GDN - Golden State Resources

[sharemadder]

So this well has total 840 mcfd of gas. Appears they are not testing the oil shows atm. Will know if they will proceed with getting this well tied into the main line soon but doubt it until Para#2 is drilled. It seems they have suggested this in their ann today. Also they seem very confident that they will be drilling Para#2 soon (timetable to be announced once dates are firm). Still need a ann on the JV spin off prospectus - cant be to far away. SP held up well again. Some huge buys earlier on in the day and plenty of support after the ann although the ann was fairly scarce of info.

Cheers

 

[new_trader1984]

Hi, todays announcement even though is still not much of a gas flow from the intervals still must be good enough for a lot of investors since the drop in share price wasnt that much when only 2 weeks ago gdn was at 10 cents and earlier this week was around 22 cents.

In todays announcement and several others when reporting on the upper ismay intervals they always make it clear that there is 3 intervals being tested, they say the total number of feet between the 3 but is it possible that when they say they flowed gas from the 3 intervals and give the flow rate of 0.34mmcf that it is 0.34mmcf per interval and there is 3 of them that flowed similar results which would mean 1.02mmcf for the upper ismay intervals in total if flowed all together? If its this way then a combined flow rate of 1.52mmcf for the well with barker creek flow rates added.

They have set down hole gauges and are meant to be retrieved early september if they are on time when they say early september they should be able to tell us some more news next week? The results from the gauges will help decide if the well is economical alone or will need to drill the 2nd well before going into production.

Hopefully if they can tell us that the well is economical then the project has a commercial amount of gas even though at a low flow rate from the first well.

They planned to drill the 2nd well in early october hopefully this will happen and it wont be long before the 2nd well will start to be drilled and maybe reach leadville and get better results for gdn.

They did make a comment that the flow rate was stabalised which is the amount they told us. If you look at todays BUR announcement on their first well where they drilled a horizontal well and meant to of hit a hot spot they have a stabalised flow rate of 1.9mmcf per day after originally having a flow rate of 3.324mmcf in july. GDN isnt that far behind at 1.52 if the 3 upper ismay levels are all 0.34mmcf each and can be combined with barker creek, would be good to know if the upper ismay is 0.34mmcf in total between the 3 or each interval since its not very clear with the recent announcements.

Also in today's announcement in the first paragraph they say gdn has completed the first phase of the workover operations. They still havent tested the oil which if they plan to test would be after the results from the gauges i would have thought. Also on another website lynden ventures, they had similar flow rates on one of their first wells which is now being developed into a multy well project in the paradox basin. In the announcement where both wells are mentioned including the first well which flowed at 0.3mmcf, they say additional operations are under consideration to optimize flow rates, im not sure what can be done to increase flow rates from the current levels but if one company is looking at optimizing the flow rate then maybe gdn could look at that in the future too?

I have mentioned before about the recent volumes, between 29 and 34.5 where there has been a large amount of trading happening has the most volume on a daily basis.

On the 28th of August, the first day from when the high volume started that 30 cents was reached. The total volume that day was 133,734,335 shares traded and between 29 and 34.5 cents 114,110,492 shares were traded which means only 19,623,843 shares were bought and sold between 23 and 29 cents that day.

On the 29th of August a total volume of 49,673,253 shares was traded and 49,004,468 shares were traded between 29 and 34.5 cents.

On the 30th of August the entire days trading which was 24,691,814 shares were all trading in the range of 29.5 and 33.5 cents for the day.

On the 31st of August a total volume of 12,671,875 shares were traded with the highest volume for one price was at 28.5 cents with 2,277,014 shares traded. Between 29 and 30 cents a total volume of 2,081,095 shares were traded.

The 3rd of September was the first day since the 27th of August when the high volume started that the price didnt go above 29 but the volume was a lot lower then on previous days at only 7,092,578 shares traded.

The 4th of September a total volume of 20,032,660 shares were traded between 22.5 and 31 cents. the volume traded between 29 and 31 cents was 7,643,411 shares. The largest one price level was 29 cents with 2,537,995 shares traded.

The 5th of September a total volume of 18,426,479 shares traded. Between 29 and 32.5 cents a volume of 15,940,441 shares traded.

Yesterday the total volume was 15,833,791 shares between 26 and 31 cents. Between 29 and 31 cents a volume of 13,097,168 shares traded.

Ive looked at the total volume from the 28th of august when gdn reached above 30 cents on high volume up to yesterday. The total volume between 28-08-07 to 06-09-07 was 282,156,785 shares. Out of this amount 206,945,046 shares were traded between 29 and 34.5 cents and 75,211,739 shares at prices below 29 cents since the 28th of August.

This doesnt mean anything just thought to show the high volumes mostly have been bought and sold around the 30 cent mark in the last 2 weeks, there has to be more than the small gas flows reported so far, atleast there seems to be some confidence in the stock for the price to trade around 30 cents in such high volume compared to the low volume when was 10-15 cents.

 

[sharemadder]

NT1984

The 3 upper ismay levels are a combined 0.34mmcfd each I think and then added with barker creek 0.50mmcfd (lower and upper) they get 0.84mmcfd total. I'm happy that a least they got something on the first well.

Not sure if they will test the oil shows yet. They certainly didn't say anything again about it so I'd say probably not in this well.

The turnover of shares over last two weeks has been incredible that's for sure and 26.5c is a lot better than 10c although if it goes back down that way again I will certainly buy more. 200 million + traded over 29c is big given 194 million on the register

The first wildcat well although not outstanding in flow does prove there is gas in them hills so further drilling will most likely prove the same albeit at a lower cost than this one. I think the first well should of only took 90 days to drill without problems, if they can drill in 90 days second well from October it should be finished by Jan/Feb 08.

What I want next is the timetable for spudding Para#2 to be made known. I have searched the UDOGM data bases for Golden Eagle Exploration LLC applications and can't find a new application or any other for Para#2 only Para#1. I even emailed BLM who can't find application by Golden Eagle Exploration LLC for Para#2. I emailed GDN to advise the status proper and no reply yet

That U prospectus is long over due too

 

[sharemadder]

From this mornings Australian


Golden State Resources (GDN) 24.5c

LIQUIDITY isn't exactly a problem for this reformed Perth gold explorer turned US gas play, with huge daily turnover as folk punted on the progress of its gas drilling program in Utah.

On August 28, 134 million shares changed hands. Golden State attracted two stock exchange price queries within days as the stock roared up from 13c on August 24, to last Tuesday's high of 31c.

Alas, Golden State last week announced only marginal flows from its first well in Utah's Paradox Basin. Gas flowed at 340,000 cubic feet a day, accompanied by liberal flows of water, compared with company expectations of 400 mcf.

According to the company. further flow tests will determine whether the well is economic, or conditional on the results of the next well, Paradox Basin 2.

The first well, sunk to an unusually deep 15,000-16,000 feet, took one year and $21 million to drill. In comparison, a recent hole to similar depth in the Gulf of Mexico produced more than 100 times more gas.

Golden State holds a 100 per cent interest in the first well, but the Denver-based Eclipse Exploration has the right to earn a 16.67 per cent interest after the second well is drilled.

Paradox Basin is a known oil and gas province, with more hydrocarbons than Utah wives: at least 170 producers already are tapping estimated reserves of one billion barrels (oil equivalent).

People talk of Golden State sitting on a $US4 billion bonanza, but they've got to find the stuff first. We rate the stock an avoid, although it looks like a fun one to trade.

Golden State also plans to spin off its (and Utah's Golden Canyon Exploration's) uranium assets, but the timetable is unclear. Uranium floats are passe, but with the Russians coming for our yellowcake maybe it can still get away OK

 

[DAZT49]

Maddy,
Probably a fair appraisal of the situation, but as you know they have neglected to show flows from lower levels ie total .84mmcf/d , you would think they would DTOR!!
Havent been posting lately as nuthin to add, and its gettin me down.
daz

 

[sharemadder]

Datz49

Slow times can be stressful or just plain boring and frustrating when waiting for news but out of the blue we could get something of significance in the way of U JV news etc. In anycase in quiet times like these better not read to many posts as others will help you to stay down LOL

Better to enjoy the sunshine, do something ya like and play the waiting game.

My only sticking point at the moment is I can't find the application for Para#2 on the Utah Oil/Gas Dept databases. Going to do another search today as they update them every day.

Cheers

 

[sharemadder]

Hey Datz49

This morning price action must of put a smile on your dial :bonk:

Looking to fire up big time today

 

[DAZT49]

YEAH, WHATS GOING ON 29c HIGH?? THATS THE PUZZLE ISNT IT, WHY IS IT HOLDING ON SO WELL IF THE RESULTS FOR PARA 1 ARE MEDIOCRE AT BEST.
GUESS ITS THE U THING DRIVING IT AT THIS STAGE, AT LEAST UNTILL PARA 2 SPUDS.

 

[DAZT49]

Chartwise IMO the SP has been in consolidation since 28/8.
Until we get an open and close above .345c or below .23c we dont really have trend either way.
We do have a 1,2,3 low within the consolidation, which is good.
A breakout of .325c up (or a breakout of .22c down )could be significant."

 

[sharemadder]

Hi Datz49

Very slow today, might test that 23c again. Not sure if it will break below it though.

Still no ann on the U JV? Surely thats got to be sorted by now.

Cheers

 

[DAZT49]

sharemadder,
well its 1.09pm and the SP is hanging in at .255c (-5c)
Interest seems to have dried up atm with ONLY 1.8 mill sales on 106 trades.
Dont think it will go below 25c and maybe finish square on the day.
At level 5 on depth we have 2.33mill bid 3.07 mill ask, so slight pressure on the SP but nothing to write home about.
Not even going to mention when the FINAL flow readings/ u spinoff/Para 2 commencement bla bla bla will be out.

 

[juw177]

Hey sharemadder and DATZT4, I am following this stock as well, but why do you guys make so many posts about these slight SP movements. If it is such a great company like you say and you are just holding for the longer term, why not just sit back and let the price do what it wants to do?

 

[DAZT49]

I guess, because the situation is sort of on a knife edge at the moment (waiting for final reports etc), that slight changes, either way in the SP can have a big bearing as to where the Sp might go. Given support and reistance levels.
Also (and I take it you dont hold) its nice to get reassurance from fellow holders in these times.
If it wasnt for the "small talk", these forums would find it hard to exist.

 

[DAZT49]

juw177,
If you look back 4 posts to 12.32 pm yesterday, you will see its not all froth and bubble.

 

[shanty]

Hi dazt49, I guess you are right about the "small talk" but sharemadder's remark about the absence of a drilling application from our "friends" makes me very nervous. What's the consensus chaps?

 

[new_trader1984]

Hi, the directors must still have some confidence in the company since we havent been seeing any directors selling their shares. If they wernt able to get the 2nd well permit they would know after the last few months trading that the share price would drop a lot more if the permit wasnt given to them.

Ive gone back and looked at all the directors holdings currently

Lewis cross bought 50 000 shares at 82 cents but hasnt sold them this is the only shares he holds in gdn.

John hopkins who has resigned still holds 986,667 shares at final directors notice, not sure if he had to say if he sold them or not after he resigned but the final directors notice said he still held those shares.

Katrina hopkins holds 58,334 shares and hasnt been mentioned that those shares have been sold.

John hasleby holds 1,473,335 shares and 7,500,000 director options at an exercise price of 20 cents.

Richard sciano holds 6,561,800 shares and 6,900,000 director options exercise at 20 cents.

If they didnt think they would get the 2nd permit which would cause the share price to fall wouldnt they be selling and taking whatever amounts they can get before the price fell further?

 

[new_trader1984]

Hi, ive just been looking on the net for flow rates in the paradox basin and found a website that talks about the rockies region dominates the US in giant field discoveries.

http://www.hgs.org/en/articles/printview.asp?38

This document talks about horizontal drilling which hopefully gdn will be looking at doing for their 2nd well like adi is planning to do.

There is one paragraph that i thought was interesting which talks about the largest oil field discovered in last 10 years and the resovoir is only 10 feet thick.

The largest oil field found in the last 10 years is Cedar Hills in North Dakota and its companion, East Lookout Butte in Montana. This field has been developed with horizontal drilling of an extremely thin (less than 10 ft) reservoir.

This field had been drilled and abandoned on several occassions before the discovery because of non economic flow rates. The horizontal drilling has then made it possible to be economic.
The approximate outline of Cedar Hills-East Lookout Butte field at year-end 2000 (Fig. 6b) had expanded dramatically due to the horizontally exploited Red River “B” zone compared with the pre-1990 boundary (Fig. 6a). Some 669 horizontal wells have been drilled, resulting in 626 productive completions ranging in true vertical depth from 8,800 to 9,500 ft. Estimated ultimate recovery is now expected to exceed 130 million bbl of oil.

The paragraph above mentions that 10 foot column is expected to produce more than 130 million bbl of oil. The porosity is at an average of 18% which is 3 times more than what the oil column gdn has is, but our oil column is twice the size of the one at cedar hills. Im not saying that gdn's oil column will be any good but just showing that with horizontal drilling that even small columns gas or oil can become very productive for companies.

There are also other wells drilled in different basins in the rockies region which had initial flow rates of 300-400mcf but now have a lot stronger flow rates and have a large estimate of recoverable gas.

Thought to share this as it might be of interest to some others.

 

[Bushrat]

ShareMadder.

When looking for Pardaox 2 drilling try Golden Eagle Exploration or Jake Oil... Jake Oil lodged the doco's to Utah Oil gas and Mining for Para 1....its difficult finding this information, but i believe it is all there to be found..still holding, still confident...waiting waiting waiting. Must Practice Patience

anyways....heres a link to 189 page doco for the application for Para 1. http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/well_data_lookup.cfm

 

[sharemadder]

Bushrat

The database has Golden Eagle Exploration drilling Paradox Basin #1 and no application for #2.

Jake Oil of Utah have three wells in the Carbon County - one which is spudded, another approved and not yet spudded and the other new application not yet approved.

I have emailed GDN management a few times on this issue with no reply. Thats not strange for them as they do that often which is a pain in the back side for holders especially LT ones.

I don't doubt they will drill a second well as why would the BLM lease the land for Oil and Gas exploration if that land wasn’t available for exploration.

Just doesn’t make sense considering the lease holder has to pay annual rental fee’s that cost about $1.50 acre. There may be some sort of stipulations they are working through like environmental issues etc but I thought there should still be a new application (yet to be approved) in place within the database.

Alas GDN management haven't replied to my email about that even after I contacted the BLM in Moab, Utah who replied and said there is no outstanding applications for Golden Eagle Exploration.

Any other ideas please let me know.

Cheers

 

[shanty]

GDN responses, out of umpteen (polite) enquiries only two responses. Most recent enquiry concerning absence of #2 application, as a Cajun would say, da same result, nuttink.
That's not funny, it's sick. It tends to bring my mind back to little flurrys of share movements and resignations in the past