GDN - Golden State Resources

[dj_420]

Sold out at the 40 cent mark, looks almost good for a punt again soon. Looking at the chart it looks like we might get to the 5 - 10 cent mark. What would you think was a good buy in point, considering we are likely to see single digits soon?

i have been watching this one from over $1, looking quite attractive now. although sub 10 cents could be seen.

anything speculative has been more than hammered in last couple weeks, so any more red days could see 10 cents be broken.

 

[sharemadder]

Emailed GDN management again and probably get the same reply again "zilch"

Well I got a reply. Basically news will be released as results become available - can't argue that. Just have to wait again

Might go fishing today - cheer me up

 

[new_trader1984]

Hi Sharemadder, Did the email from gdn say much more besides they will release news when they have some? Since they started testing last thursday would have thought they would know results from atleast 1 of the 3 intervals by now. Did they mention anything on the second well or planned testing for the oil column?

The share price currently is very low for what they have, but also the volume is very low too considering the share price.

I have read land in utah for oil and gas exploration have been purchased in some areas for almost 400 per acre, that would mean the 25000+ acres of land gdn have is worth over 10 million dollars in land value alone. So that would be around 6 cents per share. They currently have 0.8mmcf from gas production from the first well and should be able to get it to 1.5-2mmcf i would be expecting which should give a return of around $5,596,910 if they were to have 2mmcf per day production per year. Might not sound much but it would mean the company be cashflow positive.

The 5000+ acres of land in the uranium project must be worth a fair amount considering everything the other company is offering for that one project. If the other company already has a project with 1.9 million pounds of uranium but that can be increased with more exploration in the area. This would suggest that the thompsons project the only part of the deal in the new company gdn is offering must be substantially bigger then the current 1.9 million pound project right next to the thompsons project.

The share price before drilling started was around 30 cents, its now 1/3 of that price with knowing everything they do about the first well and that they can get productive flow rates the share price should be a lot higher i would have thought.

 

[DAZT49]

nt,
flow rates and U jv ann mid next week.
All my other stocks have gone down 50+% in the last few months, GDN is the worst, but still part of the bunch.
Hopefully a recovery in the states may revive our fortunes (lost and otherwise)

 

[sharemadder]

Hi NT1984 and Datz49

First of all just got back from a dabble with the fishing line and caught bugger all

Secondly I just logged on and saw my small buy order of 5000 @ 10c got filled - wow - I only put that order in couple of days ago after topping up at 15.5c

Thirdly here is part of John's email - nothing really in it other than still testing flows

As you will know we are currently flow testing the Upper Ismay interval in the current well. We aim for weekly reports unless something exceptional intervenes. We don't release "no news" reports and we don't like to release information that might be misleading in the middle of testing an interval - misleading either positively or negatively. I assure you that the shareholders in the company are kept fully informed. If the information stream seems slow it is because the testing process takes time.

I firmly believe this is way oversold on what they have - WE HAVE A WELL THAT FLOWS GAS - how much gas, like Datz49 says next week we will find out but we know it 800mcfd minimum. Then we have the leases + U + iron ore and some gold leases. 10c is really cheap and way below pre drill SP - go figure :screwy:

 

[DAZT49]

sharem,
Thanks for an uplifting post.
Reading between the lines, as we all try to do..
My snoop ses flow rates mid week.
JH ses
"We don't release "no news" reports and we don't like to release information that might be misleading in the middle of testing an interval - misleading either positively or negatively."
I would consider NO GAS IN ISMAYas news and surely if that had been the case they would have no that and have stopped testing by now.
Seems positve to me and a matter of "how much gas". Hopefully 2mmcf/d min to get into the pipeline.
Latest Henry Hub Spot price for gas is $6.86/ MMBtu..how can we convert from our mmcf??

 

[sharemadder]

Datz49 said "Latest Henry Hub Spot price for gas is $6.86/ MMBtu..how can we convert from our mmcf??"

800000 Cubic Feet of Natural Gas (nat gas ft3) = 824,373,380 British Thermal Units (BTU)

824,373,380 (BTU) * $6.86 /mmBTU = $5655 per day

Hope that helps

10c is a steal - buying more tomorrow at that price

Cheers

 

[DAZT49]

Thanks maddy,
So are you saying that .8mmcf/d =$5655/day ??
threfore 5655 X 365=$2.06mill/year?
Would love to have some cash to buy in...on a lot of dirt cheap stocks.
report on news tonight ses this volatility could go on for another 2 months.
think I have posted re waiting for xmas and santa

 

[somesortoftrader]

Thanks for all your informative posts guys!! I have been watching GDN slide for ages, and made the jump into the stock yesterday! I'm in at 12c

 

[DAZT49]

somesort,
I hope you didnt buy in because of this thread..DYOR.
Was that a good ann this morning???
300MMcf/d =.3mmcf/d doesnt it??
That only gives a total of 1.1mmcf/d.

 

[sharemadder]

Datz49

Not 1.1 mmcfd yet. The 0.3 mmcfd is the previously reported flow prior to fraccing. They have fracced successfully and now uplifting frac fluids. Gas will flow soon and over next 48 to 60 hours they will have a good idea what the 35ft upper ismay zone will flow at. So they still have 0.8 mmcfd. IMO the 0.3 mmcfd from upper ismay will be upgraded once flow testing is completed.

Regards $5565 US a day - yes that is correct. The oil column if tests ok will improve the cash flow from this well. The important thing to remember is the well is flowing gas. What will the next well flow further updip when they drill the second well which will be shallower?

Gas flowing = the project area is productive

SP is still @#$% though

Cheers

 

[DAZT49]

madbugger,
cheers, I have a feeling in my waters that next weeks ann will make us feel warm and gooey.
I reckon they put out that report today to placate the seagulls on HC lol
It hasnt.

 

[bigdog]

Xmas is coming too!!

Dazt49 what next!!

ASX ann today
16/08/2007 Oil and Gas Update
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00748927

• Paradox Basin #1 gas discovery well, Grand County, Utah, is undergoing continuing completion and stimulation activities. The Company is assessing incremental gas flows from various levels in the well.

• Testing continues on three Upper Ismay gas intervals following successful fracing.

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
The Directors of Golden State are pleased to announce that fracing of three Upper Ismay gas intervals was successfully completed.

The intervals are 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet. In a 24 hour test following perforation, the intervals flowed gas at 300 Mcf/day through a 28/64” choke. A slickwater frac has now been completed and frac water is being recovered prior to flow tests.

Results will be released as soon as available.

 

[bigdog]

Unusual for GDN - the SP has risen this morning with rest of market down

GDN $0.12 +$0.01 +9.09% 490,857 shares $55,139 @ 16-Aug 10:17:03

 

[sharemadder]

:alcohol:Blow the trumpet - GDN goes green for first time in a long time hahahaha celebration time (joke ok).

Maybe Monday will be our day. That will be 4 days flow testing.

Cheers

 

[DAZT49]

oh joy, oh joy up 1c I knew it would be all worth it lol
I reckon Weds for ann maddy, according to "my sources"

 

[sharemadder]

Datz49

Wednesday will do fine for me. I get the distinct feeling from John's email to me that we should get a gas flow upgrade from the fraccing of upper ismay. From previous discussions they had pointed to upper ismay as being the zone to produce. Lets hope so as we need some good news. Anyway at 10c I consider GDN a good risk play especially when there is much to come in way of activities in the near term (i.e. new well, U JV, iron ore etc)

Wonder when the permit from the BLM will be issued for the second well?

Cheers

 

[DAZT49]

maddy,
ann of 25/7
"It is planned that drilling of the follow-up Paradox #2 well will begin in early October, contingent upon grant of the Application for Permit to Drill."
I would deduce from this that BLM? has indicated to GDN that they commence
Para 2 in Oct subject to the formality of the granting of the permit.
I reckon we will get that info, along with final flow rates and assessment for Para 1. U spinoff prospectus/entitlement cutoff in the next ann (Wed?)
What was that Dusty Sprinfield song..
Wishin and hopin and prayin and dreamin

 

[sharemadder]

Well good finish when you think what happened to the all ords. Plenty of support it seems around 10c. To think some would sell when upper ismay is giving up its hidden treasure right at this moment.

 

[DAZT49]

very happy that the old girl hung on to 11c (cant believe I am saying that after $1.20+!!)
Couple of those twats on HC got on my goat today, usually I just stick em on ignore,but I had to have a swipe.
xjo made a good recovery after being 300 pts down at around 2.30pm. finished down 76.
We are in the hands of the yanks again tonight