GDN - Golden State Resources

[DAZT49]

hop,
If you check out the Anylists Report by CK Locke in June 06 (On GDN website)
you will see that they thought they needed 50BCF to be commercialwith a midrange target of 440 BCF and potential upside of 3 TCF.
From the reort..........
"GDN anticipates the prospect may hold up
to 3 TCF of gas equivalent with a mid-target
of approximately 440 BCF plus liquids with
an assessed probability of success set at
over 19.5% by the company’s geologists.
With GDN’s equity of 83.3% in the Golden
Eagle prospect; GDN believes the company
can potentially offer great leverage of
success. A mid-case potential discovery of
440 BCF of gas would equate to a
significant move to GDN’s share price on
the ASX.
A minimum case of 50BCF currently is
potentially economic. Even based on this
alone it technically values the GDN share
price at $1.00 to $1.50."
Now that is at 2006 gas prices from memory it was below $4.
the current Henry Hub Oct average price is US$7.18 (this morning 7.15am EST)
http://www.oilnergy.com/1gnymex.htm
As I said in my last post..This is why I hold.

 

[hoppielimp]

Hi Dazt,

Yes you are correct...50 bcf to potentially be commercial. Sorry...what I read and what I type seem not to match these days.

Gas price of close to USD8/mcf was a futures price....I think current December price is USD 7.99/mcf..but the price is only as good as when the wells start producing! ... but at least its a few dollars more than the original gas price that was used at the beginning of this venture.

So if it holds, then maybe only 25 bcf to prove up

Oh well wait and see...and wait abit more...maybe...

Anyone going to go chew some management ass in Perth at the agm ?

 

[Rob 17]

Ive held this stock for six months now. Got it in the mid 20's. Thought of selling a million times but am holding off. Its the type of stock that can take off in just one day.

When we finally get parra 2 approved it should draw some much needed attention to the stock.

As a shareholder i made contact with them once regarding some concerns and got no where. I feel they are frustrated just like us shareholders.

Waiting Waiting
DYOR

 

[Sean K]

Its the type of stock that can take off in just one day.

It's the type of stock that can tank in just one day too.

Please stick to providing balanced, objective, factual information in the posts, thanks.

 

[DAZT49]

Kennas,
God you are pedantic.
Check out the last 20 posts, all pretty much on subject and relevant.
You pick one line from rob 17 's post and wield the big stick.
This thread is going ok, loosen up.

 

[sharemadder]

Hi Datz

Well we are all still waiting for the BLM approval and the IPO.

Havent said much lately as very little to say until GDN get cracking.

I cant make the AGM as I am away working. Pity because thats one AGM I would like to be at, not to berate the Directors but to ask questions and listen to what direction they plan to go with the Paradox leases.

Cheers

 

[shanty]

Hi Daz, appreciated your last comment but have a minor bone to pick. Why did you support my getting stepped on by tcf re Johnston Range? If you two read the 2007 report... Anyway I checked this out with Lion Ore when there was that Aussie kefuffle a few months back and was assured that nothing had changed. Furthermore GDN say they're spending money there. Comment please.
Re Hoppie's question, are you going to the agm? I have a bunch of potential proxies if you would like to avail yourself of them. I sure would appreciate getting to know actually what occurs at this coming agm. I did try to find out what happened at the last one, no luck, but I am sure there was an 'oddity'. Water under the bridge.
I should say that I have received a couple of responsible and polite email responses from JH over the last year so I am by no means totally antagonistic towards our management, it's like 'they' say "they're no where near as bad as some but they could do better"
Let's be fair, that %18 probability referred to by Lock Stock and whatever has got to be better now because of the knowledge gained from #1(imo!). THe Uranium JV has the potential (imo!!), looking at the participants, to be a blinder. As 'they' say "courage mon brave" it'll all come right in the end. They'll probably carve that on my box!

 

[shanty]

Hi Mad, concur with your comments re agm. Have proxies to add a little weight to some one 'we can trust' to ask the right questions and , hopefully provide us with some factual feedback.

 

[DAZT49]

shanty,
Can you give the post number re tcf and johnston range? I am old and decrepit and my memory is shot.
I havent decided on attending the AGM, cant justify the cost of aifares accomadation,beer..to my missus, but I may go, as I have another AGM I can attend on the friday.
I do have my proxy form, so If I dont go, my votes will still count.

 

[shanty]

Hi Daz, you don't wanna know how old I am!
tcf post 2253618
daz 2253901
don't strain yourself, water under the bridge, I'm listening to a lovely lady , jessi colter, so I'm at peace with the world. For the moment anyway! Cheers.

 

[shanty]

Trust y'all had a good weekend?
A little assistance re Iron Ore etc.
Please read page 5 of GDN 2007 Annual Report, also:
Polaris Metals September 2007 quarter activities report.
Have a nice day!

 

[sharemadder]

Hi all

GDN up a little today 15%

Consistent steady buys

Hmmm wonder if someone taking punt on events soon to be released

Anyway back to waiting on this one.

Cheers

 

[new_trader1984]

Hi,

I just had a question thought to ask while there is no news for gdn lately.

If a company such as delta petroleum that is worth over 1 billion dollars and has plans to spend more than 100 million in the next 12 months and put in place their own pipeline that crosses gdn's land was to want to acquire 50% of the projects gdn has on all 25000+ acres not just the 5000 acres for the paradox basin wells currently, would the value of the company increase by much?

What are some thoughts of what kind of value would be placed on gdn if delta wanted to be a partner with gdn on their projects in utah?

Just thought to ask the question since if you look at deltas presentations gdns land is pretty much in the middle of the 5 projects delta has in utah currently. It was also deltas drilling company that drilled the first well too.

 

[diddy]

hmmm it refuses 2 hit that 15.5 cents mark ... does any1 have 2days trade quantity figures ... was there any funny business and signs of market manipulation?

 

[sharemadder]

NT1984

And what a good thought that is. If it was to ever come to fruitition then with out a doubt GDN SP would increase sharply because a cashed up and experienced explorer could really make something really happen, dare I say it, quickly, and professionally with GDN and their respective leases.

I still say GDN has huge upside on the leases they have but whilst they go it alone there will always be huge risk and costs drilling in Utah. Makes sense they would or could partner up. Maybe they are just doing something like that similar to their Utah U leases.

Here's hoping a update comes before the AGM.

Cheers

 

[new_trader1984]

Hi sharemadder,

Any thoughts on the trading the last 3 days, low of 16 cents monday on 1 million shares today finished at 19 cents on 2.5 million shares with 376000 shares being bought after 4pm at 19 cents. I would have thought with no news the share price might of kept falling.

 

[sharemadder]

NT1984

Strange trading again hey.

Could be the punters at work but there is also a number of things in the wind such as:

1. The BLM have approved the Federal Permit side of things (as we know they had no objections to it when it went through the State division).

2. The ASX have relented on the JORC compliance waiver (doubt it) on the prospectus for the new Uranium JV with USA miner White Canyon LLC.

3. There is a sniff of a capital raising coming and the Directors (or who ever) wants to get a better placement price.

4. They have found that Para#1 is good to go for piping up (doubt it as 340mcfd is rather small for justifying the pipe yet).

5. A major such as Delta is interested in becoming the farmin operator for the GDN leases (as we know Delta surround GDN and plan to blitz the area with drilling over next 24 month period - 21 atm planned wells).

Just waiting for Directors to ann something before agm which I believe they will most likely do. Guessing game atm. They certainly not talking to any shareholders at all that I know off anyway.

Me I just sitting tight on my shares and willing to hold through, no drama there with that.

Cheers

 

[new_trader1984]

Hi, the last few days i have been looking at delta petroleum to see what is happening with the projects in paradox basin which is 20-80 kms from gdn's wells. They have drilled 2 completed wells in greentown project with several others being drilled currently, the first 2 wells were 7.5 miles apart from each other but both intersected same formations gas intervals and pressures which on both wells caused collapsed casings. The same happened with the first well on the salt valley project which is 20km's from gdn. Both projects are now considered development projects not exploration projects. From what i have read the pressures on the 3 wells over the 2 projects all had very high pressures of around 8000psi which the wells were only designed for pressure upto 5000psi.

http://finance.google.com/group/google.finance.658574/browse_thread/thread/1a5f4cc4204bf30e

The article above talks about the 8000psi pressure that was encountered and caused the casing problems for the greentown wells. In that message in the above link they say 2tcf could easily be reached at greentown.

That may not have anything specifically to do with gdn but considering it happened at the salt valley project too which is close to gdn it is possible that gdn might also experience similar pressures in better placed wells. If you go about 80-100kms south of where gdn is drilling the lisbon wells are still producing at 5-6mmcf per day after 40 years of production. So with long production below gdn's land and high pressures not far above gdn's land could suggest that in other parts of gdns 26000 acres there is a good chance of high pressure to produce good daily flow rates.

With the greentown project being 7.5 miles apart between the first 2 discovery wells it shows that the gas and oil is over a large area and not contained in one small area which is why i think they are confident of greentown being a large gas find.

http://www.investorvillage.com/smbd.asp?mb=969&mn=5464&pt=msg&mid=1367355

The link above was a post on investor village for delta petroleum it might be of interest to some.

http://www.investorvillage.com/smbd.asp?mb=969&mn=5106&pt=msg&mid=1263209 This link mentions greentown project could have 300 or more wells drilled on it.

The high pressures in the wells to cause casing problems i thought was interesting and worth sharing.

This is something i found posted on the investor village forum back in 2006 when everything was going well for gdn.

I agree that DPTR is not only the big play in the Paradox, it's the big play in the entire USA right now. I do hope though that DPTR, should Golden Eagle prove to be another big play, gets into that as well. It's in both DPTR and GSRCF's interest.

I still think there is a good chance of this happening but maybe larger companies are waiting for gdn to drill the 2nd well and see how that goes before trying to get involved with gdn's 26000 acres. Deltas drilling company was the one that drilled the first well and possibly drilling the 2nd well so that also may benefit delta in decide whether to get involved or not. Not sure of privacy issues regarding the well though for gdn since its on the utah oil and gas website where the details go so maybe the drillers dont have to keep the info found from drilling quiet but not sure.

Just thought some of the links might be of interest to some considering the position of gdns land to deltas 5 projects and the lisbon wells.

 

[sharemadder]

NT1984

First off all a great post with some excellent information and detail.

Second I still believe GDN hold some great land in the Paradox Basin which holds great potential. Para#1 is a producer, not much but still can flow gas. It as we know also hit a 6mtr oil column that was not tested.

My bet is they will test the oil shows further in the next well updip on Para#2. Also it is probably a good given that the next well will hit a lot more gas as it is in the same structure 1.6km's away and 1000 ft shallower.

If they hit something sizable I'm sure Delta may (I say may) opt to offer a farmin which would be great for GDN. Interesting hey that Delta's proposed pipeline will run right through GDN's leases. Very convenient for GDN to connect to.

Cheers

 

[new_trader1984]

hi sharemadder,

At the moment i think gdn only have the golden eagle project land which is about 5000 acres but once the 2nd well is completed then gdn will have all 26000 acres, i think delta would wait until they could do a deal to have access to all the land gdn has.

Im not sure how much further north towards the salt valley project gdn's land goes but would be interesting to see if the land we have is closer to the salt valley project aswell as a large amount of the acerage further south.

The oil columns by gdn's first well and the salt valley project does seem to be at similar depths and with delta thinking all 7100 acres of the salt valley project will contain oil it might continue over into gdns land which might be another reason for them to want to get involved. By the delta website over 200 acres they can prove up 1 million barrels of oil i think. They also say they believe the full 7100 acres could contain oil, which maybe the drilling by gdn may have offered confidence in thinking oil could cover the 7100 acres they have in salt valley and continue into our area. Thats how i am looking at the oil column though.

Theres some 3d seismic being done in the salt valley area i think i read last night. Maybe that might show how large an area the oil might cover.

If delta does become partners with gdn they might be able to start looking at other structures over the 26000 acres since then the companies would have the money to start drilling at a faster pace using more than one rig.

gdn has 26000 acres so thats about 100kms square, that would go all the way down to the lisbon wells about 100kms away that have been producing for 40 years. Unless the first well was on the edge of the land gdn has its likely to go right up to where tidewater and deltas acerage is too?

Would be good if gdn starts to share some news since the land they have is in a really good area for the companies that are drilling in the same area to be spending so much money.