GDN - Golden State Resources

[McNovice]

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]

They stated that they recieved info re P3 after market opened. So "something" happened, fairly suddenly... that may be some equipment probs.??

 

[McNovice]

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]

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]

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]

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]

30/03/2010 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

 

[pilots]

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.

 

[DAZT49]

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]

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]

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]

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]

Lets hope we wake up to more gas tomorrow. Does anyone know how many days it takes to get back test results?

 

[sharemadder]

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.

 

[pilots]

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.

 

[DAZT49]

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??)

 

[bigdog]

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!!!

 

[bigdog]

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.

 

[bigdog]

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

 

[lemmo]

Positive ann and then drops $0.005. Just can't figure how this is played