GDN - Golden State Resources

[sharemadder]

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]

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]

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]

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.

 

[bigdog]

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

 

[vinniesn]

Look like pb2 is dud..they might not have found any more gas to announcement. tomorrow ann should be last hope for pb2.

 

[Agentm]

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]

agentm,
lol you posted all that some time a go didnt you??
Did you cut n paste yr own post

 

[Agentm]

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]

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]

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]

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.

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:

 

[DAZT49]

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

 

[vinniesn]

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.

 

[DAZT49]

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.

 

[bigdog]

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]

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!

 

[vinniesn]

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.

 

[bigdog]

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.

 

[DAZT49]

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