GDN - Golden State Resources

[DAZT49]

just reporting a conversation between a shareholder who bothered to call Ricky D via phone not long ago.

 

[pilots]

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?

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.

 

[DAZT49]

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

 

[pilots]

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.

 

[WRONG'UN]

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.

 

[urgalzmine]

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.

 

[helpmeunderstand]

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.

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.

 

[pilots]

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.

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???

 

[WRONG'UN]

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.

 

[bigdog]

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.

 

[pilots]

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.

 

[urgalzmine]

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.

 

[WRONG'UN]

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.

 

[pilots]

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.

 

[bigdog]

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.

 

[Evo]

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

 

[Agentm]

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..

 

[pilots]

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.

 

[new_trader1984]

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.

 

[mick z]

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