GDN - Golden State Resources

[sharemadder]

NT1984

I didn't realize they only had 5000 acres with the other 21000 acres dependent on the completion of the second well. I know that eclipse had a 16.67% backin if GDN completed 2 wells, was the acreage thing tied to that?

In any case if Delta were to get involved as well then GDN's share could drop to about 41.67% (100% - 16.67% / 2) depending on Delta's contractual demands.

I suppose though if Delta was on board as the Operator the wealth of experience, knowledge, rig ownership etc would be more than adequate for compensation.

Man I wish they would give us an update soon.

Cheers

 

[new_trader1984]

Hi,

The 2nd of June 2005 farm in agreement announcement mentions they need to drill 2 test wells and repay back sunk costs to obtain the 26000 acres of land. Not sure if that has changed after the costs involved with the first well though. It was only 1.25 million for each well in sunk costs that had to be paid to recieve the 26000 acres but started with the golden eagle project over the 5000 acres. They might have all the land now though.

The announcement on the 25th of November 2005 talks about the land they have. If you look at the map on the 2nd page of the announcement which shows the leases they have you can see the lease 84159 which could be where the first well was drilled and the 2nd well planned. That leaves the lease 76326 which looks to be close to the salt valley project delta petroleum has made the oil find a development project.

The leases which covers the larger area of the acerage that gdn has 75761 and the other smaller leases below it i think are outside the golden eagle project which allows for more possible discoveries. Especially since further south is moving towards the lisbon wells which have been producing from leadville for a long period of time.

I did read on the investor village forum where someone believes south and to the east in our direction has bester chances of gas and oil compared to the direction royalite has just acquired land to drill which is to the left of the greentown project, doesnt mean they dont have a good chance of finding gas in that direction just that the person believes there is a better chance towards gdn's land atleast thats how i read it. Delta does have 3 more projects further south and to the right of gdn so that might be true what that person suggested.

I think the land and the 16.67% back in for eclipse was on the agreement that gdn drill 2 wells but the costs for the first well since went a lot longer then expected and cost a lot more this might have changed.

If delta was to become partners with gdn over the full 26000 acres there is benefits and negatives to the deal. Depending on if delta got 25 or 50% partnership.

It would reduce gdn's current share so would need to have a bigger find to get to same price as a smaller find would do with 100% ownership. The price of gas has also increased so a 50bcf find isnt necessary now and maybe a 25-30bcf find would result in a similar value.

The benefits of having delta as a partner would mean a large cash flow would be available more rigs to drill at the same time since delta wouldnt take things slow which can be seen by all the wells they have planned to drill and have been drilling recently in the greentown area. They would also have the trucks to transport oil if a pipeline wasnt in place for the oil. They would also be able to start work on other parts of the acerage and find other potential prospects that may contain a large amount of oil and gas.

Im not sure why gdn waited until mid september to apply for the 2nd well permit and we are now still waiting to be approved by the federal department. Atleast with delta they make sure the applications are done well in advance so nothing prevents them from starting drilling as soon as they are ready to move a rig to the new site. GDN should have applied for the permit back in may and no delays would have happened when finished the first well to start drilling the 2nd well.

The oil column that delta has found if the oil is found on all 7100 acres that would mean the salt valley project could contain upto 35 million barrels of oil. Since they mention that they have proven reserves of 1 million barrels of oil over a 200 acre area. Since this is at the same depth abouts as what gdn's oil column was if its intersected at a 1000 feet shallower on the 2nd well then there could be a connection between gdn's and deltas 2 oil columns maybe. Could be wrong but since at same depth and close by it might mean that the oil find delta has could continue over onto gdn's land?

Theres only 8 trading days before the agm they would want to share some news by then since its been a while between any nws besides the quarterly reports. Today its been 2 months since the state gave approval for the 2nd well would have to be close to being approved by the federal department hopefully.

 

[sharemadder]

NT1984 and Datz

Any you guys attempted to contact GDN lately to see if they will put out a announcement before agm? Have tried but no replys.

Cheers

 

[hoppielimp]

Hmmm, and the AGM draws closer.

I was having a shower this morning and was thinking about Eclipse's right to buy back in 12 months after the completion of the first well, or on completion of the second well.

Now I think GDN haven't gone ahead with production of the first well because the capital expenditure outweighed the current financial status of the company, so better to wait and spend on the 2nd well.

But I'm wondering why everything else is taking sooo long. Do they want the 12 months to run out so Eclipse has to make a decision to invest and pump capital into GDN giving the company for operating cash ?

or is GDN banking on their current performance and then Eclipse may not exercise their buy in option, and really there is a very real potential for huge earnings so GDN can keep it all to themselves ?

Just wondering about what seems to be a 'go slow'...

 

[bigdog]

GDN management are very poor on informing shareholders on what has been or is happening with NO updates since October 11!!!!

Looks like nothing is happening at GDN except the SP continues to fall!!!

Did anyone attend the AGM???

Below are the ASX announcements of recent:

28/11/2007 Results of Meeting
31/10/2007 Quarterly Activities Report
31/10/2007 Quarterly Cashflow Report
30/10/2007 Annual Report to shareholders
30/10/2007 Notice of Annual General Meeting/Proxy Form
11/10/2007 Oil and Gas Update
09/10/2007 Date of AGM
28/09/2007 Uranium IPO Update
28/09/2007 Full Year Statutory Accounts
26/09/2007 Change of Director`s Interest Notice

 

[hoppielimp]

Yes all very frustrating BD.....although reading through the Annual Report (I'm reading it very often to glean some sort of insight or make my own up in absence of any), Net assets are some $34,497,154 which would indicate a Net Asset value of about $.177 per share (undiluted, I think there is another 17 Million unlisted shares //edit share options).

Only reason I can think of why it is trading below this level is opportunity costs.

Maybe good things come to those who wait...and wait...and wait...and then I could be wrong.

and no, I didn't go to the AGM.

 

[sharemadder]

New uranium IPO website up http://www.whitecanyonuranium.com.au/

Apparently full submission made to ASX and now waiting on ASX to approve and list IPO.

Need a company update really to advise status of both the IPO and Para#2.

Waiting...yes waiting.

Checked the Utah website for more information at http://utstnrogmsql3.state.ut.us/UtahRBDMSWeb/well_data_lookup.cfm but no update to scanned files since BLM said they at that stage had no objection to the proposed well.

Cheers to long term suffering holders like me

 

[new_trader1984]

hi sharemadder,

yesterday gdn was at 14.5 today went to 16 cents, is it going to be just traders making the price move up and down in small amounts until early next year when gdn starts to do some work?

I am surprised gdn decided they dont need to provide a presentation to shareholders like most other companies seem to be happy to do. GDN really needs a new management team that knows what they are doing.

 

[sharemadder]

NT1984

Yes agree, new management. They really need a oil and gas engineer of substance to take over GDN assests management in Utah and leave JH for the rest of resources. JH imo could stay on but RS needs to go. Wrong man for this industry - no real hands on experience and a classic bull**** artist.

I would love to see a ann on a update of things but not holding breath just me shares.

Any more news on Delta building that pipeline? Wonder if they have started drilling yet on all those well applications they had approved.

Cheers

 

[new_trader1984]

delta seems to have been drilling 2 more new wells meant to provide update in the 4th quarter on how they go, but delta doesnt provide much infomation on any of the wells they are drilling in paradox basin. Not sure of anything more about the pipeline but i would think they would want to get things moving as quick as possible so they can produce from the wells drilled so far.

They might have an update next week on the greentown project.

I read on the investor village forum petro canada has got some permits in the area near delta petroleum.

 

[BBand]

Looks like the calm before the storm. something has to give. - now forming a BB throat on the weekly.
When it does breakout:
Using Fibonacci retracements on the daily chart:
1st target - 0.379
2nd target - 0.548
3rd target - 0.684
4th targert - 0.820
good luck
Peter

 

[new_trader1984]

hi glowinthedark has posted tonight that the prospectus for whitecanyon is available to download at the website.

GDN holders have until 28th december for their 1:4 entittlement offer then the public has to 28 january for the rest of the shares.

 

[Curly Joe]

Lodged 3 Dec
Record date for GDN holders 12 Dec
Priority offer closes 28th Dec
IPO close 24th Jan 08
Allocation of shares 31st Jan 08
Trading to commence 7th Feb 08
Wasn't it great of JH and RS to give us this info lol
Plenty of info in the prospectus for you techy guys.
The size or the resource sounds small to me 1.9mlbs X $93/lb=$93mill.. that cant be right.

 

[new_trader1984]

The 1.9 million pounds is the minimum where they say its in excess of that amount, also I think when the amount was worked out it was on higher grades.


On page 11 of the prospectus it has use of funds where gdn is repaid 3.39 million dollars if we currently have 3 million that would provide at least a good starting amount for the 2nd well? So they wont need to get as much funding for the 2nd well with more shares issued.

 

[Curly Joe]

nt,
I think they need $10mill for Para 2, so IMO they will issue new shares.
Whether they will get enough of them sold is another thing.
Curly

 

[bigdog]

ASX ANN

04/12/2007 Lodgement of Uranium IPO Prospectus
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00791257

The Directors of Golden State Resources Limited ("the Company") are pleased to announce that an initial public offer Prospectus has today been lodged with ASIC for White Canyon Uranium Limited.

White Canyon Uranium is currently a partly-owned subsidiary of Golden State Resources. The issue will raise up to $19.5 million, by the issue of up to 78 million shares at a price of 25 cents, to acquire remnant exploration interests and to fund the exploration and development of its US uranium projects.

White Canyon Uranium Limited has a 100% interest in a substantial landholding in the established uranium-productive Colorado Plateau province in southeastern Utah in the United States of America, and holds the right to acquire 100% of additional lands that contain historically defined uranium deposits.

Golden State Resources shareholders have a priority entitlement in the issue, on the basis of 1 White Canyon Uranium share for every 4 Golden State Resources shares registered as at 5 pm on 12 December 2007 ("the Record Date"). Golden State shareholders wishing to acquire additional shares beyond their priority entitlement may subscribe for shares in the public offering under the Prospectus. Members of the public may also subscribe for shares in the public offering under the
Prospectus.

A copy of the Prospectus is attached. An electronic version of the Prospectus is available for download at www.whitecanvonuranium.com.au. The prospectus will be mailed to all Golden State shareholders with holdings registered on the Record Date. Printed copies of the Prospectus will be available from Golden State Resources at its address below.

Indicative dates are:
Record Date 12 December 2007
Opening date 14 December 2007
Closing date of Priority Offer 28 December 2007
Closing date of Public Offer 24 January 2008
Anticipated date of Allotment 31 January 2008
Anticipated Listing Date 7 February 2008

 

[hoppielimp]

I wonder why the float is not being underwritten ?

Is it because:

- does the company save money by not having anyone underwrite it ?
- or are institutions just not interested with this management/venture ?
- the management are confident of the likely subscription ?

Everything in the prospectus highlights this is not JORC compliant. Even 1.9 Million is not historical figures, but is made up some historically defined and part 'potential' (693,000 lb) ?

at the end of the day total shares on issue will be about 180-190 million
I'm feeling queasy and diluted already...

Anyone with other thoughts ?

 

[new_trader1984]

hi, 90 million shares wont be allowed to be sold for a minimum of 2 years which is the 50% held by shumway and gdn. Shumway will have a value of 11,417,500 dollars worth of shares once it is listed. Not an amount someone with as much experience as they have would be throwing away without being confident of the company being successful. He is also the one with the drilling rigs and drillers that are willing to work on the projects. GDN also gets back 3 million which will be a good start to getting some money back for the oil and gas wells.

I dont like the idea that its gdn's directors running the company though but hopefully shumway will have a lot of say in the new company being the operational director.

the 1.9million pounds if they can get that as a minimum jorc compliant and depending on costs involved to get into production should see atleast a decent return on investment. Maybe they are thinking that they will be able to prove up 1.9 million pounds on the 2 smaller projects and with that alone could make the company's share price at 25 cents worth buying into the company before any work starts on the thompsons project which is the biggest project of the 3 and with the most potential for a large resource. They might have spoken to some of the top 20 since they aernt limited to the 1:4 offer since can buy in the public offer in january too and with it being in utah with a partner already producing uranium might offer confidence to larger shareholders.

Just my thoughts on the new company.

 

[bigdog]

ASX additional announcement

04/12/2007 Replacement Uranium IPO Prospectus
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00791730

 

[new_trader1984]

Hi, i have been reading a few websites about uranium and also looked at the message board for delta petroleum. One post on the dptr forum has mentioned that a horizontal test well is targeting the cane creek play. They believe the reservoir at greentown is better then the one at the bartlett flat project. Thought this was worth mentioning since on the first paradox basin well they mentioned of a couple of intervals that had depleting after initial gas shows when drilling had suggested 20-30 foot interval was best tested using a horizontal well.

I have also been looking at the uranium projects since any good news with the company might help gdn's share price move too.

There is a company called uranium king which has a couple of uranium jorc compliant resource estimates in 2 projects for a total of 6.1 million pounds of uranium. One project has just over 1.5 million pounds of uranium at a grade of 0.07%, i think the 1.9 million pound non jorc compliant resource the new company have mentioned had an average grade around 0.3% so about 4 times better grades. The other project that uranium king has is in new mexico with a resource of 4.5 million pounds at a grade of 0.12%. Im not sure on how uranium resource estimates are worked out but if the new company used a lower grade couldnt that increase the resource by 2-3 times the current size?

Just thought in comparison of the new company and uranium king which has had a share price of above 1 dollar earlier this year might be of interest to some considering grades between the 2 companies. Uranium king is merging with monaro mining early next year with a target of having a resource of 20 million pounds from the current 6.1 million pounds they have over the 2 projects. They expect to be in production by 2009.

Any thoughts on if this new company can get a jorc resource and be at a production stage in the same time frame? Earlier this year when it was first mentioned that was one of the benefits people saw in the new float the short time frame to reach production.