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last ASX ANN 07/09/2007 Oil and Gas Update
Today ASX ANN
28/09/2007 Full Year Statutory Accounts
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00763951
The Full year accounts includes update:
Review of Operations
Golden State Resources Limited is an active oil & gas and minerals explorer in Australia and the USA. The Company acquires and operates projects, in its own right and through joint ventures with other companies, in areas assessed to have a high probability of discovery and profitable production.
Oil and Gas – Utah, USA
During the year, Golden State completed its first well on the Golden Eagle Prospect. Wildcat well Paradox Basin #1 was completed to a depth of 16,471 feet (5,020m).
The company is exploring 10,457 hectares (25,937 acres) of State and Federal Government oil and gas leases in south-eastern Utah, in the USA, from Denver-based Eclipse Exploration.
Eclipse Exploration has the right, after the company drills the first two wells on the prospect, to back in for a 16.67% working interest. Golden State is entitled to 100% of production income until completion of the second well or 12 months after completion of the first well, whichever is sooner. All leases will have a net revenue interest of 78%, after relevant government and third party royalties.
Perforation and fracing operations were completed on the most prolific gas shows encountered during the drilling of Paradox Basin #1. Several zones that showed initial promise and were flared during testing went to water and were abandoned. The interval that presents the best potential for production is the Upper Ismay section, where gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) with water produced at 2 bbl/hr (barrels per hour). The flow test followed successful fracing of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet.
Economic assessment of the gas flows encountered during drilling is continuing. Permitting for the pipeline connector and for the second, follow-up well to Paradox Basin #1 is being accelerated with a view to commencing Paradox Basin #2 once permits are received.
The confirmation of gas flows from this wildcat well was a good exploration result for the Company, and increases the likelihood that good gas flows can be obtained from subsequent wells, sited with the benefit of the information gained from this first well.
In addition to the Golden Eagle target, there are several other targets on the leases that will be assessed in due course. The company will continue to assess other gas and oil opportunities as they arise.
Uranium – USA
Golden State owns approximately 7,000 acres of mineralized mining claims and mineral leases in the Thompson Uranium District of Utah, USA. Significant uranium and vanadium mineralization has been indicated on the Company’s leases by previous diamond drilling.
During the year the Company completed an agreement where the Thompson uranium assets and the White Canyon Project of Utah-based uranium explorer and miner White Canyon Exploration LLC are intended to be spun off in a new ASX-listed uranium mining and exploration entity. The arrangement is subject to a Memorandum of Agreement between Golden State and White Canyon Exploration, details of which are contained in the Company’s 3 May 2007 announcement. White Canyon Exploration’s principals currently operate, under contract, Utah’s only producing underground uranium mine.
The projects are in an arid desert region of the Colorado Plateau, in south-east Utah, near the towns of Moab and Blanding.
As part of the Company’s due diligence process on the White Canyon Project, a limited drilling program was completed at White Canyon. Drilling confirmed the location and grade of the Daneros ore body, previously defined by historical drilling, and upgraded and increased the area of the higher grade zones defined by that drilling. Several historical drill holes were twinned by new holes with exceptional results, increasing the U3O8 grade while confirming depth and thickness. New results included 2.4 m @ 0.84% U3O8 (DAN001) and 2.3 m @ 0.71% U3O8 (DAN003).
Uranium mineralization in the Thompson deposits occurs in the Jurassic Morrison Formation, in four sandstone lenses and in conglomeratic sandstone, as the mineral carnotite (hydrated uranium potassium vanadium oxide).
Vanadium is a valuable by-product of treatment of uranium ores from Colorado Plateau deposits.
Uranium deposits at White Canyon are hosted by flat lying sandstones deposited in ancient river channels at the base of the Triassic Chinle Formation. 80% of Utah’s historical production of 130 million pounds of U3O8 came from the Chinle Formation
Minerals – Australia
Golden State’s Australian minerals exploration activities have been targeted on its land holdings in the Leonora, Laverton, Menzies and Johnston Range (Marda) districts of Western Australia. Evidence of significant gold mineralization has been discovered in the Leonora, Laverton (England & Kelly Well), Menzies and Johnston Range projects and exploration is ongoing.
Today ASX ANN
28/09/2007 Full Year Statutory Accounts
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00763951
The Full year accounts includes update:
Review of Operations
Golden State Resources Limited is an active oil & gas and minerals explorer in Australia and the USA. The Company acquires and operates projects, in its own right and through joint ventures with other companies, in areas assessed to have a high probability of discovery and profitable production.
Oil and Gas – Utah, USA
During the year, Golden State completed its first well on the Golden Eagle Prospect. Wildcat well Paradox Basin #1 was completed to a depth of 16,471 feet (5,020m).
The company is exploring 10,457 hectares (25,937 acres) of State and Federal Government oil and gas leases in south-eastern Utah, in the USA, from Denver-based Eclipse Exploration.
Eclipse Exploration has the right, after the company drills the first two wells on the prospect, to back in for a 16.67% working interest. Golden State is entitled to 100% of production income until completion of the second well or 12 months after completion of the first well, whichever is sooner. All leases will have a net revenue interest of 78%, after relevant government and third party royalties.
Perforation and fracing operations were completed on the most prolific gas shows encountered during the drilling of Paradox Basin #1. Several zones that showed initial promise and were flared during testing went to water and were abandoned. The interval that presents the best potential for production is the Upper Ismay section, where gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) with water produced at 2 bbl/hr (barrels per hour). The flow test followed successful fracing of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’–9760’, totalling 35 feet.
Economic assessment of the gas flows encountered during drilling is continuing. Permitting for the pipeline connector and for the second, follow-up well to Paradox Basin #1 is being accelerated with a view to commencing Paradox Basin #2 once permits are received.
The confirmation of gas flows from this wildcat well was a good exploration result for the Company, and increases the likelihood that good gas flows can be obtained from subsequent wells, sited with the benefit of the information gained from this first well.
In addition to the Golden Eagle target, there are several other targets on the leases that will be assessed in due course. The company will continue to assess other gas and oil opportunities as they arise.
Uranium – USA
Golden State owns approximately 7,000 acres of mineralized mining claims and mineral leases in the Thompson Uranium District of Utah, USA. Significant uranium and vanadium mineralization has been indicated on the Company’s leases by previous diamond drilling.
During the year the Company completed an agreement where the Thompson uranium assets and the White Canyon Project of Utah-based uranium explorer and miner White Canyon Exploration LLC are intended to be spun off in a new ASX-listed uranium mining and exploration entity. The arrangement is subject to a Memorandum of Agreement between Golden State and White Canyon Exploration, details of which are contained in the Company’s 3 May 2007 announcement. White Canyon Exploration’s principals currently operate, under contract, Utah’s only producing underground uranium mine.
The projects are in an arid desert region of the Colorado Plateau, in south-east Utah, near the towns of Moab and Blanding.
As part of the Company’s due diligence process on the White Canyon Project, a limited drilling program was completed at White Canyon. Drilling confirmed the location and grade of the Daneros ore body, previously defined by historical drilling, and upgraded and increased the area of the higher grade zones defined by that drilling. Several historical drill holes were twinned by new holes with exceptional results, increasing the U3O8 grade while confirming depth and thickness. New results included 2.4 m @ 0.84% U3O8 (DAN001) and 2.3 m @ 0.71% U3O8 (DAN003).
Uranium mineralization in the Thompson deposits occurs in the Jurassic Morrison Formation, in four sandstone lenses and in conglomeratic sandstone, as the mineral carnotite (hydrated uranium potassium vanadium oxide).
Vanadium is a valuable by-product of treatment of uranium ores from Colorado Plateau deposits.
Uranium deposits at White Canyon are hosted by flat lying sandstones deposited in ancient river channels at the base of the Triassic Chinle Formation. 80% of Utah’s historical production of 130 million pounds of U3O8 came from the Chinle Formation
Minerals – Australia
Golden State’s Australian minerals exploration activities have been targeted on its land holdings in the Leonora, Laverton, Menzies and Johnston Range (Marda) districts of Western Australia. Evidence of significant gold mineralization has been discovered in the Leonora, Laverton (England & Kelly Well), Menzies and Johnston Range projects and exploration is ongoing.
