GDN - Golden State Resources

[bigdog]

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]

"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]

"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??

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]

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]

10/06/2010 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]

18/06/2010 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]

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]

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]

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]

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]

Re: GDN Golden State Resources

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]

Re: GDN Golden State Resources

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]

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]

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]

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]

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]

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]

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]

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]

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.