GDN - Golden State Resources

[sharemadder]

With no announcement today could probably suggest the upper ismay has not really improved in gas flow and they are now targeting another zone or the oil column. One would think that 6 days flowing gas from the 3 zones in the upper ismay formation would be good enough by now to report what the flow is. This is really starting to look like horizontal drilling will be required in future wells. Anyway few hours to go yet.

 

[DAZT49]

sharemadder,
Some nice duckin n weavin by you over at HC
Havent been able to get any gos ATM
Yep, still time today for ann but looking less likely ..11.30ish in Perth isn't it?
Maybe they will release it when they come back from lunch??
I think Para 2 is gunna be our best hope now. Hopefully they can get it started and finished without any of the probs they had on Para 1.
Its too late for them to horizontal drill Para1 isnt it?

 

[Agentm]

With no announcement today could probably suggest the upper ismay has not really improved in gas flow and they are now targeting another zone or the oil column. One would think that 6 days flowing gas from the 3 zones in the upper ismay formation would be good enough by now to report what the flow is. This is really starting to look like horizontal drilling will be required in future wells. Anyway few hours to go yet.

are you sure the process would work??? its exacting science.. if its done right you will reap massive rewards, if porosity is no good then doesnt matter how much you throw at it,, its a dry hole..

look at this case study ended last year.. has GDN actually touted horizontals or is it entirely your own idea?? it doesnt seem attractive to others so whats the attraction to GDN doing it?

all IMHO and DYOR


http://www.netl.doe.gov/technologies/oil-gas/Petroleum/projects/EP/ImprovedRec/15128UGS.htm

Oil & Natural Gas Projects
Exploration and Production Technologies
Heterogeneous Shallow-Shelf Carbonate Buildups in the Blanding Sub-Basin of the Paradox Basin, Utah and Colorado: Targets for Increased Oil Production and Reserves Using Horizontal Drilling Techniques

DE-AC26-00BC15128

Project Goal
Increase production and reserves from the shallow shelf carbonate reservoirs in the Ismay and Desert Creek zones of the Pennsylvania age Paradox Formation, in the Paradox Basin of Utah and Colorado. The project proposed using horizontal laterals from existing vertical field development wells to optimize production.

Performers
Utah Geological Survey
Salt Lake City, UT

Eby Petrography & Consulting
Salt Lake City, UT

Colorado Geological Survey
Denver, CO

Seeley Oil Company

Project Results
Two San Juan County, Utah fields were evaluated for horizontal drilling potential: Cherokee and Bug, producing from the Ismay and Desert Creek zones of the Paradox Formation, respectively. Three-dimensional (3-D) thickness models indicate five porosity units have an untested northeastern area in the Cherokee case-study field, San Juan County, Utah. Based on Cherokee reserve calculations, the remaining recoverable oil and gas reserves are nearly 168,000 BO and 3 BCFG, suggesting the presence of additional undrained zones. For the Bug case-study field, the volume calculated for net feet of porosity greater than 10 percent is 99,057 acre-feet, as derived from 3-D models. This also suggests the presence of additional undrained zones. The lower Desert Creek may contain recoverable oil and gas reserves of nearly 2,440,000 BO and 5.7 BCFG. It was recommended by the UGS that horizontal drilling techniques be used to tap undrained reservoirs as a demonstration in these fields.
Benefits
Detailed reservoir characterization and analysis of horizontal wells by the Utah and Colorado Geological Surveys will provide information and assessment of horizontal drilling of prospects in the Blanding Sub-basin of the Paradox Basin that small, independent operators could not afford on their own. Work by the geological surveys will not be restricted to individual leases or time constraints and can thus provide a more comprehensive and objective analysis available to all companies working in the area. Methodologies to identify drilling prospects in the over 100 small carbonate mound fields in the Paradox Basin holds the key to recovery of an estimated 200 million barrels of oil.
Background
Most of the Pennsylvania Paradox Formation fields are characterized by high initial production rates followed by a very short production life (primary). Only 15 to 25% of the original oil-in-place (OOIP) is recoverable during primary production with conventional vertical wells. The previous DOE Class II study of the Paradox Basin demonstrated that secondary recovery by waterflood is not as effective as carbon dioxide flooding.
The small Ismay and Desert Creek fields are at risk of premature abandonment. At least 200 million barrels of oil is at risk of being left behind in them because of inefficient development practices that leave undrained these very heterogeneous reservoirs. Because of the widespread nature of the carbonate mound fields, the Desert Creek and Ismay zones have not been adequately characterized. Small, independent operators of single fields do not have the time, money, or expertise to perform this analysis. The Utah Geological Survey serves the public by conducting regional studies which small companies cannot under take by themselves.
The proposal suggested a three-phase, multi-disciplinary approach to increase production and reserves from the shallow-shelf carbonate reservoirs in the Ismay and Desert Creek zones of the Paradox Formation using horizontal laterals from existing vertical field development wells: 1) conduct detailed geologic analysis of fields, 2) drill horizontal wells from existing vertical wells to test hypothesis developed in Phase 1, and 3) extended monitoring to determine impact of Phases 1 and 2.
Project Summary:

• Data from representative field and wildcat wells was used to correlate logs and construct regional maps and cross sections of facies for the Desert Creek and Ismay Zones.
• A three-dimensional model was constructed of environmental facies and potential undrained zones that may be suitable for horizontal drilling.
• Diagenesis has been determined to be the main control of reservoir quality of Desert Creek and Ismay reservoirs.
• Reservoir characterization of the Ismay and Desert Creek zones has identified
• Potential horizontal drilling targets are based on analysis of the porosity distribution, which is highly dependent on the diagenetic history of each facies.
• At Cherokee field the best production zones are related to microporosity in the phylloid-algal mound and crinoid/fusulinid facies of the Ismay zone.
• At Bug field the best production zones are related to micro-box-work porosity of the Desert Creek phylloid-algal mound and shoreline carbonared island facies.
• Remaining reserves were calculated for Cherokee and Bug fields using the 3-D models.
• Determined and recommended horizontal drilling targets, directions, and lengths for Cherokee and Bug fields.
• Technology transfer activities over the course of the project - displayed project goals and results at nine professional meetings, ten technical presentations, seven publications (not counting Semi-Annual Technical Progress Reports), one short course, and established and updated UGS project Web site, project page http://geology.utah.gov/emp/Paradox2/indes.htm containing all Semi-Annual Technical Progress Reports and poster presentations. Several press releases were distributed requesting industry proposals for drilling a horizontal well(s) in the Ismay or Desert Creek zones as part of the Phase II Demonstration.

Current Status (June 2006)
Budget Period I began April 6, 2000 and will end June 30, 2006. There have been seven no-cost extensions, mainly to allow time to find a new industry partner willing to participate in the field demonstration (Budget Period II). Although the study found horizontal drilling would in economically increasing production and reserves extending of the Bug and Cherokee case-study fields, the operators (industry partners) decided not to participate in the field demonstration. The primary reasons for these decisions were drilling commitments for gas plays elsewhere, the unavailability of rigs, drilling costs way above those at the time the project was proposed, and limited overall budgets of the small operators of the fields. The project team has made presentations to numerous potential industry partners, issued press releases inviting horizontal drilling proposals from operators of fields similar to the case-study fields, and displayed project objectives and goals at various AAPG meetings. The UGS and DOE have decided to end the project, and publish all project results and recommendations in a Final Report at the end of June 2006. Project Start: April 6, 2000
Project End: June 30, 2006
Anticipated DOE Contribution: $358,854
Performer Contribution: $668,726 (65% of total)

 

[sharemadder]

Still plenty of support at 13.5c even no update on testing of upper ismay.

Regards horizontal drilling. I have read that type of drilling has been successful is some areas of the paradox basin.

I wonder if testing is still ongoing on ismay?

 

[DAZT49]

Pretty bloody disappointed that no ann has arrived this week.
Unlike me, I sent an 'angry of Melbourne writes' email to GDN. I dont expect to get a reply, but it made me feel better for a couple of minutes, I suggest everyone does the same lol
13.5-14c all day but small volumes, everybody hanging on.

 

[sharemadder]

Datz49

Just a thought (trying to be +ve) - if they were testing each interval individually (3 in upper ismay formation) for flows then it could be a 2 - 3 day turn around for each one. So given they were uplifting frac fluids on the 16th then it could be that we are most likely ready for a ann beginning this week 27th. They said as soon as results were available they would report them. Also their email to me in response to delays clearly stated they would report flows once they were accuarate not before. Even by Friday 24th they had only from 16th to be measured, so thats 8 days for 3 zones to stabilise. Anyway the SP as someone stated on HC is clearly being supported strongly around 13c. Monday may be the day.

 

[DAZT49]

sm,
Yeah you are probably right,on the time it takes to test each level.
I did think they would report last week tho.
Hopefully our results/flows/PAra 2 /u spinoff package arrives early THIS week.
Just have resolve to 'work' for a bit longer than I thought(xmas...2006!!)
cheers and good luck
daz

 

[sharemadder]

What a amazing open for GDN today - up 1.5c to 14.5c - some bid jostling at the start

Richards mates buying up before the big ann LOL

Bring it on today I hope.

 

[DAZT49]

15c
resistance at 15.5c tho, hopefully it will trade thru that.
xjo+103pts.
Hopefully a good week for us, maddie

 

[sharemadder]

Yep - 15c resistance but its good to see some nice bids in at the start.

Bodes well for a good week.

A nice announcement and it could be rapidly back into the 30c bracket.

Now that would be Xmas early for GDN reporting...

 

[DAZT49]

Hopefully, when it comes, we get a trading halt, rather than just an ann.
Trading halt would indicate bigger news than just an ann, which may just give updates of work on site.

 

[sharemadder]

Datz49 looks like some serious action on the SP today. Why? insiders loading up and now punters following suit. Nice ann today please - think good thoughts think good thoughts LOL hahahaha

 

[DAZT49]

who knows why these things just 'go' sometimes, beyond my comprehension.
Some big orders gone thru this am 2.5mill in 1.5 hours..
great!!! I love it!!

 

[toc_bat]

goodness 19.5c 50%odd all on no ann, but pretty low vol after all only $500,000 odd, which in GDNs history is not much,

anyway i bought this last week at 13c as had been following the saga from when it was 50c previously to the 120c highs, then after seeing scrape 10 last week or week before i suspected it had reached bottom as i thought the trading afterthat showed reall reluctance to sell, i reckoned all the sellers were out by 10c,

now with no ann in a few days time i fear todays gains could easily erode especially in the current climate andespecially since there are now woners sitting on colse to 100% gain since the low of only what 16of August,

so come on ann!!! or is it all buy rumour sell fact?

bye all

gees about almost ten times as much vol now!!! only like 45minutes later!

 

[sharemadder]

toc bat

Can GDN hold its gains I'm not sure like u I believe it needs some +ve news soon. Some excellent bidding this morning prempting a ann soon as some one on HC said they heard that a midday huge bidding to happen which it did.

Maybe ASX will ask the Q for us soon?

 

[sharemadder]

If its oil flowing at the well then even today 57% gain will look like nothing imo. They had a 6 meter oil column to test. Maybe they been doing that and will report soon on results?

 

[DAZT49]

sm,
settle down fella, ya gettin all pumped up lol
Concidering 53% gain atm ASX will start stroking there chins I reckon.
I do like your oil theory

 

[sharemadder]

Yeah I got to take it easy (crook with the damn flue). Huge gain today so I little excited as I took a punt when in low teens and even got a small lot at 10c now 20c+. If its good news or great news I be happy, but it could just be a pump and dump??? or SP just getting back to realistic levels predrill Para #1. As u know anything possible.

 

[toc_bat]

If its oil flowing at the well then even today 57% gain will look like nothing imo. They had a 6 meter oil column to test. Maybe they been doing that and will report soon on results?

close to $2million has traded so far, thats a lot of money to be insider trading i reckon, surely rampat insider trading cant be that easy to get away with, so i am thinking a lot of this is possibly day traders, but would day traders be that gung ho in this environment? mybe theyve been getting cravings and just caved in today,

also so many people sold out of GDN on its way down that i belevie there are plenty of new owners not willing to sell out quickly just yet, but with no ann i doubt it will hold 19-20c mark tomorrow, im considering selling now even, to see a 50%+ result in a week in the current flaky market is very tempting, considering ive seen 50+ amny times and got greedy and started to see 500% only to see 5% in the following few days, also its my old mans money so perhaps a sale is a good idea today, but imagine 5 minutes after i do they go into halt!!! argh but hey i can always buy in if the news is confirmed as good - no?

 

[DAZT49]

toc,
classic hold or fold situation.
Do you take 70-80% profit now or wait...in this market...what will the DOW do tonight?
IMO there could be some profit taking later this arvo or am tomorrow.
Do you sell and buy back in on the retraction?


I am an investor..I am holding..for a while yet...