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GDN - Golden State Resources

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Sandlion,
hopefully they will announce this to the market tomorrow..along with some good news on the upper zones:D
SP held ok today.
Still the waiting goes on.
 
Looks like the stock has finally bottomed out... i think it will be a slow upward trend up until the next announcement, which i think will include a more detailed analysis of para 1 results. as far as i can tell, para 2 results are some weeks away, given that para 1 results took a number of weeks to be released. Should we expect para 2 results sooner rather than later or am i holding my breath?
 
aus,
Para 2 hasnt been started yet.
Do you mean testing of the upper zones?
results of fraccing due SOON ...thats GDN soon=sometime.
 
Is it possible that GDN will cancel Para#2, if para#1 is failing to produce commercially?:confused:
Maybe if that happens they will go in to the U-thing rather then float it??

My big question is: why haven't they started para#2-surely it doesn't take that long to get a permit:banghead::banghead::banghead:
 
what's the expectations today everyone? do you think there is a chance of an announcement?? i can see the shares sliding to 20cents if there isnt a solid ann...
 
Aus,
Dont reckon there will be an ann today. Sunday U.S.A. time.
Heard a rumour on HC via C.K.Locke that ann would be Wednesday.
I am beyond holding my breath..started hyperventilating back in Oct '06!!:mad:
Still..as we all know...GDN just may have an ann today..bit what is in it???:confused:
 
ANN IS OUT!!!! IT WAS 0.3MM PER DAY COMPARED TO THE LOWER GAS FLOW OF 0.2MM, NOT SURE WHICH WAY THE SP WILL HEAD.

DYOR
 
"The Company anticipates that, through developing a number of such gas producing intervals, flow rates in the well can be brought to a level suitable for commercial production."

The word "can" be brought to a suitable level is a bit worrying. Stock certainly won't reach any dizzying heights on this news.
 
Its goodish news, tho the upper levels are going to have to be fairly productive IMO.
Good news on the legal side.
Market not impressed.
 
Well now we have some news to go by and some questions to raise…

1: Can we assume that the 0.3 and 0.2 combine to 0.5 MMcf/day??

2: Assuming similar flow results in the upper levels, will we reach 1.0 MMcf or beyond, and if so, is this good enough for commercial production??

3: This question has been raised a number of times, but no clear answer has been given – What levels are needed for commercial production??? 1.0MMcf? Bcf? Or Tcf?

4: How many more intervals are there to test??
 
aussie,
1. yes
2. seems so but really 3 to 5 mmcf/d would be 'profitably commercial ' IMO
3. see 2.
4. seems 2 more but i think they seem to be testing zones within the zones.
My post on HC this am.
Market not impressed/doesnt give a sh*t.
Its a complicated equation with this well dragging out/oil question/para 2 imminent/the u thing entilements coming up on 24th.
Really, if the next ann isnt BEFORE the 24th and POSITIVE ie really profitably commercial , (not just commercial enough to cover costs and the Directors xmas party) and tells us Para 2 will commence on a specific date ,the SP can only go one way after the 24th.
Straight to hell.
(sorry, been watching to many Bruce Willis movies)
 
so 500mcf/d is worth about US$ 3250
x365= US$1'186250 correct?

How much does 7 miles of gas pipeline cost? That's the big question.

I think we have to be realistic and realise that GDN will need more than one well to pay for the infrastructure.
 
This is a post by New Trader_1984 on HC...

The flow rates aernt much so far but the well is atleast flowing at different intervals which is better than having no flow out of all zones. If they can get maybe 0.5-1mmcf on the next 2-5 intervals depending on how many they plan to test compared to what they have told us so far it would make the well productive for the company.

Looking at the Lisbon field they have a lot of wells many producing and many were plugged and abandoned. They have a total of 225 feet of net gas pay which has produced over 1tcf of gas plus oil. Now 1 tcf of gas from 225 feet of net pay is about 4.4bcf per foot of gas pay.

The flow rates at Lisbon are different anywhere from 0.1mmcf per day to several mmcf per day. If gdn can get several mmcf per day from the well it would be a good start also if they say its commercial they would have to be confident of a minimum of 50bcf from the field.

GDN picked this spot to test as many different formations as possible, which it did, they found 60 feet of gas in Leadville which may have been a good producer if water wasn’t there. It was a deeper well then expected considering many other wells in the same area reach Leadville around 10-12000 feet instead of 15000 maybe in future wells they wont need to go so deep to reach Leadville. The information the company received from drilling this wildcat well is able to help better select future well places to best target certain formations whether they are ismay and desert creek or Leadville.

If this well can be commercial then that’s better than most companies can get on their first well. I realise it cost a lot but if they can recover the 9 million Australian from whetherford then that reduces the costs to about 11 million for the well, yes more expensive then meant to be but a large number of wells always go over budget.

Many oil and gas companies they have projects in many countries or different states of a country? GDN has 10 000Ha or 25000+ acres of land in the paradox basin utah. This first structure covers 2000Ha of that field. That leaves 8000Ha of land to drill which could contain 2-4 more structures in similar size or bigger. We don’t know how big this field is currently and flow results aernt giving us the best results but that can change on future wells if in better positions to reach formations. Also horizontal drilling has been used in utah and can help produce a lot more gas then vertical wells which could help the cane creek formations where it was too tight for successful flow rates. Having so much land in one area saves a lot of travelling and can also mean they are able to build reputations with the drillers to become very successful. The litigation may hurt them possibly if sue12 is right that if you upset one group you wont get any help with drilling, but you cant just let companies walk all over you either and let them take your money when you have proof that they received a faulty casing.

Earlier I mentioned the Lisbon field has produced over 1TCF of gas with only 225 feet of net pay. If we now look at gdn’s well at the 2 intervals that has flowed successfully there is a total of 73 feet of gas pay even though low flow results in better positions for those formations flow rates could increase, the main thing is the gas is flowing. If we use 1bcf per foot of net pay then that means gdn currently has 73bcf of gas. If used 2bcf that’s 146bcf, If they only have half of the two intervals as net gas pay that is still 37-73bcf of gas. If you look at the original intervals and compare to the two that were flowed they both increased in size not sure why this happened or what it means but I’m assuming it means more net gas pay for each interval.

They plan to test 2 more intervals we have been told about for a total of 32 feet more of possible gas pay which if going by last 2 intervals could be increased in size still. They then have 3 more intervals which were mentioned to be likely productive zones back in October last year. If those 3 intervals were added it would add another 85 feet of possible gas pay, currently those 3 intervals no one is aware if they will be tested or not.

So if we can add the 32 feet as likely to flow in this well on top of the 73 feet that already has flow rates even though small its still productive, that gives a total of 105 feet of gas pay. If we only have 1bcf per foot that would then mean 105bcf of gas and using 2bcf per foot is 210bcf of gas for the field.

Im only using the number of bcf per foot and only using half of what is produced in Lisbon and considering almost same size in structure it should be closer to 3bcf per foot I would have thought.

I realise if there was a 100bcf in the field with current flow rates it would take a very long time to produce and the daily earnings wouldn’t be much but since success on a first well doesn’t happen often a commercial well for gdn would be a good start. Future wells can increase flow rates by targeting the formations in better places.

Something that has been mentioned a lot is the types of gas that is being produced, I don’t know why people are bringing it up when they don’t ask the same questions on other oil and gas companies that is producing commercial amounts of gas. Why ask about gdns types of gas when wont do the same for other companies?

This isn’t ramping either, I know the flow rates are small but other companies can produce wells at similar flow rates so it suggests its still productive just needs to increase to be worth producing into the pipeline. The bcf estimates gives me an idea of likely size of the field based on successful flow rates so far and just thought to share it.
 
Thanks for that post Daz, interesting and agree with the post to the extent that flow rates need to increase otherwise the company cannot generate revenue.

My curiosity is that whats happening with Pinkerton and Akali ? The testing and fracturing seems to only focus on Barker and upwards ? Does anyone know the flowrates for Pinkerton and Alkali ?

I've searched all GDN's posts but no mention of them.


Hop
 
Hi hoppielimp,

The testing of akali is lower barker creek which they got a flow rate of 0.2mmcf, since there was lots of expectations on that interval being a major gas interval lots of people thought it would of produced several mmcf. Thats why the share price dropped i think.

The pinkerton trail interval didnt flow but they did suggest it was a cane creek play where horizontal drilling would be best to get production flow rates from that formation. Looking at BUR they got a flow rate of 5.29mmcf but that was with a 5000 foot horizontal into the formation, maybe if we had of done the same we might of got 2-3mmcf for the pinkerton trail. They might try it on future wells, it has been done in utah, i read over the weekend the department of energy offered funding for companies who did horizontal drilling in 2005.

https://fs.ogm.utah.gov/pub/DOGM/Press_Releases/2005/press_rel_UGS_06302005.PDF

There is an announcement on 21st December 2005 on about page 34 there is an independent geologist report for the project, its a good read and in the report the geologist says the Ismay Desert Creek and Akah intervals are where a large amount of production comes from, hopefully flow rates from those intervals will be better then the ones so far.
 
NT1984,
i SENT YOU AN EMAIL RE POSTING FROM HC.
YOUR LAST 2 POSTS REALLY GIVE CAUSE FOR GREAT OPTOMISM IMO.
MAYBE JUST PUT GDN THE BOTTOM DRAW AND HAVE A SQUIZ THIS TIME NEXT YEAR.:cautious:
 
Hi dazt49,

Sorry about not responding to your private messages didnt even know about private messages until just now when posted about them.

I dont mind you posting from hotcopper.

Did you read those pdf files from inside trader about the supply/demand? Did you think it would work with speculative stocks such as gdn?

From what i have looked at it seems to work may not always give 50-100% returns but any 10-20% return on a stock in a short amount of time has to be good i think.

Using the supply demand charts you have to look at the market depth and also the traded volume for it to work properly.

Was there any charts you wanted to see? I just read your private message about a chart.
 
Nt,
ASF dont like it too much when we chat about other stuff so I will email again.
Meanwhile I chatted to Locke Stock n Barrel a short time ago re the U spinoff.
(gunna cheat and copy my own post):cool:

Re: U Spinnoff
They still have test drilling to complete, which apparently has good results, to finalise the size of the resource etc.. This is imminent as they want to get that info into the Prospectus and before the ASX for approval.(Then takes a couple of weeks after that for listing)
The 24th still hasnt been confirmed by the ASX, no date has been given, we have assumed that 10th July + 14 days is 24th July..our time ???GDN time.
It would be wise, if you want to get the entitlements,
to get in soon ,taking into account T+3.
 

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