GDN - Golden State Resources

[sharemadder]

Apparently wktwkts from HC spoke to John Haselby and has summarised what was said below (copy/pasted from several threads wktswkts started).

I spoke with John on a number of issues.

The Oil Column

What were they going to do about testing this and what was its status for testing.

They have not yet entertained this as the focus is obvioulsy on the gas. This will be assessed after the fraccing and more than likley tested.

John, saw the oil column as an opportunity to drill shallow wells to tap this source if commercial and viable.

More information will be revealed after all the gas zones have been assessed.
DYOR then do some more R

I spoke with John on a number of issues.

With regards to the 1st well, they believe they can make this well commercial when combining all the other zones.

Mind you he really could not say anything else.

Despite the negativity coming from all places, firms and rock dwellers they are confident that they can get the results they need to make this commercial.

At least they are trying and I for one would prefer them to keep trying and if need be go horizontal.

Spoke about the fraccing process and the timelines that have already eventuated and that of the next stages. No rocket science there, should be self explanatory already.

At the end of the day they can not yet come out and say it is commercial (yet) and when that time comes they will be making that announcement in BOLD print.
DYOR then do some more R

I spoke with John on a number of issues and especially about the progress of the 2nd permit.

He stated that it is underway and should be received sometime very soon.

Turns out the application is NOT with the state jurisdiction, it is with the Federal Agency.

With regards to a rig being available, John stated that some rigs have just been released from neighbouring leases and others soon to be released and that securing a rig will not be an issue.
DYOR then do some more R

I spoke with John on a number of issues.

The U spin off date and the share entitlement date.

It was that they are waiting on the legal stuff to be sorted and is not far away from progressing to the next level.

The legal opinion was that a prospectus will be issued then a date will be set for share entitlements after the prospectus.

The share entitlement date will more than likley be within days or possibly a week after the prospectus being issued.

From what I do know is that the prospectus will go through a legal process with ASIC and ASX and the prospectus will be available for what I am being told is a 7 day public opionion process before being approved.

Can anyone here confirm this or correct this appropiately ?

DYOR then do some more R

I spoke with John on a number of issues and this one was IMO the most important of all.

U - production date

I asked John, this "Will the new company actually be producing U by the end of the year, is it possible" Johns answer "Yes, provided the permits all come together"

How many other U companies can state the same.

The prospectus for the new U company is going to be a definite trigger to GDN current SP.

I am waiting for the prospectus with great anticipation.

DYOR then do some more R

 

[Broadside]

Even more important than when they are producing Uranium is how much they will be producing, can anyone answer this?

 

[sharemadder]

I would say they will indicate that and other important information about the U JV in the prospectus when it is ann'd. Then based on that information traders / investors can make up their minds whether to invest. So until it comes out I don't think anyone can answer your question.

 

[Broadside]

Is this now ex entitlement to the new float? I don't want any but it seems ambiguous to me. The float would want to be very good given the amount of people who stuck with GDN on the basis it is worth something to be able to apply for shares in the new company.

 

[DAZT49]

This from ann of 3/5..
In excess of 1.9 million pounds of U3O8 with an ore grade of 0.3% (6.2 lbs per ton)
contained in 300,000 tons of ore in high grade sandstone-hosted roll-front deposits,
plus substantial exploration potential on the Thompson Project.
Not a huge resource, as I have posted before.
At $120/lb(current spot price) only gives $228mill resource.
This doesnt take into account cost to actually mine it.

 

[sharemadder]

I don't think it is. wktswkts from HC stated today that John told him -

The legal opinion was that a prospectus will be issued then a date will be set for share entitlements after the prospectus.

The share entitlement date will more than likley be within days or possibly a week after the prospectus being issued.

 

[DAZT49]

maddy,
you would think it would have to be a week, to give punters to get in, taking in account T+3.
I will be picking up my entitlement, even tho the resource is small I think there could be a short term surge in the SP.

 

[sharemadder]

I will be taking my entitlement up. Not just based on the existing resource, what can be explored further (combined leases) or the fast track to mining but based on the JV partner, Mike Shumway, his 3 generation mining background in Utah and I would say his influence in that region. This alone could help the JV to grow into something worthwhile. Shumway must be looking at a bigger picture or why bother with GDN or its Directors? Has he got his eye on GDN leases and if so why.

 

[sharemadder]

Hi all

This is something I posted on HC in reply to so sarcastic comments regards getting the 2nd Permit and the hold up.

Refer https://fs.ogm.utah.gov/PUB/Oil&Gas/Publications/Handbooks/guideAPD2.pdf

The handbook states For any wells drilled on Federal or Indian mineral leases the Division shares this authority with the Bureau of Land Management (BLM). The BLM must evaluate the proposed well location first before the State authority will progress it further.

Does this mean both authorities have to sign off on it? Yes I think so. I remember a ann that stated they had to meet with the BLM about the permit. Maybe there is a Federal issue holding them up which has to be resolved first before proceeding further.

Cheers

Document extract (text in BOLD what I am refering to) -

The Utah Department of Natural Resources, Division of Oil, Gas, and Mining (“the Division”) has regulatory authority for permitting all oil and gas wells drilled in the State of Utah.

FOR ANY WELLS DRILLED ON FEDERAL OR INDIAN MINERAL LEASES THE DIVISION SHARES THIS AUTHORITY WITH THE BUREAU OF LAND MANAGEMENT (BLM).

An Application for Permit to Drill (APD) must be filed with the Division for all oil and gas wells drilled, deepened, or plugged back, in the State of Utah.

When an APD is received by the Division it is first assigned an API number. The submitted document is then evaluated to determine if the application is complete and if the proposed location complies with applicable siting and spacing rules. When the application is determined to be complete and that the operator is sufficiently bonded, an onsite evaluation will be scheduled with the operator. An onsite evaluation will be done by the Division staff for all wells with State or Private surface ownership.

IF A PROPOSED WELL IS LOCATED ON FEDERAL OR INDIAN SURFACE OWNERSHIP THE BLM IS RESPONSIBLE FOR ONSITE EVALUATION.

If the proposed well is on a State or Privately owned mineral lease, the Division staff will then evaluate the proposed drilling, casing and cementing programs. When all applicable rules are satisfied and proper evaluations are completed a Permit to Drill will be issued.

The Division and its staff will make every effort to process each permit application in a timely and efficient manner. A complete application package, submitted by the operator, which contains all of the required
information will assure that the process moves along as quickly as possible.

 

[Bushrat]

Have been watching this 1 for a while and bought in last week at 21...seems like the entire market is waiting on 1 good announcement to turn things around....i think it will come soon, and there could be a string of good announcements to get this one motoring....I do believe the directors are holding there cards closely for some specific reason....waiting on permits that could make the company?

 

[sharemadder]

First well struggling to give up its gas (0.5mmcfd so far) with stimulation flow results due Monday for Akah formation and then on to testing Upper Ismay. 2nd well permit held up with BLM who have duristriction for Fedral and Indian lands in USA. Need more gas to plumb this well direct to main line or wait on further well flows to combine before plumbing. Company suggests Oct before 2nd well starts so maybe have a nod from BLM. Plenty of cash in bank for second well. U JV spinoff close to issue of prospectus. Plenty to come for GDN just management suck (as the SP attests to)!

 

[sharemadder]

There's 194,437,235 shares on issue and $9 million in the bank yet the sp is 17c??? Second well to be drilled, U JV to be spun off. Must now must be getting into oversold territory surely??? GDN management stink bad, couldnt even announce how the Akah frac went. Frustrating very frustrating. Anyone heard from GDN management lately (i.e. over weekend). Cheers.

 

[DAZT49]

maddy..I have pinched my own post from HC lol
I reckon we will get (ideally)the ann with the u spinoff/entitlement/listing date maybe later this ??week/month/year lol
I am prepared to wait (no choice really)
History tells us that a vast majority of 'first' wells come up dry. Para 1 may come up with chicken broth, instead of Grange Hermitage, but it has something, and untill we get the final appraisal of the well we dont know how much 'soup' we have.It also has a dash of cream(oil) for garnish.
They have $11mill in the kitty to fund piping etc and Para 2,3,?.
Para 2 is said to be updip and on the money.
The 30% holding in the u spinoff gives GDN $70mill odd to spend on another 15 or so wells at no expense to GDN, so future drilling is certain and virtually free.
I am getting my U shares and hanging tough for para 2.
I got in at IPO for only a couple of $k and traded up to 100k shares, so while I have paper losses and I am stressed out and frustrated but not feeling any financial pain.

 

[sharemadder]

Thanks Datz49 for your reply.

Do u know what CK Locke have to say about the SP. Surely they must be rank about the SP lows considering those funds they introduced into GDN are down heaps?

 

[DAZT49]

sm,
No, dont know what they think.. I can say my bro bought in at the same time as I did and recently bought another 250k.

 

[bigdog]

IMO, if GDN spin off the U assets, the GDN SP will drop to 10 to 15 cents unless there is VG news to be issued!


Two ASX ann July 31
31/07/2007 Quarterly Activities Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744576

HIGHLIGHTS
• Golden Eagle Oil & Gas Prospect, USA: Drilling of wildcat well Paradox Basin #1 was completed during the quarter to a depth of 16,471 feet (5,020m). Testing of gas shows encountered during drilling is continuing.
• Thompson Uranium Project: 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 shareholders will have a priority entitlement in the capital raising for the
new company

A drilling programme of twinned holes in the Daneros ore body showed an increase in U3O8 grade while confirming the historical drilling.

31/07/2007 Quarterly Cashflow Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744474
Cash at end of quarter $8,957,000

 

[DAZT49]

bigdog.
IMO it was a pretty good report,and remember it is only an activities report not the ann for results of Para 1.
Ann for results of para 1/u spinoff entitlements/prospectus and listing to come.(sooner than later)
$9mill in the bank pays for piping and Para 2 with plenty left over.
Maybe the Golden Eagle is about to drop its bounty on us.

 

[DAZT49]

smokin barrels feels Prospectus is due this week, delayed because of "better than expected results in latest samples", and wanting to get this info into the Prospectus.
No info on Para 1

 

[DAZT49]

Its certainly not a good time for ANY ann IMO
I think the prospectus goes before the ASX for appraisal before release, so they may have no choice on ann date.
This US lead downturn could take a couple of weeks to stabilize according to the press.
I have another stock ODN due for listing into this crap market too!!

 

[Busylion]

hi Dazt49,
how big the uranium float? $20m?the timing could be wrong as the market correction is taking place now.
cheers,
BL