GDN - Golden State Resources

[chance fate]

... don't know how to cut and paste announcements... you'll need to look at the wording of the company's request for the trading halt... it concerns an advanced uranium mining exploration and production joint venture...

 

[Agentm]

the uranium is mentioned in the trading halt on the second page.

its one hell of a show at the well, no major gas intervals in the primary, and now a trading halt, the sp has been fluctuating all over the place,, must be gut wrenching for the holders..

good luck with the announcement,

 

[chance fate]

Correction .... that should be venture (with a small v) .....and not joint venture.... I recall the price jumped 5-10c on the back of news re: iron ore exploration not so long ago... hope the sp does the same with this....

 

[elcruzy]

My apologies I didnt open the ann, it is usually just a request for a trading halt. I think its quite sneaky to place the uranium message in the request - trying to give us shareholders some hope???

 

[bigdog]

GDN ASX ann today
GDN 9:58 AM Trading Halt
http://www.asx.com.au/asxpdf/20070427/pdf/3124gd3zzbd7yl.pdf

Please refer page 2 of the document which GDN issued and states:

Golden State Resources Limited requests an immediate trading halt in the securities of the Company pending the announcement of details of an Advanced Uranium Mining and Exploration venture currently being executed.

The Company expects to be able to release full details by Monday 30 April 2007.

 

[Wysiwyg]

3 announcements in the past week... hmmm , this one stopped the slide in it`s tracks.Shuffled to the top of the announcement list maybe.

I couldn`t bear to watch the slide and sold at 89 c. yesterday when $1.25 was up for offer at one stage.Then this announcement today on the U play could not wait till the end of the Paradox drill.

I suppose that could be paradoxical.

 

[elcruzy]

3 announcements in the past week... hmmm , this one stopped the slide in it`s tracks.Shuffled to the top of the announcement list maybe.

I couldn`t bear to watch the slide and sold at 89 c. yesterday when $1.25 was up for offer at one stage.Then this announcement today on the U play could not wait till the end of the Paradox drill.

I suppose that could be paradoxical.

I had promised myself not to be too greedy and yet when 1.20 came around AGAIN I still didnt sell because of the 12month CGT rule. unfortunately this stock is very volatile....who knows how good the reaction will be anyway. Good on ya - you cant go broke making a profit!!

 

[Wysiwyg]

I had promised myself not to be too greedy and yet when 1.20 came around AGAIN I still didnt sell because of the 12month CGT rule. unfortunately this stock is very volatile....who knows how good the reaction will be anyway. Good on ya - you cant go broke making a profit!!

Hi cruzy...yes, volatile it is.This info may give the s.p. a boost up to bail out those caught up higher. I hope the s.p. trend is upwards after your 12 months are up, pending sentiment. W.

 

[Football Star]

Hi cruzy...yes, volatile it is.This info may give the s.p. a boost up to bail out those caught up higher. I hope the s.p. trend is upwards after your 12 months are up, pending sentiment. W.

Why would investors want to bail? The well is a potential company maker and the U thing may be significant. We shall see tomorrow.

Regards
FS

 

[DAZT49]

No announcement today re the U venture, and no update on drilling at Paradox.They must be throught to China by now.
I bought in in Sept 2005 so I am doing allright, but what a roller coaster!!

 

[bigdog]

ASX ANN just issued
GDN 6:00 PM Third Quarter Cashflow Report
http://www.asx.com.au/asxpdf/20070430/pdf/3126w094z24kqj.pdf
-- Cash at end of quarter $1,962,000

GDN 6:00 PM Third Quarter Activities Report
http://www.asx.com.au/asxpdf/20070430/pdf/3126vyx9xyrpmm.pdf

HIGHLIGHTS
• Golden Eagle Oil & Gas Prospect, USA: The Paradox Basin #1 lost pipe recovery was completed on 27 March. The well is at 16,306 feet (4,970m). Gas shows were encountered in the Leadville Limestone objective. Drill stem test is underway.

• Thompson Uranium Project: The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

• Laverton Gold Project: New gold anomalous alteration zone located by RAB drilling

• Johnston Range Iron Ore Project: Bedrock iron ore targets to be tested in coming quarter.

GOLDEN EAGLE PROSPECT - ONSHORE OIL & GAS, UTAH, USA
During the quarter, drilling continued on the Company’s first well, Paradox Basin #1, on the Golden
Eagle Oil & Gas Prospect in Grand County, Utah. An extended period of lost pipe recovery was completed on 27 March.

Drilling continued into the Pennsylvanian Molas Formation and Mississippian Leadville Limestone Formation. A gas show was intersected from 15,822’ to 15,883’ at 200 units of C1 (methane) and C2 (ethane). Background gas levels increased to 300 units with connection gas up to 600 units.

The well passed from the Leadville Limestone into the Devonian Ouray Formation at 15,916’, then entered the objective McCracken Sandstone at 16,200’. The well is currently at 16,306 feet (4,970 m), in the objective McCracken Sandstone. Background gas levels are reduced although with trip gas up to 940 units.

The rig is currently conducting a drill stem test (DST) to test gas levels and pressures in the Mississippian Leadville Limestone target. Gas shows from the Leadville Limestone would likely be subdued by the hydrostatic pressures associated with increased depth of drilling operations. Following completion of the DST the well will drill on into the McCracken Sandstone objective.

PRODUCTION AND PERMITTING
So far twelve potential gas production intervals have been defined in Paradox Basin #1 between the Upper Ismay and the Leadville Limestone, as well as one potential oil interval. Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged.

Permitting for an onsite gas plant awaits completion of the well. The production potential for the intervals annotated below will be determined upon setting production casing and conducting flow tests at the completion of drilling.

THOMPSON URANIUM PROJECT, UTAH, USA
Golden State Resources has executed a memorandum of agreement for a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.

It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of a planned capital raising. It is the intention of Golden State’s directors that there will be a priority entitlement for Golden State shareholders to participate in this raising.

The agreement is the result of six months’ negotiation with White Canyon and will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger advanced project with a short time frame towards mining operations.

 

[bigdog]

30-04-2007 06:03 PM GDN Drilling Status Report just issued
http://www.asx.com.au/asxpdf/20070430/pdf/3126w7d5vfg9wv.pdf

Drilling Status Report – 30 April 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, is at 16,306 feet (4,970 m) in the Devonian McCracken Sandstone.
• The rig is conducting a drill stem test (DST) to test gas levels and pressures
in the Mississippian Leadville Limestone target.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Golden State Resources is pleased to announce that drilling at the Paradox Basin #1 oil & gas well has proceeded at an accelerated rate.

Paradox Basin #1 is at 16,306 feet (4,970 m), in the Devonian McCracken Sandstone. The well passed from the Leadville Limestone into the Devonian Ouray Formation at 15,916’. Background gas levels are reduced although with trip gas up to 940 units.

The rig is currently conducting a drill stem test (DST) to test gas levels and pressures in the Mississippian Leadville Limestone target. Previously announced gas shows from the Leadville Limestone would likely be subdued by the hydrostatic pressures associated with increased depth of drilling operations. Following completion of the DST the well will drill on into the McCracken Sandstone objective.

PRODUCTION AND PERMITTING
So far eleven potential gas production intervals have been defined in Paradox Basin #1 between the Upper Ismay and the Leadville Limestone, as well as one potential oil interval. Permit applications for a connector production pipeline to the nearby Williams Northwest Pipeline have been lodged. Permitting for an onsite gas plant awaits completion of the well.

The production potential for the intervals annotated below will be determined upon setting production casing and conducting flow tests at the completion of drilling.

 

[chance fate]

.... got the following on DST's using a web search...lots more stuff out there on the web.... seems as though the process will determine potential commerciality very quickly...i.e. without the cost of production casing etc... so should hear results pretty soon....


Drill Stem Testing
A Critical Tool for Obtaining Well Data
Prove Reserves
When you conduct a Drill Stem Test you are establishing a flow rate from a zone of interest.

"Confirmation of commercial productivity of a reservoir, by a production or formation test, is required for classification of reserves as proven."

Petroleum Society, Canadian Instituteof Mining , Metallurgy & Petroleum

Maximize Reserves

Get credit for thin zones
Evaluate multiple zones

Reduce the risk of overlooked reserves
Continue leases
Lower Finding Costs

Discover new reserves
Test multiple zones the same day with one run in the hole
Avoid unnecessary completions
Reduce testing costs by up to 90%
Quick Results

Prove up reserves while rig is on location - no waiting for well completion
Minimal Flaring

DSTs flare less gas than a post-completion production test
Flaring permits not required

 

[sleeper88]

I remember they have some U prospects in the US, with some very good grades, its seems they're not focused on it atm, a possible spin off? Would that be feasible?

LOL..i posted that on the 24th..guess i got my answer today
White Canyon Exploration, has anyone done any research of who they are and what exploration licenses/deposits they have? Too bad i dont hold this one, i'll consider getting some tomorrow morning

 

[elcruzy]

Sleeper88: As GDN shareholders we will get a priority subscription to the IPO.

Does anyone think the recent announcement is good news? while its not 'wow' do you think it will at least stabilise the SP???

 

[chance fate]

....more from Schlumberger web site.... indicates testing may take approx. 24 hours... flow rates could give a good direct/immediate indication as to commerciality... if not... we'll have to wait for wireline surveys and analysis of pressure response to determine if leedville could benefit from stimulation... so may have to wait for a week or 2 for definitive results....

2. n. [Well Testing] ID: 8022

Well tests conducted with the drillstring still in the hole. Often referred to as DST, these tests are usually conducted with a downhole shut-in tool that allows the well to be opened and closed at the bottom of the hole with a surface-actuated valve. One or more pressure gauges are customarily mounted into the DST tool and are read and interpreted after the test is completed. The tool includes a surface-actuated packer that can isolate the formation from the annulus between the drillstring and the casing, thereby forcing any produced fluids to enter only the drillstring. By closing in the well at the bottom, afterflow is minimized and analysis is simplified, especially for formations with low flow rates. The drillstring is sometimes filled with an inert gas, usually nitrogen, for these tests. With low-permeability formations, or where the production is mostly water and the formation pressure is too low to lift water to the surface, surface production may never be observed. In these cases, the volume of fluids produced into the drillstring is calculated and an analysis can be made without obtaining surface production. Occasionally, operators may wish to avoid surface production entirely for safety or environmental reasons, and produce only that amount that can be contained in the drillstring. This is accomplished by closing the surface valve when the bottomhole valve is opened. These tests are called closed-chamber tests.

Drillstem tests are typically performed on exploration wells, and are often the key to determining whether a well has found a commercial hydrocarbon reservoir. The formation often is not cased prior to these tests, and the contents of the reservoir are frequently unknown at this point, so obtaining fluid samples is usually a major consideration. Also, pressure is at its highest point, and the reservoir fluids may contain hydrogen sulfide, so these tests can carry considerable risk for rig personnel.

The most common test sequence consists of a short flow period, perhaps five or ten minutes, followed by a buildup period of about an hour that is used to determine initial reservoir pressure. This is followed by a flow period of 4 to 24 hours to establish stable flow to the surface, if possible, and followed by the final shut-in or buildup test that is used to determine permeability thickness and flow potential.

 

[DAZT49]

Apart from the U thing the ann looks less posistive (to my novice eyes) than the one on the 23rd when the sp dropped 40c and fnished 18.5c lower.
Hold em or fold em??

 

[the barry]

Apart from the U thing the ann looks less posistive (to my novice eyes) than the one on the 23rd when the sp dropped 40c and fnished 18.5c lower.
Hold em or fold em??

I think this is the problem with this stock. The majority of the investors in this stock have no idea how to guage the announcements made by the company. As soon as one person sells on an announcement it creates panic and everyone else follows suit.

 

[Agentm]

i look at the stock as vastly oversold, and as a result its made it a volatile stock with many daytraders into it and not a very large spread of investors.

i hope the announcements coming through and the near term well testing can deliver some normality to the sp, i dont hold the share but i feel the announcements are very upbeat and can easilt mislead and assist the sp in jumping around..

all imho and i dont hold any stock

 

[DAZT49]

LOOK AWAY GDN HOLDERS ITS GUNNA BE A ROUGH COUPLE OF DAYS.
DST RESULTS COULD TAKE A WEEK. MUST GET BATTERIES FOR MY PACEMAKER.