GDN - Golden State Resources

[zt3000]

Whats the valuation of this stock? Ie

1 Tcf gas = $5 SP

Im guessing they have significantly less than this say 200 Bcf's

That gives a SP of $1 which is double current levels ....

I dunno ... maybe i'm worng

 

[chance fate]

... I calc 200b's gives from $4 to $8/share using $4 and $8/GJ respectively... calibrates well with CK Lockes numbers... i've seen others use around $3/GJ which is apparently a current benchmark on the acquisitions scene in the US (but that's acquisitions - and not sure whether that's for proven [90%confidence], Proven+probable[50%confidence], proven+probable+possible[10%confidence])... lots of assumptions behind all that... but would say $1/share for 200 b's is quite low on the range of possible valuations.... if they get 200b's proven and if i had spare cash i'd buy in at $1 no prob....

 

[bigdog]

GDN Company Trading Status is Pre-Open this morning and assume ASX ANN today


GDN Company Trading Status is Pre-Open this morning and assume ASX ANN today!

 

[chance fate]

...could be ...barker creek well test completed.. placed in pre-open until analysis of results from the test equipment are complete 2-3days to avoid insider trading...

 

[sting]

Wondering if it is good news or just details of the court action against them... I suppose the halt gives them time to put thier side of the story out

SEMPER UBI SUB UBI

 

[DAZT49]

As that great Share Trader ..Jimi Hendrix said..
"I got a bad, bad feelin..."
But I get this everytime GDN has an Ann!!

 

[rosesny_1]

Golden State Resources - Coming Good News?

GDN said in its last announcement that the lower Barker Creek pay would be perforated within 30 hours (ie: by mid-day on 5/25/07, Perth time). We don't have these kind of halts in the US (although they seem to be a good idea) but I suspect that, if this halt is related to the Paradox well as I think it is, that it's good news. The lower pay in the Barker Creek was the best potential pay so I suspect that it showed some clear action (high pressure and volume gas flare for example) after perforation, which would have allowed anyone who saw this to make confident insider purchases of GDN stock before any GDN announcement. GDN needed more time to accurately estimate an initial flow rate so, per the Australian rules, GDN asked for the trading halt. Given the circumstances, this seems the likely reason for the halt.

 

[the barry]

Re: Golden State Resources - Coming Good News?

GDN said in its last announcement that the lower Barker Creek pay would be perforated within 30 hours (ie: by mid-day on 5/25/07, Perth time). We don't have these kind of halts in the US (although they seem to be a good idea) but I suspect that, if this halt is related to the Paradox well as I think it is, that it's good news. The lower pay in the Barker Creek was the best potential pay so I suspect that it showed some clear action (high pressure and volume gas flare for example) after perforation, which would have allowed anyone who saw this to make confident insider purchases of GDN stock before any GDN announcement. GDN needed more time to accurately estimate an initial flow rate so, per the Australian rules, GDN asked for the trading halt. Given the circumstances, this seems the likely reason for the halt.

I hope your right. Could sure use some good news on this one before the options expire at the end of the month. I have a feeling you are correct about the reasoning behind the halt, although wether it is good or bad only time will tell. Never want to get to excited on this stock.

 

[bigdog]

ASX ANN just issued
GDN 1:30 PM Drilling Status Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00724701

Drilling Status Report – 28 May 2007
• Paradox Basin #1 oil & gas well, Grand County, Utah, has successfully reached its final depth of 16,471 feet (5,020m) in the Cambrian Lynch Dolomite. The Company has proceeded immediately to well completion.

• Gas flowed to the surface and was flared following perforation of the Barker Creek interval at 12,560 feet. Gas flow was shut in pending mobilisation of further testing equipment to site.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Paradox Basin #1 successfully reached its total depth of 16,471 feet (5,020m) after passing into the Cambrian Lynch Dolomite at 16,368 feet (4,989m). Golden State is pleased to announce that, following initial perforation of the Barker Creek interval between 12,561’ and 12,599’, gas flowed to the surface and was flared.

Gas flow was shut in pending mobilisation of a detector array and CO2 to site. Initial fracturing of the formation was performed using CO2 and ongoing testing will allow measurement of an indicative flow rate. Testing of the Barker Creek interval will proceed until late in the week when a decision will be made on whether to continue testing with this rig or demobilize DHS Rig 12 and proceed immediately to development using a specialised workover rig.

A suitable workover rig has been located in the area and has been tentatively secured for this purpose.

OTHER INTERVALS TESTED
Pinkerton Trail Testing on an interval in the Pinkerton Trail Formation indicated the targeted gas show had depleted. Given the amount of gas released to the well during drilling and the open fracture system indicated by downhole geophysics, the “Pinkerton” interval appears better evaluated as a Cane Creek play. In oil and gas fields 20 miles to the south-west of the Golden Eagle Prospect in the Paradox Basin horizontal drilling dramatically increases the probability of encountering economic oil and gas production. This play at Golden Eagle can be tested in Golden State’s subsequent wells on the Prospect.

Alkali Gulch Testing on a Cane Creek Shale interval in the Alkali Gulch zone initially produced gas, which was depleted. The interval would be best tested as a Cane Creek play, with drilling by horizontal wells, as detailed above.

INITIAL 100% OWNERSHIP AND OPERATOR
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the drilling of two wells by Golden State.

 

[Broadside]

So Pinkerton and Alkali gulch which were talked up late last year are now duds. And the remaining areas of interest are...wait and see. I wonder if they can stretch this out till after options are converted, looks like they will need the cash. The directors really have something to answer for how they reported to the market in late October / November.

 

[DAZT49]

Seems you were right on the money rosesny_1 and Broadside has a point too.
What is the upshot of all this, SP wise??

 

[chance fate]

..trying to see the +'s in this ann... good that they got gas to surface... they mentioned in a previous announcement (if you can beleive them) that they expected the barker sands to thicken up dip... given this zone is pressured there may be quite some gas updip. Reckon they're going to continue testing this week to see if the zone depletes to the extent that they would call off development and suspend the well... so fingers crossed for the ongoing tests (reckon that's why we're still in a TH)... also seems they're calling in more CO2 to do more fraccing....

 

[DAZT49]

Any verdicts yet boys?? I see there are a couple of orders to sell at $1.2 and $3.44 that werent there this morning and seems to be more in the 80-90c bids. Not much change to the buy side .Am I dreaming or am I 'a one eyed optimist' . (Yes I know it is TH but orders still get placed dont they?)
Or if it goes the other way, with the slippage thats gunna occur when the SP gap opens, are we riding the GDN bomb into the Utah sand.

 

[chance fate]

Hi datz49... reckon we've still got to wait for the testing to be completed and results announced before anything firm can be said about where the sp will move to... but the director still sounds bullish though - started indicating multiple wells to come in this announcement. They also said they did an initial frac on the well... maybe the next frac which they've ordered the CO2 for will make the well at this level more productive... been following HotCopper threads on golden.. dude under name of walliska had a meeting with John Haselby last week at golden office in Subiaco - comments he reported then from his meeting e.g. early last week has been confirmed in this report e.g. cane creek v's pinkerton - so looks genuine - John indicated to him then that they expect 20-50Bcf from this well but more wells to come... (hope i'm repeating that correctly - and was suprised and hence skeptical that that info. was released to him pre- this announcement - unfair)... he also indicated the U announcement would be end-June.

I'm liking the way they're moving forward- albeit with delays... they can use results from experience in other wells near-by (I think it's the Greater Aneth that produces from the pensylvanian levels) to tailor the programme on this well... and hence the comment that cane creek could produce using horizontal wells... so all's not lost on cane creek - but there would be more waiting!!

 

[DAZT49]

Sorry Chance ..its the frustrated thespian in me...you know.. "Hark what gold by yonder gas field dwell" that sought of stuff.
My bro ses 40 wells (think I mentioned that before) and that Para 1 located in wrong position. Para 2 to be 1.8k away and on the money.

 

[chance fate]

... oh ... your bro = locke... 40 wells... at 20Bcf/well = 800bcf.. hmmm... i'll take it if it's true!!... i was expecting only a handful of them... another poster on HC also mentioned (last week) CK Locke advised the well would be a company maker with a capital M... all sounds too good to be true at the moment.... me... i wanna see the results get posted.... PS stress levels are dropping... can't take in the same amount of nicotine as last week!!

 

[DAZT49]

As you say ,they do seem to be pushing ahead with infrastructure to get the well producing. The U thing is the unknown, while it seems ok I dont think it is going make a huge impact.
Its so frustrating trying to eak out any information, ASF thread is great, a few of you guys know what you are talking about, but we are still dealing with opinion/rumour/guesswork for the most part.
Must admit my sleep patterns are all over the place with this share ...hopefully some good news at the end of the week and i can enjoy a long snooze and an ice cold beer.
Perhaps you better stock up on Nicorettes!!

 

[chance fate]

... yeah good idea... no good landing a good profit if all comes good and not being around to enjoy it.... wouldn't mind a good night's sleep aswell!!! Think i'll be happy whatever the result... it's the hanging around waiting to move on that's the killer....

 

[Agentm]

i am no holder, but have been watching the whole sorry story of GDN unfold over the last year. i read all on HC and here, and have little respect to the management for what the investors have had to endure.

IMHO it is a complete sham, there is nothing that this company is doing that is going to inspire investors in the O& G exploration shares, GDN has been making one major blunder after another, and how ASIC have allowed it to continue is beyond me, i pulled up a few weekly reports from last year where these guys are saying they have major shows and high proability of commercial flow, and now they have nothing, even when you are flaring you get valuable information and insights into flows and volumes, for them to say they cant tell you even that is unacceptable.

I honsetly believe the massive volumes of shares traded in the .40's to the $1.20 and back to the .80's and againthe last spike, has meant the average investor is trapped in a very inflated sp bracket due to appauling reporting and speculation by the management.

The well has absolutely nothing to offer the shareholder and has cost a fortune in drilling out cement instead of a simple sidetrack, and if you look at todays report you dont see major gas shows and the word commercial posted on anything. they had no idea what zone was what, where they were, and the company itself has no oilmen in it, nor a geologist with any oil experience on deck... you see a whole bunch of corrections on asx releases, the most inaccurate, hyped and unfair reporting i have ever come across.. if they had managed to have got one thing correct on any report i fail to see what it was and i have been shaking my head in disbelief wondering how wild the sp would go on pure speculation on a gas show of no significance, no director sitting on any reputable board would allow speculation of gas shows ever, these guys have been doing it non stop.. to say you can get gas flowing from depleted flow by drilling horizontally is reprehesible. enough is enough dont you think???

i hope the shareholders get some value in something in the future, but i cant see from where its going to be achieved. its a very sad and sorry story IMHO and i wish all holders the best and i really hope you get a good outcome, but if it was my money in that stock i would be outraged and doing everything to make the management accountable..

sorry if it sounds a little down beat, but i absolutely feel for anyone who is on the losing end of this share right now, i cant understand how these guys are getting away with it..

DYOR and all IMHO..

 

[bigdog]

they had no idea what zone was what, where they were, and the company itself has no oilmen in it, nor a geologist with any oil experience on deck... you see a whole bunch of corrections on asx releases, the most inaccurate, hyped and unfair reporting i have ever come across.. if they had managed to have got one thing correct on any report i fail to see what it was and i have been shaking my head in disbelief wondering how wild the sp would go on pure speculation on a gas show of no significance, no director sitting on any reputable board would allow speculation of gas shows ever, these guys have been doing it non stop.. to say you can get gas flowing from depleted flow by drilling horizontally is reprehesible. enough is enough dont you think???
DYOR and all IMHO..

Read somewhere that GDN managment's experience was in real estate which is above the ground!!!!

There must be another report coming as GDN did not trade today after the GDN 1:30 PM Drilling Status Report!!!

Note that the GDNO GOLDEN STATE RESOURCES LIMITED OPTION EXPIRING 30-JUN-2007