GDN - Golden State Resources

[bigdog]

Press reported:

http://www.proactiveinvestors.com.a...-of-gas-in-upper-ismay-at-paradox-2-1205.html

Thursday, April 09, 2009
Golden State Resources ups the ante with high levels of gas in Upper Ismay at Paradox #2
by Proactive Investors

Golden State Resources (ASX:GDN) has advised of the following progress of Paradox #2 well in Grand County,Utah:

Since encountering gas in the Upper Ismay Formation, Paradox Basin #2 has required a bit change and is now back on bottom drilling ahead at nine feet per hour. Very high levels of trip gas were observed at 10,569’ with 5102 units. Trip gas is the result of formation gas entering the mud. Ditch gas levels below the previously reported show zones remained above 30 Units with peaks of 155 units over the interval 10,524’ to 10528’, 170 units at 10,547’ and 131 units at 10,560’.

A stratigraphic expert on the Paradox Basin has reviewed the formation tops in the Paradox Basin #2, and correlated against Paradox Basin #1. The review indicates that the Upper Ismay Formation was encountered at 10,270’ . The position of the formation top confirms that three of the previously reported gas zones are in the Upper Ismay Formation. The gas shows could indicate a continuous accumulation within the proven Ismay Formation production zone.

Golden State Resources considers that the shows encountered are significant and will be further evaluated after the next logging run and tested after completion of the well. The next logging run will occur prior to setting casing above the salt. Seven inch casing will be run at 13,200’ or the top of the Alkali Gulch salt.

Proactive Investors Comment:

Speaking with Rick De Boer (Chief Geologist) indicates the results are exciting. The high level of trip gas or formation gas entering during drilling at 5102 units indicated a "significant influx of gas", or in Rick's words, a "significant slug of gas". Clearly alot of gas coming out of the mud. These levels were not expected in the Upper Ismay Formation and a huge plus.

Ditch gas is likely similar to #1. It could be that they are already in Hovenweep and in the Lower Ismay.

Clearly, it's way to early to say whether gas shows to date are commercial, but it looks very positive.

Rick is "looking forward to getting to the lower zones". With these kinds of gas shows this early, who wouldn't?

 

[pilots]

Bigdog, If I was running GDN I would have sacked the nob who wrote that report, or I would have sacked the Chief Geologist.
If the Geo can't tell from the cuttings in the mud returns, what we are drilling in, HEAVEN HELP THEM. Now as to the 5000 units of trip gas, I have had trip gas that high that we could not record it, the well was a duster.
What we need is the real numbers for the flow test on No1, we did not get that on the first well.

 

[diddy]

what figures do we need to make this or 'these' wells commercial?
what is the minimum to breakeven?

pilot do you recommend any good reading avaliable online so i can learn oil/gas economics for the purposes of avoiding rampd shares?

 

[bozesprint]

If GDN produce anything comparable to Delta they will have an economical field. Currently with Gas prices at $3.40 it is hard to produce in this area, but as reserves dwindle and with the rig count in the states down 60% over last year the price will go back up to the $6/7 range. Which will pan out if they can pick up a 3.0MM/day well.

Low formation pressures are normal in UT,CO,WY, and they are drilling in extremely tight rock. We will just have to wait and see what rates they can come up with.

Unfortunately in order to make a good well they will have to identify the most promising zones and frac.

If they pick up any oil especially rates like Delta connected with we will all be looking good. Even at $50.0/bbl.

 

[pilots]

what figures do we need to make this or 'these' wells commercial?
what is the minimum to breakeven?

pilot do you recommend any good reading avaliable online so i can learn oil/gas economics for the purposes of avoiding rampd shares?

Diddy, you will find that all oil/gas shares get ramped at some time, HC is the best place to see good ramping at work.

 

[pilots]

What a weekend on Hot Whoppers.
Dazt49 is playing T4P old game, boo hoo, if you don't get rid of the down rampers I won't post here any more, good by Dazt49.
Did you see T4P post, was he was down ramping GDN????, T4P at long last has found out the the Oil/Gas game is not as squeaky clean as he thought, WELCOME TO THE REAL WORLD Mr T4P.

 

[Agentm]

If GDN produce anything comparable to Delta they will have an economical field. Currently with Gas prices at $3.40 it is hard to produce in this area, but as reserves dwindle and with the rig count in the states down 60% over last year the price will go back up to the $6/7 range. Which will pan out if they can pick up a 3.0MM/day well.

Low formation pressures are normal in UT,CO,WY, and they are drilling in extremely tight rock. We will just have to wait and see what rates they can come up with.

Unfortunately in order to make a good well they will have to identify the most promising zones and frac.

If they pick up any oil especially rates like Delta connected with we will all be looking good. Even at $50.0/bbl.

cant agree with you bozesprint. delta are not exploring the paradox, they want nothing to do with it, too tight and too unpredictable.. they are hoping others will drill any then use their pipelines, but apart from that they have no further interest in the paradox despite some vey impressive wells..

gas shows have been recorded at extremely high levels as recorded in this study

http://www5.egi.utah.edu/Geospatial_Data/UHOC/Schamel,_2006.pdf

i think the reports from gdn are telling the tale of how the rock is. very tight and no real evidence of any change from before.

as exciting as these reports are made to look, they are not objective, certainly not neutral and not assessed nor are they examined and passed over by a geo. so the updates come from someone with no experience in the industry, asking you to believe that something compelling is there by comparing gas shows during drilling. which are not worthy of comment unless you get the formation actually flowing at you.. and without any evidence of the well wanting to flow during drill bit changes nor during the drill. even with the very low mud weights they are using, the news is not good at all, and it should carry a huge disclaimer that gas shows mean zip here.. other than showing hydrocarbons are present, as already known in the other well.

there are more targets to drill into.. i hope the holders get some good news soon.

 

[blues]

I think you will find Delta are developing the Greentown field in the Paradox Basin and in their latest presentation they talk about having a number of different prospects in the Paradox Basin.

GDN is a high risk play with doubtful management based on PB1. I dont know much about the Basin but the GDN share price is always easy to read. Buy well before spud and wait for the fireworks to start and then get out. I bought in at 5.5c and I am now free carried. I will let it ride for the next few weeks and then jump off.

The GDN thread on HC shows you everything that is wrong with that site.

Cheers

 

[pilots]

Agentm, The biggest reason that Delta are not drilling any more is they found that all the wells they drilled in the Paradox told them it is all fracked, with many faults as well, this means you can't plot just what spot to drill.
They say this morning that the mud has muted the Gas, what Gas, the mud is not as heavy as they used in the first well, they should have more Gas now. The last few reports are telling us how far ahead we are at drilling, BS, the drilling rate now is what you see on a normal rig, the first well was a joke.
The biggest trouble with GDN is the rampers at Hot Whopper, look at New Trader telling us that trip gas and connection gas are not the same gas.
Never be fooled by the fact some one is going to run casing, I have seen casing run on wells, that had no hope of Oil or Gas, but it did give some people time to unload all the stock they was holding.
I am not saying this will happen with this well, watch your stop loss, as this will crash fast at the end.
A 10% profit is a lot better than a 80% loss, it was only the greedy that lost last time.

 

[new_trader1984]

Pilots, i NEVER said it was different gas i said the definitions in the oil and gas glossary which i linked at the bottom of the post along with a couple of other links for where i got the definitions from gave 2 different descriptions of what trip gas is and what connection gas is.

I also asked if there was much difference between the 2 in the same post.

I also just posted the differences from the first well to the 2nd and the better gas shows compared to first well whether it is productive or not is not what i had said i just stated the difference between the 2 and so far at pb2 the announcements are showing better gas shows. I also put what a gas show is by definition by the oil gas gloassary too in one of the links.

If you think im a ramper on the other forum thats your opinion i just stated what i have read between the 2 wells drilling at similar levels.

 

[pilots]

Sorry, mis read your post, trip and Con gas are the same gas and come from the same place in the well, you just get more on a trip, the first well looks like it has more Gas than the second one at this time, good luck with this one, you all need some after the last nightmare.
I am surprised the ramp on the big U is not under way.
At long last T4P has found out that the Oil/Game is not as it should be.

 

[bigdog]

PILOTS: what is your call on this ANN?

Another GDN ASX update ANN
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00944184

15-04-2009 10:05 AM GDN Paradox Basin No 2 Update
DRILLING STATUS REPORT – 15 APRIL 2009
Paradox Basin #2 Well, Grand County, Utah

Paradox Basin #2 has encountered a two significant new gas shows one with 545 units in the Chimney Rock Formation from 11,274’ to 11,296’. This show came from a good quality Sandstone reservoir with good visible porosity.

Gas show of 426 units in the Chimney Rock Formation from 11,228’ to 11,241’. This show came from a sandstone interval with fair to good porosity.

Paradox Basin #2 has encountered a new potential gas zone within the Golden Eagle gas field. The Chimney Rock Formation was encountered at 10,986’ ( 3,348m)

Paradox Basin #2 is currently at 11,368’ (3465m) and drilling ahead in the Pennsylvanian at approximately 8 ft/hr.

GDN 0.14 +0.005 +3.70% @ 15-Apr 10:36:13 AM

 

[pilots]

PILOTS: what is your call on this ANN?

Another GDN ASX update ANN
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00944184

15-04-2009 10:05 AM GDN Paradox Basin No 2 Update
DRILLING STATUS REPORT – 15 APRIL 2009
Paradox Basin #2 Well, Grand County, Utah

Paradox Basin #2 has encountered a two significant new gas shows one with 545 units in the Chimney Rock Formation from 11,274’ to 11,296’. This show came from a good quality Sandstone reservoir with good visible porosity.

Gas show of 426 units in the Chimney Rock Formation from 11,228’ to 11,241’. This show came from a sandstone interval with fair to good porosity.

Paradox Basin #2 has encountered a new potential gas zone within the Golden Eagle gas field. The Chimney Rock Formation was encountered at 10,986’ ( 3,348m)

Paradox Basin #2 is currently at 11,368’ (3465m) and drilling ahead in the Pennsylvanian at approximately 8 ft/hr.

GDN 0.14 +0.005 +3.70% @ 15-Apr 10:36:13 AM

Bigdog, you can find gas in any place you drill, what you want is commercial gas, what they are telling us is nothing, they seem to want to keep telling us how well they are drilling, that is BS, the well they are on is how any well should be drilled.
This well is running under balanced compared to the last well, there for we should have a hell of a lot more gas than last time, to me it looks like we have LESS gas than last time. You still have plenty of time yet with this one, if I was holding I would get out b4 any testing starts, should the test prove they are commercial, you will have time to get back in. The biggest trouble with GDN is that, any thing the ramp team on Hot Whoppers gets on, you must be very careful with. Don't forget, the ASX here was the last to know of any bad news on the last well.

 

[pilots]

Bigdog, I screwed up, see your post above.
Don't have a clue what I did, to have that happen.

 

[BESBS Player]

G'day all.

Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit.
The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial Sense the GDN announcement has the same prospects!

I wish all holders every success and a multi-bagger BUT tread carefully GDNers as I don't like the way this is appearing to unfold.

Not holding GDN

 

[Wysiwyg]

G'day all.

Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit.
The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial Sense the GDN announcement has the same prospects!

I wish all holders every success and a multi-bagger BUT tread carefully GDNers as I don't like the way this is appearing to unfold.

Not holding GDN

A smug gloat topped with arrogance always comes back to bite. Be ready for the next game.

......................

 

[pilots]

G'day all.

Been away over Easter and after reading today's announcement, I am very content to have sold out with a 170% profit.
The show is not over yet but today's announcement seemed to me to lack detail. Sure GDN have recorded gas shows...my son farted in the car on the way back and we 'recorded' a gas show but it was never going to be commercial Sense the GDN announcement has the same prospects!

I wish all holders every success and a multi-bagger BUT tread carefully GDNers as I don't like the way this is appearing to unfold.

Not holding GDN

BESBS, A very smart move, what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, this lot are as bad as the back slapping brigade on Hot Whoppers, you must only post good news.
You won't go broke taking a profit, smart move BESBS.

 

[DAZT49]

The mods have gone crazy on HC and the mods have gone to sleep on ASF.
Pilots how can you keep posting add nauseum,such utter drivel.
kennas where are you??

 

[pilots]

The mods have gone crazy on HC and the mods have gone to sleep on ASF.
Pilots how can you keep posting add nauseum,such utter drivel.
kennas where are you??

Dazt49, What I have posted is FACT, should you want to read drivel, you should go over to a forum that posts things like, what will it close at today, I am going to load up on this as soon as my money comes in, I will be buying big time, this will rocket up on close. But the one I like best is ""I have a gut feeling on this''.
I do feel a little sorry for you this time as it is lacking the help of T4P, even T4P has found out the Oil/Gas game some times bends the truth. Good luck with your shares. PS, I still post on your beloved forum.

 

[Agentm]

BESBS, A very smart move, what a lot of the rampers DON'T know is that on the first well GDN had a fishing job at the start of the well, this was not reported on the ASX, this lot are as bad as the back slapping brigade on Hot Whoppers, you must only post good news.
You won't go broke taking a profit, smart move BESBS.

not sure what drivel datz is talking about pilots, keep posting here please your very welcome as far as i am concerned. i cant see any breach of any regulation here, i noticed tangrams has been heavily moderating datz and many others on hc.. and posted some ASIC guidelines also to make it clear that its being watched closely!

pilots, when you say there finishing job, do mean a completion was done at the start of the drilling on par 1? can you elaborate what processes were that were done on the well?

i still agree with your sentiment on the reports, the mud weights seem very low and the shows they are comparing to other wells 60 miles away, they dont disclose what mudweights they were drilling with. i have seen plenty of regional logs which are off the dial compared to the small shows this well has with very low mud weights. to me the reports show the formation is just as tight as it was before.. and not very promising on the first target..


i keep comparing the reports and data to anything regionally and i think gdn have very little to crow about myself, i think the reporting still leaves a lot to be desired myself..