GDN - Golden State Resources

[chance fate]

..looks like the right spot... but there's just dirt.....and a few shrubs... the whole thing has been fabricated!!

 

[DAZT49]

Yeah, could be a hoax!!!
Dont know how often Google updates its data, but being that the rig has been there about a year you would think there would be something.
Seriously, hopefully, the report early next week will give some good results and the SP will slowly recover to about half what I bought it for.

 

[chance fate]

Yeah... i'm gradually falling out of love with golden.. bit of a sour taste after all these ups and downs... but not ready to give her the flick because i still think there's a chance that she can deliver the goods...

 

[sting]

In responce to Google Earth's currency... when I look at my house it shows a pic of a car that I sold 3yrs ago. So I dont think its that recent well not over the east coast of QLD where I live....

sember ubi sub ubi

 

[DAZT49]

It would be nice to know if GDN still think the 3 TCF or even the midrange 440 BCF is still realistic.
Hopefully the results of the testing will include some kind of reappraisel of the overall situation, tho going by past anns they wont.
I bought GDN for the whole ride, s..t or bust, cos if they get strike 'gold' I can get out of this 9 to 5 bind.

 

[rosesny_1]

Re: GDN - Pinkerton Trail Formation

Brief internet article:

New Gas Play in Fractured Pennsylvanian Strata in the Eastern Paradox Basin of Colorado and Utah

Rasmussen, Donald L.1, Dalton L. Rasmussen2 (1) Paradox Basin Data, Denver, CO (2) Platte River Associates, Inc, Boulder, CO

An emerging new play in the Paradox Basin is for gas trapped in micro-porosity and fractures within strata of the sub-salt (Pinkerton Trail) and salt-bearing (Paradox) Pennsylvanian horizons. Greatest potential for gas in the Pinkerton Trail is in structures along the Uncompahgre Uplift where thick organic-rich shales were interbedded with carbonates, evaporites, and siliciclastics during the late Morrowan and earliest Atokan. These strata were subsequently fractured in the late Paleozoic by wrench and thrust faulting and again during the early Tertiary Laramide event by reactivated folding and faulting. Hydrocarbon generation began possibly as early as the late Paleozoic and continued into the Tertiary. Gas potential in the Atokan and Desmoinesian Paradox organic-rich shales and dolostones and their siliciclastic interbeds is greatest within trends of maximum thickening or where interbedded between Paradox salts. Fracturing of these strata began during post-depositional folding and faulting, primarily during excavation of salt intervals to adjacent anticlines or diapirs, and was reactivated during hydrocarbon generation and tectonism in the Cretaceous and Tertiary.

 

[DAZT49]

Interesting..if you know what they are talking about.
when n where did you see the article rosesny_1?

 

[bigdog]

49er,

looks like 2004 article

we need someone to make opinion of the statements!

http://www.searchanddiscovery.net/documents/abstracts/2004rocky/rasmussen02.htm

 

[DAZT49]

Woofer,
Reckon we need GDN to tell us what the hells going on.
Specifically, are they still after the BIG Kahuna, or are they happy to be a small production company.

 

[elcruzy]

I have heard that 50-100bcf is still worth 50cents a share to GDN which it seems where the SP is atm, any positive news from the DST will help the SP. I only wish we knew whether GDN's partner was going to back in for 16.67% - now wouldnt that be a vote of confidence?!? especially since they are the ones drilling the 2nd hole.

DATZ49 - i'm in the same boat as u pal, otherwise i would have sold at $1.

 

[DAZT49]

elcruzy,

This is from GDN website.
in part..
Analysts Report- CK Locke june 2006

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.

Analysts Report-StockAnalysis Mar 2006

Since it is earning a massive 83.3% in the project, GDN offers huge leverage to success.
Discovery of 440Bcf of gas by this A$10-12m well, would be worth about $10 per share,
compared with a current price of 19 cents.


Well we can dream cant we??

 

[chance fate]

... the current well's drilling costs are effectively sunk costs i.e. should really have no baring on whether the well is economic looking forward... so it is conceivable the well could flow even in a very low reserves case to at least recover all or a portion of costs...

 

[hoppielimp]

Hey Dazt49,

The silver lining to all this is that CK Locke's report was based on a gas price of $4 ish... I think gas prices are somewhere in the hi $7's...


Here's still got the fingers crossed. :

 

[DAZT49]

hoppy,
Thanks for that, makes me feel a bit better.
Nice to see the SP actually up for a change this am.
I keep haggling my broker for info, an he ses to hold as the 'fundamentals' are still the same...whatever that means.
Be nice if the report came out this week!!!

 

[chance fate]

DAZT49... seems like your broker means the price movement is solely due to traders at the moment... did you say once before that you're with CK Locke?? If it is and that's the advice you're getting right now then that would be a good sign!!! Whatever... and whoever you want to believe .. reckon all those that have lost the nerve/stomach for this have gone now..

 

[DAZT49]

Chance fate,
Yep, CK Locke.

Its hard to hang on when you see your profits get vaporised like in the last 2 weeks.
Haven't lost my stomach yet but I did start dry reaching when the drill got stuck for a few months 53' from the target in Para1!!
Then again when they didn't hit the jackpot!!

 

[Haveacrack]

Does anyone know when we might expect another ann regarding measured estimates? We are fast approaching the end of the two week period where they stated they should have test results.

 

[chance fate]

Hi DATZ49,

... if that's what they've advised you today or yesterday - that is very good news.... interesting that they couldn't revel further details though... maybe they have enough to go on from way back when they were drilling the shallower horizons.. but still there's nothing like having a well test result to confirm the resource size.... so at this end at least still a mixture of excitement and terror...

 

[rosesny_1]

Re: GDN - Golden State Resources - natural gas prices

Regarding the gas price that GDN should get - Delta Petroleum (a lot of Rockies production) just entered into some 2008 hedges with the bottom at, if my memory serves me, $6.60 or 6.80US and the top at 8.80. If the first gas goes out of this GDN well in the northern fall, I think these prices are about what can be expected. The Rockies get lower prices right now but an added pipeline to Chicago is due to go on line in 2008 and that should up the prices to closer to East Coast US prices which are now in the $7.50 to $8.00US range. This is usually the slow time for natural gas is the US so the prices could drop for a while but they should be in that 6.60 to 8.80 range in the September 07 to March 08 period.

 

[Haveacrack]

Re: GDN - Golden State Resources - natural gas prices

Regarding the gas price that GDN should get - Delta Petroleum (a lot of Rockies production) just entered into some 2008 hedges with the bottom at, if my memory serves me, $6.60 or 6.80US and the top at 8.80. If the first gas goes out of this GDN well in the northern fall, I think these prices are about what can be expected. The Rockies get lower prices right now but an added pipeline to Chicago is due to go on line in 2008 and that should up the prices to closer to East Coast US prices which are now in the $7.50 to $8.00US range. This is usually the slow time for natural gas is the US so the prices could drop for a while but they should be in that 6.60 to 8.80 range in the September 07 to March 08 period.

Thanks Rosesny - some encourageing research on your behalf given gas prices when GDN commenced drilling last year. I read the appraisal by CK locke and if what they assume is correct this will have a very positive effect on the SP if test results are positive.