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GDN - Golden State Resources

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...Howdee AgentM... yeah this whole golden reporting thing is getting a bit out of control... it's been interesting to compare ADI v's GDN on the quality, timing and quantity of their reports... ADI have always presented in a low key way - probably Alex Forcke's financing experience - much tighter control.. but when you stand back from them (and just trying to be positive about gdn's performance) both stocks have had their spikes and collapses...and pre-testing on sugarloaf there'll probably be the same craving for information... in some ways more info. from golden coupled with most shareholders not being capable of understanding the announcements has been the cause of much stress... so if you throw gdn's reporting credibility out the window you are left with even less to go on - there's still the fact that financiers have taken a punt recently based on info. presented to them... so yes warning bells... but this is a high risk stock... and still IMO potential for a decent reward... just hope they report xx Bcf's and audited by xxxxx....
 
in the future GDN will be the case study on how not to manage a O&G company..

As for not understanding the announcements, thats exactly why you shouldnt invest in a company. nothing they have said makes any sense, and nothing they have done during the drill has made any sense, when you couple that with hyped up reporting and directors selling stock on false and misleading and totally inaccurate reporting, you have this mess that you have today.

ADI pre Sl testing has announced 170-bcf, so the sp has $1.50 value in it already pre testing, they have 16 wells scheduled across the two areas, and thats only for the gas. the jvp's will not report in the manner GDN are, and have no interest in seeing wild speculation on the sp, the ADI share so far has only attracted larger accumulating buyers.

if you want to see hype, wait until the flow testing is done, then you will nothing like hype, but just accurate appraisals and bluesky on the sp.. much as you will see in the next two weeks with NT flow testing..

GDN has used every trick in the book,, i expect the next rabbit will be uranium, in an attempt to deflect the disaster on the well.. thats my pick..

again i hope people can redeem some of their losses here, but from where it will come i cant understand?? but i cant stand this type of behavior, it will cause an ongoing effect on the sector, as investors leave in droves as they realise they have been misled and the sp collapses.

O&G has a high risk high reward profile, but it should also require a standard of reporting that never can be reflected upon as inaccurate, misleading, confusing or in GDN's case, completely incorrect..

best of luck to all holders, but i think you have to start organising yourselves and making the management accountable.. this is wrong, just plain wrong..
 
... too late now for the sp AgentM... next stop results announcement... how would you go about contacting ASIC to take a look at this?? what would you have to do to develop this into criminal/prosecutable evidence? and then whats are the damages?? think it'd be a waste of time personally....
 
Found this (below) on the web re. Barker Creek... admittedly from Colorado... but assuming Barker Creek is the same there as in Utah the max drainiage to be expected from a single gas well is 320 acres. At 30ft gross pay and 5% porosity a single well assuming A$4m drilling cost would be worth A$0.10-0.15/share (assuming US$4/GJ) and multiplying up to the area of the mapped pensylvannian section on golden's acreage - say 12km² - gives 12 wells and A$1.20-1.80/share... proportionately higher roughly for higher gas prices... could easily be $3.60/share.... and if the area of the field is larger....


IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE RED MESA FIELD, LA PLATA COUNTY, COLORADO Cause No. 404 Order No. 404-1


REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1983 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Davis Oil Company for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Barker Creek formation underlying certain lands in La Plata County, Colorado

FINDINGS

The Commission finds as follows:

1. Davis Oil Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. Evidence presented at the hearing indicates that all of Sections 21, 28, 32, 33, and 34, Township 33 North, Range 12 West, and Sections 1and 2 Township 32 North, Range 13 West, 6th P.M. should be deleted from the requested area to be spaced.

5. Evidence presented at the hearing indicates that the Barker Creek formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in La Plata County, Colorado, to-wit:

Township 33 North, Range 12 West, 6th P.M. Sections 13, 14, 15, 22, 23, 24, 26 and 27: All

6. In order to prevent waste of oil and gas, as defined by law, to protect the correlative rights of all parties concerned to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Barker Creek formation, a common source of supply underlying the lands defined herein, that said units should be 320-acres, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location should be in the center of the NW/4 and the SE/4 of each section with a tolerance of 200 feet in any direction for topographical reasons. Well No. 1 Red Mesa Deep, located 2055 feet from the north line and 2355 feet from the west line of said Section 23, should be considered the permitted well for the unit upon which it is located. Only one well should be permitted to be drilled on each unit and produced from the common source of supply.

7. All available geological and engineering data concerning said Barker Creek formation indicate that one well will efficiently and economically drain an area of approximately 320-acres and that the drilling unit of the size and shape hereinabove described not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Barker Creek formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Barker Creek formation underlying the Red Mesa Field. herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1. Three hundred twenty (320) acre drilling and spacing units shall be and the same is hereby established for the production of gas and associated hydrocarbons from the Barker Creek formation underlying the following described lands in the Red Mesa Field, La Plata County, Colorado, to-wit:

Township 33 North, Range 12 West, 6th P.M. Sections 13, 14, 15, 22, 23, 24, 26 and 27: All

Rule 2. Said drilling units shall consist of 320-acres, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location shall be in the center of the NW/4 and the SE/4 of each section with a tolerance of 200 feet in any direction for topographical reasons. Well No. 1. Red Mesa Deep, located 2055 feet from the north line and 2355 feet from the west line of said Section 23, shall be considered the permitted well for the unit upon which it is located. Only one well shall be permitted to be drilled on each unit and produced from the common source of supply.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this 14th day of November 1983, as of October 17 1983.

CORRECTED this 5th day of July 1991.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

1580 Logan Street Denver, Colorado 80203 July 5, 1991 13001 -- 2 --(404-1)
 
Re: GDN - "Barker Creek" potential

I looked back over some of the GDN announcements. The names of various formation zones have changed over time. For example the "major pressured gas interval" noted at 12549' to 12577' was called "the top of the Alkali Gulch member" in the 10/31/06 ann. This is now part of the "Barker Creek interval" in the most recent announcement. My point: "the major pressured gas interval" at part of the zone originally called "Alkali Gulch" has NOT so far been a disappointment rather it's name changed to "Barker Creek." Similarily if one looks at the 10/24/06 ann it states that "it is likely that production will be obtained from 9742' to 9446' Upper Ismay, 9930' to 9960' Barker Creek, 10714' to 10765' Barker Creek, and 11016' to 11030' Barker Creek." Now 10815' to 10834' is currently called "Akah" as it was when this potential pay zone was first mentioned. But on the 10/24/06 ann that zone, between two zones called the "Barker Creek," is not even specifically mentioned. Connection gas however was very high over almost all of the range of depths from 9742' to the bottom of the Barker Creek, which is at approximately 12600' or a little more. My suggestion is that all of this approximately 3000 feet is perspective of hydrocarbons. It was almost all called the "Barker Creek" in the 10/24/06 ann because of similarities across it. The gas shows, for example, appear to be mostly in sandstone or dolomitic sandstone members. There is also a lot of wet gas in the Paradox Basin so considerable condensate or oil could come from some of these wells (remember gas shows were oil-stained at 11360' to 11366'). Each zone however probably has to be frac'ed. I am glad to see that they are beginning to do that. A CO2 frac involves liquid CO2 and sand being pumped under pressure into a formation to fracture it. The sand is left in the fractures to hold them open and the CO2 evaporates.
 
...yeah could be larger gross pay.. my numbers in the previous post could be conservative... was concerned about the further fraccing program... had the suspicion that the initial frac was all that had been planned and actually wasn't a total success... so additional fraccing needed... not sure if that's a valid thought....
 
Why did the trading halt stay in place on Tues? Why did they even have the TH if the ann said..
"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."
Why didnt they wait till that occured before making the ann??
Will there be another TH then as well?
Are they trying to torture me? Is my WIFE running GDN?
Good luck today everyone.
 
GDN is now trading again this morning

GDN $0.52 +$0.015 +2.97% with high $0.53 1,369,464 shares $701,344 @ 30-May 10:31:50
 
the failure already resulted $7million cost in wells. And looks like GDN will win the case anyway. so nothing to worry about. and sp rise to $.56 right now. :)
 
adamwu said:
the failure already resulted $7million cost in wells. And looks like GDN will win the case anyway. so nothing to worry about. and sp rise to $.56 right now. :)
Click to expand...

when has a lawyer ever said "we think your chances are poor??!" If you think $7m counterclaim is money in the bank I guess we agree to disagree. Claims and counterclaims in a foreign jurisdiction, sorry that is bad news. And can you see contractors queuing to deal with GDN for future wells if they don't win this suit?

I think the rise today is more on testing of Barker which in the big scheme of things matters more than the legal issues.
 
ASX ANN today
31-05-2007 09:46 AM GDN Drilling Status Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00725789

31-05-2007 09:46 AM GDN Drilling Status Report
Drilling Status Report – 31 May 2007
• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing completion and stimulation activities.

• The Barker Creek gas interval was stimulated by injection of carbon dioxide. An increasing gas flow was flared.

• DHS Rig 12 has been released and will be demobilized from site. A completion rig will then be mobilized to site to complete the assessment and development of the Barker Creek reservoir and shallower gas intervals.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
Paradox Basin #1 is undergoing completion works after successfully reaching its final depth of 16,471 feet (5,020m).

Following perforation of the Barker Creek interval between 12,561’ and 12,599’, gas flowed to the surface and was flared. Initial fracturing of the formation as then performed using CO2. 37 tons of carbon dioxide was injected into the formation to clean up the productive interval without adversely effecting any of the reservoir characteristics.

The carbon dioxide stimulation (a “mini-frac”) has resulted in flaring progressively increasing levels of gas over the last 48 hours.

The directors of Golden State are encouraged by the results so far that indicate that Paradox Basin #1 has excellent potential to achieve gas production as soon as permitting allows.

To this end the rig, DHS #12, has been released and a completion rig engaged to come on location directly to finish completion activities on the Barker Creek interval, and to test the further gas intervals indicated during drilling above the Barker Creek, including:
• Upper Barker Creek
• Akah
• Upper Ismay.

PERMITTING AND PRODUCTION
The Company had a meeting with the Bureau of Land Management (BLM) on 29 May to progress the permitting process for next well location and for the connector production pipeline to the main trunk pipeline 7 miles north-west of Paradox Basin #1. The timing for these will be announced once firmer dates are received from the BLM.
 
That announcement is all things to all people....something for the bulls, after all it's encouraging, talking of increasing flare over time and production...and also something for the cynics, it's light on detail and may get them over the line with conversion of oppies expiring June 30.
 
• DHS Rig 12 has been released and will be demobilized from site. A completion rig will then be mobilized to site to complete the assessment and development of the Barker Creek reservoir and shallower gas intervals

The directors of Golden State are encouraged by the results so far that indicate that Paradox Basin #1 has excellent potential to achieve gas production as soon as permitting allows.

To this end the rig, DHS #12, has been released and a completion rig engaged to come on location directly to finish completion activities on the Barker Creek interval, and to test the further gas intervals indicated during drilling above the Barker Creek, including:
• Upper Barker Creek
• Akah
• Upper Ismay.
Click to expand...


The ann makes a direct positive statement regarding progress to development to start with... then it walks back from that by saying ....PD1 has "excellent potential to achieve gas production".. which is a conditional statement and so leads you to beleive there's a need for more results....:confused:
 
Obviously the 'market' is unimpressed +1c atm. Still I feel a bit more confident that maybe the SP will hold and maybe slowly build from here.
Lot happier than recent weeks/months.:)
 
DAZT49 said:
Obviously the 'market' is unimpressed +1c atm. Still I feel a bit more confident that maybe the SP will hold and maybe slowly build from here.
Lot happier than recent weeks/months.:)
Click to expand...

I'm with you DAZT. Feeling a bit more comfortable about having held a sh_t load of shares. What do they say, pictures tell a thousand words but BCF levels you can take to the bank. Lets hope it all comes together for us poor bastards that have left our heads on the GDN chopping block!!! - we deserve it after all the crap GDN and their ann. have put us through.

Good luck everyone!
:banghead: but still :)
 
..with you Datz49 and Haveacrack.. alot more comfy now.. but now I'm thinking there are a lot of steps to go before the share price will reflect the full potential (if it is there) of this project.. they have to demob drilling, mobilise the workover rig (say 1 week), do further tests on 3 higher zones (say another 2 weeks), then assess the results, if good, tie into the main gas tansport pipeline and set up production plant (if modular could take say 2 months maybe more) and come up with a field appraisal and a field development plan... starting to think they will need the 2nd well to prove up the reserves level too... so this is a long term hold for the patient... believe that's why we're seeing not much in the way of action on the sp... but pretty encouraged by the announcement anyhow.... reckon only the impatient are selling out/plus option expiry looming so traders will have a good wrestle over the next days....
 
They'll do the flowline tie-in to the spineline whilst the workover rig is in place doing the completions and headworks. They still have to perf or frac the higher levels for flow stimulation too...it's all nice and normal
 
Hi Sandlion... I'm used to seeing much bigger flares than this i.e. 50mmscfd+ ... was wondering if you've got any experience with smaller scale activities like this.. and if so.. whether you'd be able to guage what kind of flow rate it looks like... admittedly we don't know what the choke size is... doesn't look like much consensate in the stream to me - but they could have a knock out drum on site...
 

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