GDN - Golden State Resources

[DAZT49]

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]

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]

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]

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]

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

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]

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.

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]

Not trying to ramp up anything, just expressing sounds of hope....... futuristic sounds of hope

 

[Joe Blow]

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]

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]

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]

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

 

[DAZT49]

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.

 

[Boognish]

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:

P90 up 85% from 9.0 Bcf to 16.7 Bcf

P50 up 91% from 31.5 Bcf to 60.4 Bcf

P10 up 109% from 101.0 Bcf to 212.0 Bcf
• The increase in discovered resources highlights:
 The success of Paradox Basin #3 in providing critical data
 Importance of demonstrating commercial production capability
• RPS commissioned to undertake a deliverability and development study
• Tenders to provide gas production facilities are currently being finalised

I hold this stock.

 

[McNovice]

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?

 

[DAZT49]

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.

 

[MEGALADON]

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.

 

[MEGALADON]

Possibly the only way to realise true value from this company is to remove Sciano and bring in a credible opperator.

 

[DAZT49]

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.

 

[MEGALADON]

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 ?

 

[DAZT49]

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.