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Hi,
I have read people are saying gdn still has a very high market cap because they don’t have anything of value. At the moment gdn has 25000+ acres of land in utah for oil and gas projects which can possibly contain 4 or more structures similar to the one currently being drilled. The one currently being drilled has been successful since it has got several intervals flowing gas at a steady rate. 2 Intervals had water contact so not possible to be productive from this well but very likely to be productive in the next well when they drill to those intervals especially Leadville further up dip.
The oil interval is going to be interesting to see what results are obtained once tested considering there is a lot of oil being produced in utah and to find 20 feet of oil at around 7000 feet it means shallow drilling for the oil so a lot cheaper to drill and just trucking the oil which only costs involved is the trucks to deliver the oil which shouldn’t be too much.
In the report that was written by an independent geologist which can be found in the notice of shareholder meeting on the 21st December 2005, the geologist says samples of the gothic shale indicates that it can generate up to 5000 barrels of oil per acre or 12400 barrels of oil per Hectare. Im not sure how many feet of oil pay is needed to be able to produce 5000 barrels of oil per acre but thought that this statement was worth sharing. Since if there is a large amount of oil in that 20 foot column and is productive at good flows then even with a small amount of gas flow this well would still be worth the costs involved in drilling this well. It would have been better if it was a lot cheaper but if can get back 7.5 mill US it would mean the well would have only cost around 10-12 million which is only double the initial amount expected which is still a lot but if any oil or gas is productive from a first wild cat well then the company can say that the well was a success. They will also know a lot more when comes to drilling future wells in the area including where best to place horizontal wells too.
To the statement some others have made on other forums about gdn market cap still high, If you look at other companies they are trading a lot higher then gdn’s current share price and they haven’t got any productive flow rates or mining gold or uranium at the moment.
Looking at CIG it has 800 million shares on issue and current share price around 12 cents, it has an interest in pru which is likely to be in production early next year with their gold projects. If CIG had 180-200 million shares on issue the current share price could be 48-50 cents at moment without having drilled any wells. That’s more than twice what gdn is currently without even drilling a well, but when they do drill the chances of success are very high.
ADI currently at 65 cents has just over 100 million shares on issue, only 20% of a big project and primary objective didn’t flow gas, the price is 4 times more than gdn but only has 1/5 of the project that has caused the increase in share price without having tested their secondary targets, it may good value still but this is another company where they aernt producing but still 3 times more in price at moment, but if read into all the work that’s happening can see that it could have a high chance of success.
I don’t mean to sound negative on adi or cig since they both have a lot of potential but they both do show that they don’t need to be producing anything to have a high share price.
Looking at the uranium part of gdn. GDN held the thompson’s project which before spinning off to the new company was going to just sit there since all the money and work has gone into the oil and gas project. By spinning it off into a new company it allows work to start on the project with a team that has been working on uranium projects for a long time and are the only company to be producing uranium in utah currently.
GDN gets 30% ownership of the new company for just giving them the thompsons project. Now if you think about it the ground that the thompsons project covering 6640 acres must be pretty valuable to be all the other partner wants and in return the other company will offer a project that has currently 1.9 million pounds of uranium found already and aiming to be in production by end of year. GDN didn’t have access to a uranium project which would be in production until this spin off happened. The other partner will also be the main ones running the company, they also offer a mining fleet and personnel for the new company to do all the work on the projects. That’s a lot the other partner is offering gdn for the new company just for one project area over 6640 acres, gdn doesn’t have to do any of the work as the other partner is supplying the mining fleet, the management and an already proven amount of uranium with likely short term production for the new company which will be providing the new company cash flow. That would have to suggest that the current 1.9 million pounds can be increased in the area that the project is in and the thompsons project will substantially increase the 1.9 million pounds again when work starts on that project. If from the 1.9 million pounds that already been found with the new company if $40 dollars was the profit amount after all costs were taken out per pound of uranium then that 30% holding gdn has would be around 22.8 million dollars which would cover the full cost of the wildcat well that has been drilled, and maybe a second well if gdn recovers the 7.5 million dollars. So if looking at it that way then gdn’s first well is completely covered by the uranium projects current 1.9 million pounds of uranium with the 30% holding gdn would have then any success on the first well would be pretty much free, since the uranium project covers the costs of the first well.
Reason im thinking along those lines is most other companies increase in price based on drilling results or reserves even if not producing, such as pru has over 3 million ounces of gold and is currently over $1 a share but not producing, pru is a good company in my opinion but just showing that a company doesn’t need to be producing to increase in price based on what the company has found.
So if looking at it that way currently the first well which has successful flow rates even though small is still a success for the company, they currently have 30% of a uranium project currently holding 1.9 million pounds of uranium which may not be much but is a start for a company that hasn’t yet listed. The well is already covered based on return from the uranium project which hasn’t cost them anything but a project on a large block of land that they were not able to do much with while having very little money to invest into the uranium projects.
These are just my thoughts only just thought to share what I was thinking.
I have read people are saying gdn still has a very high market cap because they don’t have anything of value. At the moment gdn has 25000+ acres of land in utah for oil and gas projects which can possibly contain 4 or more structures similar to the one currently being drilled. The one currently being drilled has been successful since it has got several intervals flowing gas at a steady rate. 2 Intervals had water contact so not possible to be productive from this well but very likely to be productive in the next well when they drill to those intervals especially Leadville further up dip.
The oil interval is going to be interesting to see what results are obtained once tested considering there is a lot of oil being produced in utah and to find 20 feet of oil at around 7000 feet it means shallow drilling for the oil so a lot cheaper to drill and just trucking the oil which only costs involved is the trucks to deliver the oil which shouldn’t be too much.
In the report that was written by an independent geologist which can be found in the notice of shareholder meeting on the 21st December 2005, the geologist says samples of the gothic shale indicates that it can generate up to 5000 barrels of oil per acre or 12400 barrels of oil per Hectare. Im not sure how many feet of oil pay is needed to be able to produce 5000 barrels of oil per acre but thought that this statement was worth sharing. Since if there is a large amount of oil in that 20 foot column and is productive at good flows then even with a small amount of gas flow this well would still be worth the costs involved in drilling this well. It would have been better if it was a lot cheaper but if can get back 7.5 mill US it would mean the well would have only cost around 10-12 million which is only double the initial amount expected which is still a lot but if any oil or gas is productive from a first wild cat well then the company can say that the well was a success. They will also know a lot more when comes to drilling future wells in the area including where best to place horizontal wells too.
To the statement some others have made on other forums about gdn market cap still high, If you look at other companies they are trading a lot higher then gdn’s current share price and they haven’t got any productive flow rates or mining gold or uranium at the moment.
Looking at CIG it has 800 million shares on issue and current share price around 12 cents, it has an interest in pru which is likely to be in production early next year with their gold projects. If CIG had 180-200 million shares on issue the current share price could be 48-50 cents at moment without having drilled any wells. That’s more than twice what gdn is currently without even drilling a well, but when they do drill the chances of success are very high.
ADI currently at 65 cents has just over 100 million shares on issue, only 20% of a big project and primary objective didn’t flow gas, the price is 4 times more than gdn but only has 1/5 of the project that has caused the increase in share price without having tested their secondary targets, it may good value still but this is another company where they aernt producing but still 3 times more in price at moment, but if read into all the work that’s happening can see that it could have a high chance of success.
I don’t mean to sound negative on adi or cig since they both have a lot of potential but they both do show that they don’t need to be producing anything to have a high share price.
Looking at the uranium part of gdn. GDN held the thompson’s project which before spinning off to the new company was going to just sit there since all the money and work has gone into the oil and gas project. By spinning it off into a new company it allows work to start on the project with a team that has been working on uranium projects for a long time and are the only company to be producing uranium in utah currently.
GDN gets 30% ownership of the new company for just giving them the thompsons project. Now if you think about it the ground that the thompsons project covering 6640 acres must be pretty valuable to be all the other partner wants and in return the other company will offer a project that has currently 1.9 million pounds of uranium found already and aiming to be in production by end of year. GDN didn’t have access to a uranium project which would be in production until this spin off happened. The other partner will also be the main ones running the company, they also offer a mining fleet and personnel for the new company to do all the work on the projects. That’s a lot the other partner is offering gdn for the new company just for one project area over 6640 acres, gdn doesn’t have to do any of the work as the other partner is supplying the mining fleet, the management and an already proven amount of uranium with likely short term production for the new company which will be providing the new company cash flow. That would have to suggest that the current 1.9 million pounds can be increased in the area that the project is in and the thompsons project will substantially increase the 1.9 million pounds again when work starts on that project. If from the 1.9 million pounds that already been found with the new company if $40 dollars was the profit amount after all costs were taken out per pound of uranium then that 30% holding gdn has would be around 22.8 million dollars which would cover the full cost of the wildcat well that has been drilled, and maybe a second well if gdn recovers the 7.5 million dollars. So if looking at it that way then gdn’s first well is completely covered by the uranium projects current 1.9 million pounds of uranium with the 30% holding gdn would have then any success on the first well would be pretty much free, since the uranium project covers the costs of the first well.
Reason im thinking along those lines is most other companies increase in price based on drilling results or reserves even if not producing, such as pru has over 3 million ounces of gold and is currently over $1 a share but not producing, pru is a good company in my opinion but just showing that a company doesn’t need to be producing to increase in price based on what the company has found.
So if looking at it that way currently the first well which has successful flow rates even though small is still a success for the company, they currently have 30% of a uranium project currently holding 1.9 million pounds of uranium which may not be much but is a start for a company that hasn’t yet listed. The well is already covered based on return from the uranium project which hasn’t cost them anything but a project on a large block of land that they were not able to do much with while having very little money to invest into the uranium projects.
These are just my thoughts only just thought to share what I was thinking.
