GDN - Golden State Resources

my idea of the up day yesterday may have something to do with people trading cycles as the spike last year started at the same date as yesterdays mini jump.

thoughts? (it's all guess work but nice coincidence)

nah donno about that 1, i no ppl go on patterns but thats a pattern of no substance
i was more looking at the book value of the company on commsec, i was gonna buy again when it reached 15.5c i missed out sadly. BV was like .85 or .9 or something to memory @ 16.5c, was looking fairly safe for investment as it would have support if it fell any lower, then to add to that a pending announcement of some sort.

but i donno

The spike 12 months ago was due to a very upbeat ann on 24/10/07
which included this..
"The well is drilling on towards its main targets, which have been interpreted from seismic
data to have the potential to contain up to 3 TCF of gas, the Barker Creek
(estimated depth to base 12,730 feet) and the Leadville Limestone (estimated depth
of top 13,700 feet). The Leadville Limestone hosts the Lisbon Oil & Gas Field, 80 km to
the south. The Lisbon Field has produced 54 million barrels of oil and 750 BCF of gas, at
current prices equivalent to a gross income of A$10 billion.
It is anticipated that the well will reach the primary objective Leadville Limestone within 7 days"
THATS why it took off.
Don't think we will get such an ann today, not until Para 2 hits the same zones ..with no water.

Hey Datz, how are ya. I can see alot of people getting frustrated on this one, me included! haha

I've seen BLM come up a few times, can you tell me what this means?

Cheers mate

k8Tor,
BLM is Bureau of Land and Mines. We are waiting for their approval for Para 2.
If you go back thru some of sharemadder posts you will be able to pick up on it.

Yeah have been watching this thread for a few months now, brought a small amount back in aug. been very interested in what you guys have had to say. Not very many happy campers atm. what are your thoughts on the near future?

fridgy,
I am still very upbeat on the project in the Paradox basin.
That basis ann of 24/10/06 still holds IMO.
If only they can get Para 2 spudded, it would ease a lot of angst that punters have. A couple of years down the track GDN will be big.
In regard to management, I have defended them on numerous occasions, but
I recently had John Hasleby call me an "eggsucker" so I have swung 180 deg.
They are poor managers they have little business acumen they have no PR skills and they treat thier shareholders with disdain.
I do hope they get their comeupence at the AGM.

Pretty quiet here last couple of days...
anythoughts
on the recent SP movements?
I realized buyer is catching up abit, but still not much move on the SP
since last week jumped to 19.5 cents and back down to 18 today...

Its quiet because we are waiting,waiting,waiting.
Sp had support at .185c over the last 3-4 days but gone under that now, next support at .175c, could dip to .16c IMO

ASX ANN for Annual Accounts

Would you believe announcement being made - they must have been all working on the annual accounts!!!

No dates for second well!!!

30/10/2007 Annual Report to shareholders (50 pages)
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00776716

Chairman's address:

Dear Shareholder,
This has been another eventful year for Golden State Resources Limited. The Company completed its first wildcat well on Pennsylvanian and Mississippian targets in the Paradox Basin of Utah. Gas shows were intersected over a thick sequence, indicative of the great prospectivity of the part of the Paradox Basin tested. This first well has been shut-in pending analysis of the most optimum mode and timetable for production, which may include waiting for the completion of the second well planned for the prospect. Permitting is proceeding on this second follow-up well, which will be sited with the benefit of the results from Paradox Basin #1.

During the year the Company took the opportunity to leverage its Thompson, Utah uranium assets into a venture with a local uranium miner, with the resulting potential to provide a faster path to uranium production.

Our partner, a Utah-based uranium miner and mining contractor, brings mining expertise and mining leases with historical high-grade uranium ore bodies (non-JORC compliant) that we hope will become the core for early development and production in Utah.

The new venture will be subject to a spin-off of the combined assets into White Canyon Uranium Limited.

It is intended that, following the previously announced 1:4 entitlement issue to Golden State shareholders and a public offer, the Company will be listed on the ASX.

Golden State and our Utah partner will each retain 25% equity in the new entity.

The combination of large uranium mineralized exploration acreage, local knowledge, demonstrated exploration and mining expertise, an established uranium mining jurisdiction and proximity to permitted uranium treatment mills will give White Canyon Uranium an early opportunity to establish production and aggressively increase its resource base.

Work also continued on the Company’s 100% owned gold properties in WA’s Eastern Goldfields, where encouraging results were received from the Leonora and Laverton Gold Projects. Established gold mineralized zones were infilled at Leonora and new zones were defined at Laverton. Exploration will be accelerated during the coming year to take advantage of the resurgent
gold price.

Another cut and paste job, from origional prospectus.
Guess its just legal requirement for ASX.
Maybe now this is out of the way we may get a more thorough update (Am I kidding !!)
Notice in the ann for the AGM that only Richard Sciano is up for re-election.

TWO ASX ANNs Oct 31

31/10/2007 Quarterly Cashflow Report
Total: cash at end of quarter (item 1.22) $3,868,000
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00778127

31/10/2007 Quarterly Activities Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00778217

For the Three Months ended 30 September 2007

HIGHLIGHTS

Golden Eagle Oil & Gas Prospect, USA
• Testing of Paradox Basin #1 has been completed. The well is shut‐in pending production.

• USA Uranium Project
• July 2007 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.

• A prospectus for the spin‐off of the Company’s uranium assets is finalised and awaiting clearance by the ASX on the use of historical “reserve” estimates. Golden State shareholders have a 1 for 4 priority entitlement to subscribe for shares in the capital raising for the new company.

GOLDEN EAGLE PROSPECT ‐ ONSHORE OIL & GAS, UTAH, USA
• During the quarter the current phase of completion operations on the Paradox Basin #1 well, which reached total depth of 16,471 feet (5,020m) during the previous quarter, was concluded at the Golden Eagle Oil & Gas Prospect in Grand County, Utah.

Intervals tested since the last quarterly report were:

Akah interval
• Following fracing, the Akah interval from 10,815’ and 10,850’ flowed water, and was abandoned.

Upper Ismay interval:
• Following a successful slickwater frac of three Upper Ismay gas intervals: 9850’–9860’, 9732’–9727’ and 9740’– 9760’, totalling 35 feet a flow test was conducted. At completion of a 72 hour test, gas flow stabilised at 340 Mcf/day (thousand cubic feet per day) through a 28/64” choke with water produced at 2 bbl/hr (barrels per hour).

Well Shut‐in
• The well was completed for production and shut‐in.
• Gauges were set in the well prior to shut‐in and later retrieved. The Company is assessing the economics of the well, in particular whether production is independent of, or conditional on the next well, Paradox Basin #2.

Paradox Basin #2
• The confirmation of potential gas production from this wildcat well is a good result for the Company. Permitting for the pipeline connector and for the second, follow‐up well to Paradox Basin #1 is proceeding. Preparation continues for the commencement of the second earning well, Paradox Basin #2, to be drilled on a site one mile (1.6 km) from the current well. A timetable for this second well will be announced once permits are granted by the issuing authority.

Nothing new in the ann, apart from the fact that they have burnt about $5mill in the last quarter..where did that go???Does that mean Para 1 cost $28 mill??
At that burn rate the company is gunna be bust about half way thru Jan 2008.
I am close to getting out of GDN, only down $61k

hi dazt49,

One part in the quarterly report that is new is the prospectus is completed and waiting for asx to allow the historical resource to be allowed in the prospectus report.

Could the money raised from the new company help towards the drilling for gdn's second well?

its been over 40 days since the state government gave approval for the second well not sure why its taking so long for the federal approval.

new trader,
Not quite new, in the ann of 28th Sept..
Uranium IPO Update
The release of final details, including timetable, of the spin-off of the Company’s uranium assets
has been delayed awaiting:
1. Execution of formal agreements with the vendors. The formal agreements replace the
Memorandum of Agreement originally executed with the vendors. Delays occurred
pending resolution of US taxation issues for the vendors.
2. Lodging an application for a waiver with the Australian Stock Exchange to use historical
reserves and exploration data in the prospectus to be issued in conjunction with theentitlement issue to Golden State shareholders.
The formal agreements have now been executed. It is expected that any further issues will be
resolved shortly. A further announcement will be made upon resolution of ASX requirements

hmmm 5.5 mil on exploration
but i would presume that is not just golden eagle project, but a large amount went to the Uranium drilling programme but then again im not sure how old the research is to that program and what additional drill work has been added to the already existing historical data.
i would assume admin costs r gonna increase next 1/4

what is the future for GDN? is it a long term stock? I personally believe it is...
Thank you

Bought at $0.245...

olenkaa said:

what is the future for GDN? is it a long term stock? I personally believe it is...
Thank you

Bought at $0.245...

Click to expand...

Why do you believe it's a long term stock olenkaa? Why did you buy it? You're sitting on a bit of a paper loss at the moment, why hold? Would be nice to hear your perspective. Cheers.

olenkaa,
Good luck with your "speccy" investment.
In spite of the first wildcat well not producing the result we all hoped for, it did have sufficient info to suggest other wells may be able to tap into the
huge 3 TCF potential resource (See geologists report in origional prospectus)
The next well (Paradox 2)is said to updip and better sited for actual production.
That potential resource is why I still hold.
We dont have sufficient information on the uranium spinoff to make a judgement on its potential to be commercial at this stage, we can only go by what has been announced already and ,it seems, it will be viable.
The reticents of the GDN directors to give us this information, along with plans for Para1 and subsequent permit approval and spud date information for Para 2 is very frustrating for holders, long and short term.
I dont like the management of GDN, they have proven themselves to be "amatuerish" at best and downright dishonest at worst.

Hi Olenkaa, Hi Kennas,

Agree with Dazt, in that this is a speccy and always has been. The find on their wildcat is somewhat of a bonus, whether it is deemed commercial or not I guess many shareholders are still awaiting the results of the shut-in which were supposed tbe known early sept (although no mention which year - sorry a few of us have become cynical about management).

As Dazt said Para 2 maybe more fruitful given that Para 1 has given some good indicators of where the gas could have migrated to. My thinking of GDN is that the gas is there, however this area is known for low porosity levels (I believe its about 5%), which means ultimately, if the gas is down there, they are going to have to drill lots of holes or do some creative horizontal drilling (which can be done) to extract it at a reasonable rate.

Longterm ? Yes I hold and have been holding, not so much on current findings, just a belief that there is something down there given the region and it will come to fruition at some point. As explorers there is no progression that you can follow so I am a longterm holder just due to the nature of exploring.

Upside ? If it is there, many projections were done at about US$4/mcf of gas...which required around 400 bcf tbe commercial. Gas is running close to US$8/mcf so I guess half the find is required.

The U spinoff I guess is another bonus....with much of the worlds Uranium mines either seriously delayed or incapacitated by some natural event, the fact that their JV partner is already mining in the region would presumambly mean that the ability to get up n running is much greater given that there is someone who knows what they are doing already, with a potential destination for the U mined.

Am I frustrated...yes...but maybe this is the one worth waiting for....