GDN - Golden State Resources
- Thread starter chris1983
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in their latest announcement it mentioned that results are expected in two days..
this means we will be getting news Friday or Monday..
hence good news - goes up
bad - goes down
simple, that's the risk you take..
at the moment i am holding with anticipation
this means we will be getting news Friday or Monday..
hence good news - goes up
bad - goes down
simple, that's the risk you take..
at the moment i am holding with anticipation
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chris1983 said:
close of trade is going to be interesting
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SevenFX said:
obviously going to close in the red... maybe 1.05-1.14??g
but as it has been said .. a stock can't keep going up every day in huge percentages, it needs to "cool down" before it gains momentum for the next run..
reasons why its red today:
- director selling options?
- profit taking
- scared investors
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just bought some more to lower my average.. most certainly a snatch at this price
couple days it will be a different picture
couple days it will be a different picture
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aobed said:
do i sense sarcasm?
hopefully all the panic merchants are out of it now
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is it just me, or was this good buying today after the retrace? Wireline data due soon, and they are within 24-48hrs of hitting the primary target??!!
Yeah got smashed today. Could of been good buying or good selling...depends on the wireline logging. I'm predicting good results..unless the directors havnt been telling everyone the entire truth.
The have hit gas/oil all the way down through their drill. Going to be interesting tomorrow.
The have hit gas/oil all the way down through their drill. Going to be interesting tomorrow.
tech/a
No Ordinary Duck
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Hmm its pulled back for 2 days on Bugger all volume.
My feeling is that any "News" has been factored at this point.
There isnt currently any new buyers.
The further this pulls back the more protracted any resumption of trend.
Its risen vertically for a few days so has to take a breather.
I expect 65c to 80c area There is a chance it will retest the high again but will make a lower high.
If it does then that will be bad for any longterm resumption.
This will be a 3 or 5 wave correction and we have no idea where wave 1 will fall to yet.
I would have been happy with an early exit---not far from that even now.
I feel those that did will be happier as the days roll by.
Well done to those who made a good killing and happy trading to those still holding.
My feeling is that any "News" has been factored at this point.
There isnt currently any new buyers.
The further this pulls back the more protracted any resumption of trend.
Its risen vertically for a few days so has to take a breather.
I expect 65c to 80c area There is a chance it will retest the high again but will make a lower high.
If it does then that will be bad for any longterm resumption.
This will be a 3 or 5 wave correction and we have no idea where wave 1 will fall to yet.
I would have been happy with an early exit---not far from that even now.
I feel those that did will be happier as the days roll by.
Well done to those who made a good killing and happy trading to those still holding.
Sean K
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Technically, there's no real support for this until $0.30. I hope I'm wrong.
Checked their web site and there's some good news on it. One research company had a $1.00 - $1.50 12 month target on it when it was $0.22! Good darts.
Perhaps charts don't fit the profile for this.
All the best. Don't get caught with your pants down.
Checked their web site and there's some good news on it. One research company had a $1.00 - $1.50 12 month target on it when it was $0.22! Good darts.
Perhaps charts don't fit the profile for this.
All the best. Don't get caught with your pants down.
Sean K
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kennas said:Technically, there's no real support for this until $0.30. I hope I'm wrong.
Checked their web site and there's some good news on it. One research company had a $1.00 - $1.50 12 month target on it when it was $0.22! Good darts.
Perhaps charts don't fit the profile for this.
All the best. Don't get caught with your pants down.
PS, the article, titled 'The Next Eldorado' deserves reading.
Perhaps I change my mind on where this could go.
http://www.goldenstate.com.au/
Hey Kennas,
Definately a bit of risk involved here. Which Im not to fond of. Ive been a lot more certain on some of my other picks. One thing I cant ignore is throughout their drill they have continuously hit Gas intervals etc etc.
They know they allready have something commercial which is why they are carrying out the wireline logging survey. BTW that article was a good read.
On the 31st of October they announced "Significant gas discovery in Alkali Gulch zone of Paradox Formation" Now its something very positive when they use the word "significant"
The results below from the Paradox Basin Targets look pretty good. Now all we need is a major gas interval on the Leadvill Limestone formtion.
Honaker Trail Pennsylvanian Limestone 2,682 8,800 -
Upper Ismay Pennsylvanian Limestone 2,987 9,800 * Gas shows
Hovenweep Pennsylvanian Limestone 3,045 9,989 -
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,126 10,256 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,355 11,016 * Gas show
Alkali Gulch Pennsylvanian Sandstone 3.705 12,154 * Major gas interval
Pinkerton Trail Fm Pennsylvanian Limestone 3,962 12,950
Leadville Fm Mississippian Limestone 4,084 13,350
Definately a bit of risk involved here. Which Im not to fond of. Ive been a lot more certain on some of my other picks. One thing I cant ignore is throughout their drill they have continuously hit Gas intervals etc etc.
They know they allready have something commercial which is why they are carrying out the wireline logging survey. BTW that article was a good read.
On the 31st of October they announced "Significant gas discovery in Alkali Gulch zone of Paradox Formation" Now its something very positive when they use the word "significant"
The results below from the Paradox Basin Targets look pretty good. Now all we need is a major gas interval on the Leadvill Limestone formtion.
Honaker Trail Pennsylvanian Limestone 2,682 8,800 -
Upper Ismay Pennsylvanian Limestone 2,987 9,800 * Gas shows
Hovenweep Pennsylvanian Limestone 3,045 9,989 -
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,126 10,256 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,355 11,016 * Gas show
Alkali Gulch Pennsylvanian Sandstone 3.705 12,154 * Major gas interval
Pinkerton Trail Fm Pennsylvanian Limestone 3,962 12,950
Leadville Fm Mississippian Limestone 4,084 13,350
Below is my summary on the recap of their drilling status reports.
So lets go back to the report on the 24 OCT. I consider the below statement important
“Since last report background gas in the well has doubled and connection gas (methane, ethane and propane) is maintaining consistent levels.”
They state as one of their key points
“Strong formation gas pressures and gas influx to well upgrade production potential”
Now the next report on the 27th states
“Since last report the well has been drilling the Barker Creek Member with elevated background gas and consistent high levels of connection and trip gas. All factors are encouraging.”
“Full assessment of the production capacity of reported gas shows will follow drill stem testing at the completion of the well. At this stage, from formation pressures and the amount of gas bleeding into the well, it is likely that production will be obtained from the Upper Ismay, Akah and Barker Creek members that have already been drilled.”
Now they already believed production would be obtained from the Upper Ismay, Akah and Barker Creek members before they even hit the Alkali Gulch Zone.
Then on the 31st Oct was the big hit thus far
“Significant gas discovery in Alkali Gulch zone of Paradox Formation”
“The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units. Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well. The well is approximately 350 feet above the primary objective of the well, the Leadville Limestone Formation (estimated depth: 13,350 feet).”
Background Gas has increased 40-fold people! Um it has increased 40 fold and they already thought they had something commercial previously! How commercial will this well be! Pretty big if you ask me. They still need to hit the primary target.
Then on the 1st of November they decided to do the wireline logging survey. They are doing this because they are very confident on what they already have. This is a winner! I don’t know why people are selling. Facts stated so far IMO are definitely pointing to a buy.
I'll hold untill they confirm what I believe.
So lets go back to the report on the 24 OCT. I consider the below statement important
“Since last report background gas in the well has doubled and connection gas (methane, ethane and propane) is maintaining consistent levels.”
They state as one of their key points
“Strong formation gas pressures and gas influx to well upgrade production potential”
Now the next report on the 27th states
“Since last report the well has been drilling the Barker Creek Member with elevated background gas and consistent high levels of connection and trip gas. All factors are encouraging.”
“Full assessment of the production capacity of reported gas shows will follow drill stem testing at the completion of the well. At this stage, from formation pressures and the amount of gas bleeding into the well, it is likely that production will be obtained from the Upper Ismay, Akah and Barker Creek members that have already been drilled.”
Now they already believed production would be obtained from the Upper Ismay, Akah and Barker Creek members before they even hit the Alkali Gulch Zone.
Then on the 31st Oct was the big hit thus far
“Significant gas discovery in Alkali Gulch zone of Paradox Formation”
“The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane with trace propane) was present at levels of up to 2,300 units. Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are highly significant, however full assessment of the production capacity of reported gas shows will follow testing at the completion of the well. The well is approximately 350 feet above the primary objective of the well, the Leadville Limestone Formation (estimated depth: 13,350 feet).”
Background Gas has increased 40-fold people! Um it has increased 40 fold and they already thought they had something commercial previously! How commercial will this well be! Pretty big if you ask me. They still need to hit the primary target.
Then on the 1st of November they decided to do the wireline logging survey. They are doing this because they are very confident on what they already have. This is a winner! I don’t know why people are selling. Facts stated so far IMO are definitely pointing to a buy.
I'll hold untill they confirm what I believe.
doctorj
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These are all very 'big' numbers, but please don't go taking a mortgage out on your house tomorrow. Really, they don't mean anything or in my book atleast, not near enough to warrent a 520% increase in market cap.
Sure, finding an intersection of hydrocarbons helps you on the way to commerciality. Finding more than you hoped is even better. But 28 feet of gross pay isn't the next Prudhoe Bay. Running wireline logs means very little. Many many wells are logged, then plugged and abandoned. The data they gather can be valuable to add to their understanding of the geology.
Working out whether or not it is commercial is the next step. 28ft of gross pay doesn't necessarily make for a commercial well. Porosity, the size and type of the trap and ultimately the flow rate will decide whether or not its cased for production.
This is really irrational exhuberance. I hope its commercial and I hope its a major find for a company of this size, but this is gas exploration. Chances are weighted in favour of a lot of people losing a lot of money.
They're more than 12000 feet below ground. Down there its hot and there is lots of pressure. Drill strings break, things get stuck. Sometimes, particularly where there is lots of gas, it can be difficult stabilising the well bore. This is a long way off a sure thing, no matter how much you like to bold the impressive big sounding numbers.
Then there is the small fact of the amount of money that would be required to develop a field. Each drill will will cost a couple of mill. They might want to do a couple of step out wells. There's pipelines and other facilities to build etc etc etc. And this company has $5mill in the bank at the end of the last quarter. There will be a big whack of dillution IF this is assessed as commercial.
So don't go putting your deposit on the new beamer just yet. Treat this as you would any other trade and MANAGE YOUR RISK and PROTECT YOUR CAPITAL. It may be commercial, it may not. It may go up a long way from here or it may go down. But be weary, anything in oil and gas is far from certain.
Please don't read this as me being rude or downramping. Just be careful.
Sure, finding an intersection of hydrocarbons helps you on the way to commerciality. Finding more than you hoped is even better. But 28 feet of gross pay isn't the next Prudhoe Bay. Running wireline logs means very little. Many many wells are logged, then plugged and abandoned. The data they gather can be valuable to add to their understanding of the geology.
Working out whether or not it is commercial is the next step. 28ft of gross pay doesn't necessarily make for a commercial well. Porosity, the size and type of the trap and ultimately the flow rate will decide whether or not its cased for production.
This is really irrational exhuberance. I hope its commercial and I hope its a major find for a company of this size, but this is gas exploration. Chances are weighted in favour of a lot of people losing a lot of money.
They're more than 12000 feet below ground. Down there its hot and there is lots of pressure. Drill strings break, things get stuck. Sometimes, particularly where there is lots of gas, it can be difficult stabilising the well bore. This is a long way off a sure thing, no matter how much you like to bold the impressive big sounding numbers.
Then there is the small fact of the amount of money that would be required to develop a field. Each drill will will cost a couple of mill. They might want to do a couple of step out wells. There's pipelines and other facilities to build etc etc etc. And this company has $5mill in the bank at the end of the last quarter. There will be a big whack of dillution IF this is assessed as commercial.
So don't go putting your deposit on the new beamer just yet. Treat this as you would any other trade and MANAGE YOUR RISK and PROTECT YOUR CAPITAL. It may be commercial, it may not. It may go up a long way from here or it may go down. But be weary, anything in oil and gas is far from certain.
Please don't read this as me being rude or downramping. Just be careful.
