GDN - Golden State Resources

[BESBS Player]

Agree 100%, AgentM.

I don't think there is a lot of information in the GDN reports. However, as a short-term play, they are gold as the only information released is usually positive and hard to measure. That is why I was saying there was $$$$ to be made here a few weeks back when I averaged in at 5.8c.

I suspect more to come tomorrow as we get further into/through the Ismay formation...

Still holding GDN

 

[Agentm]

the report is clearer now that the next announcement has come through after close.

hottest stock on hc .. gdn got 97,000 views today and 335 posts so far.. well worked imho.. only a few posts here interestingly

ABN 39 063 074 635

Dear Sir/Madam,

PLACEMENT

Golden State Resources is pleased to announce that funds of $770,000 have been raised by a placement of 7,000,000 shares at a price of 11 cents per share. The issue of shares is within the company’s 15% placement capacity.
The shares are to be issued to various institutional clients and sophisticated investors. The company will pay a 6% commission of total funds raised. The proceeds of the share placement will be used for working capital on the Golden Eagle Oil & Gas Prospect, Grand County, Utah.
Yours faithfully,
Ranko Matic
Company Secretary

 

[bigdog]

the report is clearer now that the next announcement has come through after close.

hottest stock on hc .. gdn got 97,000 views today and 335 posts so far.. well worked imho.. only a few posts here interestingly

Agentm: you forgot to report todays 50% increase in the closing SP with high of 0.160 (+60%)

Today there were 1000 trades and volume of 43,350,544 shares was the highest volume since Sept 2007

GDN 0.15 +0.050 +50.00% high of 0.16;.. 43,350,544 shares $6,025,676 @ 07-Apr 03:57:07 PM

 

[Agentm]

bigdog, re the 50% increase.. i mentioned it today.. what are you talking about? its not like there are 500 posts here today to sort through

the cap raising should pay for another 7 - 14 days of drilling costs. you can look at around $50 - $100k per day. running it close to the wire here. i expect many more raisings will occur. its very expensive to drill a well and this one is no exception.

the same pattern of massive pump and dumps and cap raisings will be the norm from start to finish.. i imagine the last raising will be to less sophisticated holders like anyone one holding at the end..

we all expect many more reports daily from now on.. watching with interest on who is playing it the best so far myself. its not rocket science stuff to figure out how to play it at all.. i like the way besbs is playing it and a few on hc.. but the soph holders are doing the best by far imho.. the brokers are legends here imho

good luck to all holders.

 

[eMark]

Sheesh after a 50% rise today, what can the punters expect tommorrow?

Especially after that placement announcement.

 

[TATES23]

Id be wary this has happened before!! GDN has burnt many people in the past with these "gas shows" and reports !! A company run by dodgy directors!!

 

[pilots]

Id be wary this has happened before!! GDN has burnt many people in the past with these "gas shows" and reports !! A company run by dodgy directors!!

TATES23, It would not surprise me that you are all being taken for a long ride AGAIN.
One, what the hell do they need 750,000K for, that won't even pay the work over bill on the first well.
Two, the first well was heavy mud, this well is under balanced, you WILL get a lot more gas/oil influx coming in to the well, this must happen.

Now wait for the next bit change, see if they say this, "due the high influx of gas on the bit change we could not go back to drilling until we circulated all the gas out of the well". This is what you post when you want to ramp your share price up.

On a normal rig we would slug the whole with 30/50 Bbls of heavy mud b4 the bit change, this keeps the gas out on the bit run.
Lets just wait and see what they post on the next bit run.

Don't forget this is a gas show, NOT A GAS FLOW.

 

[DAZT49]

oh dear I see the same drampers from HC are over here with there drudgery.
I was hoping for a more reasoned forum.

 

[pilots]

Sorry 49, but I DON'T post on hot whoppers., you would know well, that any one who make the ramp master look bad get banned for life.

 

[ben_Q]

I can see one order for 1.2M shares @ 16.5c pre open.
I wonder if that will still be there at 10am?

 

[Agentm]

TATES23, It would not surprise me that you are all being taken for a long ride AGAIN.
One, what the hell do they need 750,000K for, that won't even pay the work over bill on the first well.
Two, the first well was heavy mud, this well is under balanced, you WILL get a lot more gas/oil influx coming in to the well, this must happen.

Now wait for the next bit change, see if they say this, "due the high influx of gas on the bit change we could not go back to drilling until we circulated all the gas out of the well". This is what you post when you want to ramp your share price up.

On a normal rig we would slug the whole with 30/50 Bbls of heavy mud b4 the bit change, this keeps the gas out on the bit run.
Lets just wait and see what they post on the next bit run.

Don't forget this is a gas show, NOT A GAS FLOW.

interesting comments pilots

re the first point, i think its amazing that a rig operator will drill and get paid on the drip feed.. its highly unusual to get a rig operator to drill without cash up front. these small cap raisings so far wont cover the rig costs. let alone any expensive cleanup operations and workover ops. if the well needs to be fracced then its going to cost millions more again.. being up for 100% of the costs and not having the capital for it makes these weekly cap raisings a big distraction.

Pilots, you say the first well was using much heavier mud weights and the second is underbalanced? can you confirm where that info is available? i gather that using lighter mud weights and drilling underbalanced is to decrease risk of formation damage. It would be very easy to misinterpret the release yesterday on that basis. i agree with you on the gas shows, obviously there would be a massive difference in gas shows with underbalanced drilling. imho the small increase experienced in yesterdays reported gas show whilst drilling underbalanced is not a very promising sign, the shows should have been many many times that and also some flaring would be preferable surely? I wonder why it wasnt mentioned in the release? i notice they also dont put any time stamps on their releases, so you dont know at what time the in UTAH the report relates to, could be 24 hours earlier for all anyone may know.

they dont seem to have an independent geo signing off on the reports, so you have to rely on the qualifications of director signing the report. so what geological background has the director got?

it remains an extremely high risk stock at the moment.. good luck to all holders

 

[BESBS Player]

Hi AgentM,

I think your comment is important: "it remains an extremely high risk stock at the moment.. good luck to all holders". This is also why I like Pilots posts. He presents the down side clearly and with some emotion - always a good reality check in this game. We need all sides to be informed...

If you treat GDN with this in mind, it can be a money tree. Without care, tree falls on top of you!

At this stage, the announcements have not really provided much detail at all but we do know that GDN want the SP rising so it is easier to get interest and attract funds. With this in mind, one knows that management will attempt to portray announcements in the most positive way possible under law. This helps to create confidence for speculators like myself that the SP is likely to creey a little higher still on a future announcement.

For me, the safest way to play GDN has been

1. Get set at a low price (5.8c ave) and get free-carried during Paradox-1 workover. This is the insurance or safety net required to play with sharks.
2. Watch the news on the Ismay formation. As soon as the announcements look neutral/bad (by this I mean the way GDN word them, not simply a lack of detail as there is often not much information in them anyway), I'm gone.

I'm still in and watching...

 

[bigdog]

WOW: Three ASX UPDATE ANN in four days which market or traders seem to like!!

GDN SP $0.16 +0.015 +10.34% high of $0.17; .. 14,952,505 shares, $2,416,915 09-Apr 11:24:52 AM

09-04-2009 10:19 AM GDN Paradox Basin No 2 Update
http://www.asx.com.au/asx/statistics...idsId=00943377

DRILLING STATUS REPORT – 9 APRIL 2009
Paradox Basin #2 Well, Grand County, Utah

Expert opinion confirms that Paradox Basin #2 encountered the Upper Ismay Formation at 10,270’ (3130.3m) and that three of the four reported gas shows are in the Upper Ismay Formation

Paradox Basin #2 is currently at 10,611’ (3234.2m) and drilling ahead at nine feet per hour

Connection gas and trip gas to 5102 units has been recorded after tripping back in hole and the mud weight has been increased to 8.8ppg

Since the previously reported gas shows the levels of background gas in the Upper Ismay Formation have ranged from 40 to 170 Units

The look‐ahead is to continue drilling to 13,200’or the top of the Alkali Gulch salt before running 7” casing

Prior to casing the well will to test the Lower Ismay, Desert Creek, Akah, Barker Creek, and Alkali Gulch formations above the Alkali Gulch Salt

The well remains ahead of schedule and under budget

 

[pilots]

So the mud WT is only 8.8, is it any wonder they have gas in the mud, I think it was about 9.5 last time, take care, this has ALL the hall marks of a ramp.

 

[pilots]

Just worked out the Bottom hole pressure, it is only 4536 PSI, If this is a gas Field as some people are saying, it will be one of the weakest ones around.
Watch your stop loss.

 

[pilots]

If they was using 9.5 mud now the BHP would be 5241 PSI, So you can now see why you have more gas coming in, this is back ground gas, you get it on all wells, the flow test is what you need to look at. Have a good easter.

 

[BESBS Player]

In keeping with my conservative BESBS style, I sold out of GDN today. Managed to get out at 15.5c average after an entry at 5.8c (see earlier posts) so very happy with the result - around 170% profit.
I can still see potential in the SP if future announcements are positive but can also see the other possibilities as Pilots has pointed out.

For me, the locked in profits are too tempting as they can be used to get set in other plays. Easter and the week following should be very interesting for holders - good luck to those hanging on and I do hope that the SP rises much further for you all.

No longer holding...

 

[Wysiwyg]

In keeping with my conservative BESBS style, I sold out of GDN today. Managed to get out at 15.5c average after an entry at 5.8c (see earlier posts) so very happy with the result - around 170% profit.

Well done with your besbs strategy, watching this thread as we have some residual shares at 50c from the Paradox 1 run. Must be close for this run to retrace.Hope not but it happens more often than not.

Worst case scenario is there won`t be producing gas in P. 2 and the directors take a bow then exit stage right.

Best case scenario is they tie in with P. 1 and start production.

 

[Agentm]

i agree on your conclusions pilots, the results are not very good so far at all

well done besbs


delta petroleum has stopped on the paradox basin.. too frustrating for them they say.. imho they should know..

http://www.reuters.com/article/pressRelease/idUS10278+03-Mar-2009+PRN20090303

Paradox Basin, UT, 70% WI - In the Greentown area, the Company initially
targeted intra-salt clastic intervals on the Greentown Salt Anticline because
several older wells experienced significant gas shows while drilling. Delta's
initial two wells experienced flow rates of 5 Mmcfe/d and 5.3 Mmcfe/d from the lower clastic intervals. The wells were located approximately seven miles
apart and the clastic breaks correlated very well suggesting lateral
continuity. The third well drilled in the project area tested 1,946 Bo/d and
11.6 Mmcfe/d during a 72 hour flow test. Subsequent wells were drilled and
completion efforts of individual clastic intervals yielded mixed results.
There are numerous individual clastic intervals yet to be completed.

Results from activity at the Greentown project have been frustrating at best,
but drilling by other operators continues on leasehold immediately adjacent to
Delta's. The Company's Paradox pipeline and processing facility
infrastructure are well positioned if additional production is established by
Delta or others in the play. The Company has decided to temporarily suspend capital expenditures in this area, but outside operator activity should provide new and important information that will help determine the project's potential. In the future, Delta plans to complete several clastic intervals requiring minimal capital investment in each of the five remaining wellbores

 

[BESBS Player]

Thanks for the compliments, W and AgentM.

Hoping that this one will work out well for holders but am not totally convinved as yet (hence my departure).