GDN - Golden State Resources

[Broadside]

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.

I had a cursory glance at the prospectus, it doesn't look to me like they will be producing any time soon, nor indeed whether the 1.9m lb "resource" will be economic. For GDN'ers who were holding out for this float.....dudded (again).

This was being pushed hard on the forums (hotcopper anyway) 6 months ago as a spin off capable of producing Uranium in 2008.

 

[new_trader1984]

hi broadside,

Do you have any views on the different average grades for a company that has stated they will be the next uranium producer on the asx trading at 55-60 cents but was at above 1 dollar before a merger announcement. The grades were 0.07% for 1.5 million pounds and the other was 4.5 million pounds at 0.12% which is around 2.5-4 times lower grades then the average grade they say was used for the resource estimate on just over half a hectare. The thompsons project which is where the potential for the company is meant to be has 7000 acres of land with some high grade results.

I dont like the management team that makes up the white canyon project but michael shumway has experience in uranium mining and his family been mining for 3 generations. Leaving the management team out of it why would that guy offer drill rigs and crew and 2 smaller projects just for the thompsons land if there is nothing there? It wouldnt make sense if there is 0 benefit for him when the 2 projects were a private company wouldnt he of been best staying with what he had before this deal happened?

No one likes the directors of gdn because of what they did with the gas project and no news being released but there has to be something of interest to michael shumway to agree to this deal. Just a lot of money and time wasted that he could of spent in more profitable ways considering this company is going to be a dud.

and im not ramping just trying to make sense of the 2 companies that i have mentioned and comparing them.

 

[Broadside]

I just don't think there is enough information newtrader to make an informed opinion. Every deposit is different as are the economics. You can have high grade low tonnage or low grade high tonnage as you see in Namibia, both can be highly economic. As for this float....I can't see any estimated costings in there at all, no scoping study, nothing to hang my hat on. The resource itself is pretty small...it would need to be highly profitable to justify mining it. Maybe that will happen, I just don't know. The GDN management make this poison to me, maybe the outside expertise they bring in will be the salvation for it. Good luck if you choose to subscribe, or via your GDN shareholding.

 

[sharemadder]

The GDN management make this poison to me, maybe the outside expertise they bring in will be the salvation for it. Good luck if you choose to subscribe, or via your GDN shareholding.

The sp clearly demonstrates either their was very little interest in taking up entitlements for U ipo or many people already got a load of shares but at a substantial higher price and just cannot sell without a huge loss.

RS is poison for GDN. JH should get rid off him and get a more experienced director particularly with proven management in oil/gas experience.

The Paradox leases are imo still very valuable. They have proved there is gas there. A farmin would be nice to reduce the risk.

I am still undecided in taking up the ipo with the only saving thing I can think off for the ipo is Mike Shumway. Why he wants RS involved who has no industry experience is beyond me. Then again maybe Mike has a plan like when he bought up many expired U leases in Utah prior 2000.

 

[new_trader1984]

hi sharemadder,

I was reading on the weekend that mike shumway works for denison mines which owns the white mesa mill. They also buy the ore per tonne based on uranium grade and pay a certain amount per tonne for delivery costs too.

http://www.denisonmines.com/content/uranium/WhiteMesaMill.cfm?catid=1278 down the page they have a section called ore buying program and there is a link for uranium ore buying schedule. Would having mike shumway who works for denison mines be able to get better prices with the white mesa mill?

Thought it was interesting seeing that he works for the company that owns and operates the processing mill in utah.

 

[sharemadder]

NT1984

G'day mate, hope you have a good Xmas and new year break and a safe one at that.

Regards Mike Shumway, he is certainly well connected both in the corporate and local government circles. Have read some interesting stuff on him. Your article was also good. As the manager of this dig I hope he can shake rattle and roll because RS and JH cant.

Mikes long standing involvement in U mining is very commendable but I still ask this whole IPO thing - WHATS IN IT FOR HIM (soz for the caps). Why would he join up with GDN. Does he want to get his hands on Thompson leases??? Can he see huge upside here, what does he know about the history of Thompson leases / ringtail mine etc. Does he have a hidden ace on whats in them hills?

He is the only thing that would convince me to invest in the IPO.

RS can kick the bucket far as I am concerned :behead:

BRING ON PARA #2 drilling i say, thats what I want for Xmas. The IPO can go in the chrissy sock but the Para #2 spud under the Xmas tree (that's were all the big pressies go.

:dance:

Cheers

 

[Wysiwyg]

There won`t be any take up of the Uranium diversification on my behalf.They went for the market eUphoria and caught the tail end of it.If there is another market eUphoria then they might get noticed.

 

[new_trader1984]

hi sharemadder,

thanks hope you have a good christmas and new year too.

about the 2 directors john and richard, i think it was mentioned on the other forum after the agm that richard had to go out of the room to speak with john to get some basic answers to some questions. It shows that there is not much communication between the 2 directors and its john who knows everything that is going on and he is the one that wont tell shareholders any news on the wells or upto date on other projects which isnt good. Might be best taking them both out of the company and getting directors with oil and gas experience especially since thats the direction gdn is meant to of been going in. Im surprised the top 20 didnt chose to vote at the agm and remove atleast one director and get someone better in place. The 12 new top 20 shareholders i dont think got in at prices under 20 cents and i think atleast 25-30 cents was the minimum price that they got their shares at, but thats just what i think about the new shareholders in the top 20. Just thought they would have wanted to remove a director if not doing a good job for their investment.

para 2 should of been spudded months ago but john or whoever is in charge of applying for permits waited until september 4 months after testing started and a month after testing finished before even applying for the next permit other drillers have their permits applied for and approved before previous wells are completed. Hes letting our investment do nothing for months while we wait for the approval to be given which isnt good.

Mike shumway must see something significant in the thompsons project and i guess he would know a lot about that area from past workings in the area. He has offered 2 small projects which is only about 1 hectare for the 2 smaller projects compared to the 7000 acres that the thompsons project has but he might be able to get the smaller projects up and running in a shorter time frame for even a small cashflow for the company which could help with the thompsons project. From what i read mining at deeper levels past 170 meters is completely untouched which might be what mike shumway is after plus there should be a lot of uranium in the shallower levels based on the grades found on some of the holes drilled at other times.

I used the whitecanyon website to send an enquiry last week to ask 3 questions im still waiting for a response, considering they would want to get people interested you would think they would take 2 minutes of their time to answer the questions.

In the last month there has been only 9 days of trading thats broken the million mark the other 14 days were all under 1 million shares traded thats going back to the 9-11-07. Considering there is over 190 million shares on issue and only 35 million is held in top 20 thats a lot of shares that would be traded outside of the top 20 but no significant volume is happening in the last couple of months. If this company is as bad as people keep saying wouldnt the volume be higher on a daily basis for the longer term holders to get out and move on to make their losses back on other potential investments?

There is a lot of potential in the paradox basin and from the companies like delta encana petro canada that are starting to drill in the area this might suggest there is something worth holding for, we could all be wrong since big companies get it wrong too but there is a lot of things happening in utah to do with oil and gas wells which suggests that many companies think the costs involved to get to the gas will be worth it in the long term.

On the uranium subject, i dont think they are concerned about not getting the 70 million shares subscribed to. I guess that like mike shumway did this deal with gdn that some american investors might also buy shares into this company because of what he might be able to offer as utah is picking up and is expected to get very popular for uranium explorers in the next couple of years. I was thinking maybe the reliance company that is supplying the drilling rigs and crew might choose to buy shares into the new company, but thats the only reason i can see why they are so confident the company will be subscribed to. Based on forums no australian shareholders of gdn want this new company but then maybe some of the larger banks that have shares in gdn might choose to buy into the new company too.

Hopefully some news is announced soon for shareholders.

 

[rottodiver]

where do we find the list of the top 20 share holders?i know i have seen it just cant remember where

 

[new_trader1984]

hi rottodiver,

on page 47 of the annual report has the top 20 shareholders. They hold 34 million shares in total.

Comsec nominees holds 3.03% and has 5,882,720 shares.

 

[new_trader1984]

Hi, i just read the update on paradox basin for delta petroleum and reading a forum on investor village which has some good posters on the greentown project which is near gdns area.

A couple of posts that i thought were a good read were one by amstocks82 message 9950 history of greentown prospect and possibilities.

The post offers a lot of info on the greentown prospect which might not be of interest to people holding gdn but i thought it was interesting. The post talks about the high pressure wells that news has been announced on, the update today also said they had another high pressured well. They are expecting to exceed 6bcf per well at greentown too.

The paragraph below is part of the post

The upper untested zones would be referred to as the Ismay and Desert Creek formations. The descriptions for the Ismay and Desert Creek formations from other locations in the Paradox don’t fit match the logs that are available in the vicinity of the Greentown Prospect. The descriptions are mainly of predominantly limestone or dolomite formations. But in the Greentown area, the lower Ismay formation was described in an older well nearby as friable siltstone and black shale. The Desert Creek formation was described as being medium grain tight sandstone with interbedded black shale. This is a much different description than I can find printed anywhere else.

Im not sure if our area is similar to the greentown project but this paragraph was of interest i thought, They talk about the desert creek and ismay zones being black shale and sandstone, in a report on 27-10-06 the announcement said the barker creek formation was made up of sandstone dolomite and black shale. If deltas area and gdn's area is similar to each other couldnt there be the chance of high pressured formations like delta has found on future wells? They did mention one well in the latest update for delta didnt have high pressure but still is hydrocarbon bearing in all intervals drilled so far.

Considering about 100kms south of gdn's wells that the lisbon wells have produced large amounts of gas and oil per well there must be some strong pressured zones in utah and maybe gdn might find it on future wells.

If you read the post above there is more info about why black shale is a good petroleum producer.

The other post i thought was also good was one by oilfndr message 9998, the post was mostly about the geologist talking at the conference call yesterday but the part i thought might be of interest is the comment about how far the greentown play might go.

Some geologists have suggested the Greentown play will extend further SE to the Cane Creek play near Moab.

Moab from looking at google earth looks like it is in the middle of gdn's acerage and if so that statement above is suggesting the greentown play which is meant to be quite big from what some people are saying would cover a large portion of gdn's land.

There are lots of good reading on the investor village forum but thought some might be interested in what i found on that forum which might be similar to what gdn might find if they can start getting things moving along. Also delta will have a temporary pipeline in place by 2nd quarter next year which can produce 25mmcf of gas per day.

 

[sharemadder]

NT1984

Good information hunting there.

GDN has very valuable Paradox leases. What's holding it back is they need to spud Para#2. Until that happens we are stuck in the mud (excuse the pun).

Delta's news is exciting and confidence building that GDN's Paradox leases are actually worth exploring. We did actually find gas just not enough in the first well. The second well hopefully will have the goods.

Come on JH get that drill spudded for all our sakes!

PS JH dump that looser RS asap as well.

 

[new_trader1984]

hi sharemadder,

About the directors i think since john doesnt have any experience in oil and gas but does in mining he would be better for gdn and wcu by being a full time director for wcu and gdn find a director that knows a lot about oil and gas projects for gdn since gdn is meant to be mainly an oil and gas company. Its been 3 months now since the approval by the state for the 2nd well not sure why the hold up in approval though.

Delta and lynden ventures both use multiple zones to produce decent flow rates. Delta's greentown 32-42 well produced 2mmcf of gas from 8 out of 12 intervals. GDN would of had about 1mmcf if they used multiple formations to get a decent flow rate. $6000 a day is still over 500 000 since they stopped testing until now which could have been used to help to drill the 2nd well. I think there was something mentioned about needing 2mmcf to be able to put it to a pipeline but there might of been ways around this, but there was nothing stopping them from producing oil using trucks if had a decent flow rate for the oil column.

The oil column we never heard anything more about once it was put behind casing which wasnt good considering it might of been possible to truck the oil out and might of been able to provide some cashflow too.

There might of been reasons why both these things didnt happen but if there were good reasons for it they should of told the market.

There was a conference call that goes for a while but can be listened to on the delta website there is meant to be a lot of talk about the greentown project near the end which might be worth listening to, i havent listened to it yet.

Hopefully some news on the 2nd well permit comes through soon.

 

[sharemadder]

NT1984

Well not much buying depth left and with current market doom and gloom maybe will hit that bottom again of 10c like it did early on in the year.

Surprised that directors not providing update on current operations. Need to know what the hold up is on the Paradox #2 well. BLM said 30 to 60 days for the federal permit approval process if everything is in order, well we past that.

If it gets to 10c and providing one has faith they will drill the second well could be a good profit maker on drill hype alone.

Cheers

 

[hoppielimp]

Yes it could be a good buy...I bought last time at 10 cents and sold at 20 cents...just to minimise the paper loss on my other GDN holdings....

Everytime I look at GDN...I get abit delirious. I laugh I cry, laugh again and then log out before I do anything crazy on the my online account...like sell or buy...

 

[new_trader1984]

Hi, last night an update for delta petroleum was released on a well they drilled called federal 28-11, this well is 85kms from gdn's paradox basin 1.

http://www.deltapetro.com/PressRelease/HTM news/2007/pr121707.htm

The link above is the release from delta petroleum. The well started flowing at 4.32mmcf over the first 24 hours and 794 barrels of 60 gravity oil. Over the first 48 hours the well produced 7.5mmcf and 1379 barrels of oil. The flow rate was from 1 interval that was only partially drilled since the high pressures prevented them drilling further. This was an open hole test and was un-stimulated. Delta plans to recommence drilling the rest of the interval and further deeper intervals. This is the same interval that caused the blowout on the 36-11 state well, the pressures were also similar to what was found in the 32-42 well. This well has 15 higher intervals that will be tested also once they finish drilling.

I thought this news was worth sharing since they have had very high pressures on many of the wells except for one but still had lots of oil and gas shows but not as high pressure such as this one and the 36-11 wells. If they can get around 4mmcf per day from a un-stimulated interval there is a good chance of some very high flow rates for that well once all intervals are tested.

On investor village a message by amstocks82 is worth a read its message number is 10156.

GDN might be lucky and find similar type of pressures on the 2nd well once they drill hopefully.

Just thought some might be interested in this news.

 

[Rob 17]

I wonder what the people at Golden State Resources do all day. The management are woeful in informing shareholders on the progress if any on anything they do.

They should have shareholders interest at heart and do everything possiable to get parra 2 progressing ASAP.

The shareholders communications policy says that the company secretary and the directors are available to respond to shareholder
questions in writing and by telephone.

I must give them a call to see weather they are still on this planet .

DYOR

 

[new_trader1984]

hi rob 17,

They never answer emails, and dont seem to have any interest in doing the right thing for shareholders. The only reason people are holding these shares are for the projects and eventually something good needs to happen, the directors being replaced with more experienced ones would be a good start for gdn.

I sent an email enquiry from the white canyon website almost 2 weeks ago asking 3 questions that can be answered in 1-2 sentences each, probably take 2 minutes of their time to respond to the questions and i still havent recieved anything. In the enquiry i even mentioned i was considering buying into the ipo if could find out these answers, the decission for them to not answer the email shows they dont want the ipo to be fully subscribed or they know that there are big investors that are interested in subscribing to the company and dont care if smaller shareholders want to buy the shares.

Hopefully some good news comes out soon for shareholders.

 

[hoppielimp]

Has anyone received any info on the priority share offering for whitecanyon ? I have receivde nothing as of yet, but the priority share offering closes on the 28th Dec...

Anyone got anyone info ?

 

[kelvin8r]

Hey Hoppie

I got my prospectus today in the mail. havent opened it yet, not sure if i can even be bothered reading it. they obviously cant be bothered keeping us informed with whats going on.

what are your thoughts on white canyon