GDN - Golden State Resources

[sandlion]

All very true Chance, the night shot seems to show a fair bit of pressure on the flare, nice normal burn colours (no blues or greens). It's just like a blowdown flare...be happy it burns and doesn't spew mud like certain other operations one could mention...

 

[chance fate]

Yeah... looks nice and gassy... but would have liked to see some condensate go up in smoke... that would add some cents to the share price... someone's posting some nice pics of flares on HotCopper... comparison looks to be in the 2.5mmscfd area... commercial.

 

[chance fate]

...still stewing over this announcement and wondering if anyone could comment on the next step re. the mini-frac... in this case would it have been a test frac to get the parameters needed in preparation for the main one i.e. we could expect higher flows post main frac... or has it been called a mini-frac because the volume of CO2/propant is quite small?? Rosesny_1 would you know/any comments????

 

[chance fate]

... got these 2 postings off of HC by wally (walliska) who's been to see Golden today at their offices and thought there may be a few interested in this forum... wish goldens announcements contained info. like this... good thing is it ties up with your 40 wells as well DATZ49... 500Bcf looks v.good!!!



Initial Posting

"Unlike sue12 whenI say I am in Perth am actually in Perth

Update as folows:

Rig moving off site over next couple of days

New rig in place probably Monday Utah time - 3-4 days establishment / positioning then development work will begin on zones

Flow test results expected middle of June - very conscious of option holders exercising options and predicament in - cash must be in bank account by 29th June

Cashflow good relative to new wells / permits

Concentrating on cash flow with the next well - permitting discussions have changed - next well will not target Leadville rather target known resources - essentially Barker Creek and above but other zones will be tested - e.g. Cane Creek, Pinkerton - if this isn't an indication this well is commercial then I have no idea what is

Still hold with their potential 500BCF on entire acreage - and I think this excludes Leadville - based on the current zones being tested plus Pinkerton and Cane Creek (don't quote me on that interpretation)

An independent geoligist will be used to extrapolate reserves / numbers once flow tests have been determined

They may use Henry to update report / additional information

Uranium will more than likely be after options have been exercised - as I have previously expressed believe this will return profits to those currently holding paper losses

Possibly work out flow rate based on potential cashflow - 30-50k per day (do not quote me on that number)

Believe next well will provide even greater return on Barker Creek and upper zones - believe they are downstream and next well will target maximum flow rates for the zone - though believe this well to have commercial flow rates

there is the potential to drill 80 wells on this acreage

Difficulties associated with analysing zones acknowledged (actually identifying Cane Creek, Pinkerton)
Last time I walked out 50/50

This time 90 / 10

This morning called a W.... by sue12 and that I had lost - well sue12 you have "lost" - not only credibility but the opportunity to realise long term benefits with GDN stock

More than happy to answer any questions re discussion - for those that are going to write abuse - don't bother

Wally"




Follow-up after another poster asked caltification…

Rocketmon:

Have placed my comments next to your questions

New rig in place probably Monday Utah time - 3-4 days establishment / positioning then development work will begin on zones

**** does this mean 2 days for the rig move and 3~4 days for the setup? 5~6 days in total?

Wally: I interpreted this as you have written - think we can set commencement of development to Thursday or Friday of next week - should probably have a contingency for some kind of setup / testing / downtime - have no idea re well development and testing durations but definitely indicated we would potentially have flow tests by mid June - let us give them another week


Flow test results expected middle of June - very conscious of option holders exercising options and predicament in - cash must be in bank account by 29th June

** mentioned anything about the broker underwriting oppies?

Wally:No - I asked that question last time - did not pursue this time but know there are 2 brokers lining up - got the distinct impression not required


Still hold with their potential 500BCF on entire acreage - and I think this excludes Leadville - based on the current zones being tested plus Pinkerton and Cane Creek (don't quote me on that interpretation)

** that's the initial 2000 ha not the surrounding 20,000 ha. right? -

Wally:yes believe it to be 2000 Ha


Possibly work out flow rate based on potential cashflow - 30-50k per day (do not quote me on that number)

** does this mean they are expecting 3~5mmcf/d? or is this after the royalties and taxes?

Wally: 30 - 50k cashflow was definitely mentioned during the conversation - I did not pursue this as interrogation of key items can lead to not gaining information re others - tried to establish an initial relationship today so there is no issue in the future - just thought one of you may be able to calculate an estimated flow - one thing to remember about cash flow is that royalties and taxes are payable in arrears so can build substantial cash holdings before payment is required - ie day 60 production may pay for days 1-59 royalties and taxes


there is the potential to drill 80 wells on this acreage

** sounds like 20~30 ha spacing over 2000 ha

Wally: I told him we were investing based on 40 wells not just the first one - this was relative to him discussing the second well and not targeting Leadville till later in the program - he turned around and said potential to drill 80 wells

wally

 

[DAZT49]

wow..nice post chance.
When I posted about the 40 wells the bro also said about $40k/day..$8-12M/year production, but as I mentioned, it was a confused call, so I didnt want to mention that in the post in case I was up Barker Creek without a paddle...so to speak.
Nice to see that people like walliska have the gumption to walk into their office and get that sought of info.
As you say..wish GDN would be so forthcoming in their ann's

 

[DAZT49]

Chance -fate,
In the figure '2.5mmscfd' what does the mmscfd mean.
Would have been nice if the SP had finished on a high for the week ie 57-58c.

 

[chance fate]

... mmscf/d stands for 1 million standard cubic feet per day (m stands for 1000 and the other m stands for 1000 - oil field units).

1000000 scf/d = 1080 GJ/d assuming US$8/GJ and 0.8 US$/$AU = $AU 10800/d

so if they're saying $40k/d it looks like the flow rate they're expecting is around 4000 mmscf/d

 

[DAZT49]

Ok..this makes sense. The call I had to the broker re 40 wells.Para 2 was very confusing to me, and I didnt relate everything in that post.
My conversation went something like this
Me..'I am assuming, as they are going to produce,that the 50bcf target or thereabouts has been met?'
Him..'The well is producing 8-12mmscfd and make $40k-$45k/day"
I as shocked (not understanding thinking 8m is a long way from 50bcf)
me .."so the 440bcf 3tcf targets are out the window!!!!?
Him... "there will be 40 wells on the site...possibly 5 tcf"
My confusion led to the $40k =8m$12m a year post ($40kday =$146m!!)
If you use $5/cm x 8mmscfd=$40k/day
Mak any sense to you chance?

 

[chance fate]

Ok..this makes sense. The call I had to the broker re 40 wells.Para 2 was very confusing to me, and I didnt relate everything in that post.
My conversation went something like this
Me..'I am assuming, as they are going to produce,that the 50bcf target or thereabouts has been met?'
Him..'The well is producing 8-12mmscfd and make $40k-$45k/day"
I as shocked (not understanding thinking 8m is a long way from 50bcf)
me .."so the 440bcf 3tcf targets are out the window!!!!?
Him... "there will be 40 wells on the site...possibly 5 tcf"
My confusion led to the $40k =8m$12m a year post ($40kday =$146m!!)
If you use $5/cm x 8mmscfd=$40k/day
Mak any sense to you chance?

Hey DATZ.. just wrote a novel in reply and got logged out ... lost the whole lot..!!

anyhow... 5Tcf is huge... wqould be a world class reserve... so personally skeptical on that... yeah the 50Bcf is the total quantity so if you flow at 10mmscfd that means you can produce for 5000 days or 13 years. The rest makes sense excpet $40k/d = $146m over a period of 10 years or $14.6m/year....

can't wait for the geo report ... but i'm going to have to... so looks like some gardening duties for me over the next couple of weeks!!! then hopefully it's partyyyyy.....

 

[DAZT49]

its all a bit like childbirth this stuff...
Yep, off to the local nursery for me , bit of gardening, watch the footy..few beers.
Not so anxious about GDN now, hopefully we can enjoy the upcoming months.
Cheers
Dazza

 

[helpmeunderstand]

So for some one who really do not understand plese explain to me like I'm a two year old. Does GDN SP is going to go up? what are we talking about more the $1-$2. shel i keep my shares and wait for the big announcement? would some one please explain in dollars and cents?!?!?!

 

[sleeper88]

lol..if i knew what price this would go up to (or down to) i would be a billionaire by now. The fact is no-one knows where the SP will go from here. We can only guess based on the facts that are given to us so far.

 

[chance fate]

So for some one who really do not understand plese explain to me like I'm a two year old. Does GDN SP is going to go up? what are we talking about more the $1-$2. shel i keep my shares and wait for the big announcement? would some one please explain in dollars and cents?!?!?!

you might find some answers if you go back in the thread... not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!

 

[sting]

you might find some answers if you go back in the thread... not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!

Ill take your 40 cents and raise u 1 cent....... Ive lost about 50 % of the value in this stock so I may as well hold out ... ALL or NOTHING.....

Altho I must admit I had my first ALL green day in my portfolio on friday for a long time

DGR.....AAR....MPOA....GDN....ADS....PEN to name a few

All is good in the world

SEMPER UBI SUB UBI

 

[helpmeunderstand]

you might find some answers if you go back in the thread... not far......and after that..... if you fancy doing an off market deal at 40c i'll be happy to help you out!!!

mmmmmmmmmm.... you much to kind..... but if you are willing to get my shares for 40c I might hold to them a little bit longer :

Hope tomorrow will bring better luck then today!!!!

 

[DAZT49]

Sting,
I am down a bit more than you, I converted my options over when they were $1.10..been going backwards ever since.
Disappointed to see they went down another 3c today

 

[constable]

Have you guys ever watched the movie ground hog day? Im sure this thread has come full circle!! (meteoric rise euphoria crash loss stubborness meteoric rise euphoria crash loss stubborness)

 

[DAZT49]

Hopefully the meteoric rise 'hog' part is on its way!!- and hopefully i will jump ship before the 'crash' part comes so I can not make a 'loss' and enjoy the 'euphoria' for a change..(provided I stop being so stubborn)

 

[bigdog]

ASX ann today

GDN 11:10 AM Uranium Assets Spin Off - Further Details
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00727068

URANIUM ASSETS SPIN OFF
URANIUM MINING AND EXPLORATION VENTURE
• 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 will retain approx. 30% of the new entity.

• Golden State shareholders will have a priority entitlement in the capital raising for the new company. It is intended that the Golden State shareholder entitlement will be one share in the new company for every four Golden State Resources shares held at the record date.

• It is intended that the record date for shareholder entitlements will be 10 July 2007.

• It is expected that the prospectus for the capital raising and IPO will be submitted for ASIC approval in the last week of July.

• Approvals have been received to commence uranium drilling on 15 June.

Golden State Resources has established 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.

This will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger and advanced project with a short time frame towards mining operations.

Full details of the combined uranium assets to be held in the new company are contained in the Company’s announcement issued on 3 May 2007.

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 the planned capital raising under an IPO prospectus.

Priority Entitlement and Record Date
Golden State shareholders will have a priority entitlement in the capital raising for the new company. It is intended that the Golden State Resources shareholder entitlement will be one share in the new company for every four Golden State Resources shares held at a record date, currently intended to be 10 July 2007.

The Independent Experts for the prospectus for the capital raising have been appointed. The prospectus is expected to be submitted for ASIC approval in the last week of July.

Uranium drilling to commence 17 June
Statutory permits for the first drilling programme on the Daneros ore body have been received, with a provision that drilling may not commence until the conclusion of the Longhorn Sheep lambing season on 15 June.

Drilling is planned to begin on 17 June. The initial programme will twin existing ore grade holes at Daneros, to check historical drilling data and grade and tonnage calculations. Followon drilling will explore extensions to ore bodies and previous ore grade intersections at Daneros and Thompson.

First results will be available within three weeks of drilling.

Terms of agreement with White Canyon Exploration LLC
Golden State and White Canyon will contribute their respective uranium interests to the new entity, which will acquire remnant interests in the Daneros and Geitus leases from unrelated parties for US$10,000,000, part of the funds to be raised. The new company will own 100% of all assets. There is a pre-existing 15% mill return royalty on the Daneros and Geitus leases, ceded to the previous owner of the leases in 1993.

 

[DAZT49]

Why didn't the market like THAT ann???
Even with free shares in a U mine the price keeps going down!!