are drilling.


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## DAZT49 (18 April 2009)

PILOTS,
Re fishing at start of Para 1.
Dont talk in riddles, what are you talking about?
I came across to ASF because I thought I would get some intelligent conversation.


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## pilots (18 April 2009)

D49, in the drilling game when we have dropped, lost, fell off, or have left something behind in the well, we have to retrieve it, what is down the hole no matter what it is, is allways called a fish, so when we are retrieving it we call it fishing.
Now on the first hole, at the start, they ran the cones off the bit, they had to fish them,  WHEN WAS WE TOLD OF THIS IN AUSTRALIA?????
This would have been a price sensitive announcement in any other drilling company.
Now how can you say I am talking in riddles, all of you drilling people at GDN know every thing about drilling that Google has ever posted on the web site.
I not that a lot of your EXPERTS are comparing the well to wells up to 60 Miles away, mate I can tell you from experience you cant compare two wells that are half a mile apart.


----------



## pilots (18 April 2009)

DAZT49 said:


> PILOTS,
> Re fishing at start of Para 1.
> Dont talk in riddles, what are you talking about?
> I came across to ASF because I thought I would get some intelligent conversation.




I am so sorry, you said you came over here for some intelligent conversation, I thought you came over here because you was grounded for a few days on Hot Whoppers.


----------



## 123enen (18 April 2009)

G'day Pilots, hope all is well.
Good posting here by you. Please keep it up
I bet you are enjoying this!


----------



## prawn_86 (19 April 2009)

Mod note - any topics not discussing the stock itself (not whats happening on other forums) will be removed.


----------



## bigdog (22 April 2009)

Today GDN has shared the script for GDN Directors Interviewed by Proactive Investors 

22/04/2009  	    	GDN Directors Interviewed by Proactive Investors Australia  	 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00945865


----------



## bigdog (24 April 2009)

ASX ANN today -- PILOTS help with the analysis of the numbers!

There was not much market reaction to this ANN!!!
SP 0.145  	  +0.005   	  +3.57%   	3,429,304 shares  	$489,877  	@24-Apr 12:42:25 PM

24-04-2009 09:43 AM  	 GDN  	  Paradox Basin No 2 Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00946613

DRILLING STATUS REPORT – 24 APRIL 2009  
Paradox Basin #2 Well, Grand County, Utah

Paradox Basin #2 has encountered a significant gas show of 562 units in the Barker Creek Formation from a background of 30 ‐35 units to a peak of 562 units over the interval 12,404’ to 12,418’. The described lithology  is clean microcrystalline limestone with dark gray dolomitic shale and medium to coarse grained unconsolidated sandstone with good Porosity.  

 Paradox Basin # 2 is currently drilling ahead at 12,450’ (3794.8m)  

 The look ahead is to continue drilling in the Barker Creek Formation to the next planned casing point at approximately 12,800’ 

Electric logs will be run prior to casing and these will further evaluate significant gas shows in the Ismay, Chimney Rock and Barker Creek Formation. The Barker Creek show has traces of oil fluorescence with a yellow/green cut


----------



## DAZT49 (27 April 2009)

I think Pilots has been busy on another site.
Hopefully we will get an update this morning, confirming that they are ready to do the encasement.
Even if they report more gas shows I doubt the SP will move as it should.
Fingers crossed anyway.


----------



## bigdog (27 April 2009)

ASX ANN today

No SP reaction to this ANN
GDN   	0.14  	  0.000   	  0.00%   	775,700 shares	$109,548 @	27-Apr 10:27:21 AM

27-04-2009 09:16 AM  	 GDN  	  Paradox No 2 Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00947023

DRILLING STATUS REPORT – 27 APRIL 2009   
Paradox Basin #2 Well, Grand County, Utah

A new significant gas show has been encountered in Paradox Basin #2.  Cuttings gas increased from a background of 70 units to a peak of 1,483 Units. Show 10 occurs in possibly fractured limestone, dolomite and sandstone over the interval 12,462’ to 12,503’ (3798.4 to 3810.9 m) 

 Golden State Resources is pleased to announce effective completion of the 8 ½” section through the Upper  Pennsylvanian  

The well is currently at 12,920’ and is finalising the 8  ½” section to 12,951’ prior to conditioning for logging operations. Logging will further evaluate the ten zones with significant gas shows in the Upper Pennsylvanian. 

 Logging operations will include an MDT run to appraise formation permeability, evaluate formation pressures, and to collect gas samples. 

 On completion of logging the well will be cased with 7” pipe prior to drilling the Lower  Pennsylvanian and Mississippian sections. 

Operations continue to exceed the drilling schedule and are ahead of the planned drilling curve. Remaining operations are scheduled to take approximately 30 ‐ 40 days depending on results in the lower sections.


----------



## DAZT49 (27 April 2009)

bigdog,
Amazing isnt it?/
The oppies have actually gone down
Its gunna have to go soon if they want the oppies to be in the money.


----------



## bigdog (27 April 2009)

DATZ49

Can you please explain the options senario?


DATZ49 stated:
"The oppies have actually gone down"

"Its gunna have to go soon if they want the oppies to be in the money."


----------



## DAZT49 (27 April 2009)

bigdog,
Price of GDNO went down this morning, they are back to square now.
Is that what your query was??????????


----------



## DAZT49 (27 April 2009)

Dont know what it is going to take to get this thing off the launchpad
With no real ann due till they start drilling again after the casing, the SP could be sideways for a while yet, and then the oppies are going to look very shakey if it doesnt take off.
Hopefully the logging results for those 10 zones will come up soon.


----------



## MrGriffin (28 April 2009)

side ways i agree, but is slowing heading south ... this is unnatural .. what i dont understand is with all the previous ann .. why its going down all of a sudden ...???


----------



## DAZT49 (29 April 2009)

This trading halt is interesting.
It cant be because they have found more gas shows, as they have released anns before with no TH.
Could they have results from the logging so fast??


----------



## bigdog (29 April 2009)

GDN ASX ANN for Trading Halt

29-04-2009 09:42 AM  	 GDN  	  Trading Halt 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00947760

The company is in the process of negotiating a placement of shares to raise funds for further drilling.  Negotiations are not yet complete and the company requires time to finalize matters ...

December 31 2008 cash on hand $1,518,000
30-01-2009 05:14 PM  	 GDN  	  Quarterly Cashflow Report 

Prior placements:
07-04-2009 04:01 PM  	 GDN  	  Placement $770.000
17-03-2009 03:34 PM  	 GDN  	  Placement $1.2 million


----------



## DAZT49 (29 April 2009)

bigdog,
Damn..boring ann.
"speculation in the market"....speculation about GDN is a worse plague than the swine virus lol
cheers
Daz


----------



## bigdog (29 April 2009)

WCU White Canyon ASX ANN

More money for drilling!!!!

29/04/2009  	    	Change in substantial holding from GDN  	 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00948004

Golden State has sold 6,000,000 White Canyon Uranium shares to a number of domestic and international clients of RBC Capital Markets.
-- proceeds were $1.2 million


----------



## sharemadder (29 April 2009)

Hi Dazt and BigDog

They do have those director oppies due to expire in May as well.

Speculating here and only opinion

But they may also convert them. There's more cash there as well.

The 1.2 million may get us to that line.

Also wasn't it about 9 million shares traded? Theres another $600K maybe coming from somewhere???  The ann. was only for 6 million shares sold off by GDN.

Anyway, GDN is ok now for cash.

Might get a update tomorrow or Friday on logging and casing progress.

Cheers


----------



## DAZT49 (30 April 2009)

If they off loaded all the WCU shares we would not have to have any cap raising.
WCU has dubious prospects IMO


----------



## sharemadder (30 April 2009)

Hi Dazt

Maybe they will offload more of WCU, enough anyway to get enough cash to see GDN through to next oppie conversion towards end of May.

They should of done that when first drilling PB#2.

Wonder what other capital raising they are working on atm.

Cheers

Eager to see what the lower sections of this well show.


----------



## DAZT49 (30 April 2009)

They still have that $7mill or portion thereof from the legal action from DHS to come into the kitty as well


----------



## DAZT49 (30 April 2009)

I am wondering if GDN have to come up with $x as part of the "negotiation" preocedure with the other 'party" also chucking in $x


----------



## sharemadder (30 April 2009)

Thats possible Dazt.

So far GDN got 1.2 mill from sale of WCU shares.

Maybe Shumway family going to put some $ in.

Will be interesting to see what comes out later today or tomorrow morning.

PB#2 gas shows looking so much better than PB#1.


----------



## Agentm (1 May 2009)

sharemadder said:


> Thats possible Dazt.
> 
> So far GDN got 1.2 mill from sale of WCU shares.
> 
> ...





if you want to examine all the gas shows in all wells in grand county, not just 2 wells drilled by gdn, and look at shut in wells as well as producers, then i recommend this site sharemadder, at least you can get an objective view on whether other wells had gas shows just like the 2 paradox wells as they drilled through the various formations.. 

you need to be clear that each formation to be productive would need horizontal well completions, with multiple zones it may be seriously worth looking at economics of it all. 

http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/scan_data_lookup.cfm

also further good references are 

http://www1.eere.energy.gov/tribalenergy/guide/pdfs/southern_ute.pdf

http://geology.utah.gov/emp/pump/pdf/pumprpt8.pdf


----------



## sharemadder (1 May 2009)

Agentm

I have been following GDN since 2006.

I have done extensive research on all those web sites, they are very helpful.

I've also had quite a few conversations with BLM and Utah DOGM people as well plus GDN directors on the Paradox structure.

I have a large collection of data to make my decisions already.

You do not need horizontal drilling for every formation.

Thankyou anyway for the links.
Cheers


----------



## DAZT49 (1 May 2009)

it seems we will get some results from the logging early next week, maybe that will move the SP.
"The Paradox Basin #2 well is at 12,956’ (3,949m) and logging operations currently underway on the Upper Pennsylvanian section are expected to be completed this week.
● Logging data from Paradox Basin #2 will be sent to RPS Energy for fast track evaluation with preliminary results available early next week.
Petrophysical evaluation will determine net pay and highlight potential production intervals."


----------



## Wysiwyg (1 May 2009)

Hopefully the 11 cents (raised capital price) will hold when the markets correct again. 
The Leadville Limestone is a major target I think so on the brighter side of things there may be another twist in the tail.


----------



## sharemadder (1 May 2009)

DAZT49 said:


> ● Logging data from Paradox Basin #2 will be sent to RPS Energy for fast track evaluation with preliminary results available early next week.
> Petrophysical evaluation will determine net pay and highlight potential production intervals."




This information should bode well with the market and punters alike.  It will be like gold.  Priceless.  

Next week going to be a great one to watch GDN PB#2 progress.


----------



## Agentm (1 May 2009)

sharemadder said:


> Agentm
> 
> I have been following GDN since 2006.
> 
> ...




no problems for the links sharmadder, glad you appreciated it.

a few questions if you care to answer.

how many wells in grand county have produced far higher gas shows but were shut in and uneconomic?

which sections are producing from vertical wells in the paradox basin?


lastly, i also invest in the small cap oil explorers,  ADI currently,  they are involved in shale oil and gas. with the eagleford being the best shale in the usa to produce from due to its perfect gravity in oil and 80% of the gas being condensate oil in the return. 250 bo per 1mmcfpd.  even with those staggering rates the field is just marginally economic due to the $50 oil, but gas alone would mean the eagleford is completely uneconomic.

the gas price in usa has made the plays GDN are chasing uneconomic. refer this article on the simmonds report for comparisons of economics and play types. 

http://www.epmag.com/archives/newsComments/6242.htm

how do you see the future of the gas prices and what price production rates are  envisaged and what gas targets are you anticipating for the economics to be the right way round?  surely the paradox well would have to be a monster well to be economic?


----------



## sharemadder (1 May 2009)

Agentm

Nasty now because someone disagrees with u?

Your Q's go unanswered, Im just not interested in fighting.

GL to you.

GDN is doing me just fine.


----------



## Agentm (1 May 2009)

sharemadder said:


> Agentm
> 
> Nasty now because someone disagrees with u?
> 
> ...




sharemadder, i dont know what your talking about? fighting? nasty??  

i dont know what disagreement there is sharemadder?

i was asking genuine questions only sharemadder,  i thought you may have done some calculations or have some research you could share on the region.


----------



## DAZT49 (1 May 2009)

wysi,
"Hopefully the 11 cents (raised capital price) will hold when the markets correct again. "
That gap is hanging there, but with all the good news (and more to come)maybe it wont get filled.
Maddy,
maybe it was agentm that got me tossed off HC
I will find out one day and have my revenge.


----------



## new_trader1984 (1 May 2009)

Hi agent m, paradox basin is normally low flowing but can also get 5-10mmcf in the right areas, lisbon field wells close to faults said thats where the best flowing wells for them came from.

The lisbon field is only a 100kms south from pb2. The new company in the area fidelity has a lot of permits and are producing from 3 wells, i can only see the first wells reports since everything else of theirs is confidential in the last couple of years. The flow rates are small but the wells flow for a long period of time at sustained rates with minimal decreases. The flow rates are around 0.5mmcf per day and they still went ahead with another 12 permits in the area aswell as a couple already drilling. This isnt a small company with a market cap of over 3 billion and in the fortune 500. They also have about 80% of production from the rocky mountains area, also 70-80% of the reserves is from the area. They increased their greentown acerage to 95000 net acres.

MDU resources has done a presentation recently which shows their area in utah but from looks of it seems its just 1 structure on their land since they have wells outside the red line on the map in the presentation.

There is also a new well that was drilled late last year and already producing, since december it has been producing gas and each month the flow rate has been increasing, the well is named san arroyo 1625-220 it is 77 miles north slightly to the east of pb2. The daily production started around 0.6mmcf its now over 1mmcf it doesnt seem much but the flow rate of gas from the well is increasing each month based on the data on utah oil and gas.

Most wells in utah stay at 10 000 feet or less since production has been achieved at those depths such as lisbon hit leadville and deeper formations around 8-10 000 feet when pb2 has to drill to 15000 feet to hit leadville. This seems to be the case for most drilling in utah for producing wells and very few that drill to 15000 feet have been productive doesnt mean none were just most have been dry. That is why reports kept saying how significant the first well was it found large gas intervals deeper then 10000 feet. The paradox formation, which has gas shows this time didnt the first well is a producing formation on vertical wells, the ismay formations are a big producing formation on vertical wells, desert creek, akah barker creek all producing decent amounts of gas with no horizontal drilling.

Even leadville and alkali gulch produce from vertical wells mostly but horizontal drilling will increase the amount of production that could be achieved and better flow rates.

Lisbon field has produced most of the total gas from the leadville formation and considering its distance from pb2 it may offer some hope that leadville will flow on this well. 

I could give you a list of wells in the area many of them flowed under 1mmcf per day and still were put into production.

This well here called are w20-16 is a big producing field, from the reports it looks like there are a number of wells producing for the company, the report seems a bit harder to read to understand if the zones they are producing from are producing by multiple wells or the one well, it seems likely its from multiple wells the total produced by the report is 169,393,111mmcf.

You might want to have a look at that one since you might understand the report better, the well is a lot further from pb2 compared to lisbon but you might be interested in the reports.

Most in the area near pb2 produce under 1mmcf but that can be improved. I guess just have to wait and see if the wells will flow at decent rates.

The reason the area is popular for gas and oil is because the rates dont decrease much over time and are wells that produce for a very long time frame.

Also you mention paradox has to be a monster for it to economic, so far p90 reserves give 27bcf over 640 acres if they can get the full strucutre to be proven as a field producing from those formations p90 reserves could easily be 150-200bcf or higher, after recent results its possible to think p90 estimates will be increased by a decent amount. Many companies report p50 estimates and if gdn did that then they would already be saying 100-150bcf field and over the full structure thats almost 1tcf alone. (thats if the 4940 acres are productive from those 4 formations and good results over the full area for that estimate). It would take a long time to get it to that stage so a 27-50 bf estimate on what is currently known on a p90 estimate seems like a good place to start to see if worth producing. If gdn wanted a quick dollar they could drill a couple more wells get the p90 estimates a lot higher then sell the full acerage but it seems more likely they want to get multiple wells producing in the area and then look at other possible structures on their land.

Not sure if this answers any of your questions though.


----------



## pilots (2 May 2009)

*Re: GD - Golden State Resources*

Well what a week, all the long term holders got none of the cheap shares, only the close mates that was in the know, same people that get the good info, and when to sell..  I seam to remember not long ago we had people here telling me that GDN had more money than they needed to finish this well, wonder what what went wrong??
I keep reading about all the wells around GDNs well doing this and that, Delta gave up on them because of the high cost and the low return. The big trouble around them is that the formation has many fault lines in it, this lets the gas migrate, most of the gas traps are very small.
Once the logging is over GDN will know what zones have gas, THEY WON'T HAVE A CLUE HOW MUCH, this can only come from a DST or flow testing at the end of the well.
I read here about wells miles away producing half a Mil, they never recover the cost on them, the same wells will flow allot more, but the slower you flow them the more you can recover. All around GDN you have a lot of high PSI traps that are low volume, GDN will be hoping for one of them just now, as this will let the ramp team work the SP up.
Look at it this way, you have a swimming pool full at 100 PSI, or you can have a watering can full at 2,000PSI, its all in the way you word that report.
We will all know NOTHING until the flow test have been run, don't forget the flow test on the first well, what a joke, they have Oil and Gas but cant test it
Had GDN still had the ramp master posting on this you would have been back over the dollar now.


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## new_trader1984 (2 May 2009)

hi pilots, you seem to know a lot about oil and gas wells, can you tell us what a mdt will find out when they do them?

They started to do those tests monday tuesday.

thanks.


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## sharemadder (3 May 2009)

NT

Pilots knows lots about wells.

I will give you a clue.

Under another nick Pilots once said "The rig moved and PB#1 was once P&A"

Pilots is always  on GDN.


----------



## Sean K (3 May 2009)

*Re: GD - Golden State Resources*



pilots said:


> Had GDN still had the ramp master posting on this you would have been back over the dollar now.



Who is the ramp master pilots?

I haven't been following this thread that closely, but's looking very ADI ish.


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## new_trader1984 (3 May 2009)

Hi below are comments over the last 5 reports by proactive investors and can see the increased confidence they have had since drilling the first gas shows. I also have posted some links to read about the mdt testing and some points from those websites.

The testing results might be why they are more confident with barker creek and ismay now to say the comments they did in the proactive article on Friday afternoon.

7th april 
The increase in gas shows from 26 units to 398 is important for the sheer qantum increase in gas shows as anything else. There appears no question, that a gas zone was encountered. As Rick indicated about the gas shows in Upper Ismay formation, "it is a nice little pay zone". The good porosity was also a big positive.
Hitting marine sandstone was important as it could indicate a "better and bigger reservoir" putting GDN in a "wonderful position" as Rick put it.

9th april

Clearly, it's way to early to say whether gas shows to date are commercial, but it looks very positive.

15th april


"Hit pretty good reservoirs"
- "Not the same reservoir sands in #1"
- "This is very different to #1"
- "Really nice sands"


23rd april


Rick de Boer 
I am very encouraged by the drilling results achieved so far. They are as good as it gets and every indication we have is positive. We are very buoyed by the results. 

PB#2 is testing the formations at optimal points and we seem to have a lot of gas associated with sandstone based porosity. Results from the Chimney Rock formation are particularly good, where gas has flowed from near shore marine sandstone bars that were not encountered in PB # 1. 

Chimney Rock may well contain a new reservoir not found in PB # 1, sealed by shale with good porosity from sandstone bars within that formation. 

Net pay zone thickness will be determined after logging is done. This will occur after drilling has been completed.


1st of may

Chief Geologist Rick de Boer is clearly buoyed by the results to date, "we are confident we can get production out of Ismay and Barker Creek".



The comments above are from articles by proactive investors and are rick de boer’s comments.


I have been looking at websites on the mdt testing tool and have also looked at the updated file on pb2 on the oil gas website which was updated to 6am on the 25th of april 2009. 6am on the 25th in utah is 10pm on the 25th here and at that time they were at 12746 feet. That means they had 208 feet to drill from 6am Saturday morning before they were to stop and start running tests and casing. The announcement on Monday 27th to shareholders said they were at 12920 feet and stopping at 12954 feet. They would have been at 12920 feet at around 6am 26th april utah time which is 10pm 26th april est. So maybe reports to shareholders are based around the reports to oil gas utah which is written at 6am each morning, this means running tests could have started anytime after 11am Sunday utah or 3am Monday 27th april est. This has given them atleast 5 days to run the tests from when the last comment by rick was made on the proactive website stating they are confident of production out of ismay and barker creek.

Even though the results could have been recorded quickly, we don’t know how long it took to set everything up and start testing but we can assume by around 5am Monday est they would have finished drilling. They also might have taken 2-3 days of tests before the director is given some test results even before finished all the testing. After ricks latest comments on proactive website, reading the mdt testing what can be found out from them maybe he now has some basic idea from those results to make those comments on Friday afternoon since those 2 formations did flow test so they also have that to offer support in that statement.

The accuracy of what the mdt tests can achieve will be a big improvement to dst tests and will be able to have a more accurate estimate of the best gas producing areas from the gas shows recorded so far. This means when they do provide the details to the market shareholders might be told of how much is net gas pay and porosity and permeability from those zones.

Below are several websites on the mdt testing.

http://books.google.com.au/books?id...&oi=book_result&ct=result&resnum=10#PPA171,M1

From page 171 on the link above explains the most about the mdt tool and what is capable of providing to the people running the tests. 

http://www.ogbus.ru/eng/authors/Dmour/Dmour_1.pdf

This website shows how the mdt tests can actually help productive rates in tight sands which is where less than 1md is found in gas bearing zones.

http://www.wipo.int/pctdb/en/wo.jsp?WO=2006/117604&IA=WO2006/117604&DISPLAY=DESC

The link above gives a run down of the mdt tester and what it can find similar to the first one but both have different info in parts.

http://www.earth.rochester.edu/issep/large.html

This link is just to give some answers to questions about the mdt tool. Might be helpful.

http://www.slb.com/content/services/evaluation/reservoir/mdt_single.asp

The last link above is the schlumberger website.

What is said on this page is the operator running the test can estimate recoverable reserves accurately with the high quality samples taken.


Some points that I found from some of those links are

They can get a direct measurement of fluid properties.
The original composition analysed compared to when measured at surface.
Fluids obtained can help determine production procedures.
The tests react quickly and accurately to pressure and temperature and reduce well site time.
Accurately measure resovoir fluid
Point by point pressure tests.
Provide demarcation of gas, oil, water contacts.
Pressure surveys can offer a understanding of how fluids are moving in a resovoir.
They can provide the permeability.
They can provide the porosity.
Can identify presence of hydrocarbons.
Can determine of flow line resistivity.
MDT pressure gauges exhibit improved dynamic response with no compromise in accuracy.
Precise flowline control ensures monophasic flow.
A number of different zones can be tested in one trip.
Fluid sampling is to obtain a representative sample of virgin resovoir fluid.
Storage stabalised 5 orders of magnitude which is smaller then a dst so more accurate.

Thought this might be helpful to some.

Some might call this post ramping, but i have provided all the websites the information came from and also seen the latest update of the report to oil and gas utah too.

MDT is considered more accurate to a dst which is demonstrated in one of the links, it is also used in place of a dst and can get mini flow rate results before completion of the well which is also mentioned in the above links.


----------



## sharemadder (3 May 2009)

NT

One very well put together post that I hope will suffice for Agentm and Pilots, neither of who I think you will ever get to flip to the bright side 

The information about the MDT tool was excellent even though I have already read much about it bit revisiting it only boosts my confidence in Rick de Boer's abilities and skill in providing sound leadership this time around for GDN.

I hope we get some information, even a brief summary of what they have found from the upper zones.

If fast tracking RPS to have a look at the data and provide some techincal information as feedback as well I hope we see that too.

Cheers


----------



## pilots (3 May 2009)

New Trader has coved the sales brochure on the Mdt tool very well, how ever in real life it not that simple, first it is run on a wire line, when you get to the zone you have to test the tool must push a foot out from the side of the tool, this pushes the tool hard up against the other side of the hole, you then open up the port, on the side hard against the wall, and this will let in some fluid,  you can take the samples  back to surface at the end of test, the test WON'T tell you how much gas/oil you have in the hole, this can only be done with a flow test.
Now the down side,  50% of the time when you run this test the foot you have used to push the tool against the wall with gets stuck in the wall, we then pull up, slack off, pull up ,slack off, for 1/2 hours, if the tool won't come free we have a weak link on top of the tool and we release the tool from the wire line, you then make up the fishing tool to run in the hole and retrieve the MDT.(time and money) If you don't stick it you get the O rings leak MOST of the time, this gives you the wrong results.
DST has the same risk. they have a packer above and below the DST they all so can get stuck in the formation, you can spend days getting them out of the hole.
Now Rick is telling you the zones on the second well are not quite the same as the first, this is the trouble around this neck of the woods, the formation is fracked badly and all Gas/Oil has migrated, you have to find the traps it is under.
Some thing that was said to me this week by a American who is in the drilling game VERY close to GDNs lease, that when woodside brings on its new Gas field, the yanks will be able to buy LPG cheaper from us than they can produce it them self.


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## Wysiwyg (3 May 2009)

I`m sure the equipment and experience in the U.S. at P.B.2 is completely different from ones own. There is one thing knowing what the GDN company is doing and another that of our own experiences.





.


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## pilots (3 May 2009)

Schlumbergers equipment is the same the world over, no matter what country you are drilling in, the drilling of a well won't change.


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## Agentm (4 May 2009)

*Re: GD - Golden State Resources*



kennas said:


> Who is the ramp master pilots?
> 
> I haven't been following this thread that closely, but's looking very ADI ish.




kennas, thats very a unusual thing to say imho

ADI has no capital issues, GDN has just enough to finish off the drill, post that it will be flat broke. it needs a lot of things to go right for it from this point on to be a success. this well has to not show any signs of being sub economic, which give n the current gas prices is going to mean a monster well is needed.. 

The play GDN is drilling into is regionally a different play entirely to the one adi is involved in. Delta petroleum has done extensive drilling in the region, has put in a lot of infrastructure and tested a lot of wells in the paradox basin, as one of the most experienced drillers in UTAH,  they have completely walked away from the play. as pilots mentions, they have not found the economic model to suit the heavily faulted region and the inconsistent findings on the many wells they have drilled  

ADI has 6 mill in the bank (once yemen cash comes in) and sits on a genuine stratographic  play, which is heavily backed by players like conocophillips who see it as part of their future, and petrohawk who will spend $1 billion this year in the play. apart from apache and swift and anadarko and plenty of others like pioneer who speak highly of the play. 

_Petrohawk calls Eagle Ford a top shale play

By OGJ editors
HOUSTON, Apr. 21 -- Formation characteristics from two of its first five wells indicate that the Cretaceous Eagle Ford shale in LaSalle and McMullen counties of South Texas *"is one of the highest quality shale reservoirs discovered in the US,"* said Petrohawk Energy Corp., Houston.

Petrohawk raised its internally estimated ultimate recovery assumption for wells in the play to a midpoint of 5.5 bcfe/well, with a range of 4-7 bcfe/well, based on gas in place data derived from the core analysis from the two wells and performance of wells completed to date. _

the difference in the eagleford play to the play that gdn are following is primarily in the condensate.  the attraction by the major players to the eagleford is solely  due to the incredible condensate return from all the wells regionally, but where adi sits the wells produce staggering condensate rates, some 250+ bopd per 1mmcfpd..  thats where the money is, the oil price at $50 still makes the exploration into shale almost economic,   but at $3 gas,, the price needs to raise 100% for there to baseline economics on the better and best producing top end shale gas regions.. shale or otherwise

imho the delta announcement last month about the paradox basin is worth while contemplating. 

kennas, i think a critical thing to consider in the high risk high reward oil explorers is what the future is post the discovery, what are the economics.. 

what i wonder with the gdn share is whether the economics will be there, can the modeling support the exploration?  we see adi and their partners struggling with cash in a highly prospective region in texas, even with high condensate rates and extremely long well life projection and minimal declines..  

gdn is a very oversold share, a major talking point on hc and if you discuss the company and its project here you certainly get a thumping for it.. on the adi thread i post regional information for the investors and my own interest. although adi and its jvp partners have not achieved sp value, and there is no value in any way for the acreages despite production from the formation, it does not mean there is no value there in the acreages for the jvp partners in the future, its apparent from the recent AZZ farmout of their  acreages to petrohawk, that these acreages are highly sought after.

adi remains below cash value, gdn is obviously valued way above it. its cash value, so where you want to risk your capital in an oil explorer, and at what point during its exploration all become major things to contemplate,  as well as how you see the future of the share..

imho if gdn can attract this much excitement, and get such high values and   spikes in their sp, its very possible that other small cap oil explorers will also become attractive to the high risk taking investors,   there is strong evidence of plenty of high risk reward investors coming back into the market when you see the activity in GDN

i hope the gdn investors get huge rewards for their investment, the last thing the oil sector needs is to see small caps being blown out of the water one after the other..  but its a tough time out there for the sector thats for sure..  i think that on this thread people like new trader are extremely valuable, with the availability of lots of information and the ability for him to answer questions, people like sharemadder and datz tend to think of any discussions on the region or the play to economics as a threat, which is a pity as i think they may have great regional knowledge to share and good insights to share if they could discuss the share and not the man....

hope the next stage of paradox really gets the well into a good formation.. the punters need it imho..


----------



## new_trader1984 (4 May 2009)

hi agentm, just your comment about delta, They haven't walked away just yet just not going to spend as much in the paradox basin for now while they have better projects to work on. They still plan to test other intervals of the wells they have drilled.

They didnt start to have a big interest in greentown until gdn drilled the first well and then they started to apply for a lot of permits soon after. They had trouble with the casing as they made comments about pressure was too strong for the casings they had used and needed a different design i think was mentioned in their reports.

I think delta is waiting to find out results of other drillers in the area before they start spending more money in the area while they have other opportunities on offer to them.

Mdu resources is producing at small rates near by too and have picked up a large amount of land in greentown too recently, its hard to get much details from them as only 1 report isnt confidential on the oil gas website, even all their new permits are confidential now. Im not sure of their track record but they seem to have a lot of reserves and production from the rocky mountains area.


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## bigdog (4 May 2009)

ASX ANN  today

GDN   	$0.155  	  +$0.010   	  +6.90%   	high of 	$0.155  	 	5,900,731 shares  	$902,017  @	04-May 11:09:47 AM

04-05-2009 10:05 AM  	 GDN  	  Paradox Basin No 2 update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00949917

Wireline logs indicate 73’ of likely gas bearing fractured formation in shows 1, 3 and 4.  Shows 5 to 10 are pending further logging runs.   

Preliminary interpretation of the wireline logs indicates:  

Show 1 (originally 4’) is likely to extend 21’ from 10,109’ to 10,130’  
Show 2 does not contain significant gas.  
Shows 3 and 4 (originally 37’) associate with a single gas bearing zone in fractured formation extending over  52’ from 10,344’ to 10,396’.

Production tests are planned for Zones 1, 3 & 4 as they appear to represent commercial gas. 

Paradox Basin #2 is currently being logged, following additional reaming to assist passing the logging tools below 10,952’. This will allow the full petrophysical evaluation of all shows. 

MDT pressure will be run as the final logging suite 

Drilling is expected to resume this week on completion of logging and setting 7” casing. 

First target expected when drilling recommences is the Lower Barker Creek Formation, which is expected within 300’.  Deeper targets include the Alkali Gulch, Pinkerton Trail and Leadville Limestone.


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## WRONG'UN (4 May 2009)

Hi guys
This has been a really interesting thread which has helped to get things into perspective - thanks in particular to Agentm, Pilots and New Trader for putting the time in.
A while ago GDN presented the RPS estimates of the potential gas reserves in the field. The probabilistically based estimates are as follows:
P90: 27.3 Bscf
P50: 118.6 Bscf
P10: 418.4 Bscf

Combining these gives an overall expectancy of:
(27.3 x 0.9 + 118.6 x 0.5 + 418.4 X 0.1 ) / ( 0.9 + 0.5 + 0.1 ) = 83.8 Bscf

Valuing at last Friday's price of $US3.55 / Mscf and an AUDUSD rate of 0.735 gives:

83.8 x 1,000,000 x 3.55 / 0.735 = $A405m = $A1.14 per share ( assuming 356m shares and ignoring any options )

Of course they have to find the gas, and there could be a lot more or less than the estimate, they have to extract it economically ....etc - a lot of unknowns, but clearly there is room for some sp appreciation if things go the right way.


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## Agentm (4 May 2009)

new_trader1984 said:


> hi agentm, just your comment about delta, They haven't walked away just yet just not going to spend as much in the paradox basin for now while they have better projects to work on. They still plan to test other intervals of the wells they have drilled.
> 
> They didnt start to have a big interest in greentown until gdn drilled the first well and then they started to apply for a lot of permits soon after. They had trouble with the casing as they made comments about pressure was too strong for the casings they had used and needed a different design i think was mentioned in their reports.
> 
> ...





hi new trader

http://seekingalpha.com/article/104...-earnings-call-transcript?source=bnet&page=-1

Roger Parker

Thank you, Broc. Good morning and thank you for joining us for our third quarter conference call. *As you have heard from many companies, especially energy companies, the significant and rapid decline in oil and gas prices have caused us to act in an expeditious manner to be fiscally responsible*, and to ensure that Delta Petroleum is prudently situated to weather the current environment in the financial markets.

With revenue streams cut in half over a 60 day period and credit markets being all but closed, immediate and definitive action was necessary and important. This has obviously had an impact on drilling activity, in all but our lowest risk and predictable areas, which are basically located in the Piceance Basin.

*It is not a reflection of the potential of areas like the Paradox Basin*; rather, it is an acknowledgement that this company will do everything possible to maintain adequate liquidity and to evidence real value of assets for our shareholders. 


also later on

Operator

Our next question is from John Freeman of Raymond James. Please go ahead.

John Freeman - Raymond James

I am just trying to go back a little bit in time again on the Paradox Basin. Just trying to see maybe what kind of thought process, how it's changed from the start. Earlier in the year, the vertical wells, the biggest issue was that the decline was a just a lot steeper than you all anticipated to my understanding.

It was just mentioned a second ago, is that, once the water treatment shelf started doing the fresh water treatments, the declines are much better. So you kind of figured it out, that part of the decline curve and it looked like at least that on a vertical basis these wells were going to work, and then we ended up going to the horizontals, and obviously have had some completion issues.

I am just trying to walk through maybe when we were originally looking at this probably earlier in the year. What's changed between now and… then and now?

Roger Parker

Go ahead John.

John Wallace

Well probably start from me and then let Carl talk for a second (inaudible). But John I mean you are very astute in the fact that our ability now to frac and get further away from the well bore in a vertical world makes the vertical drilling much more appealing.

I will tell you though, if you look at this part of the world, the only known sustainable production is from the Cane Creek interval to southwest of our… southeast of our production.

We are not developing the Cane Creek horizontally here. We had an issue with the bottom seal. But now with the ability to frac long distances in the well bore and the fact that the pipe is proving to be collapse resistant. We really feel that we can target this in a multiple zone completion mentality not too dissimilar than all the other places that we chase.

It's an evolution of technology. It is not an abandonment of one to the other. Carl and his group, and you can walk through some of the frac designs you've done. But it's really an increase in the ability and the effectiveness of the fracs that allow us to believe that we can do this vertically.

Roger Parker

I think it's a case of comfort. I think the other thing as John alluded to, one of the things that drove us towards the horizontal in the first place was that value capture from the Cane Creek interval which was the prototype in the Basin. As we went through the process in our Cane Creek, we had a problem with the bottom seal and didn't see it.

So with that said; we are finding the vertical completions in intervals other than the Cane Creek, it seem to work just fine and we are quite happy with them. So we will continue to exploit that.


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## DAZT49 (4 May 2009)

All them words!!
I am jus a simple country folk an them hi falutin words jis confuse lil ol me.
I jus wan them geeeeolojist fellas ta yell "LOOKOUT!! they is a 
tarnation o GAS a comin outa thet hole in the groun"!!!!!!!


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## pilots (5 May 2009)

One thing I over looked was we only ran a MDT at the end of the well, this way we would not have to run casing if it was a duster, this section of well must be cased, so they could have tested it at the end of the well.
It looks very much like to me that some one is DESPERATE to get the SP up b4 the options expire. One thing you can be sure is that it they find a butterfly fart or a half a thimble full of Oil in the test they will tell us fast, if they have said nothing about the test at the end of running casing you will know they have NOTHING as yet. This is a day traders dream thanks to HC.


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## DAZT49 (5 May 2009)

Another good ann today.
Just keeping us in the know.
They cerainly cannot be accused of not being transparent.
It is taking a while for burnt punters to realise this is the real deal this time.


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## DAZT49 (5 May 2009)

This chart shows that the last 16 days have been an accumulation period.
That accumulation started on the correction day on 8th April.
The SP didnt open and close outside the support resistance lines tho it did match on April 28th.
there was a small "downtrend" from 20th -28th April, maybe a pennant?
(A pennent would indicate a continuation of the prior trend..up.)
We have a local low at point 1 and an intermediate high at point 2, according to Joe Ross's "Law of Charts" we need to have another intermediate low to be in tune with a "1,2,3, Low' situation.
However..(am I boring you??) we seem to have a small double bottom (resistance)forming (yesterday and today) so this could bounce away from the 2b.
I am looking for a take out of position 2 (16c) then an open and close above that price.
It all reflects what we know...we are all waiting and 'topping up"(accumulating).
The bears where jumping off in the small downtrend(yes you can short GDN as a CFD trade)
News will see the take out of 16c and hopefully the prior tend will continue.
Sorry...its a boring afternoon lol


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## sharemadder (6 May 2009)

Pilots

Today GDN reported reservoir pressure of 3661 PSI ( 25241 KPA) in zone 10 from the MDT test.  Is that very high in gas terms for onshore and can you share what GDN could expect from that?

Results from MDT test should be in for a tomorrow ann. which may explain better.


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## pilots (6 May 2009)

sharemadder said:


> Pilots
> 
> Today GDN reported reservoir pressure of 3661 PSI ( 25241 KPA) in zone 10 from the MDT test.  Is that very high in gas terms for onshore and can you share what GDN could expect from that?
> 
> Results from MDT test should be in for a tomorrow ann. which may explain better.




Thats normal formation PSI, to get the formation PSI all you have to do is

WTxDTx.052= Formation PSI.

So mud weight say 10 lbs, say depth 10,000 feet, x .052 = 5,200 PSI.


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## pilots (6 May 2009)

pilots said:


> Thats normal formation PSI, to get the formation PSI all you have to do is
> 
> WTxDTx.052= Formation PSI.
> 
> So mud weight say 10 lbs, say depth 10,000 feet, x .052 = 5,200 PSI.




Sorry Sharemader I was still asleep when I posted this morning, the above formula is for the Hydrostatic head of PSI(HSP).
Formation PSI is,,  HSP + SIDPP  PSI.  (SIDPP is shut in drill pipe pressure)

 Love the hype and tripe on the other forum.


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## Wysiwyg (6 May 2009)

Just shows that one opinion doesn`t move a stock price. There is definitely a line between stock discussion and stock pumping/anti-pumping.


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## DAZT49 (6 May 2009)

check out the GDN sell depth.
Gotta love the guy offering 100k @$8.92 
Is that you sharemadder??
I love an optomist lol


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## sharemadder (6 May 2009)

Dazt

Every man and his dog is in GDN now cobber.

Traders all over it.

I dont care as long as sp goes up.

30 mill + vol day and 19c thats a big hi five for us.


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## DAZT49 (6 May 2009)

Dont think you will get yr 30c tomorrow, but I would love to see it.
30c would get the oppies fired up too.
Signs are there that it may run like Para 1 SP, the old greed factor is starting to come in to play


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## rottodiver (6 May 2009)

using directshares(etrade)can any body let me know how do you get to view the market depth beyond 10 prices??


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## DAZT49 (7 May 2009)

sorry rottodriver I use Comsec Iress.
Heres a screenshot of todays depth, tho obviously this will change as open approaches.
Price at open looks to be 20c (4.4c for oppies)
I notice sharemadder has taken off his $8+ offer lol
PS there were another 6 bids down to 2.7c but the screen shot didnt fit them in.


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## pilots (7 May 2009)

Would be interesting to get a up date on the logging now, just tell us what they are logging, and when they think they will be ready to run casing.


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## DAZT49 (7 May 2009)

punters obviously LOVED that ann. wow
What did they expect the ann to have?
Its all going to plan IMO they are doing a great job of the drill.


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## pilots (7 May 2009)

MMMMMMMMMM, Now can you see any thing about the MDT results?? 
Next they say POSSIBLE pay zones. The plot thickens.

This has gone from nothing to 20c very fast, but I can assure you, it will drop a lot faster on bad news.


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## Agentm (7 May 2009)

pilots. 

with the porosity reported today as average of 6.2%

and the average porosity regionally for the formation 

• Porosity - averages 8-12% 

how do you see todays announcement yourself?


----------



## pilots (7 May 2009)

*Re: GD - Golden State Resources*



Agentm said:


> pilots.
> 
> with the porosity reported today as average of 6.2%
> 
> ...




Porosity is not all that important, you can all ways frack it, what is important is to first have gas in it. What they said to day was POSSIBLE gas.. What a lot of the rampers have not picked up on is that they say we have some zones with fractures in them, now a fracture is real good to transport gas as long, as long it is sealed in, but 9 times out of ten, it means the gas or Oil has escaped along the frack.


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## new_trader1984 (7 May 2009)

hi pilots, wouldnt the tests given the permeability like was mentioned in the report yesterday they were running the pressure test which would also help find out the permeability.

Wouldnt this be what they look at to get an idea of what zones can have potential to flow gas?


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## DAZT49 (7 May 2009)

"What they said to day was POSSIBLE gas.."
I think they have been very careful with their wording this time round.


----------



## pilots (7 May 2009)

*Re: GD - Golden State Resources*



new_trader said:


> hi pilots, wouldn't the tests given the permeability like was mentioned in the report yesterday they were running the pressure test which would also help find out the permeability.
> 
> Wouldn't this be what they look at to get an idea of what zones can have potential to flow gas?




We don't know what logs they have run , we are guessing.
They will have a good idea from the cuttings as to what the permeability is, what you need is to have gas trapped in it, when you run a log, the gas/oil is in your face, real easy to see, the trouble is how much do you have, how big is the zone, is the zone fracked, I can tell you that neck of the woods is fracked to hell and back. Most zones will flow gas, but won't be commercial, I can show you a well flowing 6Mcfad, the well was not commercial, the zone would have been depleted in less than a month. One company man from close to GDNs lease  told me some time ago '' WE ARE DONE CHASING OUR TAIL ON THIS Son of a gun''
When the well is over and the flow test are done you will know how much you have, until then it is all guess work, hype/tripe. No word on the MDT run.


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## pilots (7 May 2009)

DAZT49 said:


> "What they said to day was POSSIBLE gas.."
> I think they have been very careful with their wording this time round.




Yes on the first well they used the word COMMERCIAL instead of POSSIBLE.
This time they seam to be more careful with the wording.


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## DAZT49 (7 May 2009)

pilots!! 
Are we agreeing on something??
They were clever in getting RPS to do a report too, which was also conservative, tho they didnt get a lot of useful data from Para 1.
They did hint at a change in those RPS estimates in todays ann.
"The Barker Creek Formation and Ismay Formation both produced gas on test in Paradox Basin #1 and the presence of gas in these zones is EXPECTED TO INCREASE the currently discovered gas in the Golden Eagle Field."


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## DAZT49 (7 May 2009)

Essentially they were unable to obtain a seal on the hole and the chambers that protrude from the MDT tool were not able to properly open due to the rugosity. 

The MDT will be run again when the well is cased so that they can obtain a seal to test properly.

The logs from P1 and P2 are very similar however nothing can be confirmed until the MDT. We may see another MDT attempt before TD.


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## Agentm (7 May 2009)

DAZT49 said:


> Essentially they were unable to obtain a seal on the hole and the chambers that protrude from the MDT tool were not able to properly open due to the rugosity.
> 
> The MDT will be run again when the well is cased so that they can obtain a seal to test properly.
> 
> The logs from P1 and P2 are very similar however nothing can be confirmed until the MDT. We may see another MDT attempt before TD.




i dont follow what your saying

yesterday they had reported that the well was conditioned to do the test. and it was commencing from zone 10. 

"The MDT tool is currently conducting a series of pressure measurements commencing in zone 10 which has a reservoir pressure of 3661 psi. The MDT will take approximately 24 hours and will be completed late today."

once the well is cased the formation will not be able to be accessed.

are you saying they will pull the casing later?


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## DAZT49 (7 May 2009)

just reporting a conversation between a shareholder who bothered to call Ricky D via phone not long ago.


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## pilots (7 May 2009)

Agentm said:


> i dont follow what your saying
> 
> yesterday they had reported that the well was conditioned to do the test. and it was commencing from zone 10.
> 
> ...




I think you will find he is talking about the end of the drilling, TD, that is when I would run it, that way if it is a duster you don't have to run casing.

This ground is a lot like what AZZ had in Turkey, it is a Gas field, BUT they was only small pockets of Gas, good for one year, hard to recover cost.

Some of the rampers keep talking about the mother load of GAS they are going to find, well sorry folks, all the big finds on land have long gone, offshore you will still find the big ones.

 Lets look at AZZ and NDO, both selling Gas and OIL, one at 9c, one at 14c, GDN has the worlds most expensive well that was a duster, and are drilling the second well, SP 18c, now tell me whats going on here.

Keep your finger on the stop loss.


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## DAZT49 (7 May 2009)

pilots,
from yr post 18th April 6.43pm.
"a lot of your EXPERTS are comparing the well to wells up to 60 Miles away, mate I can tell you from experience you cant compare two wells that are half a mile apart."
You are talking about AZZ in Turkey in yr last post
I know that no result will make you happy about GDN but be consistant ...ya turkey lol


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## pilots (7 May 2009)

DAZT49 said:


> pilots,
> from yr post 18th April 6.43pm.
> "a lot of your EXPERTS are comparing the well to wells up to 60 Miles away, mate I can tell you from experience you cant compare two wells that are half a mile apart."
> You are talking about AZZ in Turkey in yr last post
> I know that no result will make you happy about GDN but be consistant ...ya turkey lol




No two wells are the same any place, we drilled a well here in Australia that had five pump jacks around us with in one mile of us and we got a duster.
The fault lines and the fracks are what stuff you up.


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## WRONG'UN (7 May 2009)

Hi Pilots, while I understand what you are getting at regarding comparisons between AZZ, NDO and GDN, to just quote the share prices is misleading, because of the different numbers of share on issue (184m, 1050m and 356m for AZZ, NDO and GDN respectively). If you are trying to show the relativity between the three companies you should be looking at the market caps, which today are $18m, $142m and $64m, in the same respective order.


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## urgalzmine (10 May 2009)

Hey guys and girls

Wise owl has said:

Golden State Resources (GDN) has a potentially company-making gas project well underway in Utah, USA. The area being drilled is in the Paradox Basin – an area home to many large commercial gas fields – and drilling is nearing its more crucial stages. The prospect, known as ‘Golden Eagle’, was previously drilled in 2006/2007 but a drilling services company (Weatherford) bungled the operations and the Paradox #1 Well had to be shutdown, with no gasflow ever produced at the surface. However, before it was closed, Well #1 returned some very positive readings, and from that drilling program a resource estimate of 118 billion cubic feet of gas was given (as a mid estimate). A high estimate is 418 billion cubic feet of gas.

Following the failure of Well #1 to produce commercial gas flow, a new drilling program program began last year. Paradox #2 drilling is has now reached 7,000 feet below the surface and initial gas readings suggest that the resource at Golden Eagle could be significantly higher than first thought. Drilling is about embark on the next leg towards deeper zones which are expected to hold the most gas. Following imminent drilling of the deeper formations and official estimates provided of the resource available, commercial production is intended. Management has suggested that the Golden Eagle field could be producing gas by as early as August and over time the project could sustain several well heads. Daily flow rates from each well could be around 5 million cubic feet a day, which at current gas prices of A$5.20/btu, could generate cashflow of US$20,000 per well per day. The upside to this stock if drilling goes to plan is very attractive. Whilst key risks include problems with drilling (worst case scenario a repeat of the failure of 06/07), successful completion of drilling and commercialisation would see a re-rating of the stock. Noting the risks involved, we are recommending GDN as a ‘speculative buy’. 

he Paradox Basin has been very productive and is currently home to 171 oil and gas fields. The Basin has produced 500 million barrels of oil and 3.5 trillion cubic feet of gas over the years. GDN’s ‘Golden Eagle Prospect’ bears geological resemblance to some of the larger producing fields in Paradox. Well known fields include the Greater Aneth field, which has produced in excess of 439 million barrels of oil and 384 billion cubic feet of gas and the Lisbon field, which has produced in excess of 51 million barrels of oil and 781 billion cubic feet of gas. Smaller fields, such as Desert Creek, Bug and Ismay have cumulative productions up to 10 million barrels of oil and 1 billion cubic feet of gas.

GDN is targeting 118 billion cubic feet of gas from the Golden Eagle prospect and judging from current drilling reports at the Paradox #2 well, this is a conservative estimate. In perspective, the total new field gas reserves discovered in the USA for 2007 was 796 billion cubic feet. Results from the new drilling program indicate that resources are larger than first estimations, and an upgrade to the resource base could occur upon completion.

Banks are already lining up for debt funding should flow be proven from the wells. In addition, GDN has received offers from US gas gatherers to cover all CAPEX expenditure to connect to the Williams pipeline (situated nearby). Once commercial flow rates are established, the gas gatherers would build own and operate the pipeline and its connections. Therefore capex is limited for the company. Commercial flow could be expected as early as August if drilling continues to schedule.


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## helpmeunderstand (10 May 2009)

urgalzmine said:


> Hey guys and girls
> 
> Wise owl has said:
> 
> ...





Man, thanks for a positive posting, it's time someone will show some faith in GDN, I know thay have been a bit dumb previously but I still believe in them, been waiting for 2 years and I hope and think that 2009 is the year.


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## pilots (11 May 2009)

urgalzmine said:


> Hey guys and girls
> 
> Wise owl has said:
> 
> ...




Most interstering post,  you say,""" Noting the ricks involved, we are recommending GDN as a speculative buy ''' Now may I ask this, who is we???
are you any way in bed with GDN???


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## WRONG'UN (11 May 2009)

Excuse me, Pilots, I have learnt a lot from your contributions to this thread, but unsubstantiated insinuations are a bit over the top, particularly when they are aimed at someone who presents a different view to your own.


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## bigdog (11 May 2009)

ASX ANN
Little reaction from the market to ANN!!
GDN  0.18 +0.005  +2.86%  high of 0.185  4,268,541 shares $768,032 @ 11-May 11:59:36 AM 

11-05-2009 10:54 AM  	 GDN  	  Paradox Basin No 2 update 

REVISED UPDATE – 11 MAY 2009

Paradox Basin #2, Grand County, Utah
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00951841

7” casing has been successfully completed with the casing cemented to 12,956’ (3,949m) and pressure tested.

The drill string is currently tripping back in hole to recommence drilling operations and conduct a formation integrity test.

The first target is the Barker Creek Formation gas zone, which is one of the major gas bearing intervals in the Paradox Basin #1 well.

Remaining targets are the Alkali Gulch and Pinkerton Trail formations, and Mississippian Leadville Limestone.


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## pilots (11 May 2009)

WRONG'UN said:


> Excuse me, Pilots, I have learnt a lot from your contributions to this thread, but unsubstantiated insinuations are a bit over the top, particularly when they are aimed at someone who presents a different view to your own.




Sorry to upset you Wrong'un, but thats the kind of post that ramped the SP last time, they have not flowed any Gas, not tested any Gas, and here we are posting that we will be getting US$20,000 a day.


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## urgalzmine (11 May 2009)

well i am not saying you should buy the stock, but this is a speculative stock if you bought it. I am simply noting what "wise owl" have said. I mean if it was flowing with oil the sp wouldnt be .185 cents with a MC of $62 million. 

If you also want a back ground on the directors:

Rick De Boer - Technical Head, Executive Director

Rick started in the oil patch working on Harriet Field for the Harriet Joint Venture. The first taste of success came soon when the very first exploration well I was involved in, Rosette -1 was a discovery. He went on to re-evaluate Harriet field and that resulted in an increase in reserves from around 10 million to 54million barrels. Rick then joined Core Laboratories and spent the next four years working throughout SE Asia. He joined Maurice Brand at Energy Equity Corporation, the company achieved the first independent gas-power station in Australia and Rick was instrumental in the purchase of the Senkang gas field from which we developed the much larger Sulawesi gas power Project. Rick also enjoyed success in the purchase of the Harimau oilfield in South Sumatra. They were required to drill further exploration wells in the block and re-evaluated high graded the Singa Prospect. That resulted in a multi TCF gas discovery, actually much larger than they ever expected.

Rick left EEC to join Mobil in Perth, working as staff geologist on WA 268P. His job was to evaluate the existing Jansz prospect and to conduct further studies that would reduce the high perceived reservoir risk and get the prospect drilled. Unfortunately did not survive the Exxon-Mobil merger. Janzs was drilled after he left and was a monstrous discovery. Post Mobil Rick consulted for various clients including long term contracts at BHP, Alberta Energy and Encana.

Rick was negotiating to join AED Oil in 2006 but ended up joining RPS Energy as geology manager in 2006 and worked on numerous listing reports including competent persons reports for AIM listings notably Mediterranean Oil and Gas. AED Oil continued to use his services through RPS and in 2007 I joined AED as Chief Geologist. Rick left AED in 2008 to join Golden State straight after the sale of 60% of the Puffin Field to Sinopec. 


However also remember the last time they drilled it was disaster. I am not telling anyone to buy or sell, i am simply sending you what "wise owl " are advising their members. If you read carefully you will also note why they advising it is spec buy as they give evidence to support their conclusions.


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## WRONG'UN (12 May 2009)

It's OK Pilots, I'm not upset - I just like to see the argument receiving the attention, rather than the person making it - you've now done this, with fair comment.


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## pilots (12 May 2009)

WRONG'UN said:


> It's OK Pilots, I'm not upset - I just like to see the argument receiving the attention, rather than the person making it - you've now done this, with fair comment.




In the next weeks you will make good money on this one, BUT, I would not want to be holding this at the very end. The old song, know when to hold, and know when to fold.   Every rig leaks, no matter how hard you try to stop it, watch the trades at the end, some will tell you it is the people in the know buying, or is it the mates in the know been told to get out.


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## bigdog (13 May 2009)

ASX ANN today

SP upon open today down 0.005 to 0.19 cents

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00952579
UPDATE – 13 MAY 2009 
Paradox Basin #2 Grand County Utah 

Paradox Basin #2 is at 12,966’ after drilling out the shoe, and conducting all required tests. 

All operations have preceded normally within best oil field practices for deep high pressured gas wells. 

Remaining targets are the Barker Creek , Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone. 

Golden State Resources is currently liaising with various specialists to discuss the completion of the upper gas zones in Paradox Basin #2.


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## Evo (13 May 2009)

great discussion guys, i have learnt much from reading this thread. Pilots you seem to really distrust GDN managment, will be interesting to see how this plays out. Im going to have a stab at your alias, you wouldnt also go by the name of mighty_dragon would you? lol


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## Agentm (13 May 2009)

Evo said:


> great discussion guys, i have learnt much from reading this thread. Pilots you seem to really distrust GDN managment, will be interesting to see how this plays out. Im going to have a stab at your alias, you wouldnt also go by the name of mighty_dragon would you? lol




outstanding contribution there evo..

i think the daily announcements are pure comedy myself..

i will write tomorrows report for you also..

UPDATE – 14 MAY 2009
Paradox Basin #2 Grand County Utah 

Paradox Basin #2 is at 13,166’. Background gas readings are 35 units. We stress that in Para #1  there was 24 units at this level and we are very encouraged by the readings and will be monitoring them closely. 

All operations are continuing to precede normally, and ongoing operations throughout today will remain within the very best of all possible oil field practices throughout the vast nation of USA for deep deep deep high pressured gas wells. The evening shift arrived late, but within worlds best oil practices for lateness.

Its been very much misunderstood by the market, but we are clarifying further for the first time, within the context of world best standards and practices, that the Remaining targets are the Barker Creek , Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone. Again we are terrible proud to tell the market that the remaining targets, which will be drilled withing the best oil field practices are the Barker Creek , Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone.  

Golden State Resources is continuing to liaise, with worlds best oil practices, to various specialists on an ongoing and totally professional way,  to discuss further the completion of the upper gas zones in Paradox Basin #2. Which sit above the Barker Creek , Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone which are the remaing worlds best practices formations.


you know a weekly report saying your drilling ahead and nothing to report is far better..


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## pilots (13 May 2009)

Evo,you have a PM, I am not Dragon, How GDN can call that last report Price sensitive beats the hell out of me,  it tells you NOTHING.  Now I do like this bit, ''" Several groups have been approached to provide expert advice in regards to the completion of the discovered gas in the upper zones"".  Now thats the kind of thing I would expect the back slapper's brigade to post, WHAT GAS???:
The gas to date is back ground Gas, its in all wells, the first thing thing GDN must do is flow test it, then and ONLY then will you know if its commercial.
I am surprised that they did not post just how many feet of the zones had Gas, you can get that from the logs, the logs wont tell you if it is commercial.
Could it be that the logs said very little???? O DEAR, and the oppey's come up soon.


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## new_trader1984 (13 May 2009)

Pilots have a read of announcement 7th may, they tell you how many feet in each zone had gas by the logs for net pay. 

Thats how they got 200.5 feet of net pay over the 10 gas shows they reported. They just didnt complete the mdt pressure run as the chambers wasnt able to open on the zones tested apart from the lowest zone which they gave a pressure reading in a report.


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## mick z (13 May 2009)

what's wrong with you AGENTM ? why do you insist on running people and companies down when you hold no shares in them.

it doesnt matter wether you dont like the management or the operrator.........it's all about making money............
not getting personal with others

lighten up please


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## Agentm (13 May 2009)

mick z said:


> what's wrong with you AGENTM ? why do you insist on running people and companies down when you hold no shares in them.
> 
> it doesnt matter wether you dont like the management or the operrator.........it's all about making money............
> not getting personal with others
> ...




 lol

ohh no!!  stalker mick is back..

lighten up.. lol  you cant even read a light hearted comment and understand it,, you seem to be the most uptight person on this site..

the light hearted comment by me has only been taken the wrong way by you mick.. which shows how frustrated a person you have become..

everyone is making a killing on GDN mick.. have a look at the shares progression during the last months.. no ones uptight about it,, the well has got a background reading and people are making a fortune out of the hype,, its brilliant stuff run by a brilliant crew.. you have to enjoy it mick..

again mick,, you appear to think you are my father or something, trying to tell me what i should say think and do.. i will put you on ignore here as well,  as your contributions to any topic are nonsense at best and you seem to think your exclusive role in life is to tell me how to act.. who the hell are you to tell me what i can and cant write on a forum?  

your a complete fool..   you dont know whether i am in or out af a share of what my position is mick, and you would be the last to know in any case..

onto ignore you go mick.. !!


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## pilots (13 May 2009)

Agentm said:


> lol
> 
> ohh no!!  stalker mick is back..
> 
> ...




Agentm, it looks to me mike is one of them who has lost big time on GDN last time, now that the back slappers brigade is back on board it is away again, what they hate most is that any one who has a negative view on this should be banned from posting, it works on one other forum I know of.
Agentm this is your last warning, you must ONLY post positive on any stock.


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## Evo (13 May 2009)

agentm speaking of forum contributions, your post was not that much better. You must have alot of spare time on your hands, quite sad really.


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## captain noitall (13 May 2009)

guys, this has been the best forum for objective info on this stock by a mile..pls don't let it turn into hc.  Stock comment only please, we all waste enough time on other sites dredging through crap.


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## Joe Blow (13 May 2009)

captain noitall said:


> guys, this has been the best forum for objective info on this stock by a mile..pls don't let it turn into hc.  Stock comment only please, we all waste enough time on other sites dredging through crap.




I agree. Lets drop the personal attacks and stick to discussing GDN.

People are entitled to take a bullish or bearish view *as long as they can back up their argument with some analysis or pertinent information*. Whether or not they are a holder is largely irrelevant. Someone is only ramping or downramping if they are bullish or bearish without providing any reasoning for their point of view.

If someone is deliberately posting incorrect or false information and you believe it to be a deliberate attempt to mislead others then please report the post in question and either myself or one of the moderators will take a look at it.


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## DAZT49 (13 May 2009)

"People are entitled to take a bullish or bearish view as long as they can back up their argument with some analysis or pertinent information. Whether or not they are a holder is largely irrelevant. Someone is only ramping or downramping if they are bullish or bearish without providing any reasoning for their point of view."
Good onya Joe.
looks like I missed all the action today lol
Probably a good thing


----------



## Agentm (13 May 2009)

DAZT49 said:


> "People are entitled to take a bullish or bearish view as long as they can back up their argument with some analysis or pertinent information. Whether or not they are a holder is largely irrelevant. Someone is only ramping or downramping if they are bullish or bearish without providing any reasoning for their point of view."
> Good onya Joe.
> looks like I missed all the action today lol
> Probably a good thing




hope your doing well on gdn this time datz..

its a long way from background gas reading to commercial flow.. but its the % that gdn hold in this one that makes the speculation a great share to ride for those bold enough to know when to fold..

i do agree its waccky what happened today, people cant get over themselves..

datz are you taking a long term view on gdn, holding to the test and taking a risk on a hit on the sp then, or are you going to bail while the sp is hyped up/speculated to its present levels?  


looking at gdno, it gone from .005  to .045 

the way its been run is brilliant imho..


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## DAZT49 (13 May 2009)

agentm,
Been in since mid 2006 so guess I am more of a lifer than a long termer.
Making money on the oppies but the heads still owe me a few cents.
I am more than happy with the way things are going, much more professional this time.
Tho I reckon the last couple of anns were drafted by Richard S and reminded me of some of the cut and paste jobs he did a couple of years ago.
IMO the market is really waiting to see if they get those major shows from Lower Barker Creek to really confirm the potential of this well.


----------



## nomore4s (14 May 2009)

Let's keep this thread on topic please, if you want to discuss your going-ons on other forums please do it via PM or on the other forum!

There will be no more warnings - off topic posts will be deleted and infractions handed out.

Thank you.


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## bigdog (15 May 2009)

ASX ANN

SP GDN  0.20 -0.005  -2.44%  5,110,980 shares $1,019,628 @ 15-May 11:07:21 AM 

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00953342

15-05-2009 10:13 AM  GDN  General Update - Paradox Basin  

UPDATE – 15 MAY 2009 
Paradox Basin #2 Grand County Utah 

Paradox Basin #2 is at 13,030’ the bit was replaced for a PDC bit after drilling out the shoe. 

Progress has been slower than expected mainly due to the extra bit trip. 

It is expected that the well will test the Barker Creek Formation over the weekend. 

Remaining targets are the Barker Creek, Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone. 

Golden State Resources is currently liaising with various specialists to discuss the completion of the upper gas zones in Paradox Basin #2.


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## pilots (15 May 2009)

bigdog said:


> ASX ANN
> 
> SP GDN  0.20 -0.005  -2.44%  5,110,980 shares $1,019,628 @ 15-May 11:07:21 AM
> 
> ...




No one would drill out the shoe with a PDC bit, so whats the big deal about the extra bit trip, are GDN being taken for a ride again???? Watch your stop loss.


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## new_trader1984 (15 May 2009)

hi pilots, they didnt drill out the shoe with a pdc bit but replaced the bit with a pdc bit after drilling out the shoe.


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## wktswkts (15 May 2009)

pilots said:


> No one would drill out the shoe with a PDC bit, so whats the big deal about the extra bit trip, are GDN being taken for a ride again???? Watch your stop loss.




PILOTS - why u say no one would drill out the shoe with a PDC bit ?

Since 2003 they have been engineered and designed to do excatly that.

You perhaps have some older rig experience - but you should perhaps keep up with the times and technological advances.

A piece of info copy and pasted from this link for you - even has a pic 

http://www.epmag.com/Magazine/2009/2/item28635.php

"After identifying the challenges, Smith’s engineering team set an aggressive performance objective for the 77⁄8-in. hole section as follows: Design a PDC bit that can consistently drill out the 95⁄8-in. surface casing shoe, then continue drilling the Pennsylvanian overburden and top the Granite Wash formation at an average ROP of 50 ft/hr (15 m/hr) in one run."

Your statement i find is misleading


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## sharemadder (15 May 2009)

wkts

Thank you for such a good informative post with good back ground information.  We need more of this than some posts that just hit on GDN for everything they do.  GDN are using very experienced contract firms for drill rig supply and bore hole management.   

Pilots maybe drilling has advanced since you retired.  It seems Smith's engineering group can do it.  I doubt GDN's executive director Rick De Boer, a much better qualified person than any of us on here, would allow himself or GDN to be taken for a ride.

Things have changed for the better at GDN.

Cheers


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## DAZT49 (16 May 2009)

Looking down the track, I wonder how soon after P2 they will target P3.
A third well would really establish th size of the resource wouldnt it?
I guess (talking to myself here) they would complete the workover of P1 first, but get permitting underway for the next couple of wells.
Can they only apply for one permit at a time?


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## sharemadder (16 May 2009)

Dazt

They can apply for as many permits to drill as they want.  The only condition is they spud each one within a year from the approval date (State approval).  Unsure what BLM (Federal approval) will require for each new well (outside of what they have already supplied for PB#2, paleo, Indian, flora, fauna etc).  Permitting time frame should be short, similar to other companies multi permitting drill programs.

Regards PB#1, in my opinion they are waiting for as much option conversion money they can get.  If all options convert they get $3 million 22th May and $40 million 30th June.  The success of PB#2 will determine if they get into the money.  Personally I think they will 'one way or another'.  Thats a huge amount of cash not to be let go down the gurgalar.

If they get a reasonable amount of that cash in they can work over PB#1 and expand drill plans for another 2 to 3 wells, all depends on PB#2 outcome.  PB#2 of course is looking nice but in the end its about getting good gas flow   A no brainer really.

Rick De Boer needs to expand on that 'work over' of PB#1.  Information is limited on their plans.  One Q (pilots may be able to answer this) but would it be better to enter PB#1 again  and side track lower sections again on the basis that the company has declared that salt intrusion has damaged the lower integrity of the well?  Most likely cheaper option.

Cheers


----------



## pilots (16 May 2009)

sharemadder said:


> Dazt
> 
> They can apply for as many permits to drill as they want.  The only condition is they spud each one within a year from the approval date (State approval).  Unsure what BLM (Federal approval) will require for each new well (outside of what they have already supplied for PB#2, paleo, Indian, flora, fauna etc).  Permitting time frame should be short, similar to other companies multi permitting drill programs.
> 
> ...




A side tract is good if the well is in good shape, good casing, cement on the out side of the casing, the casing is big enough, I would walk away from No one, start again with a clean slate, your number one problem is that all of the Gas around that area are very small pockets, according to the seismic.


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## sharemadder (18 May 2009)

From todays ann. sounds like the PDC drill bit not cutting the chase fast enough, too slow they declare!  So tripping for new type of drill bit.

 LOL

Day traders will exit fast today imo


----------



## z8ball (18 May 2009)

Down she goes like the titanic.

Interestingly, WCU, another little project of the GDN boys is also sinking well and truly.


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## aramz (18 May 2009)

You guys don't think a good annoucement is just around the corner still? 

Today's announcement and the problem with the drill bit couldn't be a major hiccup could it?


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## sharemadder (18 May 2009)

z8ball

Such strong language you use, 'titanic' ???  ???

All Ords down so most stocks on ASX down.  Looks like ASX going down like the titanic to me 

Explained simply, GDN has day or ST traders all over it.  Some need to sell there positions and didnt get the wizz bang ann. they wanted today.  Why because PDC drill bit too slow and the Lower Barker Creek target not engaged yet.  New bit and another day or two and 'another' gas show I'm sure will turn up.  Remember they have had 10 so far with 7 considered possible pay zones.

WCU has had stellar rise, plenty of profit made on this so far.  Now expecting still permit approval on 20th but gee's 200% gains, wouldn't yopu on a down day on ASX take some of the table.

Have a nice day sonny!


----------



## sharemadder (18 May 2009)

aramz 

For sure a very good an. is still expected this week.  If you are ST holder or dont have funds to pay for your stock though u risk a lot as anything can go wrong as with any well.


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## z8ball (18 May 2009)

Good 'O Sharemadder, I guess time will tell won't it. Either your right and you'll make a motza or history will repeat...

Good luck, personally I hope you make a motza! I just get sick of hearing wedding bells everytime a holder talks about this share.


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## DAZT49 (18 May 2009)

z8ball,
Hmm style familiar...maybe bluesdog?
While I am disappointed with the ann they are still about 9 days AHEAD of schedule.:
They changed the bit because of slow drill rates, 6 X 24 =144ft if they get 10ft/hr with the new bit its going to take a day to catch up . 
Anyway ...the build up of anticipation/fear continues


----------



## DAZT49 (18 May 2009)

z8ball said:


> Good 'O Sharemadder, I guess time will tell won't it. Either your right and you'll make a motza or history will repeat...
> 
> Good luck, personally I hope you make a motza! I just get sick of hearing wedding bells everytime a holder talks about this share.



z8...you have posted 3 times on ASF 2 of them on GDN, so how is it you are sick of wedding bells on this thread??
Ok ...just for you..
I am a holder but I hate this stock the management are crooks the wells are dusters and I am gunna call ASIC because I think management are using our money in the white slave trade in Arabia.


----------



## z8ball (18 May 2009)

Hmmm DAZT, style familiar, maybe just like the other thousands of holders married to this stock that can't see what's really going on.

Some tidbits for you:

Company Secretary Ranko Matic, very "enterprising" chap! Boasts of being involved with over 35+ IPOs in just six years! Fantastic work ethic. According to records though, it would appear that his numerous mining "exploration" companies are yet to actually make any money. Lots and lots of specualtion though that they are just around the corner from the big find. Seems to do wonders for the share price.

Absolutely amazing timing on the options as well IMO. The way they fall due right about the time they should be hitting the big pay day. I think this happened with PB#1 as well. Not sure, would be an amazing coincidence though.

It's all perspective though isn't it? As long as your not left holding the pile when the music (volume) stops.

Like I said, someone's going to be right and someone's going to be wrong. I just hope you'll still post here afterwards 

Just Kidding, seriously, I hope everyone makes a bucketload and I end up looking like a bigger prick than I already do. Good luck.


----------



## DAZT49 (18 May 2009)

z8,
Now you are sounding like pilots.
Ok ,please explain to me why they have "conspired" to do all all this.


----------



## sharemadder (18 May 2009)

z8ball

You say "just kidding" after inferring one of the directors is rancid 

Very strange, kick they boots in then say 'oh I hope u make a motza' :

The options were never timed this way.  Those options been on the table some time.  Sure the directors 'and the faithful shareholder' need the sp in the money to see $40 mill realised on the 30th June.  But that makes good business sense hey.

Regards past performance especially with PB#1, sure I agree that was putrid to say the least.

With Rick De Boer on board now, very experienced oil/gas man, has employed very experienced rig and rig management.  PB#2 drill has so far been very good, on time and has produced some excellent gas shows with RPS preliminary report 7 out of 10 possible pay zones.

Of course need to flow it as well, be there soon.

Cheers


----------



## z8ball (18 May 2009)

Read the post again, just kidding has nothing to do with my views of these guys. It's after a had wrote tongue in cheek comment.

And yes I do hope holders make a motza because I wish no-one harm and any losses.

That's all.

Read what you like into my views on these guys. I don't like their resumes, past practices, current drip feeding of ANN's and the uncanny similarity of what is occurring in a number of their associated companies.


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## sharemadder (18 May 2009)

z8ball

Fair enough, u don't like them 

I don't like them either LOL (except for Rick).

I just want to make money  and lots of it.

But why discourse your feelings which at this point in time appear to be very much opposite of what PB#2 is doing.  Thats what really matters isn't it?  The well and its progress. 

Any well is either a hit or not.  Only at the end we will all know as u agree.

And yes I would rather regular updates on it and I don't care much for the ST traders especially when they loose just because an 'expected' and 'hyped' up ann. is 'supposedly' due and doesn't arrive on time.

Seen enough wells to know things can change rapidly either way or just be delayed etc.  And if GDN bag $40 mill in option money end of June I will be very, no extremely happy 

Cheers


----------



## new_trader1984 (18 May 2009)

hi sharemadder about the 7 out of 10 zones you mention, i think what they did was upper ismay barker creek and akah had 2 zones each and they combined the 2 intervals for the total pay in each formation that was reported and all three were done that way when they gave the 200.5 feet of net gas. They did this in the upper ismay formation and it seems thats what they did for the other 2 formations too since we were just told the amount of feet in each formation and not the depths of each one. So productive levels of gas could have been from all 10 gas shows but they also added the area between the 2 gas shows that linked them together which may have also found some gas which would explain how they got 200 feet of net pay from only about 186 feet of gas shows.

Hopefully some more good results will be seen this week from lower barker creek.

The oil gas utah document for pb2 has been updated too upto about the 9th of may and can see the gas units and also the pressure results from zone 10 that was mentioned in a report.


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## sharemadder (18 May 2009)

Thanks NT for the info.

I think I better have a read of that doc on the Utah DOGM web site.  I haven't looked for a while.

PB#2 is looking good.  LBC hit maybe tomorrow or the next day, depends on the new drill bit installed.

Cheers


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## DAZT49 (19 May 2009)

This waiting is making me twitchy, they hoped lower barker shows would be in a 300 ft section after the casing didnt they?
Its 9.37pm in Utah, dont think we get a late ann today.
z8,
i see you are downramping the stock in another world.
What is your old nic??


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## sharemadder (19 May 2009)

Dazt49

patience buddy, they will report when they get there.  Steady as she goes.
Hopefully they haven't needed to trip again  :hide:


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## DAZT49 (19 May 2009)

maddy,
Yeah, I figured it would be tomorrow before we get an ann.:sleeping:
whats yr take on this from the ann a couple of days ago.
"Golden State Resources is currently liaising with various specialists to discuss the completion of the upper gas zones in Paradox Basin #2."
Is that for the offtake of the gas to the pipeline.?
Anyway wont be long til..:alcohol:


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## sharemadder (19 May 2009)

Dazt

From that ann. I think they are meaning 'whats the best and most profitable way to frac (stimulate) these upper zones' to get the greater gas flow.

They are consulting with the experts in the area to see which is the best way to go imo.  I'm sure RPS etc are providing info.  

Yeah LBC hopefully tomorrow but drilling takes time.  
It will come when it gets there, albeit without major incident I hope :fan


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## z8ball (19 May 2009)

Hi Dazt,

No other nick here.

Ahh c'mon, it's only fair that someone doesn't let the "Toot Toot" crowd over there go unanswered, true?

Until the last day or so it was like the mutual gratification club. I can picture them holding hands and willing the share price up!

Someone posted here calling them Hot Whoopers??? Thats right on the money.

Good luck.


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## sharemadder (19 May 2009)

z8ball said:


> Hi Dazt,
> 
> No other nick here.
> 
> ...




I think there's Hot Whoopers both sides of the fence and even some sitting on it.  Much about nothing at the moment to really say till they break into LBC etc...


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## hsv2001 (19 May 2009)

sorry to ask but what announcement are GDN pending? They seem to post announcments every 2 days and the sharer price seems to hover around the same region. Is this ann another update or a major update that we are expecting?

Thanks
Marc


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## DAZT49 (19 May 2009)

in my experience of 3 years on these type of forums that the drampers outnumber the rampers.
Also that "supporters" posts seem to be scrutinised more than drampers..
Actually I dont quite know why people who hold stock are called rampers.
What else would you do but want talk the stock up??
True rampers and drampers have a more sinister motives ( ie to influence you to buy or sell)


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## DAZT49 (19 May 2009)

hsv2001,
read all the co anns for the last 6 months .
I take it from your post that you have no stock lol


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## hsv2001 (19 May 2009)

no, I have been watching it over the last few weeks actually, and I'm a bit confused with the whole mining industry. I'm just not sure where they've mentioned that there will be a major ann i.e. today. I have been tossing up whether to buy in or not.


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## Sean K (19 May 2009)

DAZT49 said:


> in my experience of 3 years on these type of forums that the drampers outnumber the rampers.
> Also that "supporters" posts seem to be scrutinised more than drampers..
> Actually I dont quite know why people who hold stock are called rampers.
> What else would you do but want talk the stock up??
> True rampers and drampers have a more sinister motives ( ie to influence you to buy or sell)



Not so sure Daz. 

It seems clear to me that the bulk of posters on stock forums are lay people who are not professional investors. Non professionals are too emotional about their money and stocks and thus there is an irrational exhuberance both when a stock goes up, and down. 

What is important is that if a stock is talked up, then it needs to be backed with some FA and/or TA. When it's not, and can't be, then it is pure and utter ramping. And reverse for dramping.

That is why ASF demands some attempted FA and/or TA to support any form of excitement about a stock.


----------



## DAZT49 (19 May 2009)

hsv,
They are approaching one of the target zones in the well, reported as a Major gas show in Para1.
The market is waitng for that ann IMO
I cant advise you to buy or not but its a good time to do either lol


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## hsv2001 (19 May 2009)

Thanks Datz49, I was interested in the options, but given they expire 30/6/09 that could be quite risky given no decent progress from now till then.


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## DAZT49 (19 May 2009)

kennas said:


> Not so sure Daz.
> 
> It seems clear to me that the bulk of posters on stock forums are lay people who are not professional investors. Non professionals are too emotional about their money and stocks and thus there is an irrational exhuberance both when a stock goes up, and down.
> 
> ...




Hi kennas,

Agree about the irrational exhuberance, but as you say the bulk of the posters are lay people, and perhaps there should be more allowance for that in the moderations.
As you know from my own case my suspensions have (mostly)come from railing against the one liner posters ie "its a duster" "falling knife" "titanic""what a dog stock" etc,etc
It seem to me that the bulk of those posts go thru to the keeper.
I know its hard for the mods too and by and large they do a good job.
cheers
daz


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## DAZT49 (19 May 2009)

hsv,
I hold oppies, I could sell ATM and make a good profit.
While they arnt going at the pace I would like to see, once they get "in the money" ie the SP gets into the high 20s they should be a good investment iether to sell pre expiry or to convert to full shares.
This all ties back to that announcement you enquired about.
daz


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## sharemadder (20 May 2009)

No news yet.  Very quiet but sp slipping now.  Wont be long and probably ST traders will hit the exit quick smart on suspicion something is corrupt.


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## Agentm (20 May 2009)

sharemadder

the last report said this

Paradox Basin #2 is currently at 13,318’ in the Barker Creek Formation. A PDC bit was used to drill out from 12,967’ which required an additional trip. The PDC bit was replaced by a button bit at 12,935’ as rates of penetration were too low. *The current trip out of the hole is the third since drilling the shoe and this has lead to some overruns in the expected drilling times.* Due to the depth of the well trip times are approximately 24 hours. Drilling is expected to resume later today.

3 trips are very expensive, is it possible there is some blockage down there?

when it goes wrong in a drill the costs can be extremely high.. looking at $100,000 per day for the rig at least out there in the isolated regions of utah... in no time your going to make the speculators nervous..

imho 3 trips is very unusual,  i was very curious why the sp did not tank on the new myself. pilots mentioned a little about the drill bit and was shot down in flames for having said anything, but you have to admit 3 trips is showing you there is a problem down there surely?

how do you view the current well repair operations? with gdn putting in daily reports on how wonderful the operation is going, with world best practices etc etc.. and most oilers knowing that in any well there is rarely a well completed trouble free, surely the glow comes off when you hit a snag when the reports are all designed to give you that comfortable secure feeling that nothing is going wrong.. it the use of daily reports getting gdn unstuck here? are the holders edgy and jumpy?

is it feasible the 3 trips are indicating a well problem?


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## pilots (20 May 2009)

Agentm said:


> sharemadder
> 
> the last report said this
> 
> ...




First, I PM the posters about the PDC bit, had I of posted that info I would have been accused of dramping.
The three trips for a bit change is nothing, a PDC bit drills like a rocket ONLY the right formation, if you hit some soft formation it comes to a stop, POOH change the bit, you may have to change the bit EVERY DAY. On a well that is on a proven Field you know whats ahead and use the right kind of bits, this well is still wild cat, you DON'T know whats ahead. One well I was on we POOH changed the bit went back to drilling and got a formation change in two meters, you guessed it POOH change change the bit again.
How ever, don't forget on the first well they run the cones off the bit and had to fish for them,  was the ASX told of that???????? I would be sleeping with my finger on the stop loss key,


----------



## pilots (20 May 2009)

*Re: GD - Golden State Resources*

I know some will love this post and the rest will hate it and do the best they can to discredit the post and myself.
On EVERY rig world wide you have a bit chart, you must record each and every bit you run in the hole, you record the WT on the bit, the RT, the ROP, Depth in depth out, serial NO, make of bit, and nozzle size, this make it more cost effective for the next well, you can see what you should run and what depth you should start of finish. Now GDN will know which bit they should have run  on this well, but this drilling has gone to pot. This tells me it can only be two things ONLY. One Rick and the drilling contractor knows jack poo about drilling, (which I doubt). No Two, the formation is completely different to the first well, this tells me it has had fault lines between one and two, this being the case, you can kiss the Gas good by.


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## DAZT49 (20 May 2009)

pilots,
"This tells me it can only be two things ONLY. One Rick and the drilling contractor knows jack poo about drilling, (which I doubt). No Two, the formation is completely different to the first well, this tells me it has had fault lines between one and two, this being the case, you can kiss the Gas good by. "
Your points 1 and 2 both say the well is a duster right?


----------



## pilots (20 May 2009)

DAZT49 said:


> pilots,
> "This tells me it can only be two things ONLY. One Rick and the drilling contractor knows jack poo about drilling, (which I doubt). No Two, the formation is completely different to the first well, this tells me it has had fault lines between one and two, this being the case, you can kiss the Gas good by. "
> Your points 1 and 2 both say the well is a duster right?




YOU like ME must wait and SEE. Hard to tell but some thing is starting to smell, just now they have to come up with good results, one bad report now and you will see 5c over night, every one can still remember the first well.


----------



## DAZT49 (20 May 2009)

pilots,
If you are in, why arnt you out??
If you are out, why do you care?
Two reasons for no ann today (so far)
1. (most likely) they have not reached the LBC target.
2. Trouble, tho I think they would have released an ann if that were the case.


----------



## DAZT49 (20 May 2009)

Ricky De would have had to have caught a flight in LA or SF on Monday our time to be in Perth ATM.
They had only just stated the redrilling on Mon arvo, why would he fly home?


----------



## prawn_86 (20 May 2009)

Once again this thread is causing numerous problems. As before all off topic posts will be removed and infracted.


----------



## pilots (20 May 2009)

DAZT49 said:


> Ricky De would have had to have caught a flight in LA or SF on Monday our time to be in Perth ATM.
> They had only just stated the redrilling on Mon arvo, why would he fly home?



D49, I two find it strange, I would say that they could have stopped drilling for some reason, or what I believe could all so be the answer is that if I had to raise more money, he would be the best man to take to the backers to tell about the drilling ahead, no one at GDN can do this, my thoughts ONLY.


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## DAZT49 (20 May 2009)

pilots, 
two things there.
1.You are assuming Ricky De is in Perth.(If he is Superman ..yes.)
2. You are assuming they have run out of cash.
Last quartlery said..

WELL FUNDING
The company has raised $5.136 million during the quarter through placements and a share facility. The funds are being utilised on Paradox Basin #2 drilling costs.
I dont think money is a problem in fact (hopefully) I dont think there is a problem. Hopefully we will get an update tomorrow.


----------



## arian (20 May 2009)

hey guys i'm new to this forum and i got a small amount of this stock
Just hoping there will be a good ann tomorrow


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## ojm (20 May 2009)

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. ". Applicable here? 

I'm in at an average price of $0.16, and am undecided what to do. Wait for an announcement or get out. Or bring the stop in close (which I'm thinking may just get triggered from panicky sellers quite quickly..).


----------



## urgalzmine (20 May 2009)

If your concerned with cash .. look here :

Financial Performance 

GDN raised $5.2m through share placements in the March quarter to help fund the operational costs of the Paradox Basin #2 well. This was required as significant expenditure is being made on the current drilling program, with $4.01m being spent on exploration and evaluatoin for the March quarter alone. Cash at the end of March was $2.2m and cash burn would be continuing as drilling continues.

GDN has a substantial holding in White Canyon Mining (WCU) and sold off 6m shares in the quarter at 20c each. The $1.2m is to be used for ongoing development at Paradox #2. Following the sale, GDN still has 45.67m shares in WCU which at current prices is worth $16.7m and has voting power of 25.0%.

The company has no debt. Of note is that 139.1m options are in existence with an exercise price of 20c and expiry date of 30 June 2009. These will most likely be exercised should the stock be trading above 20c at that date which will be a handy capital injection of $27.82m. Exercise of these options would be beneficial for the continuous drilling program.


----------



## sharemadder (21 May 2009)

urgalzmine

Actually there is 

152,288,664 Listed Options exercisable at 20 cents each on or before 30 June 2009.  *Totalling $30,457,732  *

And also 15,400,000 Unlisted Options exercisable at 20 cents each on or before 22 May 2009.  *Totalling $3,080,000*

The later being director oppies, so interesting to see were that goes by end of this week.

Cheers
:jump:


----------



## sharemadder (21 May 2009)

Agentm said:


> sharemadder
> 
> how do you view the current well repair operations? with gdn putting in daily reports on how wonderful the operation is going, with world best practices etc etc.. and most oilers knowing that in any well there is rarely a well completed trouble free, surely the glow comes off when you hit a snag when the reports are all designed to give you that comfortable secure feeling that nothing is going wrong.. it the use of daily reports getting gdn unstuck here? are the holders edgy and jumpy?
> 
> is it feasible the 3 trips are indicating a well problem?




Agentm

Possible problem, yes maybe, go fish :bonk:

I hope not but, its not the end of the world hey!  

As pilots pointed out its not uncommon to change bits regulalry and as he PM's some of us and to paraphrase in my words, "the PDC bit is not the 'saviour' of drilling but just another tool  in the shed to be used when the right conditions present themself."

GDN drillers tried it, didn't like it and subsequently moved on to a 'button bit'.  Now if they are fishing etc well we wait some more.  If they missed the mark on lower zones of well and the drill has traversed passed the faulted section then we only get to test the gas shows on the upper section.  We know gas is there.  It flowed at PB#1 from there.  This would be sad but again not a total disaster for investors like me. 

Again I hope not and wait to see if we hit the lower zones.  I'm sure news by end of week updating us will come.  Maybe today.

I'm an LT investor in GDN not trader sitting on the edge of my pants with baited breath buying and then selling on a whiff of emotion.  I enjoy watching HC one day wonders posting there every thought as they jostle to make $500 (if their lucky).  Some very bad posting over there much about nothing lately.

I have traded GDN though with smaller parcels and done quite well but have a reasonably big holding sitting nicely, majority under 6c.

Also, the company will do its best to see everyone of those options excercised and I don't blame them.  That's a huge load of dosh that will see another couple of wells drilled.  I like that, don't you.

Cheers


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## DAZT49 (21 May 2009)

If those rumours of a board meeting yesterday were true I would think there would be a TH called before the market opens today, otherwise any insiders would be able to take advantage of the situation, one way or the other.


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## bigdog (21 May 2009)

SP GDN  0.145 -0.005  -3.33% @ 21-May 10:35:31 AM with HIGH of 0.17

ASX ANN
21-05-2009 10:07 AM  GDN  Paradox Basin No 2 Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00954847

• A gas show of 207 Units was encountered in fractured limestone and sandstone of the Barker Creek Formation from 13,430’ to 13,440’.

• The well is currently at 13,839’ (4218m) in the Alkali Gulch Formation and is drilling ahead at rates ranging from 16 to 37 feet per hour.

• Final petrophysical results confirm a minimum of 95 ft of net gas pay in 6 intervals, three of which have commercial potential and will be tested at the completion of the well. It is likely actual pay is higher.

• Drilling progress was slowed when the well encountered a thick extremely hard and abrasive dolomite cemented sandstone which has required four bit changes since 12,967’.

• The abrasive sandstone corresponds to a subtle fault zone on the seismic and current indications are that the well has crossed to the upthrown fault block into the Alkali Gulch Formation.

• Remaining targets are the Alkali Gulch, and Pinkerton Trail formations and Mississippian Leadville Limestone.


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## sharemadder (21 May 2009)

Maybe hit something in the the Alkali Gulch overnight at those drill rates.

Announcement was ok but I see sp is being sold down, people taking profits.

Cheers


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## DAZT49 (21 May 2009)

Market hates it.
dont see how the oppies will get up now.
Target depth only 200ft away???
Well should be finished in a few days IMO


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## DAZT49 (21 May 2009)

They missed the LBC target, guess they can pick it up again when they rework Para 1.
We will get our rewards ONE day sharemadder lol


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## sharemadder (21 May 2009)

Have some faith Dazt mate

Oppies will get there yet imo.

Or they will be prearranged to convert (underwritten).

The well is going great, top section has indicated gas pay.

The lower section not fully drilled.

Cheers


----------



## hsv2001 (21 May 2009)

OMG! 

How can the options fall so far, isn't there still a month to go ? I can't believe I get in at .03 and now this!!!

Hoepfully the well can show some results so I may even break even


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## BMW540 (21 May 2009)

Unfortunatly for GDN holders, I think that no matter how good their annoucements are over the coming weeks, we won't see the desired share price increase that everyone is expecting.

And as expected, today's cascade sell-off was triggered by stop losses rolling down the lines. They are not "stupid sellers" or "weak hands" or "emotional traders" - they are simply traders observing their trading rules and hitting their stop losses. It's a matter of fact, not emotion.
They could have also being people locking in their profits if they bought GDN at much cheaper prices - doing the sensible thing. Protecting their capital.

In my opinion the smart money has left the building long ago. We may see another significant fall in share price tomorrow as people assess their situation and sell-off again, realising that the risk/reward profile for GDN has dramatically changed over the last few days.

Technically weak. Momentum is shockingly downwards. 11.5c gap could be filled. This could again trigger stoplosses down through the 10c barrier.


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## sharemadder (21 May 2009)

BMW540 said:


> Unfortunatly for GDN holders, I think that no matter how good their annoucements are over the coming weeks, we won't see the desired share price increase that everyone is expecting.
> 
> And as expected, today's cascade sell-off was triggered by stop losses rolling down the lines. They are not "stupid sellers" or "weak hands" or "emotional traders" - they are simply traders observing their trading rules and hitting their stop losses. It's a matter of fact, not emotion.
> They could have also being people locking in their profits if they bought GDN at much cheaper prices - doing the sensible thing. Protecting their capital.
> ...





Although the sp could drift lower I doubt very much it would capitualte.  Most of those holding nervously would of exited today and judging by the volume there was a number of buyers prepared to take those shares.  The volume turnover was huge.

The risk / reward has not changed at all.  The upper zones have 95ft possible gas pay as indicated by RPS and independent cross check.  Also they have 3 other target zones to go.

Now 11c is very possible of course because thats what the institutions bought at in capital raisings.  So is a good target for negative territory.  

Regards the sellers I pretty much can guess some of those that stopped today would of had to sell anyway as they trading T+3.  very ST.

Time will tell.


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## z8ball (22 May 2009)

Was my titanic call far off?

Honestly, when the company continues with these "hot air" announcements that say practically nothing of substance what can holders expect?

Every second day an update comes out which basically says "We're drilling deeper". There are no stats or figures other than rate of drilling or current depth.

Really looks like the company or institutional investors have pumped up this stock and now they're taking a dump on the GDN cheer squad.


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## bigdog (22 May 2009)

The market did NOT like the ANN!!

GDN  0.11 -$0.030  -21.43%  14,129,477 shares $1,674,839 @ 22-May 11:02:32 AM 

ASX ANN 22-05-2009 10:05 AM  GDN  Paradox No 2 Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00955146

The well is currently at 14,108’ (4300m) in the Alkali Gulch Formation and is drilling ahead at rates ranging from 16 to 37 feet per hour. 

Current lithology is evaporites comprising anhydrite and salt. 

The estimated tops for the Pinkerton Formation and Leadville Limestone are 14,875’ and 15,168’ respectively. 

Remaining targets are the Pinkerton Trail formations and Mississippian Leadville Limestone. 

Golden State Resources is currently designing the testing programme for the Ismay, Chimney Rock and Barker Creek Formations


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## pilots (22 May 2009)

z8ball said:


> Was my titanic call far off?
> 
> Honestly, when the company continues with these "hot air" announcements that say practically nothing of substance what can holders expect?
> 
> ...




The ramp team was good at telling us how fast we was drilling and how we was ahead of time, GDN has averaged about 160 feet aday, AZZ who have a rig on turnkey has averaged 890 feet aday. AZZ are building a gas line to the rig b4 for the well is over, they must be very sure of them self. With out any doubt GDN have drilled out of the fault, all GDN can do now is to talk about how good the zones are at the top of the hole, and how big the gas field is, as yet they have no gas, so how can they talk about a gas field. I do feel sorry for the new kids here who have averaged down on this stock, this was a train wreak b4 GDN started.


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## nunthewiser (22 May 2009)

LOL well silly ole me .....

i just bought this poundpup today at 11.5 as a BOUNCE TRADE ONLY ....... i WILL stopout at designated point and not in the habit of falling in love with dodgy little drillers ..

lol they really need to release some actual data one day to kill it or make it fly BUT all this messing around with smoke and mirrors anns has killed off any hope of sending this one into orbit from here .

BOUNCE PLAY ONLY and will drop it like the sack of poo it is if it hits my stop


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## Agentm (22 May 2009)

pilots,, 

O/T here a little, regarding the AZZ yellow rose well, its very upsetting too the locals to see black smoke flaring in these regions in texas, and AZZ will have to do a lot of very expensive testing on the pilot hole and do flow tests on the formation.. so with the volume of flow that well will put out,  these counties are now requiring the operator to no longer flare and test, they prefer to see it done through a pipeline. (your allowed a certain level of flaring during drill and clean up, only) so having a pipe connected to a vertical pilot-test hole is very practical, its a requirement by the county and state legislators, and of course the initial flow wont be at commercial rates, it will be like all the other vertical pilot/test wells in the region, sub commercial, you and i know that the well would need to be completed as a horizontal well to be potentially commercial, and the frac techniques would be very expensive for azz. btw i have no doubt in my mind that the  well will find activity in the eagleford.. but we should discuss that one in the azz forum..

regarding gdn, for 2 days there has been hard selling, and its agrred by me that its very hard to read these announcements of GDN with a lot of excitement, i have been looking at each one trying to see the things i need to see that would make me want to invest in the share.. i have yet to see the words i need to see before i step in.. 

they use the term gas pay??  what is that?  i cant find any industry standard matching that saying..

the investors certainly keep mods on their toes in the forums with the amazing statements on the gas shows,, but imho there is little there to be upbeat about at the moment. i will wait  and see if any decision is made to test any zones, and then wait for the outcome of flow tests before looking at gdn as an investment, imho its oversold and the real value of the share is impossible to pick right now. but in a 6 months or so i will look again and see how or if they will actually test anything in this second well. but imho gas prices need to be at a comfortable and solid $6 for a good while before the play becomes viable, and i base that on the analysts in the USA gas industry who do the numbers on a lot of plays.. i am staying where the oil is myself..  

its been a day traders stock imho, and a difficult stock for a LTH to deal with


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## pilots (22 May 2009)

Agentm, You are correct on the flaring, in Europe you can't flare any thing,  they said we are no longer going to waste energy. 

GDNs next report will be this. """"We are happy to announce that the well as been completed, the lower Gas zones was not found due to faults in the lower formations , this gave us false readings on the seismic, how ever GDN are now negotiation with a drilling contractor to bring in a work over rig to test the many feet of Gas pay zones on the upper reaches of the hole'''''''


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## BSDL (22 May 2009)

If Basin #2 comes up with nothing, what other fall back plans does the company have? Does GDN have any stable income?

Cheers


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## mastatrada (22 May 2009)

pilots said:


> Agentm, You are correct on the flaring, in Europe you can't flare any thing,  they said we are no longer going to waste energy.
> 
> GDNs next report will be this. """"We are happy to announce that the well as been completed, the lower Gas zones was not found due to faults in the lower formations , this gave us false readings on the seismic, how ever GDN are now negotiation with a drilling contractor to bring in a work over rig to test the many feet of Gas pay zones on the upper reaches of the hole'''''''




Sounds spot on actually, does anyone know if what they've found so far is likely to be commercially viable?


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## pilots (22 May 2009)

mastatrada said:


> Sounds spot on actually, does anyone know if what they've found so far is likely to be commercially viable?




The ONLY way they can tell if it will be commercial is to flow test it at the end of the well, all other talk is only ramping.(hype and tripe)


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## aramz (22 May 2009)

What can we expect to happen to the share price if the lower gas zones aren't found and your prediction is correct Polit? What else does GDN have going for them in the short to medium term if you wanted to hold your shares. With testing of the other gas zones and if they are commercially viable will that offer any promise to GDN in the way or restricting a big price drop?


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## DAZT49 (22 May 2009)

pilots,
you must be dribbling with excitement with whats happened in the last couple of days.
z8, oh no another "I told you so messiah"
BMW..another one salavating at bad news, why are you on ASF.??
The upshot is they WILL produce and sell gas from Para 1 and Para 2, and that must be extremely galling for you all.


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## aramz (22 May 2009)

Im just wondering if its worth leaving your money on GDN instead of taking it out for a loss which i will have to do. How long will it be till they produce gas from para #1 and para #2 and will these amounts bring about positive share price movements when the time comes? Will the movements be decent at all?


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## nunthewiser (22 May 2009)

guys guys guys! . stop this squabbling and fighting..... so much anger and angst over a 3 letter word . now cmon fellas ...... anyone here actually care two stuffs about what happens with this company ? its a 3 letter word . all bout the shareprice ......... if ya dont like the price .simple sell it ..... if you do like it , ride it ......

lol this gotta be the next funniest thread to the FMG one ....

so many tales of woe , gloating , your wrong , im right . when who really gives a flyin #$%^ when at the end of the day its what the SP does that actually counts


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## Agentm (22 May 2009)

datz

in all fairness, the opportunity that has just been presented to gdn holders to make a fortune off the well and the announcements must leave most with some massive profits..  how could anyone not make a bundle in this one?

it looks like a solid sell off for a good few days now.  maybe there will be more opportunities on another day either near or far, but i am not gloating of peoples losses, imho it was played well.. i certainly watched this one and learned a lot.. perhaps one day i will play my hand on one of these type of plays.. i am aware of who the conductor is on this one and i respect their work.


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## pilots (25 May 2009)

Well Well, So know we all know the truth, they have drilled in to a fault, the wrong fault, the Seismic tells you this, this is the reason no one wanted this b4,, is this the end of GDN. Now this will be VERY INTERESTING to know when they decided to stop drilling, was it just b4 the big sell off??


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## sharemadder (25 May 2009)

Todays announcement makes good commericial sense.

If drilling is slowed and difficult to Pinkerton and Leadville and they are sitting on independent assessed potential gas pay which is far better than PB#1, why not then exploit that for rapid piping in for cash flow.

Although the sp will be hammered buy the nay sayers etc so what.  On commerical flows and into pipe for sales the sp will return and cash flow will assist drilling another.

No conspiracy here either.  Just plain good management sense, thanks Rick.


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## pilots (25 May 2009)

Sharemadder, no one in the right mind would drill ahead, they are in the WRONG place, they can test the zones already drilled with the rig they now have on site, but will they, if they bring in a work over rig, it will give them time to get the oppeys over the line, bet all the ones that got the 11c shares are happy they sold out last week be4 the SP it went to pot.


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## bigdog (25 May 2009)

*The market did not like this Ann!!!!
GDN  0.089 -0.026  -22.61%  20,086,280 SHARES $1,753,977 @ 25-May 10:13:23 AM *

25-05-2009 09:10 AM  GDN  Paradox Basin No 2 update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00955434


In light of the excellent confirmed large gas resources discovered in the upper zones of the well, the Company has made a commercial decision to proceed directly to testing of five established gas pay zones for commercialisation rather than continuing drilling operations to deeper exploration targets.

Paradox Basin #2 is being prepared for immediate testing and completion of gas zones in the Pennsylvanian Ismay, Chimney Rock and Barker Creek formations within the Golden Eagle gas field.

The confirmed shallower gas zones represent a larger discovered resource (P50: 78.9 Bscf) and are more commercially attractive for exploitation than the deeper zones in the Pinkerton Trail Formation and Mississippian Leadville Limestone.

Testing operations are being organised to commence during June.  Preparation and planning for tests has been progressing since setting the 7” casing.

Drilling operations have been suspended at 14,216’ in the Alkali Gulch Formation.

The six inch hole from 12,956’ to 14,216’ will be logged and drilling suspended in such a manner that the deeper section can be re-entered at a later date.

Paradox Basin #2 is a successful well that has discovered further gas resources in the Golden Eagle Field. A revised reserves report will be prepared by RPS Energy after testing is completed. Based on the results reserves are expected to increase.


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## sharemadder (25 May 2009)

if they use the existing rig Pilots I'd be very happy.  Hope they do for the testing, lets see.  My average is 5.7c and I'm in for long haul anyway.  The wells will flow into the williams pipeline soon.  

I still believe and did so for some time even in discussions with drillers, geo's etc I know that they should of left the lower zones alone until the commericialised the upper sections for cash flow.

Still the sp could get down to that 5.7c, anything goes now days in this market.  See what RS does now to get the cash from oppies.

Underwrite?  Mac Bank were quoting this a but even as of last week?  Maybe they will underwrite same as last time.


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## pilots (25 May 2009)

sharemadder said:


> if they use the existing rig Pilots I'd be very happy.  Hope they do for the testing, lets see.  My average is 5.7c and I'm in for long haul anyway.  The wells will flow into the williams pipeline soon.
> 
> I still believe and did so for some time even in discussions with drillers, geo's etc I know that they should of left the lower zones alone until the commericialised the upper sections for cash flow.
> 
> ...




If I had been running GDN at the start of this hole, and had found commercial gas, good commercial gas, I would have had it on line to get the money coming in, once the money was coming in drill the next well. GDN had a bad smell at the start of the first well, mate that smell has turned in to a big stink now. If you are a long term holder all the best, you are going to need a lot of luck now.


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## urgalzmine (25 May 2009)

pilots said:


> If I had been running GDN at the start of this hole, and had found commercial gas, good commercial gas, I would have had it on line to get the money coming in, once the money was coming in drill the next well. GDN had a bad smell at the start of the first well, mate that smell has turned in to a big stink now. If you are a long term holder all the best, you are going to need a lot of luck now.




I am with Pilot on this one, something is not right. The market sense this too. Share price got hit hard. 25% down and now 8.4 cents, ouch  

Wise owl stop loss was 10.5 cents, so there out of this one


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## DAZT49 (25 May 2009)

Well i was out this morning and missed the ann and the huge drop.
By out ,I mean I was not here,not out of my trades
The problem for me now is what to do about the oppies
I cant imagine they would leave the rig there untill after the top zones have been tested and connected to the pipeline.That would be an expensive excersise wouldnt it??


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## sharemadder (25 May 2009)

Urgal

np mate.  Every one to their own risk.  Better out with profit.

I still will be interested how they plan to work this over, with current rig or another.

They would be logging, setting plug at bottom and putting prodcution casing in now, is that right Pilots.  About 7 days all up maybe?  Then they could if they liked move to well development.


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## mastatrada (25 May 2009)

I think the level of doom-mongering and panic apparent in some of the previous posts is exactly what is to blame for the massively volatile sp and landslide selloff. Although the ridiculous frequency of drilling updates does make you wonder whats going through their heads, it doesn't mean there's a conspiracy afoot and when they start producing commercial gas i hope everyone who panic-sold the price down feels a bit foolish. Having said that if i had bought the share at 5 c a few months ago I would have probably sold it for 10c as well when the price was coming back down. But it still doesn't mean they're finished.


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## Sean K (25 May 2009)

Agentm said:


> in all fairness, the opportunity that has just been presented to gdn holders to make a fortune off the well and the announcements must leave most with some massive profits..  how could anyone not make a bundle in this one?





I'd say it depends on your trading capability. Not your 'investment' capability.

Most buy and holders of this stock on 'fundamentals' would be trashed.

Not too much room to have traded this on the long term chart either really. Maybe if you were lucky enough to have seen 5 ish c as an opportunity.

Buy and holders may still be rewarded, if they're lucky.


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## pilots (25 May 2009)

sharemadder said:


> Urgal
> 
> np mate.  Every one to their own risk.  Better out with profit.
> 
> ...




What I would like to know is what depth did they stop drilling, and what day, was they stuck in the hole when Rick was back in Perth, is that why they could all come back for a few days off, if this is the case, who also was in the know, it is a never ending story.
Don't know when they will finish logging, but it should only take two days to get ready to test the upper zones, my bet is they will have to stall for time, they WON'T take the risk that the top zones are dusters b4 the oppeys get over the line. I think we will now see a lot of talk about how we will get the first well on line, and a lot of yak yak yak.


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## DAZT49 (25 May 2009)

drilling stoped at 14216ft.
I cant see the oppies getting anywhere near over the line.
Oppies expire on 31st June.with trading finishing a week before.
In that ann they said..
"Testing operations are being organised to commence during June."
IMO they will run out of time.


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## DAZT49 (25 May 2009)

mastatrada said:


> I think the level of doom-mongering and panic apparent in some of the previous posts is exactly what is to blame for the massively volatile sp and landslide selloff. Although the ridiculous frequency of drilling updates does make you wonder whats going through their heads, it doesn't mean there's a conspiracy afoot and when they start producing commercial gas i hope everyone who panic-sold the price down feels a bit foolish. Having said that if i had bought the share at 5 c a few months ago I would have probably sold it for 10c as well when the price was coming back down. But it still doesn't mean they're finished.




There is no doubt in my mind that the huge drop is, to a large extent, caused by the hysteria in another place.


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## BMW540 (25 May 2009)

R.I.P GDN
The only reason this is falling is because GDN is a pump and dump. Warned everyone last week. 
19c was the time to exit. Anyone could see that. Smart money got it to run up to 20c whilst exiting net position. 
Made good coin on this one.
What will be the next one?


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## rottodiver (25 May 2009)

i too think it was a good idea on the mangements part to stop now too.. lets say that they test and the gas is going to be produced, any ideas on how much that would effect the sp... would it be a significant rise or sit around where it is??


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## gruntle (25 May 2009)

I think these guys are a long term thing now, once they start producing gas their share price will come back up


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## hsv2001 (25 May 2009)

What could happen to the options that GDN has on offer?? There is one buyer purchasing 10m shares at .002, that seems a huge investment in something that could potentially be nothing in 1 month. Are there alternate options then having to exercise them at 20c. I ask this because it doesn't quite seem like they will get there buy June and that will be alot of capital they will be missing out on.

Thanks
Marc


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## pilots (25 May 2009)

Very interesting point made by 123 today, he said maybe, MAYBE, they did drill to TD, I can't see this happing, but GDN has been known to bend the truth b4. What will the next lot of garbage be they try to unload on us.


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## DAZT49 (25 May 2009)

I cant see that post..where is it??
Its amazing everything has been conspired by management on this one.


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## sharemadder (25 May 2009)

pilots said:


> Very interesting point made by 123 today, he said maybe, MAYBE, they did drill to TD, I can't see this happing, but GDN has been known to bend the truth b4. What will the next lot of garbage be they try to unload on us.




Pilots, unload on US.  You ain't a holder (are you) so they aren't unloading on you my dear friend.

They did not drill to total depth.  They told us that in the announcement.  

Pilots stop feeding the monster that spurs fear in some holders with dribble that is not true and can not be proved in any case.

Wait a while then visit the Utah DOGM website and read the public well logs (they run about two weeks behind) and you can see what the drill management are reporting each day.

Please stick to the facts.  Save that dribble for the other place 

Cheers


----------



## pilots (25 May 2009)

sharemadder said:


> Pilots, unload on US.  You ain't a holder (are you) so they aren't unloading on you my dear friend.
> 
> They did not drill to total depth.  They told us that in the announcement.
> 
> ...




Lets look at it this way, yes they did NOT DRILL AS DEEP AS THEY WAS GOING TO,  but,but,but, whats to say they did NOT find basement, you see I am sure they have drilled in to a fault they did NOT know about, this being the case basement could be a lot higher, this has happened to many drilling companies who have drilled around that place, and that is one of the reasons they DON'T drill there any more.


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## sharemadder (25 May 2009)

Pilots fair enough.  If its basement with PB#2 because of fault so be it.  imo I am not concerned as they have plenty of strikes to test in the upper portion.  Although they did say they are still in Alkali Gulch formation. 

Personally I believe drilling deep now and on any other further wells is really not cost effective given risk is too high.  Better to stay with 'what they know' in upper zones.  They could revisit lower sections once they get some cash flowing.    

As you suggested they could test flows with this rig.  I'm up for that, see what they ann. soon about that.  If I have too wait then I wait as thats what I been doing on this particular stock for some time.


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## pilots (25 May 2009)

sharemadder said:


> Pilots fair enough.  If its basement with PB#2 because of fault so be it.  imo I am not concerned as they have plenty of strikes to test in the upper portion.  Although they did say they are still in Alkali Gulch formation.
> 
> Personally I believe drilling deep now and on any other further wells is really not cost effective given risk is too high.  Better to stay with 'what they know' in upper zones.  They could revisit lower sections once they get some cash flowing.
> 
> As you suggested they could test flows with this rig.  I'm up for that, see what they ann. soon about that.  If I have too wait then I wait as thats what I been doing on this particular stock for some time.




The ONLY way the SP is going to move is to tell us what the flow rates are, and then start SELLING Gas, NOTHING else is going to move the SP, Every one now has been burnt, we have had all the hype and tripe, what you need now is FACTS, FACTS that can be backed up.


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## sharemadder (25 May 2009)

Pilots

There u go again, dribble.  FACTS u ask.  Pilots please stop.  

They have provided facts.  Gas shows are facts backed up by measured units of background gas in drillers reports, FACTS.  They have provided well depth of gas shows backed up by drillers reports, FACTS.  

See Pilots, you are talking nonsense again, in riddles so it seems, rhetorical questioning.

Look, yes they need to flow the gas show zones which have been interepted by a geo US firm as being credible.  We know that.  Everyone knows that.  Thats what is coming next, yeah.


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## pilots (25 May 2009)

share madder said:


> Pilots
> 
> There u go again, dribble.  FACTS u ask.  Pilots please stop.
> 
> ...




Back ground Gas won't tell you if the well is commercial. FACT
The facts they have told us about is that they have drilled some Gas zones, and this is from the GDN report that some of them zones ARE POSSIBLE commercial zones FACT. A good fact now would be to know what it will flow. Every well I have ever been on has had back ground Gas, and I can tell you we had a lot of dusters FACT.


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## maverick11 (25 May 2009)

I only read the last few posts, and hate to rain on your parade, but pilots is right.  Background readings have very little bearing.  You can have very high readings and a non-commercial well.  You won't get any reliable numbers until it flows and even then it will degrade over time.


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## DAZT49 (25 May 2009)

pilots said:


> Back ground Gas won't tell you if the well is commercial. FACT
> The facts they have told us about is that they have drilled some Gas zones, and this is from the GDN report that some of them zones ARE POSSIBLE commercial zones FACT. A good fact now would be to know what it will flow. Every well I have ever been on has had back ground Gas, and I can tell you we had a lot of dusters FACT.



LOL they cant win with you pilots, they were being responsible reporting "possible zones", if they had said "definate commercial" you would be be accusing them of ramping the stock.


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## rottodiver (25 May 2009)

Pilots.... you must have lost so much money on this company because you seem so happy when you see others losing it and your hate for the company is overwhelming.. i bet you burn up when you even hear or read about gdn. you really do make it hard for the people who need an objective opinion instead of a constant negative one!!!


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## DAZT49 (25 May 2009)

maverick11 said:


> I only read the last few posts, and hate to rain on your parade, but pilots is right.  Background readings have very little bearing.  You can have very high readings and a non-commercial well.  You won't get any reliable numbers until it flows and even then it will degrade over time.




So what you are saying is that a well that has no gas readings has an equal chance of success as a well with high readngs.
I find that laughable.


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## nunthewiser (25 May 2009)

rottodiver said:


> Pilots.... you must have lost so much money on this company because you seem so happy when you see others losing it and your hate for the company is overwhelming.. i bet you burn up when you even hear or read about gdn. you really do make it hard for the people who need an objective opinion instead of a constant negative one!!!





in my view he just balancing up some of the unfactual fairy tales posted here  and offering a few bits of actual drilling knowledge


repeats tho this and the FMG thread gotta be the best ones out there


----------



## nunthewiser (25 May 2009)

DAZT49 said:


> So what you are saying is that a well that has no gas readings has an equal chance of success as a well with high readngs.
> I find that laughable.





um if one reads the majority of drilloing reports of almost ALL listed co,s and there reports , one would notice that most actually hit gas readings 

whether it is commercially quantities/viable or not are two different matters


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## nunthewiser (25 May 2009)

and next on GDN , will be the inevitable bounce based on hoping that the actual results of gas readings are of a commercial nature ....... gotta lovem 

great trading stock whilst all the vols are shifting around


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## DAZT49 (25 May 2009)

"whether it is commercially quantities/viable or not are two different matters"

well, I think we all know that.
The point I am making is that you are all completely rejecting the fact, that they HAVE had good readings. So a well with no readings has equal chance of being commercial, according to you.
And by the way, if pilots is so such a red hot oil man, why isnt he out earning a squillion in the field?
I will tell you why...he is a retired teacher who took an overblown package a couple of years ago, sunk it all into a superfund and went down the gurgler with the rest of us.
he got burnt with Para1,hence the maniacle hatred of GDN.
He Googles all the stuff he posts.


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## pilots (25 May 2009)

DAZT49 said:


> So what you are saying is that a well that has no gas readings has an equal chance of success as a well with high readngs.
> I find that laughable.




D49, In  NZ many moons ago a well was drilled to TD, no Gas or Oil was recored in the mud logging on the first half of the hole, so it was not logged, the hole was P&A. Many years later Oil was found close by in a surface well, they went back to the old well and logged it from top to bottom, and looked at the old logs, they then perforated the casing and the well produced Oil, what happened was that the drilling mud was so heavy it held back the Oil/Gas.


----------



## DAZT49 (25 May 2009)

nunthewiser said:


> and next on GDN , will be the inevitable bounce based on hoping that the actual results of gas readings are of a commercial nature ....... gotta lovem
> 
> great trading stock whilst all the vols are shifting around



nunthe,
ok we get your drift,thanks..if you dont want to add something constructive to this thread ,please move on to another thread.
I dont reckon you hold any stock either.


----------



## nunthewiser (25 May 2009)

DAZT49 said:


> "whether it is commercially quantities/viable or not are two different matters"
> 
> well, I think we all know that.
> The point I am making is that you are all completely rejecting the fact, that they HAVE had good readings. So a well with no readings has equal chance of being commercial, according to you.
> ...





no point discussing anything of a factual nature in this thread as its obvious too many here should learn that a stock is  a3 letter swear word nothing more .........

seems a few here prefer to fall in love withem instead and ignore any negative remarks 

p.s if you dont believe me re readings and drilling i suggest you do some research on it sometime 

as far as your obvious dislike of pilots , well thats your problem , not mine .

he isnt the reason your beloved holdings taken a kick in the nuts its got something to do with the companys drilling perhaps ?.....


now cmon . IF the results were as great as you guys like to spew out , do u really think it would have been sold off on such heavy vols recently ?

anyways im wasting my excellent typing skills here as with the FMG thread ppl are in love with it and cannot listen to opposing opinions or factual comments 

be well and may the force be with you


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## nunthewiser (25 May 2009)

DAZT49 said:


> nunthe,
> ok we get your drift,thanks..if you dont want to add something constructive to this thread ,please move on to another thread.
> I dont reckon you hold any stock either.





i trade this sucka play and i must remind you this is a public forum where all opinions should be heard .

suck it up darl


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## DAZT49 (25 May 2009)

pilots said:


> D49, In  NZ many moons ago a well was drilled to TD, no Gas or Oil was recored in the mud logging on the first half of the hole, so it was not logged, the hole was P&A. Many years later Oil was found close by in a surface well, they went back to the old well and logged it from top to bottom, and looked at the old logs, they then perforated the casing and the well produced Oil, what happened was that the drilling mud was so heavy it held back the Oil/Gas.




So whats your point??
You have been making a big case that this well is a duster, inspite of the gas shows.
You are contradicting your own argument


----------



## DAZT49 (25 May 2009)

nunthewiser said:


> i trade this sucka play and i must remind you this is a public forum where all opinions should be heard .
> 
> suck it up darl




You havent given any opinion just shooting off at the mouth.
"suck it up darl"
Obviosly well educated,only a private school student could come up with that.


----------



## nunthewiser (25 May 2009)

DAZT49 said:


> You havent given any opinion just shooting off at the mouth.
> "suck it up darl"
> Obviosly well educated,only a private school student could come up with that.




um scroll back 

plenty of opinions , u just might not like them 

LOL everytime ppl get angry or upset with my opinions they always pick on my typing and language skills ........ funny that


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## Joe Blow (25 May 2009)

Settle down gents or I'll start deleting posts. 

If neither of you has anything further of substance to add to the GDN this evening then please refrain from posting.

I've had a little too much wine this evening and my infraction finger is getting itchy.


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## DAZT49 (25 May 2009)

nunthewiser said:


> no point discussing anything of a factual nature in this thread as its obvious too many here should learn that a stock is  a3 letter swear word nothing more .........
> 
> seems a few here prefer to fall in love withem instead and ignore any negative remarks
> 
> ...



I dont see where you have posted any facts.Just the usual told you so, I am a 100% successful trader ching pung.
Do you really think a holder of a stock is going to downramp his own holding.!!!

You are heading back to FMG?? Thanks for coming..and thanks for going


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## DAZT49 (25 May 2009)

Joe Blow said:


> Settle down gents or I'll start deleting posts.
> 
> If neither of you has anything further of substance to add to the GDN this evening then please refrain from posting.
> 
> I've had a little too much wine this evening and my infraction finger is getting itchy.




Sorry Joe, you know how these guys stir me up.
Back on track will be a good boy again.promise!!
cheers
daz


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## nunthewiser (25 May 2009)

DAZT49 said:


> I dont see where you have posted any facts.Just the usual told you so, I am a 100% successful trader ching pung.
> Do you really think a holder of a stock is going to downramp his own holding.!!!




my post regarding it being a smoke and mirrors set of anns not factual ? my post saying it will not fly because of said anns not factual ? 

where have i said "i told you so " ?

lol 100% trader hahaha i think not , u may notice the date of post for entry , i stopped out of trade on same day at a loss also 

anyways .just a trade stock , got vols ( is that unfactual also?) 

good luck with your holdings and sorry that its burnt so many here


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## nunthewiser (25 May 2009)

yep joe , no more posts from me here , ppl only want to see what they want to see 

sorry for any disruption with my opinions


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## pilots (25 May 2009)

DAZT49 said:


> "whether it is commercially quantities/viable or not are two different matters"
> 
> well, I think we all know that.
> The point I am making is that you are all completely rejecting the fact, that they HAVE had good readings. So a well with no readings has equal chance of being commercial, according to you.
> ...




Well D49 I was a oil man, company man to be exact, as I worked out of Australia I had no super, we would work 91 days and this way we never had to pay Australian tax, I never got burnt on the first well I made a killing. If you want to know what I did you can find that from Raks SUE knows.


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## pilots (25 May 2009)

DAZT49 said:


> So whats your point??
> You have been making a big case that this well is a duster, inspite of the gas shows.
> You are contradicting your own argument




D49 What I was pointing out to you is that NO ONE has a clue what a well can do unless you way under balanced when you are drilling, or, you must wait till you reach TD and test the well, until you flow test you don't have a clue whats in the hole.


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## Joe Blow (26 May 2009)

This thread has become one of the most troublesome on ASF and as such there will be zero tolerance shown to those looking to ramp, downramp or provoke others.

*Posts that contain no or low content, or that are intended to provoke or attack others, will be immediately removed and infractions will be issued.*

If you have some meaningful content to contribute to this thread then by all means do so but I am tired of seeing this thread descend into provocation and personal attacks. Lets stick to the facts please.

If this thread continues to prove difficult to manage it will be closed without warning for an indefinite period.


----------



## hsv2001 (26 May 2009)

Just wondering how risky would it be to purchase options in this company? I know they expire in June but if gas/oil was to be found then there would be a potential for very nice profits to be made 

Do they have to expire on 30 June or can they continue to avoid losing so much capital?

Any opinions would be great thanks
marc


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## DAZT49 (26 May 2009)

hsv,
You have some oppies dont you?
Oppies good for ST trade atm.
It would have to be super news to get the SP into the 20c's and make it worthwhile to excersise the oppies IMO
cheers
daz


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## hsv2001 (26 May 2009)

yeh i hold some atm, got in at .03 > sold at .009 then jumped in again at .002, just wondering whether it may be worth gettin more? it just seems so risky to have zero by june 30. but then i hear many rumours that GDN will try it's hardest to get them over the line, which i cannot see happening at this point in time.

to even go back up to .02c i see very hard unless they actually get flows.


----------



## nunthewiser (26 May 2009)

DAZT49 said:


> hsv,
> You have some oppies dont you?
> Oppies good for ST trade atm.
> It would have to be super news to get the SP into the 20c's and make it worthwhile to excersise the oppies IMO
> ...





sorry joe but how is this rubbish acceptable ???? 

the GDNO oppies expire in june , exercise price 20 cents .


now this advice/ramp is pure irresponsibility .... the chances of ANYONE buying GDNO and doing there dosh are very high 

that is NOT a downramp it is a pure fact .

im a lil annoyed with DATZ,s irresponsible post and willing to take an infraction to voice my thoughts as this sort of post COSTS poor newbies REAL CASH


----------



## DAZT49 (26 May 2009)

In accordance with Joes wishes I am not going to take the bait on this one nonethewiser.
The Sp is showing signs of revival today SP currently at 8.6c up 7.5% and 25mill traded.(not ramping-FACT):
No sell off today.(not ramping -FACT):
If the SP continues to rise, the oppies will get dragged up with it.(not ramping -FACT)
I have already said that it would take super news to get the oppies over the line. IMO it will not happen (guess thats a downramp lol)
That is why I suggested the oppies could be ok for ST trades (ie day traders)


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## hsv2001 (26 May 2009)

just thought it may be interesting to add, approx. 6 million options were purchased in one trade today at .003c that seems a big investment for something that is potentially worthless.

Sorry but is this OK to post or is this against the forum rules? just thought it was interesting to note


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## DAZT49 (26 May 2009)

I saw that trade go through, interestingly no trades since and it was a cross trade.
Agree the guidelines have become a bit mirky, I have asked Joe for some guidance from above.


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## Joe Blow (26 May 2009)

DAZT49 said:


> Agree the guidelines have become a bit mirky, I have asked Joe for some guidance from above.




If it is a fact it can be posted. 

If it is an opinion and it is supported with some evidence/reasoning/analysis it can be posted.

If it is an opinion and it is not supported by some accompanying evidence/reasoning/analysis then please don't post it.

"Evidence/reasoning/analysis" can be based on fundamentals, technical analysis or specialist knowledge (industry related expertise) but not tea leaves, fortune telling or subliminal messages from your dog and/or television set.

And no posting of buy/sell recommendations or rumours that you heard on another forum. Verifiable facts only please.

Hope that makes things clearer.


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## pilots (26 May 2009)

Joe Blow said:


> If it is a fact it can be posted.
> 
> If it is an opinion and it is supported with some evidence/reasoning/analysis it can be posted.
> 
> ...




Just had a look at your photo Joe, now I know who you are I will not up set you any more, no way do I want to wake up with a horse head in my bed.


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## DAZT49 (26 May 2009)

nunthewiser said:


> the GDNO oppies expire in june , exercise price 20 cents .
> 
> 
> now this advice/ramp is pure irresponsibility .... the chances of ANYONE buying GDNO and doing there dosh are very high
> ...




I see the oppies are up 100% today 14 mill traded.
As i suggested ,a good ST prospect.
Shares up 10% on 30 mill traded.
A small step in the right direction.
Maybe the market can get some 'normality" back in the next few trading days.


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## hsv2001 (26 May 2009)

let's hope so, jumped in for some more at .003  but things can chagne quickly from what i've noticed on this stock in a very small amount of time. Nice to note the amount of buyers that went in for both the oppies and the ordinary shares just before close today.


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## Agentm (26 May 2009)

hsv2001 said:


> just thought it may be interesting to add, approx. 6 million options were purchased in one trade today at .003c that seems a big investment for something that is potentially worthless.
> 
> Sorry but is this OK to post or is this against the forum rules? just thought it was interesting to note




hsv

one technique i was told about is to put down a massive line on the sell, then buy hard into it yourself,,at about 25% you stop, a lot sooner if it runs..  as others see the buy they think its a good thing.. i think you can ask the TA experts here how this cant be misinterpreted. if i understand kennas right, i think he disbelieves me that people have made a killing on gdn,, i think day traders look at their little graphs and to them i believe you will find it just looks like a massive red flag buy, and i believe sheep like it and baa baa buy into it.. add to it a few threads on HC.. like "wowo a whole line taken out .3" ..  and you can easily offload 40k of options that would probably not have sold otherwise..


with a share like gdn and with the massive saturation of garbage posts on hc, its the catalyst to allow "the fully sick sophisitaked  investors maate" to make a meal of the daytraders and shift out in no time at a tidy profit. these guys have freely got a profit and have traded hard into the massive groundswell of interest this well has created.  each cap raising done thus far has seen gdn shift back a touch, then go way higher than the cap raising price and the shares just churn away day in day out. the share right now has traded over $103 million in under 12 months, and most of that in the last few months .. this year alone $90 mill and this month $50 million..  very impressive numbers

the more excited you guys become and the more you swear, abuse insult and throw hissy fits at each post that is simply saying "be cautious" is gold to these guys, it makes the daytrader say hey, i am the risk taker i like paying out on those derampers. i want to be mates with those guys laying into those nasty derampers... and it lulls sheep into holding, feeling strong in the herd they also sometimes impulse into buying more as greed comes into play

the share needs to traded carefully, and cautiously. high risk high reward is ok, but you have to look at how it can fall into a screaming heap in a heartbeat..

i look at the reports posted and see background gas readings myself, and i cant see any gas field, and i cant see any field like this in the backwaters of utah desert being economic at $3 gas.. so my cash is not in this run, maybe later if the rock is good and the economic suit....  as i said i will wait to see if the comapny actually tests the well and gets some flow, then you can see what its worth.. only then!

i think that many have done their shirt on this one, but i doubt if many saw it coming despite people like jhird clearly spelling it out throughout..

just my own thoughts here.. everyone has their own view and is perfectly entitled to post them.. without abuse.. and i think joe is slowly getting a few to understand that..


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## DAZT49 (26 May 2009)

agentm,
yr $3, where did you get that?
Latest Henry Hub spot is $3.42us ($4.39aus)
http://www.bloomberg.com/markets/commodities/energyprices.html
Or are you talking of another figure?


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## DAZT49 (26 May 2009)

from the last ann.
"Testing operations are being organised to commence during June.
Preparation and planning for tests has been progressing since setting
the 7” casing."
How long till we get some meaningfull results from the testing?
Do they have to complete every zone before they can assess the results, or will (should?)we get results zone by zone.
What chance is there of results before the last trading day for the oppies?


----------



## Agentm (26 May 2009)

DAZT49 said:


> agentm,
> yr $3, where did you get that?
> Latest Henry Hub spot is $3.42us ($4.39aus)
> http://www.bloomberg.com/markets/commodities/energyprices.html
> Or are you talking of another figure?




there have been many reports about the gas situation in the USA.

the massive reserves easily accessible in the recent shale discoveries will keep gas at about $3 for some time to come in the lower 48,  and any new field development requires a minimum of $6 to just break even, so most companies are shelving any new gas exploration totally. vertical wells would have to be brilliant and consistently brilliant to compete with the economics at $3  so the very poor gas show gdn has will have to become a massive 5 - 10 mmcfpd well to be remotely competitive  



examine this article datz.. this one shale play has tuned the gas price on its head, these operators are killing the gas price and will do so for a long time to come..

http://www.popularmechanics.com/science/earth/4318390.html

where as  pioneer for instance, they have massive gas reserves in the edwards, they totally stopped drilling any new gas wells from mid 2008 onwards and are only doing a few exploration wells into the eagleford shale where there is oil. they see a big future there..  even with infrastructure in place, processing plants they own and pipelines, they cant make a dollar in texas on gas and wont go anywhere near it until economics gives them the green light, it would be totally irresponsible for pioneer to continue in the gas exploration.

gone are the days of $13 gas datz..



20.05.2009 05:47 PM

Oil and gas explorer Petsec Energy Ltd has reiterated its 2009 production forecasts but says United States gas prices could sink much lower this year.

Petsec is on track to meet annual production forecasts of seven bcfe (billion cubic feet of natural gas equivalent), the company told its annual general meeting in Sydney on Wednesday.

But chief executive Terry Fern said after reaching highs of $US14 per Mcf (thousand cubic feet) in 2008, US gas prices had dropped to about $US4/Mcf and could fall as low as $US2.50/Mcf.

The supply of natural gas in the US had increased significantly in the past year due to the success of non-conventional gas sources, he said.


shale we talk about what i am investing in


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## hsv2001 (27 May 2009)

Thought it might be worth mentioning here, WCU a substantial holding for GDN just got their Daneros Uranium Mine Approved, share price for WCU went up 14% yesterday. Could this be relative the the GDN jump ????


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## pilots (27 May 2009)

Reading the last report they said the drilling string became stuck and required a fishing operation, They did NOT say the fishing was completed, hope they are not still fishing, if they plan to re enter this well at a later date, they will have to retrieve the drill string.


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## wktswkts (27 May 2009)

Agree they didnt state that fishing was completed, however the sentence in the statement is quite self explanatory.

"The drill string *became* stuck and a fishing operation *was* required."

:shake: :fish: 




pilots said:


> Reading the last report they said the drilling string became stuck and required a fishing operation, They did NOT say the fishing was completed, hope they are not still fishing, if they plan to re enter this well at a later date, they will have to retrieve the drill string.


----------



## sharemadder (28 May 2009)

wkts yes WAS is the word, past tense, fishing was required, well I hope so.

May get ann. end of week of update were they upto with completion.


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## bigdog (29 May 2009)

29-05-2009 09:28 AM  GDN  Paradox Basin No 2 Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00956911

Testing operations on Paradox Basin #2 will commence on the completion of the design of the testing programme and the procurement of required equipment.

• Unit Rig 234 will be placed on a short term stand-over at no charge, while the programme is prepared.

• RPS-Energy has been engaged to provide engineering support for the completion, design and planning of testing and possible fracture stimulation. Preparation and planning for tests has been progressing since setting the 7” casing.

• It is anticipated that testing will commence during June. The final testing schedule will be released once it has been completed and ratified.

• As many as five zones will be isolated and sequentially tested over a period spanning several weeks. Results for each zone will be released when available.

• The six inch hole from 12,956’ to 14,216’ has been logged with no indications of hydrocarbons. The 6” section has been completed in such a manner that the deeper section can be re-entered at a later date.

• On completion of testing results will be incorporated into a revised reserves report to be prepared by RPS-Energy. This should be available shortly after the tests are completed. Based on current results resources are expected to increase.

Sequential testing of the discovered gas zones in the Paradox Basin #2 on the Golden Eagle Field will commence during June. The programme will include tests on as many as five separate zones over a gross interval spanning 2,238’ (682m). The testing encompasses the lateral extensions of the previously discovered gas in the Upper Ismay and Barker Creek formations which produced gas on test in Paradox Basin #1. A newly discovered zone in the Chimney Rock Formation will also be tested.

In order to evaluate the field, each zone will tested separately commencing in the lowest zone. Typically tests will include measurements of formation pressures prior to flows and measurements of gas rates and pressures during flow tests. Each successful test will include a post-flow build-up and as a result each test is expected to take several days. If required a fracture stimulation will be conducted in one or more of the completed zones.


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## pilots (29 May 2009)

This I report I find unbelievable, show me ONE drilling operation that stopped drilling and did NOT go on to a test program the same week, looks to me like a stall for time. Nothing in the report as to when the fishing was completed. The one thing the report tells me is that the two wells are no way connected together.


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## DAZT49 (29 May 2009)

pilots said:


> This I report I find unbelievable, show me ONE drilling operation that stopped drilling and did NOT go on to a test program the same week, looks to me like a stall for time. Nothing in the report as to when the fishing was completed. The one thing the report tells me is that the two wells are no way connected together.




Pilots,
Stall in time for what???
They need results and fast or the oppies will be 0c and they wont raise the $30mill.


----------



## Wysiwyg (30 May 2009)

BESBS Player said:


> In keeping with my conservative BESBS style, I sold out of GDN today. Managed to get out at 15.5c average after an entry at 5.8c (see earlier posts) so very happy with the result - around 170% profit.
> No longer holding...



Nice lil profit but +20c would have been nice. As expected the s.p. dived after drilling. Well done. (again)


----------



## BESBS Player (31 May 2009)

Hi, WYSIWYG.

Thanks for the compliment. 20c would have been nice but this assumed that confidence would return to the GDN SP over the following few days I sold. I could not be sure so I exited and locked in the profit. Upon reflection, Boring approach - true... Could have made 210% in hindsight - yes, true... Going to go broke making profits of 170%...unlikely. 

I have kept quiet on this thread as I genuinely hoped (and still do) that holders manage to make a motza as GDN hits proven commercial gas. At this stage, the best that can be said is that the jury is still out/waiting although the share price suggests that many in the business think success is now much less likely than a month ago. Hopefully things will look up and the SP rise. 

All the best with your investments.

B


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## pilots (2 June 2009)

Question????   I have drilled many holes that hit basement way to soon, what did we do. First POOH, Log the hole, set plug at bottom of last casing, time so far 24 to 48 hours max. NEXT we started our testing program.
That VERY next day, no waiting for a program to be made up.
This story about how long it takes to make up a test program has a VERY bad smell about it. The logs will tell them what zone looks good, now all they have to do is work on the bottom zone only, as this is being tested they can draw up test program for the next zone above. This leaves us with two story's, first if the logs for the top of the hole tell them it is a duster they won't want to test the hole,(this will be the end of GDN). Second story, if the logs tell them that they have good zones, why the hell are they not testing b4 for the Oppies expire. They can not use the story that they are waiting on a work over rig, or waiting test tools as right now you have rigs stacked all over the USA. So once again we are in the dark with this lot. Now can you tell me, story one or two.


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## DAZT49 (2 June 2009)

A story huh...
ok,are we all sitting down?? good.
Once apon a time there was a company drilling for oil and gas in a beautiful valley in Utah.They drilled one well which was visited by the 'bad drill fairy" who cast a spell on the well and evil times beset it.
Try as they may they couldnt get the well to shine its golden light,so they left it, as they were tired and spent (the money that is)
A couple of eons later a golden stead was seen coming from afar, ridden by a handsome geo called Prince Richard the Borer.
Richard spoke with a voice like thunder..
"Follow me, and I will cast out the wicked witch who beset such ill fortune apon ye!!
"We will set afresh apon our task with brave and fealess warriors, and not callow types who no notteth how to mix cement."
They proceeded with a second well and glimpses of the golden light were seen and there was much rejoicing,and all was good until the bad fairy returned and smote them again,
 "Take that Prince Richard"!! she wailed, like a crazy banshee.
The wicked fairy told tales of woe to the good people of the villages via their internet forums and they panicked and ran wildly like rabbits and madmen.
All the time the old naysayers where crowing and strutting like peacocks .
We dont know how the story ends...will the evil,dirty and rude fairy ruin the land for centuries to come or will the brave Prince Richard triumph and The Golden Light emit from all the wells ,spreading peace and serenity across the land,all except for the naysayers who burn up in the flares from the well.


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## mick z (2 June 2009)

pilots said:


> Question????   I have drilled many holes that hit basement way to soon, what did we do. First POOH, Log the hole, set plug at bottom of last casing, time so far 24 to 48 hours max. NEXT we started our testing program.
> That VERY next day, no waiting for a program to be made up.
> This story about how long it takes to make up a test program has a VERY bad smell about it. The logs will tell them what zone looks good, now all they have to do is work on the bottom zone only, as this is being tested they can draw up test program for the next zone above. This leaves us with two story's, first if the logs for the top of the hole tell them it is a duster they won't want to test the hole,(this will be the end of GDN). Second story, if the logs tell them that they have good zones, why the hell are they not testing b4 for the Oppies expire. They can not use the story that they are waiting on a work over rig, or waiting test tools as right now you have rigs stacked all over the USA. So once again we are in the dark with this lot. Now can you tell me, story one or two.






pilots,

think your forgetting that they finished the drilling early, so i doubt they would have all the fracing infrastructure just standing by would they !

do you know how much equipment it takes to frac a well........i think not.

cheers.  lol


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## pilots (3 June 2009)

mick z said:


> pilots,
> 
> think your forgetting that they finished the drilling early, so i doubt they would have all the fracing infrastructure just standing by would they !
> 
> ...




Mick z, yes I do know how much equipment they need to frack a well, but you don't frack a well first up. you first perforate it, then you flow test it, then if it wont flow, then you frack it. Now to set up a frack will take all of 12 hours only, you see a frack team is all Mobile, and you can find plenty on stand by just now waiting for work. Now the good part is just now the cost of a frack job has dropped in price big time.


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## DAZT49 (3 June 2009)

DAZT49 said:


> A story huh...
> ok,are we all sitting down?? good.
> Once apon a time there was a company drilling for oil and gas in a beautiful valley in Utah.They drilled one well which was visited by the 'bad drill fairy" who cast a spell on the well and evil times beset it.
> Try as they may they couldnt get the well to shine its golden light,so they left it, as they were tired and spent (the money that is)
> ...




Gee you guys are hard to please
I thought that was a pretty good story lol
Guess I should have put some sex and a car chase in.


----------



## pilots (12 June 2009)

This mornings pump and dump announcement is a good one,(yesterday the SP go's up, would be good to be in the inner circle, also know when to dump) GDN holds the worlds record for the most expensive well, now they have the worlds record for the longest time it takes to start to test a well.  Now here is the good bit in to days announcement, if No 2 is successfully it will be brought in to production, what about the first well??? I thought that the first well was all ready commercial, are they now telling us that the first one is a duster, come on, after all the posts I have read telling me it is commercial..


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## DAZT49 (12 June 2009)

Pilots,
4.2mill sold at .083c av yesterday(your pump)
2.09mill sold at .0825c av.today, so far (your dump)
They dumped at a loss.


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## pilots (12 June 2009)

Dazt49, The insiders will now be getting a little mad at GDN, they would have been told yesterday that it was going to be a good announcement today, what do you think about the fact that No1 won't come on line if No2 is a duster??


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## DAZT49 (12 June 2009)

pilots said:


> Dazt49, The insiders will now be getting a little mad at GDN, they would have been told yesterday that it was going to be a good announcement today, what do you think about the fact that No1 won't come on line if No2 is a duster??




I didnt see where they said that pilots, can you cut n paste it?
Was that in this mornings ann?
Maybe you are one of those insiders?


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## pilots (12 June 2009)

They say IF No2 is commercial they will bring the Golden eagle field in to production, tell me this, you all tell me No1 is commercial, now if thats the case, why not bring the field in to production in No2 two is a duster.


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## DAZT49 (12 June 2009)

pilots,
I am not getting sucked in to one of your round and round in circles arguments.
Suggest you head for OPSM and get your specs cleaned.
The only mention of Para 1 in the ann, is this..
"Gas bearing intervals in Paradox Basin #2 are likely to be the lateral extensions of
the previously discovered gas in the Upper Ismay and Barker Creek formations. These
zones produced gas on test in Paradox Basin #1."
No mention of not going ahead with Para 1.
They have indicated in previous ann's that they will reopen Para 1 when Para 2 is complete, by that I would imagine when it is connected to the grid.
Then you interpret the next sentence as an admittal of a duster.

"Testing of Paradox Basin #2 is the next step in confirming the commerciality of the Golden
Eagle gas field. Paradox Basin #2 will be completed as a production well if commercial
flow rates are sustainable."
They will complete Para 2 in this set of operations with the current rig (ie at the end of testing) as a production well.
IF the flow rates are sustainable, they are being careful with the wording there, (surely you would accept that as responsible reporting)


----------



## nunthewiser (12 June 2009)

sure feel sorry for any GDNO holders out there that got sucked into it ...cant even sell them now ......... looks like a 100% loss for some 

hope im wrong but sure dont look that way


----------



## DAZT49 (12 June 2009)

beats me why they didnt/havent defer the expiry date for the oppies.
Surely the ASX would allow that??


----------



## pilots (12 June 2009)

D49, The same question was asked some time ago, the Gurus said that NO ONE can extend the expiry date. Now as for the first well, they have Tbg in the hole, why then if it is commercial is it not on line. When you test a well and find a commercial zone most normal company will start selling that zone, you all ways test from the bottom up, you don't want to have to squeeze  cement in to any zone that has gas, as this will give you trouble when you want to flow it. Have a look at AZZ, they found three Gas zones, the bottom one is the secondary one, but they have it on sales, and they have not tested the primary zones yet.  If the first well is commercial and they had it on line last year, GDNs SP now would be a lot more than it is to day.


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## mastatrada (15 June 2009)

pilots said:


> They say IF No2 is commercial they will bring the Golden eagle field in to production, tell me this, you all tell me No1 is commercial, now if thats the case, why not bring the field in to production in No2 two is a duster.




The only reason i can think of is that they are waiting for the gas price to come up. If that's the case it would kind of make sense what they are doing, that is is ascertain the viability of the both wells before commencing production while the gas price is presumably recovering in the meantime.


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## DAZT49 (15 June 2009)

from memory Para 1 could only cough up .9mmcf/d so wasnt commercial on its own. Plan was to link up that flow with Para 2.:
This was before the workover rig tested Para 1 again.
IMO Para 1 will be commercial on its own after they go back in and stir the pot.


----------



## Rob 17 (17 June 2009)

So does parra 2 have a commercial gas flow?  or not 

Ive followed this company for a while. One would think that they have an abundance of methane. 

DYOR


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## DAZT49 (17 June 2009)

Rob 17 said:


> So does parra 2 have a commercial gas flow?  or not
> 
> Ive followed this company for a while. One would think that they have an abundance of methane.
> 
> DYOR



Well, if you look at the ASX action since they stopped the drill...the market says they have got nothing.
Pilots reckons its a duster
dazt49 reckons they have a commercial well with Para 2, A potential commercial and possibly company maker with a reworked Para 1 and a 20 year enterprise with the Paradox Basin.


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## bigdog (17 June 2009)

*Richard has spent $25,760; is he confident???*

http://www.proactiveinvestors.com.a...resources-director-buys-more-shares-1742.html
Tuesday, June 16, 2009

*Golden State Resources director buys more shares*

Executive director of Utah gas explorer and ASX listed Golden State Resources (ASX: GDN) Richard Sciano has acquired shares in GDN. On 16 June, Sciano purchased 322,000 shares in GDN at 8 cents per share in on-market trades.

Operationally, GDN is soon to commence testing gas shows found in Paradox Basin #2 Well in Utah.  GDN said today it had "reached a favourable settlement with Weatherford US, LP" in relation to work by Weatherford on Paradox #1 Well. The terms and conditions of the Settlement Agreement were not disclosed by the company because of confidentiality reasons.


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## pilots (17 June 2009)

bigdog said:


> *Richard has spent $25,760; is he confident???*
> 
> http://www.proactiveinvestors.com.a...resources-director-buys-more-shares-1742.html
> Tuesday, June 16, 2009
> ...




All of 27k, how much did he get when he sold out when the SP was at its peak, he was hoping this would be a pump for them.


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## bigdog (18 June 2009)

*Does anyone plan to attend the Forum in Sydney where GDN will be presenting on June 17?*
-- maybe our forum can prepare a list of questions!!

Register here: http://www.proactiveinvestors.com.au/register/event_details/2

http://www.proactiveinvestors.com.a...group-one2one-forum-24-june-sydney--1750.html

Wednesday, June 17, 2009

Golden State Resources, AusTex Oil, Rusina Mining and Silver Swan Group One2One Forum, 24 June, Sydney 
by Golden State Resources, AusTex Oil, Rusina Mining and Silver Swan Group One2One Forum, 24 June, Sydney 

You are warmly invited to attend our investor event on Wednesday June 24th, 6pm at the Sydney Marriott Hotel, 30 Pitt Street, Circular Quay, Sydney, and be the first to hear directly from the CEOs of Golden State Resources (ASX: GDN), Silver Swan Group (ASX:SWN), Rusina Mining (ASX: RMLA) and AusTex Oil (ASX:AOK).

It is expected that this forum will be oversubscribed, so please register early to avoid disappointment. 

The presentations will start at 6:00pm and finish at 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapÃ© and wine reception. Details on the presenting companies can be found here and below.

Golden State Resources (ASX:GDN) is an ASX-listed public company with headquarters in Perth, Western Australia. Floated in 1996, the Company is primarily focused on oil and natural gas exploration in the USA and gold projects in the Eastern Goldfields region of Western Australia.


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## mastatrada (18 June 2009)

bigdog said:


> *Does anyone plan to attend the Forum in Sydney where GDN will be presenting on June 17?*
> -- maybe our forum can prepare a list of questions!!




I will be attending, and selling nooses for 10 bucks each, I reckon we can form a decent lynch mob!


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## DAZT49 (18 June 2009)

mastatrada said:


> I will be attending, and selling nooses for 10 bucks each, I reckon we can form a decent lynch mob!




The only thing I would question at this stage is why they didnt defer the expiry date for the oppies for at least another month.
A lot of people have lost money trading them and the SP will not be anywhere 20c by next Weds so they will all expire worthless.


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## Agentm (19 June 2009)

DAZT49 said:


> The only thing I would question at this stage is why they didnt defer the expiry date for the oppies for at least another month.
> A lot of people have lost money trading them and the SP will not be anywhere 20c by next Weds so they will all expire worthless.




datz, (or indeed anyone who knows this share well)  as much as the day to day activity of the gdn holders seems to be primarily on the options and the sp,  does it ever come into consideration as to what the economics are of the play itself.

what is evident in the usa oil sector is the tremendous numbers of rigs stacked up, and i have mentioned before studies done by the oil industry itself which clearly say that the economics of developing gas plays, particularly in UTAH, doesnt even become viable under $6 no matter how many tcf you claim you can extract.



those rigs are not stacked up for maintenance, they are no stacked up so they can do an accurate count of rigs, they only stacked up because the oil and gas prices on the fields they were operating on are no longer viable.

now $6 is the base price where you start to consider gas projects, unless  you have massive wells delivering extremely economic volumes, on the greater majority of the wells drilled, then your starting to make some inroads.

i read the hc forum and notice the primary thoughts are on making a killing on converting options or how everyone is being ripped off, and the moderators have to constantly stop the ramping that goes on, so little quality or intelligent analysis or debate happens.

does any long term holder in the gdn stock look at economics of developing new plays? what the delivery of a well needs to be and what the base price of the commodity you extract needs to be for anyone to be in profit?

i see other companies shut down all exploration in the usa, and bunker down for a better oil price and gas price, entire fields have had no further wells drilled for quite some time, and they are developed fields..

for a long term holder in any oil or gas share, so excluding the average daytrader, other investment factors need to be put into consideration. sure its exciting to see the sp fluctuate 100, 200, 300% on the strength of a background gas reading, and we all understand and know the directors of gdn are not oilmen, but surely they have other skills, maybe accounting?  who knows, but why not explain how the economics work, and how this play in utah is somehow going to be unique to what the entire planet and all oilmen in usa are all experiencing? and  lastly can anyone define how the economics can be demonstrated to make the development of a new field commercial? 

there has been so much hype on this share, so much said in favor of why it will make every investor into millionaires, but can someone please put forward a business model that makes sense to the industry?

i want to invest in oil companies, but i need clarification on how the whole thing is going to be viable long term.. has any investor or broker run the numbers??

can anyone talk me through it?

http://www.rigzone.com/news/article.asp?a_id=77352 

US Has Almost 100-Year Supply of Natural Gas


The amount of natural gas available for production in the United States has soared 58% in the past four years, driven by a drilling boom and the discovery of huge new gas fields in Texas, Louisiana and Pennsylvania, a new study says...........

............The new study represents an authoritative confirmation of other recent estimates, including an industry-backed report last summer that concluded the U.S. could have as much as 2,247 trillion cubic feet of gas. Unlike that report, which was based on company estimates, the Potential Gas Committee's study was prepared by industry geologists who analyzed individual gas fields using seismic imagery and production data provided by gas producers. *The surge in gas resources is the result of a five-year-long drilling boom spurred by high natural-gas prices, easy credit and new technologies that allowed companies to produce gas from a dense kind of rock known as shale. The first big shale formation to be discovered, the Barnett Shale near Fort Worth, Texas, is now the country's top-producing gas field, and companies have made other huge discoveries in Arkansas, Louisiana and Pennsylvania. Together, the shale fields account for roughly a third of U.S. gas resources, according to the Potential Gas Committee.*

*The sudden increase in supplies, combined with a drop in demand due to the recession, has led to a gas glut, pushing prices to about $4 per million British thermal units down from more than $13 per million BTUs last July. *


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## DAZT49 (19 June 2009)

agentm,
Havent got time to argue with you, but will sum up most of your argument with one word...risk. And isnt that in investing in speccies is all about?
Para 1 ws drilled when the price WAS $13/mmcf, there was no "glut" and there was NO recession.
Are you suggesting they should abandon the project because of economic circumstances today?
The world doesnt stand still.
Most people would agree that the market/ecomomy is recovering, demand is rising hence the price of gas is rising, making the project more viable as time goes on.
As to the US having 100 years of gas, the Latrobe Valley has 500 years of brown coal, I dont see other coal companies closing down or stopping exploration.
Another thing...
You and pilots are constantly harping on about the rampers on this thread, given that only about 6 people post here and 2 of them are against the stock and cant see what you are on about.
IMO it was the drampers on the other place that caused ,thru mass histeria the SP to tumble from 20c to the levels we see now, and posters like yourself have some blame in that too.


----------



## pilots (19 June 2009)

Agentm, top post, hit the nail right on the head. The MOST IMPORTANT POINT in your post was the fact that the directors of GDN are not oil men, this is, and always will be, the biggest down fall for GDN, they can hire the best they can find, but how will they EVER know when they are getting the truth.  Now Agentm, good to know that you and I are the ones that have crashed the SP for GDN, I always thought it was the fact they have never found any Gas that brought the SP down.


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## DAZT49 (19 June 2009)

pilots said:


> Agentm, top post, hit the nail right on the head. The MOST IMPORTANT POINT in your post was the fact that the directors of GDN are not oil men, this is, and always will be, the biggest down fall for GDN, they can hire the best they can find, but how will they EVER know when they are getting the truth.  Now Agentm, good to know that you and I are the ones that have crashed the SP for GDN, I always thought it was the fact they have never found any Gas that brought the SP down.




1. Agentm, top post.
How unlike you suzy.
2. the directors of GDN are not oil men..
errr I thought we were looking for ...oh yeah..gas, and what is Ricky De... a dentist??
3.they have never found any Gas .
So what is that stuff they found....beer??


----------



## nunthewiser (19 June 2009)

LOL funniest thing ive heard since nanna got her boob caught in the mangle........ ppl stating facts on forums are the reason GDN crashed .LOL ....unreal ....... by the way i dont know why you keep harping on about that GDN should of extended the oppies expiration .IT JUST CANNOT HAPPEN .. they are dated oppies which means they EXPIRE on the date given ......... oh dear wouldnt it be great if we could change the rules for every loss we ever take hey !

dear datz ........ please understand that no amount of blaming ppl for providing facts will change the fact that GDN has shafted shareholders yet again but hey if thats what makes you feel better about your hold you carry on ......... 

i do feel mighty sad for those that got suckered in by the rampers on GDNO tho and think a few ppl providing facts about them beats listening to ppl suckering in ppls cash by ramping them anyday

no offense intended but geeeeeeeeez 

get over it , its just a 3 letter swear word


----------



## nunthewiser (19 June 2009)

p.s 

IF even one of my posts stopped even ONE person from sitting on a 100% loss on GDNO i am a very happy vegemite


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## DAZT49 (19 June 2009)

Its interesting to me that you say that only the drampers provide facts.
Like pilots just posted that they havent found gas.
Have I harped on about the oppies?? I think I posted twice about deferring the expiry date, quite allowable within ASX rules, they hoped to raise $20mill,they will raise $0.
I took a hit on the oppies, thats trading.
What was the 3 letter sear word?


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## nunthewiser (19 June 2009)

DAZT49 said:


> Its interesting to me that you say that only the drampers provide facts.
> Like pilots just posted that they havent found gas.
> Have I harped on about the oppies?? I think I posted twice about deferring the expiry date, quite allowable within ASX rules, they hoped to raise $20mill,they will raise $0.
> I took a hit on the oppies, thats trading.
> What was the 3 letter sear word?




point out where i said that re de rampers ONLY providing facts

dunno about pilots , my comments have nothing to do with his posts

i have never seen DATED oppies extended , seen plenny expire worthless tho , maybe provide a link to support that claim ?

quite a few ppl took a hit of 100% on the oppies from listening to ramps on forums ..thats not trading .thats plain sad

GDN a 3 letter swear word to a lot of punters out there lately


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## DAZT49 (19 June 2009)

nunthe,
Seriously, I dont want to get in a slanging match with you.
I have made too many enemies on the forums.


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## nunthewiser (19 June 2009)

DAZT49 said:


> nunthe,
> Seriously, I dont want to get in a slanging match with you.
> I have made too many enemies on the forums.




uh ???????

i merely answered your previous post , no slanging involved .......just giving my answers


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## pilots (19 June 2009)

DAZT49 said:


> 1. Agentm, top post.
> How unlike you suzy.
> 2. the directors of GDN are not oil men..
> errr I thought we were looking for ...oh yeah..gas, and what is Ricky De... a dentist??
> ...




D49, 1 Agentms post is a top post, FACT.
       2 Do you really know who Ricky is working for??
       3 In todays market under 1Mcfad is a just passing wind.


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## DAZT49 (19 June 2009)

A top post must have balance.
Yeah I know, Rick works for the CIA, he is really Bruce Willis.
(ok who IS he working for Scully?)
The jury is still out on the mmcf/d.


----------



## pilots (19 June 2009)

nunthewiser said:


> p.s
> 
> IF even one of my posts stopped even ONE person from sitting on a 100% loss on GDNO i am a very happy vegemite




On a different forum I was getting hate mail/PMs from a GDN holder, after he had lost 50% of his money he sold out, he then sent a long PM, saying how he wished he had sold sooner and had taken my advice.
Funny how things have changed over time, the same thing happened with CVI, I have received many apologies from posters who only six months ago HATED my guts.


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## Agentm (19 June 2009)

nunthewiser said:


> uh ???????
> 
> i merely answered your previous post , no slanging involved .......just giving my answers




i  dont get the slanging either?

datz, your answer was that you believe risk is the consideration in these stocks.. i agree the risk of success is big factor, but even more important is the economics, it outweighs risk 10 fold..  there are all sorts of gas and oil plays on the planet, but firstly they become viable to drll only when the economics are there.. i am looking at the first part of the equation, what is the economics of the primary resource and the cost of extraction.


datz you mentioned the $13 gas on para 1, thats obviously in economic territory with wells producing 5-10  times the rate para 1 did, the current price isnt nor would that flow rate ever be.  its sub economic, but the point is how can it be economic now today? what numbers are being used here?

you mentioned recessions and said this

"Are you suggesting they should abandon the project because of economic circumstances today?"

All responsible oil companies, from the largest to the small caps,  are exactly doing that datz,  and have done that before and will do it again.. look at ADI, who saw gas and oil go down, oil went to $35, and the $AUS collapse against the $US..  now oil is back at $70 the project is very economic again.. and we see them beginning to come back into the eagleford shale play again. look at pioneer, they shut in all its exploration and development wells on their very successful edwards play, but kept their exploration in the eagleford play solely. explorers like petrohawk, apache and concocophillips and many others are chasing econimic plays with high values of oil in them, and with the eagleford, due to the condensate in the gas, 80% condensate return in the gas is very much a play where you can make  the economics work..       


i actually wrote a post asking for some sort of understanding on economics for the region and the play, granted i know its early days and there has been so much made of the background gas readings, but i am interested in how to make the long term valuations.. i see i am criticised and apparently somehow making the sp go down (wtf is that about??)  and who do you think you are datz saying that about me.. you mention you make a lot of enemies, but why make such ludicrous allegations about a simple question any investor would ask and should know the answer to immediately if investing for the long term.

can someone who is in this share long term, please run some numbers by me and explain what the economics are so it can be evaluated..  i include you datz as long as you remain civil..


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## pilots (23 June 2009)

Agentm, has D49 come back to you in a PM with the numbers,  I cant see a reply here, if so could you post the numbers. Thanks.


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## DAZT49 (24 June 2009)

pilots said:


> Agentm, has D49 come back to you in a PM with the numbers,  I cant see a reply here, if so could you post the numbers. Thanks.




This aint school ,I am under no obligation to provide "numbers" to anybody lol
This is no royal commission.
The "numbers" are only relevant when you buy in to a stock, that was a century ago now, and a century ago I made my decision to by in on the'numbers" at that time.
And that was ...
http://www.goldenstate.com.au/uploaded/files/client_added/CKLocke-GDN.pdf

"KEY ASX DATA
Price of Shares (FPO) $0.22
Number of Ordinary Shares 135,674,704
Market Cap ($) 29,848,435
Listed Options 32,633,433
Unlisted Options 23,250,000
12 Month Volume 151,850,275
12 Month Price Range $0.12 - $0.275
12 month Target $1.00 - $1.50
GDN anticipates the prospect may hold up
to 3 TCF of gas equivalent with a mid-target
of approximately 440 BCF plus liquids with
an assessed probability of success set at
over 19.5% by the company’s geologists.
With GDN’s equity of 83.3% in the Golden
Eagle prospect; GDN believes the company
can potentially offer great leverage of
success. A mid-case potential discovery of
440 BCF of gas would equate to a
significant move to GDN’s share price on
the ASX.
A minimum case of 50BCF currently is
potentially economic. Even based on this
alone it technically values the GDN share
price at $1.00 to $1.50."
I have stated that I am LT and will consider my options when Para 2 goes into production and when Para 3 is spudded.
That is my plan on this stock.
It may be different on other stocks in my meagre portfolio.
Agentm,
you said..
"i see i am criticised and apparently somehow making the sp go down (wtf is that about??) and who do you think you are datz saying that about me.. "
Cant see where I mentioned you personally, unless your name is Agent Drampers.


----------



## pilots (24 June 2009)

Well D49, if you can buy a stock at around 7c, and it go's to $1.00 you are on a winner.


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## DAZT49 (24 June 2009)

pilots,
It went to $1.20...twice 
Be a long time before it gets to a buck again.


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## pilots (24 June 2009)

D49, The SP will go no place when they report that the London company said that they had 210 feet of pay zone, now they tell us that a American company tells us they only have 95 feet of pay zone, it looks to me that they can't tell the deference between gross zone and net pay zone. One thing is for sure, the wire line logs DON'T lie, so some one has screwed up big time, or is it the old GDN trouble that no one knows.


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## bigdog (25 June 2009)

GDN  0.077 +0.009  +13.24%  high of 0.078 4,084,941 shares $310,139 @ 25-Jun 02:51:50 PM 

ASX ANN
25-06-2009 08:27 AM  GDN  *Testing Update  *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00963405

UPDATE – 25 JUNE 2009
Paradox Basin #2 Grand County Utah

•Testing operations on Paradox Basin # 2 will commence today with a VSP.

•Following the VSP three zones will be completed, perforated and fracture stimulated before conducting flow and build-up tests.

•The completion has been designed by RPS Energy in Calgary who have provided appreciable expertise.

 •Unit Rig 234 is being used for the completion and has remained on the well on stand-over at no charge, while the programme was prepared.

•Three separate zones have been recommended for completion, stimulation and flow tests. They are the Barker Creek, Chimney Rock and Ismay formations.

•Each zone test will take approximately 12 to 14 days including fracture stimulation, clean-up, an extended single point flow and shut-in period. Actual times will vary dependent on the results.

•Presentation to investors in Sydney held on 24th June.

Operations on the completion and testing of the Paradox Basin #2 discovery well in Grand County Utah will commence today, with acquisition of a 3 point Vertical Seismic Profile (VSP). The VSP will assist in calibration of seismic to the well, with offset data providing high resolution seismic imaging along the bounding fault, and tying possible future drilling locations. The VSP is expected to take approximately 1.5 days.

Operations will then commence on the completion, stimulation and testing of the Barker Creek Formation. The Barker Creek Formation will be the first of three zones which have been recommended for testing by RPS Energy in Calgary. Tests will be conducted over the Barker Creek Formation and Ismay Formation, both of which have proved production capacity in Paradox Basin #1. A newly discovered gas bearing zone in the Chimney Rock Formation will also be tested. Further detail on the test zones is included below.

Each test will require approximately 12 to 14 days during which time the zone will be completed, perforated and fracture stimulated before and extended clean-up followed by a single point flow test and shut-in period. The testing will be conducted sequentially up the hole. Golden State Resources will issue the results of each test as they become


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## bigdog (25 June 2009)

25-06-2009 08:27 AM  GDN  Sydney Investor presentation  (33 pages)
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00963406

Pilots and DT49 - your comments are welcome!

*Slide 32 Full Field Development*
•10 to 40 wells
•Well cost $5-7 Million USD
–Reduce well costs
---•Shared mobilisation
---•Multi-well pads
---•Dual completions
---•Multilaterals
---•Improved practices-experience

•Gas gathers Build-own-operate facilities
•Debt finance or strategic partner



*Slide 33 Summary*

Large confirmed gas resource in the U.S. (P50) 118Bcf (P10) 418Bcf
• Proved production from multiple objectives
• Significant Upside
• Testing of Paradox Basin #2
• Expect to be in production this year

111


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## bigdog (25 June 2009)

http://www.proactiveinvestors.com.a...y-of-paradox-basin-2-gas-discovery--1824.html

Thursday, June 25, 2009

Highly anticipated testing begins today of Paradox Basin #2 gas discovery 
by Proactive Investors

Testing operations began today at Golden State Resources' (ASX: GDN) Paradox Basin #2 gas discovery in Utah. 

The objective of testing of Paradox Basin #2 is determine the commerciality of the gas found to date. If testing is successful then the Golden Eagle gas field will be bought into full commercial production. 

The produced gases have a high heating value and are low in inert gases and will require minimal treatment prior to delivery to the Williams gas pipeline which is six miles from Paradox Basin #2. The Williams gas pipelines transport 12 per cent of daily US gas consumption.

Investors may recall that PB #2 had gas shows in 11 zones and a 95ft Net Gas Pay found in the following zones:

- 61ft Barker Creek Formation
- 4.5ft Akah Formation
- 14ft Chimney Rock Formation
- 1ft Gothic Shale
- 14ft upper Ismay Formation

Independent experts RPS Energy recommended proposed fracture stimulation testing of three zones: Upper Ismay, Chimney 

Rock and Barker Creek 1,2 and 3. F.J. Brown & Associates has organised the operations and logistics and will work with RPS on the completion. Rig 234 has been retained for the completion.

Each test will require approximately 12 to 14 days during which time the zone will be completed, perforated and fracture stimulated before and extended clean-up followed by a single point flow test and shut-in period. The testing will be conducted sequentially up the hole. 

Higher natural flow rates are expected from the Ismay and Chimney Rock Formations and the upper section of the Barker Creek Formation based on analysis to date.

Testing of the deepest gas zone in the Barker Creek Formation will establish a structural base line from which the extent of the gas accumulation can be estimated. Data from Paradox Basin #2 drilling and testing will be used to prepare a revised reserves report by RPS.

RPS originally estimated a Gas Initially In Place (GIIP) estimate for Golden Eagle Prospect of 118 BCF P50. RPS Energy believes that reserves will substantially increase as a result of Paradox Basin #2 95’ of net pay including a newly discovered zone in the Chimney Rock Formation.

Interestingly, GDN will mobilise a separate completions rig to complete the work-over on Paradox #1 well which has proven commercial flow rates from the Ismay Formation.


----------



## vinniesn (2 July 2009)

What is wrong with HC? moderators act like hitler. Your account get suspended for small things. Not going to request to activate account anymore. Few sites can't obstruct freedom of expression though stupid rules. Anyway, I didnt see many people on this site. But there are many people commenting on other company shares. btw, I am pro-GDN and waiting for testing results.


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## DAZT49 (2 July 2009)

vinnie,
Well that post is not gunna help you lol
GDN thread has always been closely monitored(hasnt it kennas lol)
And that is part reason why not many comment on GDN.
The BMN thread went the same way.
The monitors, in the ,main, do a good job (I am sucking up)


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## Sean K (2 July 2009)

DAZT49 said:


> vinnie,
> Well that post is not gunna help you lol
> GDN thread has always been closely monitored(hasnt it kennas lol)
> And that is part reason why not many comment on GDN.
> ...



Yes, thank God the BMN thread no longer has those bunch of idiots posting in it. Was a blight on ASF.


----------



## DAZT49 (2 July 2009)

bigdog said:


> 25-06-2009 08:27 AM  GDN  Sydney Investor presentation  (33 pages)
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00963406
> 
> Pilots and DT49 - your comments are welcome!
> ...




Doggy,
Looks like a xmas wishlist to me
It is certainly possible...time will tell.
I can hear pilots..."What about the 3B, what about the 3B"


----------



## DAZT49 (2 July 2009)

kennas said:


> Yes, thank God the BMN thread no longer has those bunch of idiots posting in it. Was a blight on ASF.




kennas lololo I knew you would be there.
Could argue with you over all that, but I am to old and my time is short.
cheers


----------



## pilots (2 July 2009)

*Re: GD - Golden State Resources*



DAZED said:


> Doggy,
> Looks like a Xmas wish list to me
> It is certainly possible...time will tell.
> I can hear pilots..."What about the B, what about the B"




It was a 3B or Weatherford's, THEY went to Weatherford's and I can ASSURE you that Weatherford's would have known they was short of money, so my bet is that GDN would have been screwed over again by Weatherford's


----------



## pilots (3 July 2009)

DAZT49 said:


> Doggy,
> Looks like a xmas wishlist to me
> It is certainly possible...time will tell.
> I can hear pilots..."What about the 3B, what about the 3B"




 What about the 3B, is it this 3B, or the next one are you wanting to know about, looks VERY much like we did not get much from Weatherford's after all.


----------



## bigdog (7 July 2009)

GDN  0.084 0.000  0.00%  high of 0.086 2,873,500 shares $239,755 @ 07-Jul 03:30:21 PM 

ASX ANN
07-07-2009 02:53 PM  GDN  Production Testing Update  

PRODUCTION TESTING UPDATE –7TH JULY 2009 
Paradox Basin #2 Grand County Utah 

The Barker Creek Formation was perforated and fracture stimulated over a gross interval of 283 ft (86.25m). 

110,640 pounds of propant and 1897 barrels of load fluids was successfully injected as planned. 

The well is currently flowing back load fluids and will be shut-in overnight for monitoring prior to conducting a tracer survey to determine the position and effectiveness of the fracture. 

Following the tracer survey a coil tubing unit will be used to unload remaining fluid prior to flow tests. 

The Barker Creek Formation is the first of three intervals which will be tested in the Paradox Basin #2 well.

The Barker Creek Formation was perforated and fracture stimulated over a gross interval of 283 ft (86.25m). The fracture stimulation proceeded according to plan with placement of 110,640 pounds of propant injected into the formation in addition to 1897 barrels of load fluids. 

As of noon (WST) the well was flowing back load fluids with a total of 1395 barrels recovered of the 1897 barrels injected into the formation. The initial flow back rates were extremely high as the well unloaded super charged load fluids. The well will be shut-in and monitored overnight prior to running a tracer survey to determine the position of the fracture. Following the tracer survey a coil tubing unit will be used to unload remaining fluid prior to flow tests. 

The Barker Creek Formation is the first of three intervals which will be tested in the Paradox Basin #2 well. Further tests will be conducted on the Chimney Rock and Ismay Formations. The Ismay Formation has proven production in Paradox Basin #1 and is considered the principle zone of interest.


----------



## bigdog (7 July 2009)

ASX ANN
07-07-2009 01:20 PM  GDN  Letter to Shareholders  

*Golden State Resources Limited – Options Rights Issue *

On 3 July 2009, Golden State Resources Limited ACN 063 074 635 (Golden State) announced to ASX that it will be undertaking a non-renounceable options rights issue of approximately 381,490,026 new options on the basis of 24 new options for every 25 shares held on the record date at an issue price of $0.01 each, to raise approximately $3,814,900 (Rights Issue). 

The prospectus for the Rights Issue was lodged with ASIC and ASX on 3 July 2009 (Prospectus). 

A copy of the Prospectus and personalised entitlement and acceptance form will be sent to eligible shareholders on 17 July 2009. The Prospectus may also be viewed at ASX's website, www.asx.com.au, and from Golden State's website, www.goldenstate.com.au. 

*Purpose* 
The purpose of the rights issue is to raise additional working capital for use by Golden State to continue to fund the company's activities in the Golden Eagle Gas Field. 

The Rights Issue is fully underwritten by Cunningham Securities Pty Ltd and will raise approximately $3,814,900 (before the costs of the rights issue). A summary of the material terms of the underwriting agreement, including rights of termination, is set out in the Prospectus. Cunningham Securities Pty Ltd will be paid an underwriting commission equal to 6.6% of the aggregate funds raised under the Rights Issue. 

There is no broker to the Rights Issue and brokers will not receive a handling fee for acceptances lodged by them on behalf of security holders. No brokerage or stamp duty will be payable by investors. 
There is no minimum subscription for the Rights Issue. 

*Timetable *
The timetable* for the Rights Issue is set out below: 

Event........................................ 	Date 
Announcement of Rights Issue 	3 July 2009 
Lodgement of Prospectus with ASIC and ASX 	3 July 2009 
Lodgement of Appendix 3B with ASX 	3 July 2009 
Securities quoted on a ex rights basis 	8 July 2009 
Record date for Rights Issue 	14 July 2009 
Prospectus (including entitlement and acceptance form) dispatched 	17 July 2009 
Rights Issue opens 	17 July 2009 
Rights Issue closes 	5 August 2009 
Notification to ASX of undersubscriptions and Underwriter notified 
of number of new options to be subscribed for by Underwriter 	7 August 2009 
Allotment of new options and dispatch of holding statements 	13 August 2009

468


----------



## Agentm (7 July 2009)

bigdog said:


> GDN  0.084 0.000  0.00%  high of 0.086 2,873,500 shares $239,755 @ 07-Jul 03:30:21 PM
> 
> ASX ANN
> 07-07-2009 02:53 PM  GDN  Production Testing Update
> ...




is this for real?

no gas at in the return at all? nothing but fluids.. and a coil tubing unit needed to get the fluids out?

trying to understand the report is difficult as it lacks any detail you usually see

have they completely missed the formation with the frac?


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## bobowens (13 July 2009)

Anyone out there going to take up the latest options rights..
24 shares for every25 held issue price $0.01 each.
exercised 12cents per option on or before 5.00pm Nov.2010.
would like your comments....

robertwayne


----------



## mastatrada (14 July 2009)

I pulled out at 8.7c after reading that announcement, it doesn't sound like they expect the sp to be going up much for quite a long time


----------



## DAZT49 (14 July 2009)

bobowens said:


> Anyone out there going to take up the latest options rights..
> 24 shares for every25 held issue price $0.01 each.
> exercised 12cents per option on or before 5.00pm Nov.2010.
> would like your comments....
> ...



I believe pilots will be picking up about a mill.lol
Agentm about 1/2 mill
Bigdog..500
sharemadder.......10mill (wherever he is)
I will be taking up the offer


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## DAZT49 (14 July 2009)

mastatrada said:


> I pulled out at 8.7c after reading that announcement, it doesn't sound like they expect the sp to be going up much for quite a long time




Hope you made some dough at 8.7c but I think you may have jumped a bit early, with testing proceeding atm
Guess you can still jump back on if the results are good and still make a few more dinari's.


----------



## DAZT49 (14 July 2009)

DAZT49 said:


> I believe pilots will be picking up about a mill.lol
> Agentm about 1/2 mill
> Bigdog..500
> sharemadder.......10mill (wherever he is)
> I will be taking up the offer




I see the offer as a chance,for a few hundred bucks to get some of the moolah I lost on the just expired options.
Anyway, the DOW was up 180 points overnight so hopefully our market will follow and we can make some money on other stocks today.
(had to put that in to make up the 100 charator limit lol)


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## bigdog (15 July 2009)

GDN  0.055 -0.015  -21.43%  high of 0.071 low of 0.055 6,549,631 shares $400,764 @ 15-Jul 03:06:54 PM 
-- SP now at the low for the day!!!!!

15-07-2009 02:28 PM 	GDN 	Testing Update Paradox Basin 2 

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00968905

*PRODUCTION TESTING UPDATE –15TH JULY 2009  
Paradox Basin #2 Grand County Utah    *

Testing of the Barker Creek Formation has been completed.

The Barker Creek Formation test was unsuccessful at this location. No gas was produced to surface.  

The Barker Creek Formation is the deepest of three gas bearing zones being tested in Paradox Basin #2.  The principle zone of interest is the Ismay Formation which has proved commercial potential.  

The fracture stimulation of the Barker Creek intersected a highly over-pressured water zone, which is most likely a localised feature associated with a nearby conductive fault.  

A second attempt to stimulate the formation and isolate the upper perforations, which were considered the most likely source of the over pressured brine was also unsuccessful.

Preparations are now underway to test the Chimney Rock Formation.  

Completion and testing of the Barker Creek Formation in Paradox Basin #2 completes the obligations under the terms of the Farm-in agreement.  

Future development wells will be focused on exploitation of the productive Ismay Formation within the shallower Pennsylvanian structure.

Golden State Resources through its US operating subsidiary Golden Eagle Exploration LLC has achieved final settlement in reference to the litigation with Weatherford US LP. The terms and conditions of the Settlement Agreement are confidential and as such will not be disclosed.


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## mastatrada (15 July 2009)

Surely they knew they had found nothing when they decided to issue these new options, I pulled out after reading it. It sounds like they're digging in for a long period of inactivity


----------



## DAZT49 (16 July 2009)

mastatrada said:


> Surely they knew they had found nothing when they decided to issue these new options, I pulled out after reading it. It sounds like they're digging in for a long period of inactivity




"Preparations are now underway to test the Chimney Rock Formation. 

"Future development wells will be focused on exploitation of the productive Ismay Formation within the shallower Pennsylvanian structure."
I wouldnt call that a long period of inactivity.
PIlots,
The ann had this..
"Golden State Resources through its US operating subsidiary Golden Eagle Exploration LLC has achieved final settlement in reference to the litigation with Weatherford US LP. The terms and conditions of the Settlement Agreement are confidential and as such will not be disclosed."
Wont that amount show up in the next 3B??


----------



## sunslush (16 July 2009)

go to hell GDN, i have just sold my holdings yesterday, lost 32%..... @!@#$%...
first lost for the year!


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## pilots (19 July 2009)

You have to hand it to GDN when it comes to WOOD DUCKS. First why would you frack a zone that was flowing water, the fracking will ONLY increase the water flow.  I said GDN was getting milked on the first well, and after reading this last report I have NOT changed my mind. This neck of the woods are all fraced to hell and back, this is why the Yanks won't touch it. Good luck to all you long term holders.


----------



## McNovice (21 July 2009)

Yes I am a novice as my name suggests, and for some reason got stuck into these shares a few months ago. I think stoopidly from reading a news article that looked promising. Anyway they seem to be getting a right slagging off on this forum. 

I just received the paperwork yesterday to purchase more shares, are many people taking this up? It will bring my average price down a fair bit, but don't want be throwing good money after bad

Help


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## DAZT49 (21 July 2009)

Be aware that you are only buying the rights.
If you have ..say 100,000 shares atm you will be entiltled to 96000 options.
You fork out $960 now and in Nov 2010 you have the right to buy 96000 shares at 12c each. ie $11,520.
If the SP is 50c you make money, if its 6c you blow yr $960.
I dont believe you can trade tiil that Nov 2010 date.


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## DAZT49 (21 July 2009)

sorry, you CAN trade once you have exercised your options and that can be any time from when you recieve yr shares until 30 Nov 2010


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## pops11 (22 July 2009)

Just means the market will be hit with heap more shares as they convert to head shares and push market price down or at least thats the impression im under ?


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## sunslush (22 July 2009)

I have recieved letter offer for the option rights. I have never traded option b4, and dont really know how it works, can any one explain to me? or should I take it up or not?


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## pops11 (23 July 2009)

Anyone else going to take up there options?


I believe they are non - renouncible with a exercise price of 12c on or before 12November 2010 so the way i see it if the head shares hit 12c before that you can sell in the mean time you cant sell or trade them, this to mew is the CO asking holders to again help out with no real prediction of GAS now soon or in the future, it seems pretty hard for me to swallow having bought into them 4 months ago at 8c due to all the hype on the HtoCpper site plus the fact that they were picked 4 months in a row as number 1 pic on stock tipper and once twice as much as any other stock, i just cant get it into my mind to buy more and into something which really does seem to be a dead duck, i sold my other shares after the acceptance date and ewas hoping a GAS find would be out before that but nup, so i sold for 6c lost abit but could make it up if i take the oppies, only thing is i need to wait over a year just to make that money if at all and only if they hit 12c..hard call really when 7 weeks ago i put MEO on my watch list and should have bought them instead of GDN ..as at yesterday MEO had returned 157% in that 7 weeks !!!


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## DAZT49 (23 July 2009)

You can convert the oppies anytime after 13th Aug up till 30 Nov 2010.
Its a hard call as to whether to take up the rights.
I guess we have up till 5th Aug for a decent ann and make up our minds.


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## sharemadder (23 July 2009)

I have taken up my rights.  Why not, they are cheap at 1c.  Plenty of time before needing to excercising them.

WCU (GDN own 25% of that) will be mining Uranium by then and its sp will likely be far greater than it is and on that alone will represent value for GDN sp.

Drilling of PB#3 is likely targeting upper zones only.

And then theres the gold spin off.

Seems PB#2 was drilled on the fault not next to it.

RdBer must be feeling sick about his statement "its as good as it gets" :sheep:


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## pilots (23 July 2009)

When I look at GDN I think that CVI and GDN  could be brothers, both have nothing so far, both have promised the world to the share holders, both have mores shares that you could poke a stick at, both have seen the SP go to all most nothing, both have at least gold, oil, the big U, both was ramped by T4P
Good luck to the long term holders.


----------



## bigdog (23 July 2009)

GDN  0.048 -0.003  -5.88%  high of 0.052 low of 0.048 7,605,723 shares $380,586 @ 23-Jul 03:04:01 PM 

ASX ANN
23-07-2009 02:27 PM  GDN  Testing Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00970862

*PRODUCTION TESTING UPDATE –23 JULY 2009 
Paradox Basin #2 Grand County Utah *


Testing of the Chimney Rock Formation has been completed. 

The Chimney Rock Formation was perforated and acidized before a series of flow periods. 

The formation was found to be a good reservoir and was not fracture stimulated due to high formation permeability. 

Gas was not produced during the initial testing so additional perforations were placed over the interval 12,284’ to 12,299’ which had displayed a strong gas show while drilling. Further flow periods did not recover any hydrocarbons. 
 
The up dip potential of the Chimney Rock Formation is of interest as a stratigraphic trap. 

Preparations are now underway to test the Primary gas bearing zone the Pennsylvanian Ismay Formation. 
 
Work is also currently underway to source a work-over rig for Paradox Basin #1 to prepare the well for production. 

Preliminary VSP results indicate the Leadville Limestone is structurally higher than expected.

The Chimney Rock Formation is being abandoned after completion of acid stimulation and testing. The Chimney Rock Formation was not an objective in Paradox Basin #2. On initial penetration the Chimney Rock Formation was found to contain significant gas shows and had strong gas indications on logs. 

The Chimney Rock Formation was perforated over a gross interval of 41’ from 11,152’ to 11,193’ (3399-3411m). Expectation was that the Chimney Rock would produce either naturally or after fracture stimulation. An initial injection test confirmed high formation permeability. Due to the better than expected formation permeability the formation was not able to be fractured. Gas was not recovered during a series of flow tests which recovered all of the injected fluids before a change in salinity indicated the well was flowing formation waters. 

As the Chimney Rock Formation was considered to potentially contain both water and gas bearing zones an additional set of perforations were placed over the interval 11,284’ to 11,299’ corresponding to a gas show seven of 545 units. No gas was observed after perforating. Had gas been observed the lower zone would have been isolated and independently tested. 

The Chimney Rock Formation was not an objective in the Paradox Basin #2 well and does not contribute to the current discovered gas. It is one of the best reservoirs encountered in the field and is considered to have a stratigraphic closure and pinch-out up dip towards the Paradox Basin #1 well. 

Preparations are now underway for testing the Ismay Formation which has proven production in Paradox Basin #1 and is considered the principle zone of interest in commercialising the Golden Eagle gas field. 

The Ismay Formation is the main productive interval in the Paradox Basin accounting for 25.9% of all produced gas and 85% of produced oil. Paradox Basin #2 has encountered the Ismay Formations 283’ (86m) lower in the structure than the confirmed productive zone in Paradox Basin #1. 

The Ismay Formation will be perforated from 10,344’ to 10,383’ (3153-3165m) prior to a series of flow and injection tests. It is planned to then conduct a hybrid frac which is modelled to penetrate approximately 2000’ (600m) into the formation. Operations are currently underway and are expected to take about 12 days. It will be several days before perforating, which will be followed by a series of performance inflow tests and pressure build-ups, required to plan the fracture stimulation. The Inflow tests will be followed by an injection test, further build-ups and possibly acidization. It is unlikely the fracture will be conducted until next week. Following the fracture the well will be flowed and a coil tubing unit will be utilised to assist flow-back of load fluids. 

Preliminary results of the VSP survey have arrived and are being evaluated. They suggest the Leadville Limestone may be higher than expected. When the final results become available Golden State will review the viability of re-entering the well to assess the Leadville Limestone. 

Golden State Resources is currently preparing to get a completion rig to work-over Paradox Basin #1 in order to rerun the tubing and conduct an extended flow test and prepare the well for production.


----------



## Rob 17 (23 July 2009)

If methane was worth anything than this company would be worth $1  ....................DYOR.................................


----------



## pilots (23 July 2009)

You cant believe what you read from GDN, they are now looking for a rig to work over the first well, hello you had a work over rig on that well doing work over, WHY DID YOU STOP THE WORK OVER????????


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## bigdog (27 July 2009)

ASX ANN 
27-07-2009 09:17 AM 	GDN 	Testing Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00971419

PRODUCTION TESTING UPDATE –27 JULY 2009 
Paradox Basin #2 Grand County Utah 
	• The Ismay Formation was perforated over the interval 10344’ to 10,376’ (3152.8m to 3162.6m). 
	•An immediate increase in pressure was observed at surface. 
	•The well was shut in for a brief period prior to an initial flow test. 
	• Gas was produced at a rate of 237 Mscf/day which was flared. 
	•Paradox Basin #2 has tested Ismay Formation gas 317’ structurally lower than Paradox Basin #1 considerably extending the thickness of the gas column in the Golden Eagle gas field. 
	• Preparations are now underway to conduct a fracture stimulation which is currently scheduled for Thursday Central Mountain Time. 

The Directors of Golden State Resources are very pleased to announce that the perforation of the Ismay Formation has been completed and pre fracture the well flowed gas at an average of 237 Mscf/day. These rates are similar to those observed in Paradox Basin #1 prior to fracture stimulation. 

Confirmation of live gas in the Ismay Formation in Paradox Basin # 2 extends the lowest tested gas in the Ismay Formation by 317’ (96.6m). This confirms an appreciable increase in the known area within closure for the Ismay Formation. Current mapping indicates there is also several hundred feet of closure up dip from Paradox Basin #1. 

The current plan is to conduct a series of injection tests and determine key parameters required to design the fracture stimulation. The Fracture Stimulation operations will commence on Thursday (US Central Mountain Time). They will be followed by a cleanup flow and the well will then be flow tested. Flow testing and build-ups will take at least 12 days in order to conduct extended production tests and shut-ins with suitable build-up times. 

Paradox Basin #2 has appreciably increased the Ismay Formation gas accumulation in the Golden Eagle Gas Field. If the fracture and subsequent flow tests are successful the well will be completed as a producer.

740


----------



## pilots (28 July 2009)

Got to feel sorry for the long term holders who got sucked in to this dog, now they are going to make the dream come true with the Ismay formation, this is the same formation that they tried and tried again on the first well to make COMMERCIAL with no luck. The next ramp will Be, GDN are pleased to inform you that the third well will start soon, and work over work on the first well will also start soon. LOL. LOL.


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## DAZT49 (28 July 2009)

pilots,
While sharemadder and I are bankrolling the project, they can drill as many Paras as they like.
Seems they will need the flows from P1 and P2 to make a few bucks, but the re entry of P1 could boost the figures along.
I am currently sending my BBQ gas bottle to Utah to add "to the grid"


----------



## pilots (30 July 2009)

DAZT49 said:


> pilots,
> While sharemadder and I are bankrolling the project, they can drill as many Paras as they like.
> Seems they will need the flows from P1 and P2 to make a few bucks, but the re entry of P1 could boost the figures along.
> I am currently sending my BBQ gas bottle to Utah to add "to the grid"




Looks like you will have to bank roll the work over as well, they DON'T have the money for that looking at the cash in the bank, more 3Bs.


----------



## sharemadder (31 July 2009)

Pilots, u know they r raising $3 mill + from fully underwritten options issue that expires 5th August.  U also know that the Weatherfords settlement monies will in the next quarterly report as they had final settlement mid July.   The quaterly is a past tense statement.  The cash position stated is at end of June quarter and does not take in the other two cash events off course.   So there is no shortgae of cash for ongoing work.

U like to stir up holders LOL


----------



## pilots (2 August 2009)

sharemadder said:


> Pilots, u know they r raising $3 mill + from fully underwritten options issue that expires 5th August.  U also know that the Weatherfords settlement monies will in the next quarterly report as they had final settlement mid July.   The quaterly is a past tense statement.  The cash position stated is at end of June quarter and does not take in the other two cash events off course.   So there is no shortgae of cash for ongoing work.
> 
> U like to stir up holders LOL




Sure they have a truck load of money coming in, BUT! BUT!, they have a train load of money going out, just have a look at the frack team, in your wildest dreams you won't believe how much a frack team cost, I have had frack jobs that have cost MORE than the well cost, and it also was a duster , and you still DON'T have a guarantee that the well is going to be commercial. Good luck to all the long term holders.


----------



## bigdog (3 August 2009)

GDN ASX ANN
03/08/2009   Testing Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00974458


A Completion rig is currently being mobilised for the final testing and completion of Paradox Basin #2 which is to commence on Tuesday.
The completion rig will then work-over the Paradox Basin #1 well.
Unit Rig 234 has been demobilised off the Paradox Basin #2 location.
The completions rig will initially conduct the final fracture stimulation of the Ismay Formation in Paradox Basin #2, followed by extended pre-production testing of the Golden Eagle gas field.
Paradox Basin #2 had a pre-stimulation production rate of 237,000 scf/day which was flared.
Data from the initial testing indicates that the Ismay Formation in Paradox Basin #2 is more suited to a gel based fracture fluid.
Planning is currently underway on the work-over of Paradox Basin #1 in preparation for production.

Unit rig 234 is being moved off location to allow access for a specialised completions rig to stimulate, test and complete the Ismay Formation in Paradox Basin #2. The completion rig will then move to Paradox Basin #1 to work-over and possibly re-fracture the Ismay Formation in preparation for production. The completion rig is scheduled to conduct the stimulation on Tuesday followed by approximately 12 days of production testing.

Gas was produced from the Ismay Formation in Paradox Basin #2 at a pre-stimulation rate of 237,000 scf/day. Pressure data from the initial test has since been analysed to determine key formation parameters necessary for design of the fracture. The results suggest that a gel based fracture would be optimal due to its shorter radius, more precise placement and higher conformance to bedding.

The completions rig is more suited to the testing and completion operations and will appreciably decrease the testing and completion costs. The completions rig is required to work-over Paradox Basin #1 and to re-run the existing completion in readiness for production.

Testing of Paradox Basin #1 was suspended in December 2008 due to inclement weather and a physical blockage of the production tubing. Since that time the well test results have been reviewed and it is apparent that the well would benefit from a significant recompletion possibly including additional fracture stimulation.


----------



## vinniesn (6 August 2009)

sharemadder, i find you amusing. Honestly, you are both ramper and downramper and don't like your tone on hc. you are the guy who write over 200 messages per week on gdn and senselessly predicting $1-$2 and just month ago you were expecting it to go 3cents. Anyway this well look like flop. So far they succeed in getting cash from (public) investors but failed to return anything. Instead of testing the oil & gas boundary in golden eagle Paradox Basin region with expensive wells, they should drill wells close to pb1 at lower trench with low cost and slowly extend to outer area. Two wells were too expensive and cost over 50millions in total and yet to flow gas. Company can make over 100-300millions if they manage to find 90-300mcf gas at ismay formation and later they could use this money to risk more deeper well or extend the drilled one. With large dilution in shares, it is hard to SP go up near future.


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## bigdog (7 August 2009)

07-08-2009 12:18 PM  GDN  Rights Issue Completed  

RIGHTS ISSUE COMPLETED
The Directors of the company are pleased to advise that the recent non-renounceable rights issue closed on 5th August 2009 with eligible shareholders taking up 106,669,397 options representing 27.96% of the issue.

The remaining shortfall of 274,820,629 options will be placed with clients of Cunningham Securities Pty Ltd in accordance with the underwriting agreement signed by the company.

GDN  0.059 +0.003  +5.36%  high of 0.061 2,480,373 shares $147,536 @ 07-Aug 04:10:45 PM


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## vinniesn (11 August 2009)

Look like pb2 is dud..they might not have found any more gas to announcement. tomorrow ann should be last hope for pb2.


----------



## Agentm (13 August 2009)

just be real careful about who you believe when people are touting the wares of a gas explorer.  gdn is only exploring gas so it needs to be kept in mind whether there are any economics there for the future.  *should * they actually get any *commercial flow*. having commercial flow may not be enough. many operators have shut down their operations for a long periods now,  even in some oil plays, and only with the recent emergence of oil prices are we seeing some further activity primarily on oil and oil/gas plays onshore in the usa

most are not seeing the economics, and we know that $7 gas is where the equation starts on greenfield gas plays

imho be cautious and learn what makes a play economic, what the basic costs need to be.. with all the shale gas in the USA being put on production right now,  some 100 years of supply for all of the US needs is already being forcast,  but if you have oil in the play, like the shale (ie ADI EKA AUT and AZZ with possibly BCC as well with a oily chalks target) thats where the future is right now.

chevron is shutting down all onshore gas operations totally.. that needs to be very clearly taken into consideration when investing in the gas minnows..  

http://www.google.com/hostednews/ap/article/ALeqM5jz-XifwAgT0nwFDoDtgGnD0MLQgQD99PIH9G1

Chevron profits sink; natural gas drills shut down

By CHRIS KAHN (AP) – Jul 31, 2009

NEW YORK ”” Chevron on Friday said that its second-quarter profits fell 71 percent and the second-largest U.S. oil company put its entire land-based natural gas drilling operation on hold, citing dismal demand.

"By the end of the year, we will not have a single gas land-rig running," George Kirkland, Chevron's executive vice president for global upstream and gas said in a conference call.

*With natural gas plunging to about a quarter of its value last year, "it really doesn't make sense right now to be drilling those gas wells," he said.*

just keep it in mind


----------



## DAZT49 (13 August 2009)

agentm,
lol you posted all that some time a go didnt you??
Did you cut n paste yr own post


----------



## Agentm (13 August 2009)

DAZT49 said:


> agentm,
> lol you posted all that some time a go didnt you??
> Did you cut n paste yr own post




not at all i posted it today.

is it incorrect datz? 

the article from chevron is from 31st july, and what they are doing is no different to pioneers announcements on the edwards or what any onshore gas company is experiencing.

when you see the largest corporates in the industry saying its not economic to be in the onshore gas market then you have to take notice surely?


----------



## DAZT49 (13 August 2009)

am,
Apologies, but it is very similar to your post 2170.
I really dont care about Chervrons opinion, and thats all it is.
The share is a nut case thats for sure...but you never know..Jack Nicholson might pop his head out of the well and say "Here's Johnnie!!!"


----------



## sharemadder (14 August 2009)

vinniesn said:


> sharemadder, i find you amusing. Honestly, you are both ramper and downramper and don't like your tone on hc. you are the guy who write over 200 messages per week on gdn and senselessly predicting $1-$2 and just month ago you were expecting it to go 3cents.




Vinni

I dont post 200 messages a day.   I predicted $1 if PB#2 was successful.  That went out the door when they stopped drilling to leadville formation.  I then predicted 3c before on the pretense water found in Barker Creek, then Chimney and what has Ismay given? 200 Mcfd pre frac.  So based on that and the amount of ST traders in/out one can't help feeling, yep 3c is on the cards.  

For the record I hold plenty and am largely free carried.  But what does the longer term future hold?  I'm rather positive for that.

Thank you for your personal attack on me.


----------



## bobowens (14 August 2009)

sharemadder said:


> Vinni
> 
> I dont post 200 messages a day.   I predicted $1 if PB#2 was successful.  That went out the door when they stopped drilling to leadville formation.  I then predicted 3c before on the pretense water found in Barker Creek, then Chimney and what has Ismay given? 200 Mcfd pre frac.  So based on that and the amount of ST traders in/out one can't help feeling, yep 3c is on the cards.
> 
> ...




After reading all the posts about GDN for the lasts couple of days from you
guys,hands up all who took up the cheap OPTIONS:


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## DAZT49 (15 August 2009)

I will put my hand up.
Took a portion of them.
Another gamble on GDN (maybe 3rd time lucky lol)
I figure I bet $900 bucks on a 1000 to 1 longshot.
I loose $900 or I win $90,000 ...if it pays $1


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## vinniesn (16 August 2009)

sharemadder said:


> Vinni
> 
> I dont post 200 messages a day.
> 
> Thank you for your personal attack on me.




Sharemadder, I am not making any personal attack and also I didn't say you post 200 messages in a day but you did over 6 months. Sometimes, you write 10-20 messages to make your point that SP will go $2 while ramping and  3cents during downramping. I am not sure whether you do it deliberately. Sorry I am writing here because my account was suspended indefinitely and IP address was banned from creating new acc. However, good news is that I come up with my own application to access website. So I don't need login to check site anymore.


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## DAZT49 (19 August 2009)

From the last update on 3/8/09
"Unit rig 234 is being moved off location to allow access for a specialised completions rig to stimulate, test and complete the Ismay Formation in Paradox Basin #2. The completion rig will then move to Paradox Basin #1 to work-over and possibly re-fracture the Ismay Formation in preparation for production. The completion rig is scheduled to conduct the stimulation on Tuesday followed by approximately 12 days of production testing."
Guess there should be an an this week, not much happening with the Sp and volume, up or down, so we can rule out any "leaks", so far anyway.


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## bigdog (20 August 2009)

SP down one cent to 4.5 cents @ 10:26 AM

*ASX ANN today*
20/08/2009   Testing update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00978985

*PRODUCTION TESTING UPDATE –20 AUGUST 2009 *
Golden Eagle Field Grand County Utah 

Paradox Basin #2 is being suspended and will be monitored over the next month. 
	The maximum gas flow rate during testing of 1.6MMcfd was not sustainable and associated with high levels of formation water. 
	A total of 385,000 scf of gas production was measured during testing with appreciable gas also flared without metering. 
	In light of the results Golden State will review the effectiveness of the fracture stimulation and monitor the well to determine whether further attempts to remediate water production and stimulate the formation are required. 
	Paradox basin #2 has successfully appraised the flanks of the Golden Eagle structure increasing the known extent of the field. 
	The completion rig will move to Paradox Basin #1 to conduct a work-over and re-complete the well for extended production tests. 
	 Work has commenced on the design and permitting on Paradox Basin # 3 which will be a dedicated Ismay Formation production and appraisal well to be located up dip of the Paradox Basin #1 discovery well.
Testing of the Ismay Formation in Paradox Basin #2 has been suspended. The well will be monitored and periodically flowed while a review into the effectiveness of the completion is conducted. 

Gas was produced from the Ismay Formation at rates up to 1.6 million cubic feet per day. High levels of completion brines and formation waters are associated with the gas production. The co-produced waters are likely sourced from adjacent water zones rather than from the Ismay gas zone, as logging suggests low connate saturation in the gas zone. In it’s current state Paradox Basin #2 is not viable as a production well. 

The Ismay Formation was perforated on 24 July and produced gas at 237,000 cf/day, a similar rate to that observed in Paradox Basin #1 prior to stimulation. Following perforation a series of reservoir performance tests were conducted to provide data needed to determine the design of the fracture. 

A gel based fracture stimulation was conducted on the 5th August. After stimulation the well unloaded 286 barrels of load fluids before gas was detected and flow was  
diverted to the separators. The initial gas rate was 885,000 cf/day which peaked at 903,000 cf/day after 1  ½ hours. Associated water production was high and after 8 hours the gas rate declined to 289,000 cf/day before the well stopped flowing. 

The 3  ½” tubing which was required for the fracture stimulation was considered too large in diameter for the expected flow rates. Rig 234 was moved off location and a completion rig was mobilised to run a string of 2 3/8” production tubing. Demobilisation of Rig 234 and running of the production string was completed on the 14th of August and a coil tubing unit was utilised to assist in lifting water and a further 389 barrels of saline fluid was recovered before a swabbing unit was utilised to lift another 58 barrels at which stage gas was observed. Gas was flared at a peak rate of 1.6MMscf/d before decreasing to 115,000 cf/day after approximately 1 hour. 

Swabbing has since continued with the expectation that the well would clean-up after unloading fluids associated with the fracture stimulation. As the salinity of the recovered waters has increased it appears water is being derived from the formation. Log evaluation indicates the Ismay Formation gas zone has low levels of connate water and it is suspected the water may be sourced from adjacent water bearing intervals. 

A tracer log has been run to determine the placement of the fracture, and is currently being processed. Initial indications are that the fracture has a greater vertical extent than desired, and has not effectively stimulated the Ismay Formation. Should the evaluation indicate the water is derived from adjacent zones then several options are available to possibly remediate the situation. These include a cement squeeze and re-fracturing or possibly an ultra short radius lateral into the Ismay Formation. 

Paradox Basin #2 has increased the known vertical extent of the Ismay Formation gas accumulation confirming the presence of gas down dip. Paradox Basin #2 is located on the southern flank of the Golden Eagle structure and is 317 feet lower than Paradox Basin #1 at the Ismay Formation level. The location was placed over the underlying Mississippian structure and was fixed under the terms of the Farmin agreement. 

A vertical seismic profile which was acquired in Paradox Basin # 2 has shown the seismic tie to the Akah Formation to be somewhat lower than the Akah reflector on the 99X seismic control line. The VSP is suggestive that Paradox Basin #2 is located south of the main bounding fault. The implication is that seismic line 99X, is wrongly positioned or the well has crossed the fault which is a possibility as the strike of the fault is unknown. Golden State is in the process of resolving the implications of the VSP result. 

The completion rig will now recomplete and test Paradox Basin #1. Testing of Paradox Basin #1 was suspended in December 2008 due to inclement weather and a physical blockage of the production tubing. Since that time the well test results have been reviewed and it is apparent that the well would benefit from a significant recompletion possibly including additional fracture stimulation. 

Work has also commenced on permitting and designing a dedicated Ismay Formation production well to be located approximately 1.2 km north east of Paradox Basin #1. The well would target the Ismay Formation up dip of Paradox Basin #1. Target depth would be approximately 9,800 feet and the company is investigating drilling laterally from the Paradox Basin #1 location. A lateral well with a 36o deviation would add approximately 1500 feet in length. As the bulk of the deviated section would occur in relatively fast drilling formation the associated extra drilling costs would represent a considerable saving on site costs and access costs required for a separate vertical location. In addition the high angle completion would maximise exposure to productive interval.


----------



## helpmeunderstand (20 August 2009)

So prdx1 still going, prdx2 suspended but still not completly dead.
As long as they still planning on diging there is a chance prdx3 here we go!


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## vinniesn (21 August 2009)

I have no hope on PB1 where they can find gas. Just like PB2, first well will also find more water than gas or may not not sustain the flow. Probably GDN management already know the fact and will attempt second time for any luck. As of now the second well is utter flop, cost about 15-20million, took year and half for getting permission, 5-6 months for drilling, abandon the drilling operation half away, and finally took 3 months for testing. It doubt there will be any speculation on SP this time for PB1 result or may be I am wrong it is still stood at 4.6cents because of PB1 result.


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## bigdog (21 August 2009)

SP is unchanged @ 4.6 cents!!

*21/08/2009   Testing Update  *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00979747

*PRODUCTION TESTING UPDATE –21 AUGUST 2009*
Golden Eagle Field Grand County Utah
● Results of the Spectrascan fracture tracer log indicate categorically that the stimulation of the Ismay Formation in Paradox Basin #2 has not been effective.
● The fracture has travelled up the well bore and placed into water bearing zones in the Paradox Formation.
● The company is now evaluating options for remedial work.
● Operations have shifted temporarily to Paradox Basin #1.

The Spectralog tracer survey which was run to evaluate the effectiveness of the fracture stimulation of the Ismay Formation quite categorically confirms that the attempt to stimulate the Ismay Formation Gas has not been effective.

The confirmed gas bearing zones extending from 10,336’ to 10,392’ was perforated over 3 intervals 10,344-48’, 10,354-56’, and 10,376-83’. Following a series of flow and injection tests a Gel-based fracture comprising 85,700lbs proppant and 1252 barrels of carrier fluid was conducted.

On test the Ismay Formation in Paradox Basin #2 produced gas at upto 1.6MMcf/d. The gas associated with unexpectedly high rates of water production. Evaluation of the gas zone indicates low connate water implying the water produced on test is sourced from a different interval and the fracture has accessed formation water.

The fracture tracer log shows that the fracture has travelled upwards nearly 300’ behind the casing to 10,050’ with the main placement occurring from 10,136’ to 10,212’. Evaluation of this zone indicates it is a porous water bearing zone. The Spectralog shows negligible placement of the fracture in the Ismay Formation gas zone.

Golden State is currently reviewing options to remediate the situation. In the first instance the gas zone needs to be isolated from the overlying water bearing zones by conducting a cement squeeze. Following confirmation that the cement has achieved isolation behind pipe, the company may attempt a second fracture, limited to the lower perforations. An alternative strategy which is currently being reviewed and priced is to place an ultra-short lateral completion horizontally into the productive interval.

Current field operations have now shifted to conducting a test and recompletion of Paradox Basin #1. Current wellhead pressure is 3400 psi. Operations will commence with a pressure gradient run followed by a test flow and build-up.


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## DAZT49 (21 August 2009)

I do like the ann.
The gas is still there!!!! Frac went in wrong direction and possibilty to plug the H2O and re frac or horizontal drill.:
Might sell my Beamer tomorrow and pick up a truckload of oppies.
Hey bigdog,
Its great of you to post those anns so fast, but how about some comment from you.
cheers
Go Aussies flog those pommies


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## DAZT49 (21 August 2009)

Hey Susie,
Whats your take on the probs and remedies.
You have to admit they have been a bit stiff. lol


----------



## bigdog (25 August 2009)

25-08-2009 09:25 AM  GDN  Testing Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00980604


*PRODUCTION TESTING UPDATE*
*PARADOX BASIN #1 & PARADOX BASIN #2*
25 AUGUST 2009

Golden Eagle Field Grand County Utah
● Flow tests on Paradox Basin #1 are underway.
● Paradox Basin #1 was opened on a 12/64” choke and initially produced gas at rates up to 3.3MMcf/d.
● The completion rig is moving back to re-complete Paradox Basin #2

*Paradox Basin #1*
Testing operations commenced on Paradox Basin #1. A test rig was moved to location on Thursday (US) and following attempts to run down-hole pressure gauges the well was opened to flow on Friday (US). The wellhead pressure (WHP) had built to 3450 psi since the last flow in December. On opening the well a gas rate of 3.36MMcf/day was measured. Gas rates were sustained generally above 2MMcf/day for approximately 20 hours. Some rates during this period are 3.1MMcf/day with 2800 psi WHP after 13 hours. A rate of 2.4MMcf/day 2800 psi WHP was recorded after 19  ½ hours. There was no evidence of the mechanical blockage which was seen in December.

After 20 hours the choke was increased to 14/64” and back pressure on the separator was also increased after which the gas rate declined due to the entry of water into the production string. Tubing pressure and gas rate declined and minor water production commenced 30 minutes after the change in choke size. Rates stabilised at approximately 500,000 cf/day with minor water production. The well has been shut in for a build-up and has exhibited a strong pressure recovery. Golden State is currently evaluating the test results and will review options to isolate the water which is believed to originate from the upper perforations. Gas flows are expected to improve once the water is isolated.

*Paradox Basin #2*
The work-over rig is now being remobilised to Paradox Basin #2 to recomplete the Ismay Formation. Golden State has evaluated the results of testing on the Ismay Formation in Paradox Basin #2. On test the Ismay Formation in Paradox Basin #2 produced gas at up to 1.6MMcf/d. The gas associated with unexpectedly high rates of water production. Evaluation of the gas zone indicates low connate water implying the water produced on test is sourced from a different interval and the fracture has accessed formation water.

The fracture tracer log shows that the fracture has travelled upwards nearly 300 feet behind the casing to 10,050’ with the main placement occurring from 10,136’ to 10,212’. Evaluation of this zone indicates it is a porous water bearing zone. The Spectrascan tracer log shows negligible placement of the fracture in the Ismay Formation gas zone.

The rig will conduct a cementing operation to isolate the upper water bearing formation some 200 feet above the gas bearing zone which was inadvertently accessed by the fracture.  Following the cement squeeze the stimulation will be re-run and further testing will be conducted.


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## DAZT49 (25 August 2009)

Big Doggy,
What do you think of that ann??
Pretty good news imo
Market is standing back tho.


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## DAZT49 (25 August 2009)

pilots,
cant believe you have let me get away with the last few posts lol
Whats your interpretation of those flare pics?


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## sharemadder (25 August 2009)

Dazt

Pilots is in Broome living the high life, lucky fella.

Was a good ann.  Just need to isolate water.  If they can sustain +2MMcfd then that would be great.

Lets see how good RdeB is now.  I see this ann. had clearer photo's of stand pipe that so many berated on HC.  Maybe he's getting a little frustrated with the hate mail.


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## DAZT49 (25 August 2009)

suzie stroking the whales at Monkey Mia lol
A time frame for the cement jobs would have been nice.
Any estimates maddy?


----------



## sharemadder (25 August 2009)

Dazt

Once rig in place,

Well I reackon on PB#2 inside a week we will hear something possibly about isolating water zone.  With rig in place 48hrs cement job (squeeze) will be done.  Then refrac 48hrs zone again and flow test.  RdeB imo will be zooming fast track to get a firm result = dry gas and lots of it. 

From reading the ann. I expect they expect good gas flow 2MMcfd+++


----------



## DAZT49 (25 August 2009)

I wonder how the connection to the grid is going.
Both well could be ready to produce pretty quickly, if the results after the cement jobs are good.
Then roll on Para 3!!:


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## Agentm (25 August 2009)

sharemadder said:


> Dazt
> 
> Once rig in place,
> 
> ...




i would have thought 10-20 mmcfpd would have been the bare bones start point for economics? 2mmcfpd is lousy, the ip flow is anly 2mmcfpd so it wont get any higher only lower on 7 day flow

comments made recently 

Gwozd:  Economic ranking in an ‘apple to apple’ comparison of full cycle costs by basin allows producers to determine where to focus their much reduced capital to maximise their overall return.  The Spring 2008 Zif  Energy study shows that full cycle costs for 24 gas basins (about 90% of North American gas production) varied between US$4.50 to $9.75/Mcf (royalties were calculated at a gas price of $7.00/Mcf ). Overhead costs for producers may vary from $1.00 to over $3.00/BOE.  Depending on the location of the gas basin, the gas basis differential may decrease competitiveness by over $1.00/Mcf.  

This full cycle cost assessment helps governments develop fair comparisons 
to maintain the competitiveness of their gas basins.



Mauger: With gas prices under US$4/Mcf at Henry Hub and high basis 
dif erentials (the difference between gas prices around the continent and the 
price at Henry Hub),* producers in several basins are at the point where the gas price does not cover their cash costs, forcing them to consider shutting in gas production.  Cash costs include operating costs, processing royalties, production taxes, local transportation, and selling costs.*  Governments can help by being sensitive to producers’ cash costs (including production taxes) and full cycle costs and implementing programs that lower these costs.  

At times like these, it is critical that producers focus on reducing their 
systemic costs; however, a cost conscious focus needs to continue even when energy prices recover to enhance profitability.  This was lost by some in the last ‘boom’ cycle


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## DAZT49 (25 August 2009)

agentm,
"i would have thought 10-20 mmcfpd would have been the bare bones start point for economics? 2mmcfpd is lousy, the ip flow is anly 2mmcfpd so it wont get any higher only lower on 7 day flow"
Nowhere in any of the documentation of the last 4 years have I seen any mention of 10-20MMcf/d.( Idont think I have seen those figures from ANY gas exploration co that i have looked at...be nice tho lol)
The origional figures were (from memory) 1.5-2MMcf/d to be commercial with projected flows of 4-5MMcf/d.
Nice to see you are still on yr toes tho.Looks like we lost pilots lol


----------



## Agentm (26 August 2009)

flow rates without water are critical, and the rates you quote datz are too low for economics on an isolated play like that, the ip rates wont be anything like the flow rates on  7 day cycle..  you need  many months of flow to understand what your sustained rate would be and give an idea of further future decline rates also.

both wells are producing water and that needs immediate attention. 




EOG CEO:Western US Gas Fields Most Vulnerable To Storage Fill

HOUSTON -(Dow Jones)- Natural gas production in the western U.S. could be the most affected by gas storage reaching its capacity, EOG Resources (EOG) Chief Executive Mark Papa said Friday.
*U.S. storage for natural gas is on its way to reaching capacity as producers pump huge volumes of the fuel into a market with little demand for it*. Papa said the buildup could result in further deterioration of gas prices or production shut-ins as early as September or October.
"The West is the most vulnerable area," Papa said in an earnings conference call with analysts.
*Houston-based EOG expects to grow its output this year by 5.5%, but a storage fill-up could result in curtailments, as eroding prices could make some basins in Colorado and Utah uneconomic,** Papa said. "There's some risk depending on the storage situation," he added.
Also, if gas storage fills across the nation, pipeline pressure could go up, increasing pressure back at gas wells. That could result in "automated curtailment pretty much across the board," Papa said. "Then, production would just drop for everybody."*
The U.S. Energy Information Administration reported Thursday that gas in U.S. storage for the week ended July 31 stood at 3.089 trillion cubic feet - 23% higher than year-ago levels and 19% higher than the five-year average. Storage capacity is estimated at about 4 trillion cubic feet.




also


The short-term outlook for natural gas, however, is bleak.

The natural gas industry is also swollen with surplus production. U.S. working natural gas in storage is 17 percent above the five-year average. EIA predicts natural gas stocks to reach 3,659 billion cubic feet at the end of the 2009 injection season (October), roughly 94 Bcf above the previous record of 3,565 Bcf reported for the end of October 2007.

According to EIA, “the monthly average Henry Hub natural gas spot price is expected to stay under $4 per thousand cubic feet (Mcf) until late in the year as abundant natural gas supplies converge with weak demand driven by an 8 percent decline in industrial sector consumption.” The electric power industry will take advantage of the low natural gas prices and, using cogeneration, will switch from oil to natural gas for its energy source, offsetting some of the 8 percent decline from the industrial sector.

*Unlike the oil sector of the industry, natural gas prices are predicted to remain in their current posture with little to no increase until late 2009. EIA suggests natural gas spot prices will average $4.13 per Mcf in 2009 and $5.49 per Mcf in 2010. The Bernstein Research study suggests the mean break-even price for the Mid-Continent marginal gas producers surveyed was $4.66/Mcf, well above recent prices in the range of $3.80/Mcf.*

One year ago there were 1,504 rigs drilling for natural gas in the United States; today there are 685 rigs drilling for natural gas, a 54 percent decline. Consequently, the total U.S. marketed natural gas production is expected to decline by 1.1 percent in 2009 and by 2.6 in 2010.

Some analysts believe the need for the natural gas rig count to climb to the levels of 2008 to sustain production levels may not be necessary, pointing to the technology of the unconventional “resource plays.” Wells being drilled in plays like the Haynesville Shale in north Louisiana come on line as barnburners; however, the high rate of production falls off in 12 months and then levels off for several years. I don’t pretend to be an expert, but I do believe the 28 percent production depletion rate will eat away very quickly at the 4 Bcf per day surplus production, and the industry will need to scurry to stay up in the year to come.



GDN have a lot of work ahead of them to do datz, and in a very tough economic region


----------



## DAZT49 (26 August 2009)

agentm,
My figures are from GDN origional prospectus and follow up info.
Do you really think they would go ahead with the project if they new it was uneconomic,I dont think so.
Tough times its true, nobody forsaw the crash of the last 2 years and nobody has picked the current  recovery or how fast it is happening.
If all companies took heed of the opinions you posted there would be no exploration at all.


----------



## Agentm (26 August 2009)

DAZT49 said:


> agentm,
> My figures are from GDN origional prospectus and follow up info.
> Do you really think they would go ahead with the project if they new it was uneconomic,I dont think so.
> Tough times its true, nobody forsaw the crash of the last 2 years and nobody has picked the current  recovery or how fast it is happening.
> If all companies took heed of the opinions you posted there would be no exploration at all.




firstly datz, the ip will not be the sustained flow rate.

if your relying on the original prospectus data then you need to recalculate for the current gas price and not the fancy of the past.

do i think GDN would go ahead if they knew i was uneconomic? no i dont you could as economics speak for themselves. but i dont see a massive forward drilling program in place myself.

re the tough times, yes they absolutely are, not just for gas explorers alone..  my oil investment, adi, is in hibernation atm even though it sits on a massive eagleford shale oil play that is the hottest play in onshore in the usa. but the economics are ok for them and will soon be waking up and going forward with some luck.


re your last comment about companies heeding my opinion then there would be no exploration at all.. 

1/ its industry comment not mine..

2/i am not sure what closet you just crawled out of datz, but thats exactly whats happening onshore in the usa in the gas and oil industry..

http://en.wikipedia.org/wiki/Shale_gas


look at this site and the economics just for the shale gas alone



Economics

Although shale gas has been produced for more than 100 years in the Appalachian Basin and the Illinois Basin, the wells were often economically marginal. Higher natural gas prices in recent years and advances in hydraulic fracturing and horizontal completions have made shale gas wells more profitable. Shale gas tends to cost more to produce than gas from conventional wells, because of the expense of massive hydraulic fracturing treatments required to produce shale gas, and of horizontal drilling.

*The prices required to make drilling and producing shale gas economic are different for each shale area. One study concluded that a wellhead gas price above $4.25 per thousand cubic feet (MCF) was required to make wells completed in the Fayettville Shale in Arkansas economic, while wells to the Woodford Shale in Oklahoma required a price above $6.50.[3] Another study concluded that the Fayettville shale required a NYMEX gas price above $5.95 per million British thermal units (MMBTU), and the Woodford shale a price above $7.24; the same study arrived at break-even NYMEX prices of between $5.40 to $7.39 for the Barnett, and $6.31 for Appalachian gas shale.[4] (The conclusions might appear to be different, but one is in terms of wellhead price per MCF, and the other study is in terms of NYMEX price per MMBTU).*

To date, all successful shale gas wells have been in rocks of Paleozoic and Mesozoic age.

North America has been the leader in developing and producing shale gas because of high gas prices in that market. The great economic success of the Barnett Shale play in Texas in particular has spurred the search for other sources of shale gas across the United States and Canada.


datz very little is happening in the way of onshore gas exploration, as the economics are killing it. chevron pulled out of all onshore drilling in the usa by the end of 2009!!  companies are putting projects on ice and stopping exploration and also field development.  there are thousads of articles and announcements from the oil sector and its not exactly a secret datz..

the haynesville shale wells are massive producers, and they are economic in a lot of cases, the shale gas and the shale gas condensate fields are so large they will supply USA for 95 years easily, the gas price is not going to go up any time soon.. oil is the place to be.  not gas..

gas at $2.88  datz...  you have to say its not economic to be chasing gas onshore in the usa..


all imho and dyor


----------



## DAZT49 (26 August 2009)

1/ its industry comment not mine..
..Thats what you are basing yr assessment on.
And those industry comments are based on this point in time assuming the economy of this time.
These projects (GDN etc) are long term.

2/i am not sure what closet you just crawled out of datz, but thats exactly whats happening onshore in the usa in the gas and oil industry..
Havent come out ....yet lol

This is a chart of last 5 years Henry Hub spot prices.
For the sake of argument(mine) lets ignore 2005 (green) and 2008 (orange)
Last 12 month (red) is histical low, but if you take a mean of the other years
the rough average is $6.50-$7.
This is the sought of figure they would base the commerciality of the project. imo


----------



## Agentm (26 August 2009)

datz your dreaming..

do some research on what industry analysts are predicting for the next year and the coming years.. your deluding yourself on expecting prices like what your saying.. operators are shutting down the gas..

pretty soon it will cost you if you want to put gas in the pipeline, its at near capacity now

Natural gas prices to remain low. Flood of LNG coming to market

August 24, 2009

Natural gas prices are the lowest in seven years. Current price is below $3/million btu. Decline resulted from latest inventory report. Rigs drilling for natural gas are down by one half in the U.S. and by two-thirds in Canada. *Companies that are still drilling, connect wells to pipelines but leave the valve closed.* *Others, like leader EnCana, are shutting in wells until prices improve.* Analystssay...


datz, please dont start a debate on gas prices right now, i think you need to look at the picture of USA today..  not yesterday.. dont dream that the hub prices will come back up.. it wont happen in the near term at all..

good luck with the 2 wells and the water issues and all the best, a reality check is needed imho

all imho and dyor


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## DAZT49 (26 August 2009)

Agentm,
ok we differ, time will tell good luck with yr shale co.
I am a bit tired of our argument.
I know yr opinion ,you know mine...cease fire.


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## Agentm (26 August 2009)

DAZT49 said:


> Agentm,
> ok we differ, time will tell good luck with yr shale co.
> I am a bit tired of our argument.
> I know yr opinion ,you know mine...cease fire.




only just started to load the rifle..

if you want a broadside let me know..

$2.88 gas wont be numbers a perth small cap can make work..  

you can have the greatest gas field on the planet, but the economics have to be there..

its not a case of differ, this is not a personality issue, or a pissing contest at all datz,, just pure economics..

the shale deal adi are doing is one of  the biggest, only a few players could take on the massive undertaking on the play,, it may happen,, and if it does the "leap of bounty" will pale into insignificance,, but it needs the player to enter and buy into the play..

datz, if the shale is the real deal the adi thing will happen and all hell will break lose.. keep a watch on it in any case

right now its a sleeper.. 

i hope you made plenty on the gdn show, i think plenty made a killing,, and thats the game isnt it??

surely your not holding datz,, you must have played the magnificent ride gdn just put on for you and made a packet. ..


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## DAZT49 (26 August 2009)

"$2.88 gas wont be numbers a perth small cap can make work.."
TSV??
I did have some shares in a shale oil co a few years ago (Aussie co Tomahawk) that drilled in Oaklahoma, dont know if they are still listed.
P.s. I would win the pissing contest.


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## bigdog (17 September 2009)

17/09/2009   General Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00988900

*Planning has commenced for a third well on the field!!!*

*The company is in discussions with US financial institutions who have expressed an interest to debt fund development drilling.*

*GOLDEN EAGLE GAS FEILD UPDATE*
17 SEPTEMBER 2009
Golden Eagle Gas Field Grand County Utah

● Golden State Resources has earned an 83.33% interest in the Golden Eagle gas field by completing the Farm-in obligations to Eclipse.
● The company is reviewing options for recompleting the current wells.
● Both wells have indicated potentially commercial gas flow rates.
o Paradox Basin #1 produced gas at rates up to 3.3 Million cubic feet per day.
o Paradox Basin #2 produced gas at rates up to 1.6 Million cubic feet per day confirming the presence of gas in the Ismay Formation approximately 400 feet lower in the Golden Eagle structure than Paradox Basin #1.
● Planning is underway for the placement and design of a third well which will specifically target Ismay Formation production.

Golden State Resources is reviewing current field operations on the Golden Eagle gas field in Grand County Utah. The current wells have demonstrated commercial flow rates with 3.36 and 1.6 million cubic feet per day respectively for Paradox Basin #1 and 2, the gas production associates with high water production. Testing results suggest the water is likely channelled from behind the casing.

Paradox Basin #1 and #2 were designed as deep exploration wells as stipulated by the farm-in terms. The design is not ideal for production from the shallower Ismay Formation discovery. Both wells have confirmed the Ismay Formation as the main zone of commercial interest. Establishing commercial Ismay Formation production will be the focus of future wells.

Field Development 
The discovery of the Golden Eagle gas field by Paradox Basin #1 and the subsequent further appraisal by Paradox Basin #2 has defined an appreciable gas resource which is well located with access to major US markets. By completing the wells Golden State has earned an 83.3% working interest in the field, and is now in a position to focus on developing the Ismay Formation gas discovery. Future wells on the field will specifically target Ismay Formation production, as such they will be shallower, considerably cheaper to drill and complete, and will have the completion design engineered into the casing program.

Recompletions of the current wells will also be investigated. Possibilities include more comprehensive cement squeezes to potentially drilling short radius laterals into the productive intervals.

Paradox Basin #1
Following the previously reported production testing high-resolution surface pressure gauges were placed on Paradox Basin #1 to record the shut-in pressures during the build-up. The well exhibits a rapid pressure recovery following production suggesting that it is capable of sustained high gas rates as witnessed during the testing. Work on Paradox Basin #1 is pending further evaluation of the test results.

Paradox Basin #2
Paradox Basin #2 has established the Ismay Formation as the main zone of commercial interest in the Golden Eagle Field. The current well is not ideal for production as it was designed to test deeper objectives and does not have sufficient cement coverage across the Ismay Formation. The well successfully appraised the southern extent of the field with gas flows from the Ismay Formation. With the farmin terms now satisfied Golden State Resources will be able to focus on establishing production from the Ismay Formation.

Paradox Basin #3
Planning has commenced for a third well on the field. Paradox Basin #3 will target the crest of the Ismay Formation approximately 1.8km north east of Paradox Basin #1 along seismic line 99X. The well will be drilled from the Paradox Basin #1 pad and will deviate at approximately 36 degrees to intersect a possible reefal build-up observable on the seismic. Well design and engineering are in progress.
The company is in discussions with US financial institutions who have expressed an interest to debt fund development drilling.


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## pilots (3 October 2009)

So we have two dusters, can we get 3 out of 3 to be dusters??
I have been told not all is lost, GDN are going to dig up the first two wells and cut them in to one meter lengths, they will then sell them to the local ranchers for fence post holes.


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## bigdog (26 October 2009)

26-10-2009 09:45 AM  GDN  General Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01002486

*GOLDEN EAGLE ACTIVITIES UPDATE*
26 OCTOBER 2009
Golden Eagle Field Grand County Utah
● Application for the permit for the proposed PB#3 development well has been submitted to the BLM
● PB #3 will specifically target Ismay Formation gas production in a directionally drilled well that will intersect the Ismay Formation updip of PB #1
● Procurement of services and planning are well advanced towards a spud date in the first quarter of 2010
● The company is also reviewing options to re-enter and deepen the PB#2 well with the view of testing the Leadville Limestone early in the New Year.
● Recompletion options for the Ismay Formation in PB#1 and PB #2 are being assessed.
● The company is looking to debt fund the further development of Golden Eagle Field

Planning and well design for Paradox Basin #3 has been completed and the permitting process is in progress. State drilling permits are generally issued between 45 to 75 days from application. Paradox Basin # 3 will be directionally drilled from the Paradox Basin #1 pad and will intersect the Ismay Formation updip to the north northeast of Paradox Basin #1.

Paradox Basin #3 is being designed specifically for Ismay Formation production. The previous commitment wells were both engineered primarily as deep wells and as a consequence the Ismay Formation could not be effectively isolated for gas production.

The company is reviewing options to re-enter Paradox Basin #2 to attempt to test the Leadville Limestone. Post drill evaluation of Paradox Basin #2 suggests that the well was stratigraphically lower than expected and that the Leadville Limestone could be accessed via a sidetrack. The current well was suspended at 14216’ after the bottomhole assembly became stuck in dispersive claystone.

Testing results from Paradox Basin #1 and # 2 suggests that both wells are potentially capable of commercial gas rates, provided that water production can be suppressed. The water is considered to originate from adjacent water bearing zones and is likely being channelled behind the casing. If Paradox Basin #3 confirms water free production, then the earlier wells will be recompleted possibly by cost effective short radius horizontal sidetracks into the Ismay Formation.

The company is looking to debt fund further appraisal of the Golden Eagle gas field, and is currently in discussion with potential financiers.

839


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## DAZT49 (24 November 2009)

"Planning and well design for Paradox Basin #3 has been completed and the permitting process is in progress. State drilling permits are generally issued between 45 to 75 days from application. "
Using the date of the ann 26.10.09 as the date they lodged the application, approval should be granted/rejected from 10th Dec 2009 to 10th Jan 2010.
Hopefully we will get an ann mid Dec re permit and solid plans for Para1 and Para2.


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## pilots (24 November 2009)

DAZT49 said:


> "Planning and well design for Paradox Basin #3 has been completed and the permitting process is in progress. State drilling permits are generally issued between 45 to 75 days from application. "
> Using the date of the ann 26.10.09 as the date they lodged the application, approval should be granted/rejected from 10th Dec 2009 to 10th Jan 2010.
> Hopefully we will get an ann mid Dec re permit and solid plans for Para1 and Para2.




So whats the plan for getting more money to drill it??? Now IF as you say  one and two are commercial, why are they not on line making money??


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## DAZT49 (24 November 2009)

pilots,
I knew if I shook the tree a monkey would fall out lol:::

"So whats the plan for getting more money to drill it??? "
Read the ann...man.
"The company is looking to debt fund further appraisal of the Golden Eagle gas field, and is currently in discussion with potential financiers."

"Now IF as you say one and two are commercial" ... I didn't say nuffink,just quoted the ann.


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## bigdog (26 November 2009)

26-11-2009 08:27 AM  GDN  Golden eagle Gas Field Update  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01015561

GOLDEN EAGLE GAS FIELD UPDATE
26 NOVEMBER 2009
● RPS Energy has completed an independent review of Golden Eagle Gas field following the drilling of Paradox Basin #2
● Discovered gas at the P90 level has increased to 9.0 Bscf with confirmation of gas 288’ down dip in the Ismay Formation in Paradox Basin #2
● Paradox Basin #3 well design and planning is complete and Golden State is currently procuring a rig and services for a spud date early in the first quarter of 2010
● The current cost estimate is significantly lower than the previous wells at $5.5 million
● Paradox Basin #3 has been designed as a production well with a 5” completion in the Ismay Formation reservoir. Drilling time is estimated at 60 days
● Permitting for Paradox Basin #3 is expected to be completed during December
● A program to re-enter and deepen the PB#2 well with the view of testing the Leadville Limestone has also been prepared
● Paradox Basin #1 and 2 can be effectively recompleted by sidetracking with short radius slant wells into the Ismay Formation

RPS Energy has completed an independent evaluation of the Golden Eagle gas field following the drilling and testing of the Paradox Basin #2 well.

Discovered gas-initially-in-place (GIIP) for the Ismay Formation has increased to 9.0 Billion standard cubic feet (Bscf) at the P90 (Low Estimate) following successful recovery of gas on test from the Ismay Formation in Paradox Basin #2. The gas was recovered along the southern flank of the structure 288’ feet down dip of the equivalent Ismay Formation gas production in Paradox Basin #1.

Estimates for Discovered and Undiscovered GIIP for the P50 and P10 (Best Estimate and High Estimate) are 85.6 Bscf and 243.1 Bscf respectively. The volumes reflect the results of Paradox Basin #2 in the Pennsylvanian section as the well was positioned to intersect the crest of the Leadville Formation and was not ideal for testing the shallower Pennsylvanian targets. Objectives in the deeper Pennsylvanian section such as the Barker Creek, Alkali Gulch and Akah formations were intersected in close proximity to the bounding fault and are potentially isolated from the main structure. Results of the Independent estimates for the GIIP in Golden Eagle gas field are shown below.
Following the testing and evaluation of Paradox Basin #1 and 2 it is considered that both wells can be effectively recompleted to isolate the gas reservoirs from adjacent aquifers which are likely to be communicating with the gas reservoir via poor quality cement. The well would be recompleted by short radius sidetracks into the Ismay Formation gas reservoirs.

Recent testing and logging of both Paradox Basin #1 and 2 shows that the Ismay Formation gas zones communicate with adjacent saline aquifers. Logging on Paradox Basin #2 has resolved channelling along the cement and excessive vertical propagation of the fracture. The attempted stimulation has diverted upwards from the perforated gas zone at 10,336’ to 10,384’ to salt and water bearing formation from 10,135’ to 10,210’. The poor cement bond over the Ismay Formation is due to the casing design required for drilling to 15,000’. The Ismay Formation is just below the base of the 9 5/8” casing. This places the Ismay Formation near the top of the 7” liner, which is too high above the shoe to effectively cement. The required casing design for the deeper tests is unsuitable for effective completions of shallower objectives.

Planning and well design for Paradox Basin #3 has been completed with the permitting process well advanced. As Utah State drilling permits are generally issued between 45 to 75 days from application the issue of the Permit is expected in mid December.


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## DAZT49 (21 December 2009)

from ann  26.11.09
● Permitting for Paradox Basin #3 is expected to be completed during December
● A program to re-enter and deepen the PB#2 well with the view of testing the Leadville Limestone has also been prepared
● Paradox Basin #1 and 2 can be effectively recompleted by sidetracking with short radius slant wells into the Ismay Formation
Hopefully we will get an update in the next 3 days on all 3.


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## vinniesn (26 December 2009)

Finally, the PB#3 is approved. you can verify at state of utah government website:

http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/well_data_lookup.cfm

I think we should receive anns on this on Monday


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## DAZT49 (29 December 2009)

typical ..approved on 21.12.09 and still no ann to the market.
I had almost forgotten the contempt Sciano has for us plebs.


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## pilots (30 December 2009)

bigdog said:


> 26-11-2009 08:27 AM  GDN  Golden eagle Gas Field Update
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01015561
> 
> GOLDEN EAGLE GAS FIELD UPDATE
> ...





I don't know who came up with this story, but the bit about the casing and the cement job is all total BS. Had they run a CBL b4 the frack they would have not got in to this trouble.


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## bigdog (4 January 2010)

GDN are telling us what we all knew last week that the permit was approved approved on 21.12.09!!!

04/01/2010   Paradox Basin No 3 Permit Issued  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01026953


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## pilots (4 January 2010)

bigdog said:


> GDN are telling us what we all knew last week that the permit was approved approved on 21.12.09!!!
> 
> 04/01/2010   Paradox Basin No 3 Permit Issued
> http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01026953




They are sure on the ball, LOL. Same old story, going to drill a new well, work over one of the old ones, have gas running out our bottom's, but cant seem to sell any of it.


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## DAZT49 (4 January 2010)

At last!!
Gives us some action to watch with spud in Jan.
3rd time lucky??
Planning for Para 1 and 2 look good (tho as BD says we already knew)
The line that stood out for me was this ..
"Should Paradox Basin #3 prove effective gas production from the Ismay Formation then further works will be performed on the completions of the existing wells."
If P3 is not a goer ..what then??


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## pilots (4 January 2010)

DAZT49 said:


> At last!!
> Gives us some action to watch with spud in Jan.
> 3rd time lucky??
> Planning for Para 1 and 2 look good (tho as BD says we already knew)
> ...




 What that tells you is, it is all over. How many time more will they work over 1 an 2, hell if you cant get it to produce after one work over, it is a D U S T E R  duster.


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## DAZT49 (4 January 2010)

pilots said:


> What that tells you is, it is all over. How many time more will they work over 1 an 2, hell if you cant get it to produce after one work over, it is a D U S T E R  duster.




pilots,
2010 and we are at it again lol
I will be getting out of GDN when I get to my entry price
In about 100 years


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## pilots (4 January 2010)

*Re: GD - Golden State Resources*



DAZED said:


> pilots,
> 2010 and we are at it again Lil
> I will be getting out of GD when I get to my entry price:bang head::bang head:
> In about 100 years:bang head:




If you could only get the old ramp team back together you could make some good money on this.
I see the ramp master is now posting on real estate, must of found out he knows nothing about Oil/Gas, or minerals.


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## DAZT49 (4 January 2010)

Who was the rampmaster??
9 mill shares today so far highest since Aug 09 when things went to water...so to speak.


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## bigdog (5 January 2010)

Monday, January 04, 2010

*Golden State Resources receives permit to drill Paradox Basin #3*
http://www.proactiveinvestors.com.a...ves-permit-to-drill-paradox-basin-3-4008.html 

Oil and natural gas exploration-focused company Golden State Resources (ASX: GDN) has announced the permit to drill Paradox Basin #3 was issued by the Department of Natural Resources of the State of Utah in the United States late last month.

Paradox Basin #3 is a directional well which is specifically targeting gas production from the Ismay Formation in the Golden Eagle Gas field. Golden State discovered the Golden Eagle Gas field in 2006 with the drilling of the Paradox Basin #1 well as part of a two well farmin with Eclipse Exploration.

The basin will be directionally drilled to intersect the Ismay Formation updip to the north northeast of Paradox Basin #1. Paradox Basin #3 will spud from the existing Paradox Basin #1 pad, which has been resurveyed and will be upgraded for re-use.

The well will be deviated to approximately 30o to intersect a subsurface target in the Ismay Formation 4,437’ (1352m) to the NNE of Paradox Basin #1 on a bearing of 21.94o. Well design has been completed and site works commenced during the Christmas period.

The rig is expected on site in mid January with a 55 day drilling schedule with a forecast budget of $5.5 Million.

The well has been designed as a production well with a 5” completion into the Ismay Formation reservoir. Drilling time is estimated to be under 55 days.

Executive Director  Richard De Boer said the up-coming programme included possible further work on Paradox Basin #1 and 2 which can be effectively recompleted by sidetracking with short radius slant wells into the Ismay Formation.

A program to re-enter and deepen the PB#2 well with the view of testing the Leadville Limestone is also in progress.

Post drill evaluation of Paradox Basin #2 from the processed VSP suggests that the well was possibly closer than expected to the Leadville target when it was suspended at 14,216’ (4333m) after the bottom-hole assembly became stuck in dispersive claystone.

The Golden Eagle Gas field is located in Grand County in Utah it is well located to available infrastructure and can be readily commercialised once commercial gas production rates are established.

Both existing wells have demonstrated gas flows at rates up to 3.6 million cubic feet per day. Independently evaluated gas resources confirm the Golden Eagle structure contains an appreciable gas resource.
316


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## McNovice (11 January 2010)

quite a large jump in the past 2 days, but am unable to find anything in the news? approaching highest price since August

Bought this one a few months ago at prices slightly higher than current prices, but slid not long after, wondering if to clear out once I break even or hold on


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## rottodiver (11 January 2010)

oh well here we go again!!!!! mind you there should be some good money made here!!! have been starting to wonder how low they were going to go!!


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## DAZT49 (12 January 2010)

Looks like a little p & d over the last couple of days.
traders picked up around $150k in profits...beats working.


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## bigdog (15 January 2010)

*GDN  0.059 +0.006  +11.32%  high of 0.06 4,494,000 shares $260,368 @ 15-Jan 10:44:22 AM *

*ASX ANN today*
15-01-2010 09:45 AM  GDN  Operations Update Paradox Basin No 3  

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01029322

*PARADOX BASIN #3 - OPERATIONS UPDATE*

Site preparation for the Paradox Basin #3 Ismay Formation production well is complete
• The rat-hole and cellar is complete
• Mobilisation and rig-up is scheduled to commence on Monday 18 January with an anticipated spud date on Monday 25 January
• Paradox Basin #3 has been designed as a directionally drilled production well with a 5” completion into the Ismay Formation reservoir.
• Drilling time is estimated to be under 55 days
• The Cost estimate for Paradox Basin #3 is significantly lower than the previous wells at $5.5 million
• Discussions with potential financiers to debt fund the expansion of the field is advanced and is the preferred option.

Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to announce the imminent commencement of the drilling of Paradox Basin #3. Since the award of the permit by the Department of Natural Resources of the State of Utah on December 21, Golden State Resources has completed site preparations and has prepared the cellar, rat-hole and mouse-hole in readiness for the drilling rig. Mobilisation of Unit Drilling Rig 234 is scheduled to commence on Monday 18 January, and depending on weather, rig-up should take approximately 6 to 7 days after which the well will spud.

Paradox Basin #3 is a directional well which is specifically targeting gas production from the Ismay Formation in the Golden Eagle Gas field. Golden State Resources discovered the Golden Eagle Gas field in 2006 with the drilling of the Paradox Basin #1 well as part of a two well farmin with Eclipse
Exploration LLC.

Paradox Basin #3 will spud from the existing Paradox Basin #1 pad, which has been re surveyed and has been upgraded for re-use. The well will then be directionally drilled into the Ismay Formation gas zone and completed with 5” casing. The objective is a target in the Ismay Formation to the north northeast of Paradox Basin #1. The well deviate from vertical by approximately 30o to intersect the subsurface target in the Ismay Formation 4,437’ (1352m) to the NNE of Paradox Basin #1 on a bearing of 21.94o.

Paradox Basin #3 has been specifically designed as a production well, the lower diameter casing and proximity of the casing shoe to the completion zone will maximise the effectiveness of the cement over the gas bearing strata. Should Paradox Basin #3 prove effective gas production from the Ismay Formation then further works will be performed on the completions of the existing wells. Testing and evaluation of Paradox Basin #1 and 2 indicates that both wells can be effectively recompleted as producers.

The company is also reviewing options to re-enter Paradox Basin #2 to test the Leadville Limestone.

Post drill evaluation of Paradox Basin #2 from the processed VSP suggests that the well was possibly closer than expected to the Leadville target when it was suspended at 14,216’ (4333m) after the bottom-hole assembly became stuck in dispersive claystone. 

The Golden Eagle Gas field is located in Grand County in Utah it is located close to the Williams gas distributor which feeds Portland. Production can be readily commercialised once commercial gas production rates are established. Both existing wells on Golden Eagle Field have demonstrated gas flows at rates up to 3.6 million cubic feet per day. Independently evaluated gas resources confirm the Golden Eagle structure contains an appreciable gas resource.

Discussions with potential financiers to debt fund the expansion of the field is advanced and is the preferred option.


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## pilots (1 February 2010)

Dazt49/Sharemadder, Something is wrong here, no one in their right mind would back GDN for a third well, UNLESS they have some concrete evidence that they have Gas, now I have to say that this well is much higher up the formation, so if they do get Gas this time it should not have any water, or it it has any water they will be able to control it. I hate to admit to it but you may now get your money back, and some, you have waited that long you deserve some thing for the wait.


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## DAZT49 (1 February 2010)

"I hate to admit to it but you may now get your money back, and some, you have waited that long you deserve some thing for the wait. "
You going soft suzie??
Gas has always been there pilots lol 
Just getting the stuff out has been the problem
I am not getting excited yet, 55 days plus till that may happen.
Sp will have to get close to previous all time high for me to be really happy.
Cant see that happening in this market for a LONG time.


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## pilots (1 February 2010)

It has been a long wait, if you buy in now, you know you will win some, as this has gone up each time, but knowing when to get out is the hard part .


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## rottodiver (1 February 2010)

Pilots......
you actually dont realise how refreshing it is to see you being a bit positive here.... it has been a little frustrating over the years seeing you have been right a "few" times... hope you are right again!!!


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## pilots (1 February 2010)

rottodiver said:


> Pilots......
> you actually dont realise how refreshing it is to see you being a bit positive here.... it has been a little frustrating over the years seeing you have been right a "few" times... hope you are right again!!!




Well it could be third time Lucky, same old story, you now have to wait. You can bet as the well gets deeper the day trades will make a killing on this, just as they did on the last two wells, its all in when you sell, it would not surprise me if this runs to close to the one dollar again this time, as this one should be water free. One good thing about this is that IF and I say IF this one flows you can bet that they will go back and get one and two on line, all this well has to prove is that it will flow Gas.


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## pilots (12 February 2010)

Well No 3 at 4200feet, casing point, note this time no BS, ONLY FACTS.
F J Brown now look to be running the show, hopefully this well is the one for you to get back your money.
This well is right on the target zone, looking at the report you can see that they will be drilling in the Paradox for a longer distance.  Its my bet that if the Paradox flows they will pull back, and drill along the Paradox, this rig and crew is capable of doing that.
If the gas in this well is the exact same as one of the first wells, you can bet this will give the SP the kick start you have been waiting for.


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## Atlas79 (12 February 2010)

pilots said:


> It has been a long wait, if you buy in now, you know you will win some, as this has gone up each time, but knowing when to get out is the hard part .




Do you have any conservative best-case-scenario figure range in mind for the sp? (I am asking for opinion, not advice of course.)


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## pilots (12 February 2010)

Atlas79 said:


> Do you have any conservative best-case-scenario figure range in mind for the sp? (I am asking for opinion, not advice of course.)




No it is going to be had to tell this time, the day traders have been shut out.
This time it looks to me like they are only going to post facts, when you have the day traders working the SP over you will NEVER get the big end of town in bed with you, who wants to invest in a company that the SP can go up and down 30%


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## DAZT49 (16 February 2010)

At what depth should they be getting a "sniff"??
IMO it will never get to that $1.20 level of a few years ago, or even to the level where I bought in


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## bigdog (22 February 2010)

GDN ASX ANN
22/02/2010  8:36:00 AM  3    Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01039430

ASX ANNOUNCEMENT 22FEBRUARY 2010

DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH, DRILLING AHEAD

KEY POINTS:
● Currently drilling ahead at 5,102’
● Drilling of the 8  ¾” section is proceeding to schedule
● Essential repairs were conducted on the Blow-Out-Preventers

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding within expectation. During testing of the Blow-Out-Preventers (BOP) several leaks were observed in the both the BOP and the choke manifold, as a result the rig was placed on standby while the repairs were made.

Drilling recommenced once the repairs were completed and drilling of the 8  ¾“ section is proceeding to expectation. The well is currently in the Cutler Formation at 5,102’. Background gas is approximately 6 units with connection gas of 58 units.

The current trajectory will be maintained for the remaining portion of the well into targets in the Pennsylvanian Paradox Group.


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## rottodiver (22 February 2010)

"Drilling recommenced once the repairs were completed and drilling of the 8  ¾“ section is proceeding to expectation. The well is currently in the Cutler Formation at 5,102’. Background gas is approximately 6 units with connection gas of 58 units."


are these considered good gas units or quite standard???

Scotty


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## WRONG'UN (22 February 2010)

I can't answer that, Scotty - Pilots will probably know what it means.
My question is how long will it take for them to get to the Ismay?
The attached GDN section does not appear to be accurately drawn to scale, so scaling distances is not going to be accurate. However, as they have stated that they are on schedule, and have earlier stated that the total planned time for the well is 55 days, and the elapsed time to date is 27 days, they have a theoretical 28 days left to go the remaining distance to the destination Desert Creek FM. As the Ismay is about half way to the Desert Creek, from where they are now, notwithstanding my reservations about the accuracy of the diagram, it is probably reasonable, barring unforeseen contingencies, to expect the middle of the Ismay to be reached in about 14 days time, ie. around 8 March.
Next Monday's progress report will give a better idea.


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## WRONG'UN (22 February 2010)

Attachment to previous post.
These words added to get to the minimum one two three four five six seven eight nine ten - howzat!!!


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## WRONG'UN (25 February 2010)

Attached is an attempt to value the RPS estimates, taking account of the various quantities and probabilities presented in the table in the GDN activities report to 31 Dec 2009.
At the current price and exchange rate, the low (90% probability) estimate for the Ismay is valued at 11c ($A) and the entire field 80c.
These values, of course, have to be discounted to allow for the fact that the gas resources still have to be proven, and the costs of extracting and transporting, etc. determined . But at a current sp of 5.7c, there would seem to be a case for some re-rating, on a reward/risk basis.
Any comments?
(DYOR)


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## bigdog (2 March 2010)

ASX ANN
2/03/2010  8:27:00 AM     Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01043041

ASX ANNOUNCEMENT 2 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH, DRILLING AHEAD

KEY POINTS:
● Currently drilling ahead at 6,600’
● Drilling of the 8  ¾” section is proceeding to plan
● The well is drilling ahead at approximately 25-30’ per hour and is on target and maintaining a steady trajectory
● The Paradox Formation is expected at 9,941’

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

The well is currently at 6,600’ in 8  ¾“hole. Operations over the past few days included a period of circulating and hole conditioning to ensure that the lost circulation zones previously reported do not become problematic. The bottom-hole assembly was also modified to optimise the directional stability over the lateral section. Since replacing the bottom-hole assembly rates of penetration are averaging 25-30 ft per hour.

The well has a current angle of 34o from vertical and a heading of 18.9o. The current trajectory will be maintained for the remaining portion of the well into targets in the Pennsylvanian Paradox Group. The Paradox Formation is expected to be intersected at 9,941’ and the Ismay Formation is expected at 11,063’.

Golden State is pleased with the overall progress of the well, and through the excellent contributions of all involved we have been able to maintain efficient operations through one of the worst winters on record.
0462


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## WRONG'UN (2 March 2010)

According to the figures they have given, at 25 - 30 ft/hr, and drilling 24 hrs/day, they will reach the Ismay 8 - 10 March.
The progress over the previous two reporting periods (each 4 days) was 174 ft/day and 200 ft/day respectively, a lot slower than 25 - 30 ft/hr, and consistent with down time for the other activities mentioned in the latest report. With the same rate of down time, the Ismay would not be reached until 24 March, but I somewhat doubt they will need to take that long, if there is no trouble - the recent down time has hopefully enabled them to drill non-stop.
Any comments / better estimates?


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## bigdog (4 March 2010)

ASX ANN

4/03/2010  8:25:00 AM      Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01043847

ASX ANNOUNCEMENT 4 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD

KEY POINTS:
● Paradox Basin #3 is drilling ahead in the Cutler Formation at 7,425’
● Back ground gas has increased from 5 to 17 units
● The rate of penetration is approximately 20-25’ per hour and the well is on target and is maintaining a steady trajectory
● The Paradox Formation is expected at 9,941’

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

The well is currently at 7,425’ in 8  ¾“hole. Since Monday drilling has progressed well as the changes made to the bottom-hole assembly have increased average rates of penetration and directional stability.

Background gas has increased from 5 to 17 units with connection gas to 31 units. The lithology now shows minor carbonates as we approach the Paradox Basin sequence. Initial stratigraphic comparisons to Paradox Basin #1 indicate the well is slightly higher on the structure as expected.

The well has a lateral reach extending some 2177’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence. The Paradox Formation is expected to be intersected at 9,941’ and the Ismay Formation is expected at 11,063’.


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## DAZT49 (4 March 2010)

Seems to be going along smoothly.
Are those background and connection gas reading good?
and what of this..
"The lithology now shows minor carbonates... "?
I dont recall mention of this in P1 and P2


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## pixel (4 March 2010)

"Are those background and connection gas reading good?"

The Market seems to think so and that's what matters :


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## pixel (5 March 2010)

and it keeps rising: vwap at 2PM approaching 7.2c
If I knew how, I'd attach a chart (must learn how - maybe this w/e  )


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## WRONG'UN (5 March 2010)

Extrapolating the most recent two day drilling progress (412 ft/day) puts them into the Ismay on 13 March.


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## bigdog (8 March 2010)

ASX ANN
8/03/2010  8:31:00 AM     Drilling Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01044663

ASX ANNOUNCEMENT 8MARCH 2010

DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD

KEY POINTS:
● Paradox Basin #3 is drilling ahead in the Honaker Trail Formation
● The Honaker Trail Formation was intersected at 7,970’ and is 344’ updip from Paradox Basin #1
● Background gas is averaging 15 to 20 units with peaks of 127 units and connection gas to 192 units
● The rate of penetration is approximately 20-25’ per hour and the well is on target and is maintaining a steady trajectory
● The Paradox Formation is expected at 9,941’

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

The well is currently at 8,172 in 8  ¾“hole. Drilling is progressing well and it is anticipated to reach the top of the prospective Paradox Basin later this week.

Background gas is averaging 15 to 20 units with localised peaks of up to 127 units. Connection gas has reached 192 units. The Honaker Trail Formation was intersected at 7,795’ which is 344’ updip of the Paradox Basin #1.  Paradox Basin #3 is targeting crestal production from the Pennsylvanian Paradox Basin. The lithology has changed to limestone and sandstone.

The well has a current lateral reach extending 3,000’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence.  The Paradox Formation is expected to be intersected at 9,941’ and the Ismay Formation is expected at 11,063’.

1126


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## pilots (8 March 2010)

Good to see they are up dip by 300 feet, that will be the end of the water trouble, next week will be good.


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## WRONG'UN (8 March 2010)

Thanks, Pilots, your commentary was very helpful last time.

Recent rates of progress, as reported are:
22 - 26 Feb: 4 days, 698ft, 174 ft/day
26 Feb - 2 Mar: 4, 800, 200
2 Mar - 4 Mar: 2, 825, 412
4 Mar - 8 Mar: 4, 747, 187

At 187 ft/day, they will reach the Ismay on 23-24 Mar.
187 ft/day is a lot slower than their stated rate of penetration of 20-25'/hr, so clearly the rate of penetration only applies when they are actually drilling. If they were to drill non-stop, @ 25'/hr, they would reach the Ismay on 13 March.

So, there's a timing window there - no worries, it all seems to be going well.


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## DAZT49 (8 March 2010)

pilots,
Back from the long white cloud?
whats your take on background and connection gas flow rates?


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## pilots (8 March 2010)

Will be home next week, the back ground gas is normal, when it gets to 1000units after a bit trip, you will know that we are in the money.


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## bigdog (10 March 2010)

Two updates in three days!!!!

10/03/2010   Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01045331

ASX ANNOUNCEMENT 10MARCH 2010
*DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD*

*KEY POINTS:*
● Paradox Basin #3 is drilling ahead in the Honaker Trail Formation at 8,532’
● Background gas is averaging 10 to 20 units with peaks of 66 units and connection gas to 206 units.
● The well is on target and is maintaining a steady trajectory
● The Paradox Formation is expected at 9,941’

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

The well is currently at 8,532’ in 8  ¾“hole and drilling ahead with a new bit and modified bottom-hole assembly. Drilling is progressing well and it is anticipated to reach the top of the prospective Paradox Basin later this week.

Background gas is averaging 10 to 20 units with localised peaks of up to 66 units. Connection gas has reached 206 units. Since the last report the bit has been replaced and the hole reamed and conditioned.

The Honaker Trail Formation was intersected high to expectation at 7,795’ which is 344’ higher than the intersection in Paradox Basin #1. As a result it is expected the Paradox Formation will also be appreciably updip of the Paradox Basin #1 discovery well. Paradox Basin #3 is targeting crestal production from the Pennsylvanian Paradox Basin.

The well has a current lateral reach extending approximately 3,100’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence. The Paradox Formation is expected to be intersected above 9,941’ and the Ismay Formation is expected at 11,063’.


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## WRONG'UN (10 March 2010)

The average penetration for the last two days is 180 ft/day.
The average since 22 Feb (17 days) is 201 ft/day.
The quickest period was 2-4 Mar (2 days) @ 412 ft/day
At 201 ft/day, they will be into the Ismay 22-23 Mar.
At 412 ft/day, they will be into the Ismay 16 Mar.
The actual rate depends on how much down time there is for "....the bit has been replaced and the hole reamed and conditioned" type activities.
We hope there will no jams and/or breakages, etc!


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## rottodiver (10 March 2010)

Any takers on why the sp is jumping about.... just when i think it might be on a run it goes backwards??????


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## WRONG'UN (10 March 2010)

It went from 5.2 to 8.0 in 6 trading days - that's 54%, so a bit of profit taking, on declining volume, is understandable - it looks to me like consolidation before another upleg.


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## bigdog (12 March 2010)

Three updates this week!!!

*WRONG'UN how is GDN progressing?*

12/03/2010  8:29:00 AM      Drilling Progress Report 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01046118

ASX ANNOUNCEMENT 12 MARCH 2010
*DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD*

*KEY POINTS:*
● Paradox Basin #3 is drilling ahead in the Honaker Trail Formation at 9,095’
● Since the last report background gas is averaging 10 to 20 units with peaks of 53 units
● The well is maintaining a steady trajectory and is on target
● The Paradox Formation is expected high to the pre-drill prediction of 9,941’ based on the high intersection of the Honaker Trail Formation
● At current rates the well should reach the Paradox Formation over the weekend

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

The well is currently at 9,095’ in 8  ¾“hole and drilling ahead at variable rates. Drilling is progressing well and it is anticipated to reach the prospective Paradox Formation over the weekend depending on bit life.

Background gas is averaging 10 to 20 units with localised peaks of up to 53 units. Higher gas is observed during connections.

As previously mentioned the Honaker Trail Formation was intersected high at 7,795’ some 344’ higher than the intersection in Paradox Basin #1. As a result Golden State have upwardly revised the expected intersection of the Paradox Formation. Paradox Basin #3 is on target to be appreciably up-dip of the Paradox Basin #1 discovery well. Paradox Basin #3 is targeting crestal production from the Pennsylvanian Paradox Basin.

The well has a current lateral reach extending approximately 3,200’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence. The Paradox Formation is expected to be intersected at 9,580’. The prognosis for the Ismay Formation will be revised once the well reaches the Paradox Formation.


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## WRONG'UN (12 March 2010)

The last two days were @ 281.5 ft/day, cf 201 ft/day for the two before that.
At 281.5 ft/day, they will hit the Ismay about 19 March.
They now expect the Paradox to be (361ft) high. If the Ismay is also high, by the same amount, they will hit it one day sooner - say 18 March.


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## WRONG'UN (15 March 2010)

The latest two days were at 263 ft/day. They now estimate the Ismay to be 643 ft higher. At 263 ft/day, and at the revised height, the Ismay will be entered on 17 March. They mention at least one more bit change - it is assumed that this/these will take place after they have entered the Ismay, ie. no effect on the 17 March estimate.
Getting close to the interesting time!


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## bigdog (15 March 2010)

ASX ANN
15/03/2010  8:27:00 AM      Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01046587

ASX ANNOUNCEMENT 15 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD

*KEY POINTS:*
● Paradox Basin #3 has reached the top of the Mississippian Paradox Basin
● The well has made good progress over the weekend and is currently drilling ahead at 9,883’ in the Paradox Formation
● The provisional Formation top is 9,545’ feet which is 396’ higher than the predrill prediction
● Levels of background gas have increased to 20 units with higher readings during connections.
● The well is on target to intersect the Ismay Formation in a crestal location appreciably higher than the Paradox Basin #1 well

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan. The well reached the prospective Mississippian Paradox Basin sequence late on Sunday when the Paradox Formation was intersected at 9,545’ which is 396’ high to the pre-drill prediction and 35’ higher than the revised prediction based on the higher than expected Honaker Trail intersection.

Levels of background gas have increased and are now in the range of 20 to 50 units. Higher gas levels are present during connections and localised peaks up to 74 units have been measured.

The well is currently at 9,883’ and has a lateral reach extending approximately 3,400’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence. The Ismay Formation is expected to be intersected at approximately 10,420’.

The well is on target and appears to be going up the stratigraphic dip. The forward plan is to continue drilling into the Ismay Formation. It is expected that at least one more bit change will be required.


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## bigdog (15 March 2010)

*The changes have been underlined*

15/03/2010  9:42:00 AM  3    *Revised drilling update *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01046662

REVISED ASX ANNOUNCEMENT 15 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION DRILLING AHEAD
*KEY POINTS:*
● A gas show of 138 units was recorded at 9,752’ was reported in the morning report
● Paradox Basin #3 has reached the top of the Mississippian Paradox Basin
● The well has made good progress over the weekend and is currently drilling ahead at 9,883’ in the Paradox Formation
● The Paradox Formation is 396’ high at 9,545’ feet
● Levels of background gas have increased
● The well is on target to intersect the Ismay Formation in a crestal location appreciably higher than the Paradox Basin #1 well

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan. The well reached the prospective Mississippian Paradox Basin sequence late on Sunday when the Paradox Formation was intersected at 9,545’ which is 396’ high to the pre-drill prediction and 35’ higher than the revised prediction based on the higher than expected Honaker Trail intersection.

A gas show of 138 units was recorded in a mixed sandstone and limestone interval from 9,752’ to 9,758’. The show corresponds to a minor drilling break. Below the show the background gas levels has increased with gas peaks of 44, 42, 49, 74, and 70 units between 9,760’ to 9,810’. These revised results were just issued by Summit Mudlogging in the morning report. Levels of background gas have increased and are now in the range of 20 to 50 units.

The well is currently at 9,883’ and has a lateral reach extending approximately 3,400’ to the north of Paradox Basin #1 and is closing on subsurface targets in the Paradox Basin Sequence. The Ismay Formation is expected to be intersected at approximately 10,420’.

The well is on target and appears to be going up the stratigraphic dip. The forward plan is to continue drilling into the Ismay Formation. It is expected that at least one more bit change will be required.


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## bigdog (17 March 2010)

17/03/2010  9:50:00 AM    Drilling Operations Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01047738

ASX ANNOUNCEMENT 17 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION RUNNING IN HOLE WITH NEW BIT

*KEY POINTS:*
● Golden State Resources is currently preparing to drill-ahead into the primary target zones in the Upper Ismay and Desert Creek Formations
● Since the last report we were required under Utah State law to conduct a compulsory service and test of the Blow Out Preventer
● The hole has been reamed and conditioned and is in good condition
● The well is at 9,897’ in the Paradox Formation preparing to drill ahead
● The Paradox Formation was encountered at 9,545’ feet which is 396’ higher than the pre-drill prediction
● The new bit is expected to reach the planned total depth
● The well is on target to intersect the Ismay Formation in a crestal location appreciably higher than the Paradox Basin #1 at approximately 10,420’


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## WRONG'UN (17 March 2010)

Thanks Bigdog.
Based on the reported information, I believe this means they will be intersecting the Ismay about Friday, and drilling through it over the weekend -so Monday's report will have special interest.
Friday's report should give a better idea of the timing.


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## bigdog (22 March 2010)

22/03/2010  10:00:00 AM      Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01048854

ASX ANNOUNCEMENT 22 MARCH 2010

DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION RUNNING BACK IN HOLE

KEY POINTS:
● Paradox Basin #3 is currently at 10,680’
● The well is running back in hole after replacing the mud motor
● The well was approximately 160’ above the original anticipated depth for the Upper Ismay Formation when the mud motor failed
● Since the last report a trip to replace the telemetric system was also required
● The Ismay Formation is expected in the next 250’
● Drilling will recommence later this morning


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## DAZT49 (22 March 2010)

no mention of background gas in the last couple of anns.
250ft to Ismay..another ann today??


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## WRONG'UN (22 March 2010)

Not quite what I was expecting, but that's drilling! Hardly enough to drop the sp 10%, but that's what's happened. A few days patience is required - the Ismay has got to be close - no point doing any more "predictions".


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## DAZT49 (23 March 2010)

pilots said:


> Will be home next week, the back ground gas is normal, when it gets to 1000units after a bit trip, you will know that we are in the money.



pilots,
"Cuttings gas increased from a background of 54 units and reached 548 units."
500+units in todays an, how do you read that?


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## bigdog (23 March 2010)

Thanks DAZT49 - found the ANN

*GDN SP +$0.006 (+9.836%) to 0.067 at Tue 23 Mar 2010 10:31 AM *

23/03/2010  9:59:00 AM  3    Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01049225

ASX ANNOUNCEMENT 23 MARCH 2010
*DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION: DRILLING AHEAD*

KEY POINTS:
● Paradox Basin #3 has encountered significant gas shows over a 26’ interval from 10,692’ to 10,718’
● Cuttings gas increased from a background of 54 units and reached 548 units
● The chromatograph indicates the gas is a mixture of methane and ethane similar to the Ismay Formation gas in Paradox Basin #1
● High cuttings gas levels were also recorded in shale over the interval 10,664’ to 10,672’
● Paradox Basin #3 is currently at 10,874’ and is drilling ahead.

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to update shareholders on the progress with drilling operations at its Paradox Basin # 3 (PB#3) production well, its third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding to plan.

Paradox Basin #3 has encountered significant gas shows over a 26’ interval from 10,692’ to 10,718’. Cuttings gas increased from a background of 54 units and reached 548 units. This is a similar show to that observed in the Ismay Formation in the Paradox Basin #1 well. The chromatograph indicates the show gas is a mixture of methane (34,250 ppm) and ethane (234 ppm) which is similar to the Ismay Formation gas produced from Paradox Basin #1. The show occurs in a mixed clastic interval comprising shale, siltstone and sandstone.

High cuttings gas levels were also recorded over the interval 10,664’ to 10,672’. Gas levels increased to 168 units in a shale.

Paradox Basin #3 is currently at 10,874’ and is drilling ahead, current background gas is approximately 42 units


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## pilots (23 March 2010)

DAZT49 said:


> pilots,
> "Cuttings gas increased from a background of 54 units and reached 548 units."
> 500+units in todays an, how do you read that?



I read it as they have a Gas field, now they have to find out how big it is.
You now have to wait for the wire line logs.


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## Rob 17 (24 March 2010)

looks like we will hit the target very soon. will be interesting to see if gas readings increase today. fingers crossed.

dyor


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## pilots (24 March 2010)

Rob17. I believe they have all the Gas they want all ready in the hole now, we must wait now for the testing to finish to know just how much they have.


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## DAZT49 (24 March 2010)

Not the time for jumping up and down yet imo.
Wait for those wire line logs hey pilots?
Punters still worried about this drill..water? hence the slow response to otherwise good news


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## Atlas79 (24 March 2010)

Given Obama just signed a bill nationalizing US healthcare, does anyone else feel Sovereign risk is a factor in why GDN has not yet taken off?


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## DAZT49 (24 March 2010)

that question is beyond my comprehension.
GDN has been a much abused daytraders plaything,but good luck to them they are making money and thats why we all invest right.
I also believe that punters on HC forum ( and there are many of them)have long influenced the SP, jumping on and off illogically, at the drop of a hat.


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## DAZT49 (26 March 2010)

Nice ann today, I get the impression they are playing down results from this well, or at least toning down the language..
P1, P2 anns would be trumpeting FANTASTABILIC GAS FLOWS !!!
Anyone shed some light on this line from todays ann...
"Show zone 3 appears to have encountered a live gas zone..."


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## pilots (26 March 2010)

D49, Its all over now, they have a Gas field, no ifs or buts, just have to wait now to see just how big it is, and what it will flow.


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## DAZT49 (26 March 2010)

pilots,
I see your transformation from the dark side is complete lol
be glad when this little sell off is complete and we get some real trading.


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## ben_Q (29 March 2010)

Trading halt!

Is this related to the announcement of the iron ore sale
OR 
An announcement from P3?

Is the iron ore sale a cover for a indifferent result from P3??


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## bigdog (29 March 2010)

29/03/2010  9:49:00 AM      Golden State sells its interest in Johnson
Range Iron Ore Pr http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01050672

Golden State sells its interest in Johnson Range Iron Ore Project in W.A. to Cliffs for A$3M and retains a 2% gross sales royalty

*KEY POINTS:*
● Golden State Resources has entered into a letter agreement with a subsidiary of Cliffs Natural Resources for the sale of its interests in the Johnson Range Iron Ore Project;
● Cliffs will pay Golden State $3M, as a non-refundable royalty prepayment;
● Golden State will receive a gross royalty of 2% on iron ore sales from the tenements as well as a 2% gross royalty on the sale of all other minerals;
● Cliffs Asia-Pacific Iron Ore business unit operates the Koolyanobbing and Cockatoo Island mining operations which sold 8.5 million tonnes in 2009;
● The Johnson Range tenements adjoin Cliffs existing Yilgarn developments and can be developed to supplement exports via Esperance; and
● The sale will entitle Cliffs, an existing producer in the region, to contribute to the development of the Johnson Range Iron Ore Project and is seen as an ideal way to accelerate the project development.

Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) wishes to advise that it has entered into an agreement with Cliffs Asia Pacific Iron Ore Pty Ltd ("Cliffs") to sell all of its right, title and interest in the Johnson Range Iron Ore Project (“Johnson Range”) in the Yilgarn region of Western Australia.

As partial consideration for the sale, A$3M will be paid to Golden State in the form of a non-refundable royalty prepayment and is payable on the execution of a formal agreement on or before April 30th2010.

Cliffs will also pay Golden State a 2% gross royalty, based on the average/tonne FOB sales of all iron ore transported from the Johnson Range project area. In addition Golden State will also be entitled to a 2% gross royalty on the sale of all other minerals transported from the project.

“After much consideration, and a review of a range of development opportunities, the board felt that Cliffs were a perfect choice to ensure the timely development of the Johnson Range Iron Ore Project,” said Golden State Resources Limited Managing Director, Mr Richard Sciano. “We felt that Cliffs’ proven development and mining abilities would ensure the project was developed to the benefit of the Company and its shareholders, and allow the Company to focus its attention on the development of its other assets, in particular its Golden Eagle gas field in the US,” Mr Sciano added.

The Johnson Range project is located in the Yilgarn region and is near Cliffs Windarling iron ore deposits where mining operations have occurred for a number of years. Iron ore deposits have been located within the project area, with field sampling confirming the presence of high grade ores.

The Yilgarn region of Western Australia is predicted to emerge as the second largest iron ore producing area in Australia, with existing infrastructure and port facilities at Esperance the area is well ahead of other emerging iron ore producing areas.


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## WRONG'UN (29 March 2010)

Surely the vital information regarding the iron ore sale is the sale itself - what additional information could be so important that it requires a trading halt?
Any suggestions about the P3 results are pure speculation - don't forget they are drilling on.
GDN also have a significant interest in WCU.


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## DAZT49 (29 March 2010)

imo it is P3 news.
We were due for an update today, dont think they would have reached TD over the weekend. (They had 800 ft to drill last friday morning.)
Hopefully a big gas intersection!!


----------



## quarky (29 March 2010)

damn trading halt... 
i was looking at buying some GDN today and just when i wanted to, it goes into a halt.  should have woken up earlier 

oh well...such is life...


----------



## Rob 17 (29 March 2010)

Why did they trade for 30min today? Did they just recieve the news before the market open today? ....................


----------



## quarky (29 March 2010)

Rob 17 said:


> Why did they trade for 30min today? Did they just recieve the news before the market open today? ....................




Sales from this morning, before the trading halt

Time	Price ($)	Volume	Value ($)
10:19:23 AM	0.066	50,000	3,300.000	
10:18:43 AM	0.066	50,000	3,300.000	
10:15:58 AM	0.067	114,232	7,653.544	
10:15:58 AM	0.067	85,768	5,746.456	
10:15:37 AM	0.067	70,732	4,739.044	
10:15:37 AM	0.066	75,000	4,950.000
10:15:37 AM	0.066	275,300	18,169.800


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## bigdog (29 March 2010)

29/03/2010    *Trading Halt Request*  (normally page 2 of ASX trading halt)
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01050794

Request states: "pending an announcement regarding Paradox Basin #3 activity update"


----------



## McNovice (29 March 2010)

An announcement at 1.00 today asking for a trading halt and they have stated they expect a full announcement before the end of the day which will be in relation paradox 3.

This is sounding pretty good to me, fingers crossed


----------



## DAZT49 (29 March 2010)

They stated that they recieved info re P3 after market opened. So "something" happened, fairly suddenly... that may be some equipment probs.??


----------



## McNovice (29 March 2010)

Doh,

see what you mean. I just assumed(more hoping) that those large trades were buys and not sells.

I guess we wwill know more by close of business today


----------



## DAZT49 (29 March 2010)

All that huffin and puffin over on HC for nothin lol
Good update, more gas and good pressures (pilots..comment?)
Dont know why the TH went so long.


----------



## bigdog (29 March 2010)

*Now trading again today first trade was: 3:10:00 PM *

*Currently 0.063 $-0.004 (-5.970%) at Mon 29 Mar 2010 3:12 PM  * 

29/03/2010  2:46:00 PM      *Drilling Update *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01050843

DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH.
*CURRENT OPERATION: DRILLING AHEAD AT 11,565’*

*KEY POINTS:*
● Paradox Basin #3 has encountered further gas shows
● Gas Show 4 of 270 Units is present over the interval 11,367’ to 11,378’
● The well is currently at 11,565’ and Paradox Basin #3 is expected to reach 12,000’ tomorrow
● The well continues to show high operational gas levels reaching 1453 units during reaming, and 1823 units whist running a junk basket
● Logging is expected to commence on Wednesday

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to announce the progress of the drilling operations at the Paradox Basin # 3 (PB#3) production well, the third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Paradox Basin #3 has encountered gas shows over the interval 11,367’ to 11,378’ in the Pennsylvanian Ismay Formation. Gas levels reached 270 units in a mixed clastic formation. The show associates with a two fold increase in rates of penetration. The show zone is described as shale with inter-bedded sandstone and lesser siltstone. The formation shows intergranular porosity.

Paradox Basin #3 is currently at 11,565’ and drilling ahead. Drilling did not recommence until Sunday due the requirement to run a milling tool and junk basket, following the failure of a stabiliser during the reaming run. All the stabilisers have since been replaced. The hole is currently in good condition and operations are proceeding well.

During the hole cleaning and reaming run gas levels reached 1453 units over zone 3. Gas levels of 1823 units were recorded in the subsequent milling run. The gas influxes are considered to originate primarily from Show 3 which occurred over a 42’ interval during a drilling break in limestone from 11,012’ to 11,054’.

Logging is expected to commence on Wednesday and should take approximately 1 day.

Logs will be sent to RPS Energy for preliminary petrophysical evaluation to confirm the presence of gas. Paradox Basin #3 will be then completed with 5” casing. Rig 234 will be disassembled and data from the well will be more comprehensively evaluated by RPS Energy to assist in the design of the completion, testing and stimulation programme. A specialised test rig will be mobilised for the completion following the studies.


----------



## pilots (29 March 2010)

DAZT49 said:


> All that huffin and puffin over on HC for nothin lol
> Good update, more gas and good pressures (pilots..comment?)
> Dont know why the TH went so long.




Darned if I know why the TH was so long, its all over, ITS A WELL, end of story Sit back and enjoy the ride.


----------



## bigdog (30 March 2010)

30/03/2010  10:06:00 AM    Drilling Update 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01051089

ASX ANNOUNCEMENT 30 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH.

*CURRENT OPERATION: DRILLING AHEAD AT 11,746’*

*KEY POINTS:*
● Paradox Basin #3 has encountered further significant gas shows
● Gas Show 5 of 416 Units is present over the interval 11,683’ to 11,691’in the Pennsylvanian Ismay Formation
● The well is currently at 11,746’
● Paradox Basin #3 is expected to reach it total depth of 12,000’ later today
● Logging is expected to commence on Wednesday

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to announce the progress of the drilling operations at the Paradox Basin # 3 (PB#3) production well, the third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Paradox Basin #3 has encountered gas shows over the interval 11,683’ to 11,691’ in the Pennsylvanian Ismay Formation. Gas levels reached 416 units comprising 9111ppm C1 and 62ppm C2. The gas occurs in a mixed clastic and carbonate interval. The formation shows intergranular porosity. Logging is expected to commence on Wednesday and should take approximately 1 day.

Logs will be sent to RPS Energy for preliminary petrophysical evaluation to confirm the presence of gas. Paradox Basin #3 will be then completed with 5” casing. Rig 234 will be disassembled and data from the well will be more comprehensively evaluated by RPS Energy to assist in the design of the completion, testing and stimulation programme. A specialised test rig will be mobilised for the completion following the studies.

5428


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## pilots (30 March 2010)

Bigdog, you will have to wait for two moor weeks to see the real good news come out. The flow test are what we need.


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## DAZT49 (30 March 2010)

5 zones of gas flow, last one at 11,670ft.
It must be tempting to go past that 12,000 ft TD.
No mention of H2O or wont that show till fraccing?


----------



## Atlas79 (30 March 2010)

New announcement out, "Significant new gas shows"... hints of another ann. possible later today...    


From ann:

*Paradox Basin #3 has encountered significant gas shows over the interval 11,765 to 11,785’ in the Pennsylvanian Ismay Formation. Gas levels reached 3098 units from a background of approximately 50 units. The show zone may extend further as drilling was stopped in the show at 11,784.88’ to circulate bottoms-up and condition the gas cut mud. The mud weight decreased from 8.7ppg to 8.6ppg as a result of high gas cut. The well has just recommenced drilling and further samples are not expected for over an hour.*


----------



## ianablue (30 March 2010)

Latest announcement look encouraging.

ASX ANNOUNCEMENT 30 MARCH 2010
DRILLING UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH.
CURRENT OPERATION: DRILLING AHEAD AT 11,785’
KEY POINTS:
● Paradox Basin #3 has encountered significant gas shows
● Gas Show 6 of 3098 Units is present from 11,765’ to 11,785’ in the Ismay Formation
● The well is currently at 11,785’
● Paradox Basin #3 is expected to reach it total depth of 12,000’ later today
● Logging is expected to commence on Wednesday

Perhaps some more news today?


----------



## pilots (30 March 2010)

3000 units even with this light mud WT is as AOK all you have to do now is wait for the flow test.


----------



## Rob 17 (30 March 2010)

Lets hope we wake up to more gas tomorrow. Does anyone know how many days it takes to get back test results?


----------



## sharemadder (30 March 2010)

Rob

Are you talking about wire line and other logs they said they will be doing Wednesday?

I would imagine we may get a look next week with a preliminary commentary by Thursday if they run them Wednesday as planned.

Gas flows, well they will be 2 to 4 weeks away imo.


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## pilots (30 March 2010)

Rob, the wire line logs are live, you can sit in the logging truck and watch, depends who you are. At the end of Wednesday they will know 75% of what they have. You just sit back and watch whats going to happen this next few weeks.


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## DAZT49 (31 March 2010)

Thought we may have gotten an update this am.
They were still in the gas show, and they expected further results in the hour.
I guess they are logging atm (tho it is nightime over there,would they do the logging then??)


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## bigdog (31 March 2010)

31/03/2010  15:16  *GDN  Paradox well reaches total depth * 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01051717

Unable to paste the words in ANN!!!


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## bigdog (1 April 2010)

1/04/2010  3:59:00 PM     Golden State Raises $1.56 Million in Placement  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01052305

*Golden State raises $1.56 million in share placement for working capital on the Golden Eagle Oil & Gas Prospect*

Golden State Resources is pleased to announce that funds of $1.56 million have been raised by the placement of 30,000,000 shares at an issue price of 5.2 cents per share through Allegra Capital Pty Ltd. One free listed option will be attached for every three shares applied for exercisable at 12c and having an expiry date of 30 November 2010. The issue of the options will be subject to shareholder approval. The issue of the shares is within the Companies 15% placement capacity.

This represents an issue price of not less than 80% of the average market price of the Company’s Shares over the last 5 days on which sales in the Company’s Shares are recorded.

The shares are to be issued to institutions and 708 sophisticated investors. The Company will pay Allegra a 6% commission (plus GST) of the total funds raised and issue 1.5 million shares at no cost for advisory services.

The proceeds of the share placement will be for working capital on the Golden Eagle Gas Field, Grand County Utah.


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## bigdog (6 April 2010)

SP unchanged at 0.063 cents at 10:11 AM

6/04/2010  8:50:00 AM      *Logging results confirms total net gas pay exceeds 116 feet  *

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01052519

*Please see the ASX ANN for three data tables* 

ASX ANNOUNCEMENT 6TH APRIL 2010

*UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD,
UTAH. CURRENT OPERATION: SUCCESSFUL LOGGING RESULTS NOW
RUNNING CASING AND CEMENT*

KEY POINTS:
• Independent petrophysics confirms total net gas pay exceeds 116’
• The gas occurs in seven main zones
• Magnetic resonance imaging shows several sweet spots within pay zones
• Paradox Basin # 3 is being completed with 5” casing for testing and stimulation
• Production testing expected to start late April
• Rig 234 will remain stacked on location

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce the initial results of petrophysical evaluation of the Paradox Basin # 3 (PB#3) production well, the third well on the Golden Eagle Gas field in the highly productive Paradox Basin region of Utah.

Independent evaluation of wireline logs by RPS Energy in Dallas indicates Paradox Basin #3 has encountered significant gas. Total gas pay exceeds 116’ which occurs in seven main zones. The zones correspond with gas shows observed while drilling. This is an excellent result and the Company has made the decision to complete and test the well.

Gas zone 1 associates to show 1. Logs indicate a gross interval of 28’ with 10’ net gas pay. NMR (Nuclear Magnetic Resonance) shows good permeability in the upper part of this zone. 

Gas zone 2 associating with show 2 has a gross thickness of 36’ with a net of 23’. NMR indicates high permeability is present from 10,900’ to 10,907’.

Gas zone 3 is one of the more significant show zones and was responsible for elevated gas readings during subsequent reaming and hole conditioning runs. The zone appears to have intersected a major gas filled fracture based on the sonic log. Overall this zone has a low net pay due to low porosity. Open natural fractures can be highly productive and this zone will be examined in more detail once the FMI (Formation Micro Imaging) log is processed.

Zone 4 had a show of 270 Units while drilling. Logs indicate this may be the most significant gas bearing zone in the well with a 70’ thick gross interval containing 30’ of net pay. NMR indicates this zone will require stimulation. A second thick gas bearing interval Zone 4a is present below zone 4 and this zone has a gross thickness of 90’ with 36’ net pay. This zone demonstrates permeability on the NMR log.

Gas pay zone 5 corresponds to show 5 of 416 Units. NMR indicates this show has high permeability extending approximately 10’, in contrast conventional logs suggest 3’ of net pay. Between zones 5 and 6 there are numerous thin bed intervals which demonstrate pay (Zone 5a).

Gas pay zone 6 recorded the highest gas level while drilling at 3098 Units. The NMR suggests the show occurs over a zone of high permeability. This zone will be included in the testing. This zone occurs near the total depth and due to proximity to the base no neutron or density logs are available.

Wireline logging operations on Paradox Basin #3 commenced late Friday WST. The three logging runs conducted provided excellent coverage and overall good quality logs. Logs were sent to RPS Energy in Dallas for initial petrophysical evaluation. That evaluation has confirmed the presence of gas in several intervals. RPS will now proceed with a more comprehensive evaluation which will include the processed NMR and FMI logs. This work
will be completed during April in preparation for testing in late April.

Paradox Basin #3 has encountered higher levels of background gas and better gas shows than observed in the previous two wells. These shows correspond well with the petrophysics and permeability seen on the NMR logs. The combined gas show interval of 131’MD (114’ TVD) occurs in six zones.

The directors of Golden State are very pleased with the drilling results and are looking forward to the further evaluation and testing of Paradox Basin #3. The forward plan is to complete the well with 5” casing to TD. Casing will be cemented with a high grade cement and the pipe will be centralised with multiple centralisers.

Once the casing is set Rig 234 will be stacked on location, and a specialised test rig will be mobilised for the completion following the evaluation. Casing and demobilisation will take about 10 days and will run concurrent with ongoing evaluation and planning.

The final stimulation and testing programme will be prepared in mid April with the assistance of a stimulation expert from RPS in Calgary. Pending the availability of equipment Golden State expects the testing to commence in late April.

7070


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## lemmo (6 April 2010)

Positive ann and then drops $0.005. Just can't figure how this is played


----------



## McNovice (6 April 2010)

i was about to put the same thing. The announcement does sound really positive and thought this would shoot upi. Damn I'm so impatient or am I reading it wrong?


----------



## Atlas79 (6 April 2010)

lemmo said:


> Positive ann and then drops $0.005. Just can't figure how this is played




Flow rates is what we're really waiting for. People will still be nervous after what happened in PB 1 & 2, but as Pilots says, different people are drilling this time and it may just be a very different story. (I hold, DYOR.)


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## frankie_boy (7 April 2010)

Atlas79 said:


> Flow rates is what we're really waiting for. People will still be nervous after what happened in PB 1 & 2, but as Pilots says, different people are drilling this time and it may just be a very different story. (I hold, DYOR.)





Not sure what you are talking about with PB 1&2? What happened here? And why would different people drilling change anything? Still waiting on flow results? I thought this would be holding steady rather than be peeling off over the week..


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## Atlas79 (8 April 2010)

frankie_boy said:


> Not sure what you are talking about with PB 1&2? What happened here? And why would different people drilling change anything? Still waiting on flow results? I thought this would be holding steady rather than be peeling off over the week..




PB 1 & 2 - you can see yourself by looking at the charts. Those are the two spikes that quickly went down again. I understand they had trouble with the casing & water when they fracced the well. This was blamed on the company who did the drilling, fairly from what I can gather (I was not investing at that time.)

To be honest if you haven't read about the company's history & such, I hope you haven't invested yet because it means you haven't done even enough rudimentary research... there is a long, dramatic & very interesting story there which you can get just from forums. I think things will be different this time but you should seek professional advice, as I am nowhere near qualified to give it to you...


----------



## lemmo (8 April 2010)

Agree with all your saying however, there has been nothing in any announcments recently to instigate this 20% plus sp drop within the last couple of days. Some investors must know something that we don't


----------



## Atlas79 (8 April 2010)

lemmo said:


> Agree with all your saying however, there has been nothing in any announcments recently to instigate this 20% plus sp drop within the last couple of days. Some investors must know something that we don't




The drop could be explained by the cap raising or by fear / distrust from what happened in PB 1 & 2. A LOT of people got burned in those two wells. I'm glad it's a different company drilling it (Browns.) They are pros.

You are right though, it is weird & frustrating as a holder to see so many positive announcements & the share price is stagnant. Flow rates are the only thing that will change it, they are a couple of weeks away. I'm not paying attention to what the traders are doing, flow rates announcement will make or break this.


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## WRONG'UN (8 April 2010)

Don't forget that the gas price is now about $4, compared with around $6 in late 2009. There was a suggestion earlier on this thread, around the time that P2 was being drilled, that the gas price needs to be > $6 for wells in this part of the country to be economical. This may be a sweeping generalisation that does not apply in the specific situation that exists here. Nevertheless, if we are looking for reasons for the negative sp response to good drilling reports, the low gas price may be a contributing factor.


----------



## WRONG'UN (8 April 2010)

The $6 figure was in posting #2203, by Agentm, 19 June 09. As we all know, Agentm knows his stuff - ref the ADI thread!


----------



## bigdog (15 April 2010)

*Whats happening at GDN?

There have been no reports issued since 6/04/2010 and I imagine no news is bad news!!!!*


6/04/2010  8:50:00 AM      Logging results confirms total net gas pay exceeds 116 feet
1/04/2010  4:01:00 PM      Appendix 3B
1/04/2010  3:59:00 PM      Golden State Raises $1.56 Million in Placement 
31/03/2010  3:16:00 PM     Paradox well reaches total depth
30/03/2010  1:59:00 PM      Significant New Gas Show  
30/03/2010  10:06:00 AM      Drilling Update

8568


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## DAZT49 (16 April 2010)

"There have been no reports issued since 6/04/2010 and I imagine no news is bad news!!!!"
doggy,
You are getting a bit carried away cobber.
The last ann said it would be around 10 days till casing was finished.
Expect an ann on Monday IMO
Daz


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## sharemadder (18 April 2010)

They must be confident that PB#3 is a goer.  They have just had their permit for deepening PB#1 approved.  Wonder what Monday news will be?   Good I hope.

http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/history.cfm?wellno=4301931455


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## Atlas79 (18 April 2010)

sharemadder said:


> They must be confident that PB#3 is a goer.  They have just had their permit for deepening PB#1 approved.  Wonder what Monday news will be?   Good I hope.
> 
> http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/history.cfm?wellno=4301931455




Looking good, isn't it. Hope I can grab some more on Monday before a possible trading halt.

(DYOR.)


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## pilots (18 April 2010)

sharemadder said:


> They must be confident that PB#3 is a goer.  They have just had their permit for deepening PB#1 approved.  Wonder what Monday news will be?   Good I hope.
> 
> http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/history.cfm?wellno=4301931455




Wait until you get the flow rates, now a side tract on the first well will be a whole new ball game, just look how big this field is. You have waited a long time here Sharemadder, you only have one month more to go.


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## sharemadder (18 April 2010)

Thank you Pilots.  I must say your recent commentary regards PB#3 does install quite a bit of confidence in me for my decision to see this through.  I say that without trying to sound naive about it all.  It has been frightful at the best of times and not to mention disappointing. 

Gas flows I am eagerly waiting for and so is Dazt49 I imagine.  That test rig hopefully arrives soon.    

Cheers


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## DAZT49 (19 April 2010)

Have we really been in this since 2006??
Doesnt time fly when you have speccy shares lol
Its dissappointing that the SP wont go anywhere near the old $1.30 mark, different market, different world now.
But I am excited


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## bigdog (27 April 2010)

ASX ANN -- THE FIRST SINCE APRIL 6!!

27/04/2010   Completion rig onsite to commence testing on PB3 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01057809

ASX ANNOUNCEMENT 27TH APRIL 2010

*UPDATE FOR PARADOX BASIN # 3 ON THE GOLDEN EAGLE GAS FIELD, UTAH. CURRENT OPERATION: PREPARING TO TEST*

KEY POINTS:
● A work-over rig is onsite and preparing Paradox Basin #3 for testing
● Testing and stimulation operations will commence early May
● The work-over rig is currently cleaning- up the casing before running bond logs and setting production tubing
● Rig 234 has been demobilised
● The testing programme is being finalised to select completion intervals within the confirmed net gas pay
● The gas occurs in seven intervals with over 116’ of net pay

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is pleased to announce that operations have commenced in preparation for the testing programme. Rig 234 was demobilised on April 8th and was removed from site last week.

A work-over rig presently is preparing the well for the testing and is firstly cleaning the casing in readiness for running the cement bond logs. Casing and cementing was completed by Rig 234 immediately after the logging operations. All indications are the cementing was successful.

Production tests will be conducted on several gas zones within the 118’ of net pay that was previously reported. Testing is scheduled to commence in early May. The final testing programme is expected to be completed this week pending a review of the processed borehole image log (FMI) and final magnetic resonance logs.

The directors of Golden State are very pleased with the progress of the preparatory work on the testing programme in particular the procurement of materials and services. We look forward to the upcoming tests as an important milestone for the company.

The main gas bearing zones are:


----------



## DAZT49 (27 April 2010)

23 sales for 650k traded. slow day...again.
Seems to have run out of puff....again.
I  reckon we have at least another 6 months wait for real growth of the SP beyong the ST expecations of some holders.
A successful workover of P1 and subsequent re evaluation of the resource size to the 3TCF mentioned in the origional prospectus is what I am looking forward to.


----------



## DAZT49 (29 April 2010)

sharemadder has theorised that thay are awaiting Federal(BLM) approval before they can rework P2.,P1.
BLM approvals have always taken time,so probably good financial decision to move rig (I saw $10k/day for rig to sit idle)
On P3
From last ann..
" Testing is scheduled to commence in early May. The final testing programme is expected to be completed this week pending a review of the processed borehole image log (FMI) and final magnetic resonance logs."
That may indicate that testing will commence over the weekend or early next week.


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## bigdog (30 April 2010)

30/04/2010   Golden State finalises sale of its interest in Johnson Range 
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01059334

*30 April 2010
Golden State finalises sale of its interest in Johnson Range Iron Ore Project in WA to Cliffs for A$3M and retaining a 2% sales royalty*

KEY POINTS:
• Golden State Resources have executed the formal agreement with Cliffs Natural Resources for the sale of its interests in the Johnson Range Iron Ore Project;
• Cliffs has paid Golden State A$3Million, by way of a non-refundable prepayment on future royalty payments;
• Cliffs will pay Golden State a gross royalty of 2% on the iron ore sales from the tenements as well as a 2% gross royalty on the sale of all other minerals;
• Cliffs Asia-Pacific Iron Ore business unit operates the Koolyanobbing and Cockatoo Island mining operations which sold 8.5 million tons in 2009;
• The Johnson Range tenements adjoin Cliffs existing Yilgarn developments and can be developed to supplement exports via Esperance; and
• The sale will entitle Cliffs, an existing producer in the region, to contribute to the development of the Johnson Range Iron Ore Project and is seen as an ideal way to accelerate the project development.

Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) wishes to advise that it executed the formal agreement with Cliffs Asia Pacific Iron Ore Pty Ltd ("Cliffs") to sell all of its right, title and interest in the Johnson Range Iron Ore Project (“Johnson Range”) in the Yilgarn region of Western Australia.

As partial consideration for the sale, A$3Million has been paid to Golden State in the form of a non-refundable royalty prepayment.

Cliffs will also pay Golden State a 2% gross royalty, based on the average/tonne FOB sales of all iron ore transported from the Johnson Range project area. In addition Golden State will also be entitled to a 2% gross royalty on the sale of all other minerals transported from the project.
“Cliffs are the ideal choice to ensure the timely development of the Johnson Range Iron Ore Project which will see benefits flowing through to our shareholders in the foreseeable future. I would also like to thank the board members, staff and consultants for their efforts in finalising the transaction.” said Golden State Resources Limited Managing Director, Mr Richard Sciano.

The Johnson Range project is located in the Yilgarn region and is near Cliffs Windarling iron ore deposits where mining operations have occurred for a number of years. Iron ore deposits have been located within the project area, with field sampling confirming the presence of high grade ores.

The Yilgarn region of Western Australia is predicted to emerge as the second largest iron ore producing area in Australia, with existing infrastructure and port facilities at Esperance the area is well ahead of other emerging iron ore producing areas.

“We felt that Cliffs’ proven development and mining abilities would ensure the project was developed to the benefit of the Company and its shareholders, and allow the Company to focus its attention on the development of its other assets, in particular its Golden Eagle oil and gas project in the US,” Mr Sciano added.


----------



## Sadok (13 May 2010)

Some new news out today:

KEY POINTS: 
• Paradox Basin #1 has produced approximately five million cubic feet of gas during series of production tests 
• Flow rates were generally above 2 million cubic feet per day with the highest rate of six million cubic feet per day 
• Water production has decreased appreciably since the 2009 tests and appears to be declining with further production 
• As a result of the better than expected gas production and lower water rates the work-over has been suspended pending a review of the production potential of the current completion 
• Paradox Basin #1 will be shut-in to monitor wellhead pressure while the work-over rig moves to stimulate Paradox Basin #3 
• The fracture stimulation programme of Paradox Basin #3 is scheduled to commence Sunday 16th May (Results available mid week) 
• Paradox Basin #3 gas shows five and six will be fracture stimulated over the interval 11,674’ to 11,790’ 
• Show Six was the highest cuttings gas show observed at 3099 units 
• Two other completion intervals have been identified and will be subject to future stimulation 


Looks like water is on the decline in PB 1.  One suspects that if PB 1 can come good then the SP should jump and PB 3 would be an even better bonus.  Either way PB 1 is looking a lot better.


----------



## sharemadder (18 May 2010)

well i must say todays sp looks sick. given past performance one can't help feeling scepticism that first zone of three is no go.  i hope not.


----------



## DAZT49 (18 May 2010)

Looks like some jumping ship, but insignifigant numbers really.
53 trades for 4mill shares and $217k value.
29 trades for 17mill oppies and $106k value.
Hardly a rout.
Will be happy when that ann comes with good numbers tho.


----------



## bigdog (27 May 2010)

27/05/2010  11:44:00 AM     * Operations Update *

ASX ANNOUNCEMENT 27TH MAY 2010
ACTIVITY UPDATE: PARADOX BASIN #3

*KEY POINTS:*
● The Coil Tubing Unit has successfully clean-out the casing in Paradox Basin #3
● The well is now being circulated and conditioned prior to fraccing
● The company is confident of establishing commercial gas production in both Paradox Basin #1 and #3
● Paradox Basin #3 encountered some of the best gas shows so far encountered on the Golden Eagle Field
● Wellhead pressure in Paradox Basin #1 continues to increase and further flow tests will be run in parallel current operations on PB #3

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) has commenced cleaning out the Paradox Basin #3 well. A Halliburton Coil Tubing Unit (CTU) arrived on location last night. The CTU has cleaned out the remnant frac fluids and sand from the 5” casing. The well is now being circulated and conditioned in preparation for further operations.

Planning fracture stimulation of zones 5 and 6 is advanced. The stimulation has been re-engineered based on analysis and modelling of the previous partial stimulation conducted on the 18th May. Procurement of materials and services for the stimulation are also advanced. Once the programme has been finalised Golden State will issue an update.

The company is confident that Paradox Basin #3 will be successfully stimulated as commercial gas well.

Wellhead pressures on Paradox Basin #1 continue to increase since the flow tests conducted earlier in May. Further tests will be conducted to evaluate whether the commercial rates seen during those tests are sustainable. The testing will also evaluate the effectiveness of the existing completion and stimulation of Paradox Basin #1.


----------



## bigdog (28 May 2010)

28/05/2010  9:58:00 AM      *Operations Update *
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01067607

ASX ANNOUNCEMENT 28TH MAY 2010

ACTIVITY UPDATE: PARADOX BASIN #3

*KEY POINTS:*
● Paradox Basin #3 is currently flowing gas

● The initial gas rate was estimated at approximately 900,000 cubic feet per day

● A flow test will be conducted prior to fraccing

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce that on commencement of the clean-out operation Paradox Basin #3 began to flow gas to surface. The gas has been diverted to the flare. The flow was estimated at 900,000 cubic feet per day. The flow will be monitored over the next few days as part of the clean-up.

The well will be fracture stimulated. The initial stimulation conducted 18 May was only partially successful in that only 60,000 pounds of the intended 125,000 pounds of proppant was able to be injected into the formation. The remaining material was left in the casing and the mixing tanks.

A coil tubing unit was able to clear the casing in a few hours yesterday, and after circulating and conditioning during the past 24 hours, the well was displaced to nitrogen. Flammable gas was observed at surface almost immediately and the flow was diverted to flare. Paradox Basin #3 will be flow tested over the weekend as preparations for the larger fracture stimulation continue.

The current completion covers the lower two of six gas bearing intervals identified in the well. The gas occurs in the Pennsylvanian Ismay, Desert Creek and Akah formations.

The directors of Golden State are very pleased with this result. This result has greatly lifted our confidence in the casing design, which augments well for successfully completing Paradox Basin #3 as a producer.

1962


----------



## DAZT49 (28 May 2010)

At least things are moving on site again.
They are very excited over on HC..and just on 0.9mmcf/d lol
Thats about $4k/day $1m/year 
First zone tho, imo they will get 4 to 5mmcf/d from P3 and I would be happy with that.
I saw posts saying that there was no one on site till this weekend.. someone being mischevious??


----------



## Megacents (30 May 2010)

DAZT49 said:


> Thats about $4k/day $1m/year




well it is alright money when you are not making money. Nothing to get excited about I do agree Dazt49.

Perhaps they can get the pthers to open up a bit and turn that into $12grand a day.  Perhaps


----------



## DAZT49 (30 May 2010)

mrga,
At a mill a year they can pay off P1 in about 15 years lol
We should get an ann early this week about the 1st frac, and maybe a flow rate.


----------



## sharemadder (30 May 2010)

Hello Dazt, GDN ol'timer.

Well Fridays announcement sounded more promising too me.  More flow testing and complete another frac to compensate for the screen out and hopefully they will be reporting on even better flows soon.

Two more zones after this bottom zone to test as well.  Thats a good back up plan LOL.  

Pilots, a Q if I may regards horizontal well vrs vertical.  PB#3 being horizontal, does that provide better bonding of cement to prevent the frac traveling the outside of casing?  Still coming to grips how this well seems to be a much improved one compared to the other two, dare I say disasters, PB#1 which they are still trying to recover.  Possible they will have to side track a short radius.

Cheers


----------



## pilots (30 May 2010)

Sharemadder, The cementing is the same for both wells, they run centralizers to keep the casing in the center of the well so as the cement is all around the casing.


----------



## WRONG'UN (31 May 2010)

Sharemadder - just a small point, PB#3, although not vertical, is not horizontal either - the cross sections displayed on their recent drilling progress reports give an indication of the true angle.


----------



## sharemadder (31 May 2010)

Yeah, I know that its not a true horizontal well but it ain't true vertical either 

Thanks Pilots for the reply.


----------



## DAZT49 (31 May 2010)

One would assume (I know you cant assume anything with GDN) that prelim talks/contracts/permits would have been undertaken with the owners of the pipeline pending a good outcome from P3.
Any estimates on how long it will take to run out 7k of HD garden hose??


----------



## DAZT49 (31 May 2010)

sharemadder said:


> Hello Dazt, GDN ol'timer.
> 
> Well Fridays announcement sounded more promising too me.  More flow testing and complete another frac to compensate for the screen out and hopefully they will be reporting on even better flows soon.
> 
> ...



Hey madman...not so much of the "old"ya young whippersnapper.
Hopefully I dont kick the bucket before they actually start producing..


----------



## DAZT49 (7 June 2010)

Update way overdue imo.
GDN have never been eager to make any anns but with the small probs they had I would have thought a "everything is ok you nervous nellies" would ease my indigestion.....buuurp.


----------



## pilots (8 June 2010)

D49 and Sharemadder, you now have a gas field, and don't forget it is ALL GDNs, 100% GDN only.


----------



## DAZT49 (8 June 2010)

Pilots,
We ALWAYS new it was there lol
What a relief.
Its good to see they are going "slowly slowly catchee monkey" and getting the first three zones up and running before returning to the remaining 5 zones.
Should build some credibility in the market too.
Still a way to go tho.
Sharemadder and I may get to have that bottle of Margaret River Shiraz and the lobster yet.


----------



## DAZT49 (8 June 2010)

IMO the oppies will not get up.
Nov 30 th expiry date?
For the oppies to get anywhere near the 12c the SP would have to be around 50c-60c. (about 30% of the SP) and punters would really like to see them (oppies) up around 20c.
If the SP was flying (volatility)that would push the Oppie price to maybe 50% of the SP, much better proposition, but with only P3 to go on till Nov (I havent seen any timetable for rework of P1) there would have to be great results from the remaining zones to attain 50%.
Its gunna be toit!
All IMO of course.


----------



## bigdog (8 June 2010)

For those that have not read the ANN

8/06/2010  1:54:00 PM      Running Production Casing in PB 3  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01070169

ASX ANNOUNCEMENT 8TH JUNE 2010
ACTIVITY UPDATE: PARADOX BASIN #3

*KEY POINTS:*
● Indications are the currently completed interval will be capable of independent commercial production with anticipated intial production levels of 2 million cubic feet per day
● Production casing is being run in Paradox Basin #3
● The fracture stimulation has been effective
● Reservoir pressures are higher than Paradox Basin #1
● Gas rates are expected to increase significantly on previously stated results as the well unloads the remaining fracture fluids

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce that production casing will be run in Paradox Basin #3. Indications are that the fracture stimulation has been effective and that the currently stimulated zone is capable of independent commercial production.

The stimulation conducted on 18 May covered the lower three of the eight gas bearing intervals representing 15 feet of the 116 feet of pay identified in the well. The fracture has accessed permeable gas bearing formation suggesting the screen-out observed during the fracture stimulation was due to better than expected formation permeability, rather than blocking of the perforations.

Strong gas rates and rapid pressure recovery during the initial clean-up operations on the well indicate the fracture is effective. A pressure survey and tracer log have since confirmed effective placement of the stimulation and high reservoir pressure. The reservoir pressure was measured at 4910 psi. A second stimulation which was booked for the 12 June has been cancelled.

In light of these excellent results the directors of Golden State have decided to run the production casing and to conduct a production test on the currently stimulated interval and are confident of achieving commercial rates. In concert with the completion and testing the company is endeavouring to potentially increase production rates by completing additional pay zones.

The completions rig is on site and will commence running the production casing later today. The current completion covers the lower three of eight gas bearing intervals identified in the well. The gas occurs in the Pennsylvanian Ismay, Desert Creek and Akah formations.

* Only zones 5, 5a and 6 have been stimulated


----------



## sharemadder (8 June 2010)

pilots said:


> D49 and Sharemadder, you now have a gas field, and don't forget it is ALL GDNs, 100% GDN only.




Thanks Pilots I am very happy right now.  Pity I am working as I would have a celebration drink LOL.

This is a long awaited for announcement that Dazt and I have thirsted for some time.  

Just super


----------



## DAZT49 (8 June 2010)

pilots,
For all our jousting over the last few years , we are all in the same (gas powered) boat.
Gas field....has a nice ring to it.
cheers
daz


----------



## bigdog (9 June 2010)

Datz, Pilots & Sharemadder,

ANN stated: 
"Indications are the currently completed interval will be capable of independent commercial production with anticipated intial production levels of 2 million cubic feet per day"

What needs to be a commercial quantity in terms of millions of cubic feet per day?

3128


----------



## DAZT49 (9 June 2010)

"Indications are the currently completed interval will be capable of independent commercial production with anticipated intial production levels of 2 million cubic feet per day"

I guess 2mmcf/d.
Note that they dont have 2mmcf/d yet, they are "anticipating" the initial production level.
Also it seems they are expecting that 2mmcf/d to increase from the current stimulated level.
I am confused here, the frac fluids are still flowing back, right?
How do they run the production casing if this is still happening??


----------



## pilots (9 June 2010)

DAZT49 said:


> "Indications are the currently completed interval will be capable of independent commercial production with anticipated intial production levels of 2 million cubic feet per day"
> 
> I guess 2mmcf/d.
> Note that they dont have 2mmcf/d yet, they are "anticipating" the initial production level.
> ...




D49, the flare looks to be over 2mil a day, the well will have a packer set just above the fracked zones, they will run the TBG in to that, then they will flow the well up the TBG,they may have killed the well with brine, most Oils/Gas have all kinds of bad crap in them and can eat out your casing under a year, this is why they always run TBG as it can be changed out if it looks like it is going bad.


----------



## DAZT49 (9 June 2010)

cheers pilots,
What is yr estimate of time for the well to actually produce ?
I guess it has to produce before it can be connected to the grid. (uh duh!)


----------



## bigdog (10 June 2010)

10/06/2010   1:46:00 PM Paradox Basin 3 progress report  
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01070849

ASX ANNOUNCEMENT 10TH JUNE 2010
ACTIVITY UPDATE: PARADOX BASIN #3
*KEY POINTS:*
● 1.927 Million cubic feet of gas was produced over a 17 hour interval
● Gas rates in Paradox Basin #3 appear to be increasing and are sufficient to naturally unload fracture fluids in the 5” casing
● Golden State will continue to clean-up the well through the casing
● The well is currently shut-in for pressure monitoring
● The company now has the option to add additional pay zones to the current completion without having to re-run the production casing

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce that Paradox Basin #3 produced 1.927 Million cubic feet of gas in a 17 hour flow-back operation (2.72 Million cubic feet of gas per day).

On commencement of operations to run production casing in Paradox Basin #3 the well flowed gas at high rates and rapidly unloaded approximately 77 barrels of fracture fluids. Gas rates remained high and a total of 180 barrels of the introduced fracture fluid was recovered from the fracture stimulation during a flow-back period of 17 hours. The well is currently shut-in for a short build-up and pressure monitoring. The well head pressure rapidly increased when the well was shut-in.

The higher than expected gas rates enable the well to unload fluids through the 5” casing. This exceeds our expectation and is the most effective method to clean-up the well. As a result the company has decided to cyclically produce the well to naturally unload the introduced fracture fluids. This is a very good outcome as it enables the current production interval to be better evaluated and potentially increased by adding additional completion intervals from the upper gas zones.

The forward plan is to continue with a series of clean-up flows prior to either increasing the productive intervals by stimulating pay from zones 2, 3,4 and 4a (see table below) or setting the production casing over the current completion. The stimulation conducted on 18 May covered only the lower three of the eight gas bearing intervals in the well. The currently completed interval represents only 15 feet of the 116 feet of pay identified in the well.
The directors of Golden State are very pleased with the progress on Paradox Basin #3. We believe Paradox Basin #3 has taken a big step towards our goal of establishing commercial production from Golden Eagle field and thereby unlocking the considerable potential of our acreage located in the Paradox Basin of Utah.


----------



## bigdog (18 June 2010)

18/06/2010  12:01:00 PM  1    Paradox Basin 3 Update 

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01072583

ASX ANNOUNCEMENT 18TH JUNE 2010
ACTIVITY UPDATE: PARADOX BASIN #3

*KEY POINTS:*
● Production casing is being set in Paradox Basin #3
● A production log has confirmed the productive interval
● The completion rig is expected on site today
● An extended production test of the lower zone will be conducted

US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce that the production casing will be set in Paradox Basin #3. Since the last report a down-hole production logging operation was undertaken to confirm the production interval during which time the well continues to demonstrate good production rates. During the production logging surface rates were choked back to approximately 1.9 Million cubic feet per day with the down-hole rate measured at 1.897 Million cubic feet per day.

The production log of the currently completed interval (11,674’-11,790’) which comprises the lower three of eight pay intervals indicates the gas production is entering the well via the uppermost perforations over the interval 11,674’ to 11678’. The result is consistent with the revised Schlumberger petrophysics. The new petrophysics increases the net gas pay in the currently completed production interval to 22’ between 11,670’ to 11,700’. The gas pay zone corresponds to drilling show 5 of 416 units (11,683”-11690’) and an unreported show of 228 units at 11,668’. The lower perforations are not contributing to flow, and the high gas shows at that level are associated to gas rich shale.

The upper five gas pay zones in the well are not currently completed.

A completion rig arrived on location Late Thursday (US) and will commence operations at daylight. Once the production casing is set Golden State will conduct an extended production test and build-up. At this stage the directors are confident the current completion will be capable of commercial production.

The directors of Golden State are very pleased with the progress on Paradox Basin #3. The production log has improved our knowledge and evaluation of the field. In particular it confirms the petrophysical interpretation, and greatly lifts our confidence that in addition to the currently completed interval, Paradox Basin #3 has considerable untested gas pay.


----------



## sharemadder (28 June 2010)

Well todays announcement does leave me a little uneasy with flow reported at 600mcfd choked back and frac fluids still evacuating.  

Pilots any comment to "productivity out look" on this bottom zone? 

I guess they have to more zones to frac if they choose.

Cheers


----------



## pilots (28 June 2010)

This is normal, you have to get all the frack fluid out of the well first, this will take time, the good news is that it is unloading with out help.


----------



## DAZT49 (28 June 2010)

sharemadder,
Not losing yr faith are you
You  seem to be over on HC.
P3 is going according to the script, it would be nice if they could give some timeframe on proceedings, but that aint gunna happen.
I have posted before that I dont think the oppies will make it.
Its all good tho mate,but we are still some months away from any real "bull" market,ie any recovery in USA, and thats what will drive the SP up imo.
pilots seems to be happy, so I take that as a positive too.
cheers.


----------



## rensionurne (1 July 2010)

*GDN Golden State Resources*

Dirtstar wrote:
oh my, i would totall JIMP if we pulled that off.

GS cant be that stupid -- can they???


----------



## DAZT49 (1 July 2010)

*Re: GDN Golden State Resources*



rensionurne said:


> Dirtstar wrote:
> oh my, i would totall JIMP if we pulled that off.
> 
> GS cant be that stupid -- can they???




 I dont see that post or dirtstar as a member on ASF
Can you post it please, I mean what does it mean


----------



## DAZT49 (1 July 2010)

*Re: GDN Golden State Resources*



rensionurne said:


> Dirtstar wrote:
> oh my, i would totall JIMP if we pulled that off.
> 
> GS cant be that stupid -- can they???




I cant see that post, is it onASF?
Whats it about
Ann today had s"calming effect on me, next ann after the 72 hr


----------



## sharemadder (6 July 2010)

Todays announcement (05.07.2010) sounded promising with gas flow a little higher as they continue to unload frac fluids.  SP decline or rot as some may say hopefully aborted from here on.


----------



## sharemadder (14 July 2010)

Todays announcement by GDN to source a pilot plant and pipeline on such low output from two wells seems weird.  They haven't really tested the entire well at all at PB#3. Why???


----------



## DAZT49 (16 July 2010)

sharemadder said:


> Todays announcement by GDN to source a pilot plant and pipeline on such low output from two wells seems weird.  They haven't really tested the entire well at all at PB#3. Why???




Yes strange madman.
I guess the good news is the fact that the pipeline will now be built, i dont think the company would build at their own expense if they thought the payload was too small.
Plus a small income stream willl  placate a few of those nervy punters on ather forums.


----------



## Qjumpa (17 July 2010)

pilots said:


> This is normal, you have to get all the frack fluid out of the well first, this will take time, the good news is that it is unloading with out help.




G’day Guys, i’ve been reading you thread here for many years now.

Pilots , i would be interested in your view of P3s sudden decrease in pressure – it was up near 5500psi and has now decreased to 2600psi., But is regaining according to the announcements. 
There are a few theories of an underground blow-out scenario being thrown around which seems plausible. 

If it is a blow out but pressure decreases from here would that be an easy fix sealing it up or a major $$$$ & time draining exercise. 

I hope this will be the last hurdle before the pilot production plant commences.


----------



## pilots (17 July 2010)

I don't buy the under ground blow out, it could be true. I am more worried that it was a high PSI low volume zone. We won't know what it is until we get the flow results.


----------



## DAZT49 (22 July 2010)

From ann..
"US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (“Golden State” or “the Company”) is very pleased to announce that the well head pressure on Paradox Basin #3 after a ten day shut-in period is 3600 psi and continues to increase. A 25 psi increase was observed in the past 24 hours and as a result the down-hole gauges will be left in the well until early August. The down-hole gauges are rated for 30 days of measurement.
The well head pressure on Paradox Basin #3 is the highest seen on the field so far and indicates that the bottom-hole pressure is approaching the virgin reservoir pressure which was measured prior to the clean-up and flow testing operation on the well.
Extending the build-up time will improve the data and allow more detailed analysis of the well. The analysis should also indicate whether Paradox Basin #3 would benefit from a larger fracture stimulation. The long tail on the build-up is a preliminary indication that a larger stimulation would increase productivity. The current Stimulation has only placed approximately 32,000 pounds of the intended 120,000 pounds of proppant into the formation.
Gas analysis from Paradox Basin #3 confirms the gas is a sweet dry gas with low inerts. The thermal value is 1024 BTU/cubic foot.
The directors are very pleased with the gas analysis and high well head pressure."
Pilots,
The increasing pressure should be a good thing shouldnt it?
Wouldnt that mean a susequent increase in gas flow?
Sweet dry gas with low inerts?
and this "The well head pressure on Paradox Basin #3 is the highest seen on the field so far and indicates that the bottom-hole pressure is approaching the virgin reservoir pressure which was measured prior to the clean-up and flow testing operation on the well.
IMO we are still slowly slowly catchee monkey and while I am bored out of my tiny brain after 5 years on GDN, I am sure my GDN pension day is only a few more months off
My LT mate in GDN sharemadder seems to have lost the plot, but I sure he will return to his normal state when SP = $1.30 again


----------



## bobowens (23 July 2010)

hands up, who took on board GDN listed options and think there going to get anywhere near 12c each on or before 30th Nov.2010
Bob.


----------



## DAZT49 (23 July 2010)

bobowens,
i have posted acouple of times that IMO the oppies wont get up.
looking for them to get to 1c  tho so I can bail out.
LT I am optomistic for the shares tho.


----------



## DAZT49 (2 August 2010)

Hey Bigdog you missed an ann lol.
From the ann...
"A production plant is planned for the Golden Eagle gas field. The company is confident of moving to production on the basis of the capacity of the existing wells. The plant will process gas from Paradox Basin #1 and #3 which will be delivered into the Williams gas pipeline. Our US landman is currently working on converting the existing water right of way to a gas right of way to tie into the Williams line. Simultaneously investigations are underway into development options including utilising a gas gatherer to independently supply, build and operate a production facility or potentially owning and operating our own facility. The first firm development proposal from an independent gas gatherer is expected in August. At this stage the longest lead time item appears to be the establishment of a tap point and installation of metering into the Williams pipeline. Williams gas pipelines have initially responded that the tap could be established early in 2011."
A couple of things..it seems that the pilot plant has been rejected in favour of permanant production plant ...this err is good err!!
The other point is that it will be "early in 2011" before they can actually tap into the grid. 5 months to run a 2.8K pipeline??I cant believe that. 18 metres/day!!!My old mum could dig that in a couple of weeks.
Or...can the "gas gatherer" truck the gas out till such time as the tap is made??


----------



## DAZT49 (16 August 2010)

question.
gee dazt seems like you are the only silly one left on this thread.
answer.
I think you are right dazt, no posts by anyone else for a while.
q.
dont you think you are wasting your time talking to yourself?
a
well i have been married for 31 years so I am used to it
q
so do you see any potential for GDN to ever get to its IPO price of 25c?
a
i think so,but they are certainly going about it all in a strange way,not fraccing those much vaunted upper zones in P3 which could make it a real well with 5.. maybe 6mmcf/d.
will be interested in the reserve upgrade.
thanks dazt
No worries dazt.


----------



## Qjumpa (16 August 2010)

Datz, how are you still breathing after owning GDN for 5 years AND marriage:bonk:?
There is just too much drama with both a wife & the GDN .
Three things have happend to me since i brought into GDN, 

-My bank balance has eroded 
-My blood pressure has skyrocketed 
-My hair has fallen out

And in that order:bricks1:

Hopefully the next announcement is a good one. But IMO the options are dead in the water!:horse:


----------



## DAZT49 (16 August 2010)

Qjumpa,
Yeah the oppies have had it
you are right , been in GDN for 5 years!!! 
I blew it when the SP was $1.25 and the drill got stuck, my broker said to hang on as the 'the fundamentals are the same" ie 440bcf-3Tcf and they were stiff on P2. He also held GDN and still had them last time we spoke, a couple of months ago.
I still believe that the size of the reservoir will be massive but it could be a year or two before its all realized and the SP gets over $1 again.(maybe your hair will grow back then too!!)
cheers
daz


----------



## helpmeunderstand (18 August 2010)

DAZT49 said:


> Qjumpa,
> Yeah the oppies have had it
> you are right , been in GDN for 5 years!!!
> I blew it when the SP was $1.25 and the drill got stuck, my broker said to hang on as the 'the fundamentals are the same" ie 440bcf-3Tcf and they were stiff on P2. He also held GDN and still had them last time we spoke, a couple of months ago.
> ...




I am also one of the donkies waiting for about 5 years, so I guess keeping on waiting and maybe stocking a bit more a long the way is the only thing to do, cause mark my words GDN WILL BE BACK to the $1 mark, it might take a year or two but THEY WILL BE BACK!


----------



## Joe Blow (18 August 2010)

DAZT49 said:


> I still believe that the size of the reservoir will be massive but it could be a year or two before its all realized and the SP gets over $1 again.






helpmeunderstand said:


> mark my words GDN WILL BE BACK to the $1 mark, it might take a year or two but THEY WILL BE BACK!




Considering the GDN share price is currently 2.6c you two both have a lot of explaining to do. You know our policy on posting price targets. If you claim that the GDN share price is going to get back to $1 you need to explain *why*.

Or am I to assume that you're both just doing some shameless ramping?


----------



## helpmeunderstand (18 August 2010)

Not trying to ramp up anything, just expressing sounds of hope....... futuristic sounds of hope


----------



## Joe Blow (18 August 2010)

helpmeunderstand said:


> Not trying to ramp up anything, just expressing sounds of hope....... futuristic sounds of hope




Okay, so are you prepared to explain on what basis you forsee the GDN share price getting back to $1 or did you just pull that number out of thin air?


----------



## helpmeunderstand (18 August 2010)

Joe Blow said:


> Okay, so are you prepared to explain on what basis you forsee the GDN share price getting back to $1 or did you just pull that number out of thin air?




Well, 5 years a go GDN actually managed to reach the 1.25 after trading around the 0.20 mark for a while and there was no real findings back then, this time they actually did find some gas and may explorer even further, so I guess there shouldn't be a reason not to achieve more or less the same SP as they did in its glory days. As the investors are still very worried about today's market,  it might take a while but I think it will (other wise what am I going to do with all my shares?)


----------



## springhill (18 August 2010)

helpmeunderstand said:


> Well, 5 years a go GDN actually managed to reach the 1.25 after trading around the 0.20 mark for a while and there was no real findings back then, this time they actually did find some gas and may explorer even further, so I guess there shouldn't be a reason not to achieve more or less the same SP as they did in its glory days. As the investors are still very worried about today's market,  it might take a while but I think it will (other wise what am I going to do with all my shares?)




Has there been any share dilution since 2005? Same management? Or is it the exact same playing field? You are comparing apples to oranges.
If 'returning to former glory' is part of  your criteria for holding an investment, then i guess you'll love OEX, ROC and INP amongst many, many others.


----------



## DAZT49 (18 August 2010)

joe,
Many times in the last 5 years I have used C.K.Locke"s 2006 report on GDN as basis for any price projection.
http://www.goldenstate.com.au/sysnews/3
The basics of the paradox basin have not changed,and I am refering to the potential size of the  resource.
From that report...
"GOLDEN EAGLE PROJECT (EARNING 83.3%-
EQUITY, OPERATOR)
The Golden Eagle prospect is located in the
Four Corners region of the USA, in the
south-eastern part of Utah.
GDN anticipates the prospect may hold up
to 3 TCF of gas equivalent with a mid-target
of approximately 440 BCF plus liquids with
an assessed probability of success set at
over 19.5% by the company’s geologists.
With GDN’s equity of 83.3% in the Golden
Eagle prospect; GDN believes the company
can potentially offer great leverage of
success. A mid-case potential discovery of
440 BCF of gas would equate to a
significant move to GDN’s share price on
the ASX.
A minimum case of 50BCF currently is
potentially economic. Even based on this
alone it technically values the GDN share
price at $1.00 to $1.50....."
Well the GFC put pid to a lot SP's GDN was one of them.
On those 2006 figures (lets use $1 not $1.50)440 BCF gave an SP of $8+ 3TCF $30+
SP at time of that report was 22c today.027c (about 1/8th)
So am basing my  $1+ on a midcase 440BCF range
(Thats 1/8th the 2006 figure)
.We should have an updated resouce size soon, wiil be intersting to see the projections.
cheers
daz


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## DAZT49 (3 September 2010)

Nice ann this morning,purging their souls a little.:
Big difference from the cut and past jobs we normally get
Hope they can get this reporting and consultation process going.
No signature on the letter, Dont think it was R.D.B., and Scanio ( who told me several years ag to 'go and suck eggs'. doesnt have the touch.


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## Boognish (28 September 2010)

Reserves upgrade announcement this morning, good news for the company:



> BRIEF SUMMARY ON THE RPS RESERVES UPGRADE – R de BOER
> • Independent resource report completed by RPS
> • Significant Increases in Discovered Gas resources
> • Substantial increases in discovered GIIP in the Ismay Fm:
> ...




I hold this stock.


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## McNovice (30 September 2010)

It's gone all quiet on here since the godfather stepped in. Is this not the kind of news we have been waiting for or am I getting excited over nothing?


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## DAZT49 (30 September 2010)

The godfather??
Fair day for GDn today, xjo down 60pts not helping matters and flat market over the last couple of days.
Still I am dissappointed the last ann didnt really move th Sp as we all would have wished, seems to be holding .038c tho.


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## MEGALADON (28 October 2010)

I feel sorry for the fools who bought millions of the oppies at .05c even when the stock was  6c (120%) below the strike price and there was no pending activity, just some bull trang from Sciano about investor presentations.

So much for "adding and realising value" before the oppies strike.


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## MEGALADON (28 October 2010)

Possibly the only way to realise true value from this company is to remove Sciano and bring in a credible opperator.


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## DAZT49 (29 October 2010)

mega,
Guess I am a bigger fool for buying in at 1c??
No doubt in my mind that GDn is finally on a track to become a producer, and eventually a big producer, its just a matter of time for the big to become big.


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## MEGALADON (29 October 2010)

I might have failed to mention that I also bought the oppies at 1c and sold em at .4c for $10k loss. 

I am still holding the stock and even topping up, as I agree they have a geniune feild and can start selling gas very shortly. If they drill another well on the back of production they might spike as high as 2007 ?


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## DAZT49 (29 October 2010)

Its going to take quite a while, but I reckon it will certainly come close to 2007. it must be said that it is a completely different market now post GFC.


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## MEGALADON (29 October 2010)

Yes, Market Conditions are different but the stock is highly sentimental to all the 2007 day traders who you would think could not resist the temptation if it starts to move. 

Heres hoping


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## radioham6 (30 October 2010)

Mmm I'm new to this game, but....

Faith & hope doesn't give you returns. 
Yes I held this stock once.
I sold the lot after some serious thinking.....

I put my money in BETTER performing shares. 

Yes much better return.

Why wait? 

Why feel that it owes you.

I call it misplaced faith.

Investing is not like a marrage or relationship with a loved car.

Your money needs to work, either in bonds, stocks, e.t.c or just a simple plain bank account.

One must not feel attached to a company, and if the returns are poor, give them the flick. It's a very simple philosophy.


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## Agentm (30 October 2010)

radioham6 said:


> Mmm I'm new to this game, but....
> 
> Faith & hope doesn't give you returns.
> Yes I held this stock once.
> ...





radio

not that i would invest one cent in this one ever

you can double up with the pump and dumps this one systematically repeats

its obviously got nil to offer except sheep in HC and volume to trade in

dyor


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## DAZT49 (12 December 2010)

Another year down.
Hopefully some of the targets (ie ROW and appointment of gas gatherer) arn't too far away.
Seems there is a true rally happening with DOW now at highest since Lehman collapse in 2008.
http://www.theage.com.au/business/markets/us-stocks-climb-to-postlehman-high-20101211-18t5o.html
This will lift the whole market (again ..hopefully)
Henry Hub gas futures price reovering (nearly $1 since Oct)
http://www.wtrg.com/daily/gasprice.html
GDN saga has been going for a few years now,hopefully (thats 3) 2011 is the year when they finally reach some of its potential, get P1 and P3 firing, sell some gas, and spud a couple of new wells.:


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## DAZT49 (15 December 2010)

Chart shows it has broken out of a 3 month channel.
Below top bollinger band with bollys squeezing together (usually means a big breakout..one way or the other.)
Trend line is still down.
RSI is over 75 so overbought??
Stoch's look ok just gone thru 50 and heading up.
IMO may be a pullback as some take profit and shorters start to cut their losses.
Support is at .023c with resistance at .03c , .032c and .036c
All imo of course.:


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## DAZT49 (27 February 2011)

Just talking to myself again...They intimated mid 1st quarter 2011 for decision on deliverabilty study, well thats just passed so maybe...just maybe an ann in the next couple of weeks?


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## DAZT49 (28 February 2011)

Wow, didn't see that resignation happening
Not sure what it all means, hopefully the market likers it.


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## McNovice (16 March 2011)

Some major movement today and some major announcements. Yesterday I was looking at getting some more but decided against it. 

I am a bit confused on what to do, any thoughts?

http://www.proactiveinvestors.com.a...-considers-reconstruction-proposal-14689.html


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## Wysiwyg (16 March 2011)

Director Kain with Nuenco Oil (NEO) which is now extinct was a failure. Talks alot but nothing happens. They spent 2 years "evaluating" a well. :blbl:


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## Wysiwyg (17 March 2011)

DAZT49 said:


> Just talking to myself again...



But the BIG question is ... Did you catch any monkeys??


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## McNovice (28 April 2011)

http://www.proactiveinvestors.com.a...xtension-of-golden-eagle-gas-field-15811.html


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## McNovice (20 May 2011)

Has anyone got any news on if this well has been put in place? From the below article it was meant to be in place 5 days ago? I use wotnews.com to search for latest news but nothing. Anyone know or use a better site?

The company is engaged in demonstrating an economic case for the Paradox Basin #3 well located within the Golden Eagle 70 Unit as a “paying well” to the satisfaction of the United States Federal Bureau of Land Management (BLM) by the 15 May 2011.

Should a “paying well” determination be achieved, to retain the remainder of the lands in the Golden Eagle 70 Unit outside of the participating area, a new well must be in progress on the anniversary of the fifth year from the date of first approval, being 15 May 2006.


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## hsv8fan (26 May 2011)

Have the GDN shares just been split in half, relisted as GDNA and therefore halved in value as part of a restructure?


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## DAZT49 (27 May 2011)

no.
If you hold say..100,000 shares at 1c = $1000
After consolidation..
50,000 shares at 2c = $1000.


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## SevenFX (30 May 2011)

DAZT49 said:


> After consolidation..
> 50,000 shares at 2c = $1000.




2for1 is fine if they're trending UP but these suckers are have been trending down for some time and once released back into market unless there some news they will prob hit 1c again halfing share allocation n shareprice again.


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## SevenFX (1 June 2011)

GDNDA will be released back onto the market as GDN.

I interested to hear why the shareholders voted to take a 2for1 deal as shareholdings have halved overnight in the hope they will open at double the price (currently .016c) with the chances of of share trading further down which means I now own shares a quarter of the bought value/quanity.?

What determines whether they would have been delisted ($0value) as they seems to be many that are trading below 1c and why couldnt have they released more shares on the market without halving the shares owned..???

SevenFX


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