GDN - Golden State Resources

[pilots]

Sounds spot on actually, does anyone know if what they've found so far is likely to be commercially viable?

The ONLY way they can tell if it will be commercial is to flow test it at the end of the well, all other talk is only ramping.(hype and tripe)

 

[aramz]

What can we expect to happen to the share price if the lower gas zones aren't found and your prediction is correct Polit? What else does GDN have going for them in the short to medium term if you wanted to hold your shares. With testing of the other gas zones and if they are commercially viable will that offer any promise to GDN in the way or restricting a big price drop?

 

[DAZT49]

pilots,
you must be dribbling with excitement with whats happened in the last couple of days.
z8, oh no another "I told you so messiah"
BMW..another one salavating at bad news, why are you on ASF.??
The upshot is they WILL produce and sell gas from Para 1 and Para 2, and that must be extremely galling for you all.

 

[aramz]

Im just wondering if its worth leaving your money on GDN instead of taking it out for a loss which i will have to do. How long will it be till they produce gas from para #1 and para #2 and will these amounts bring about positive share price movements when the time comes? Will the movements be decent at all?

 

[nunthewiser]

guys guys guys! . stop this squabbling and fighting..... so much anger and angst over a 3 letter word . now cmon fellas ...... anyone here actually care two stuffs about what happens with this company ? its a 3 letter word . all bout the shareprice ......... if ya dont like the price .simple sell it ..... if you do like it , ride it ......

lol this gotta be the next funniest thread to the FMG one ....

so many tales of woe , gloating , your wrong , im right . when who really gives a flyin #$%^ when at the end of the day its what the SP does that actually counts

 

[Agentm]

datz

in all fairness, the opportunity that has just been presented to gdn holders to make a fortune off the well and the announcements must leave most with some massive profits.. how could anyone not make a bundle in this one?

it looks like a solid sell off for a good few days now. maybe there will be more opportunities on another day either near or far, but i am not gloating of peoples losses, imho it was played well.. i certainly watched this one and learned a lot.. perhaps one day i will play my hand on one of these type of plays.. i am aware of who the conductor is on this one and i respect their work.

 

[pilots]

Well Well, So know we all know the truth, they have drilled in to a fault, the wrong fault, the Seismic tells you this, this is the reason no one wanted this b4,, is this the end of GDN. Now this will be VERY INTERESTING to know when they decided to stop drilling, was it just b4 the big sell off??

 

[sharemadder]

Todays announcement makes good commericial sense.

If drilling is slowed and difficult to Pinkerton and Leadville and they are sitting on independent assessed potential gas pay which is far better than PB#1, why not then exploit that for rapid piping in for cash flow.

Although the sp will be hammered buy the nay sayers etc so what. On commerical flows and into pipe for sales the sp will return and cash flow will assist drilling another.

No conspiracy here either. Just plain good management sense, thanks Rick.

 

[pilots]

Sharemadder, no one in the right mind would drill ahead, they are in the WRONG place, they can test the zones already drilled with the rig they now have on site, but will they, if they bring in a work over rig, it will give them time to get the oppeys over the line, bet all the ones that got the 11c shares are happy they sold out last week be4 the SP it went to pot.

 

[bigdog]

The market did not like this Ann!!!!
GDN 0.089 -0.026 -22.61% 20,086,280 SHARES $1,753,977 @ 25-May 10:13:23 AM

25-05-2009 09:10 AM GDN Paradox Basin No 2 update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00955434


In light of the excellent confirmed large gas resources discovered in the upper zones of the well, the Company has made a commercial decision to proceed directly to testing of five established gas pay zones for commercialisation rather than continuing drilling operations to deeper exploration targets.

Paradox Basin #2 is being prepared for immediate testing and completion of gas zones in the Pennsylvanian Ismay, Chimney Rock and Barker Creek formations within the Golden Eagle gas field.

The confirmed shallower gas zones represent a larger discovered resource (P50: 78.9 Bscf) and are more commercially attractive for exploitation than the deeper zones in the Pinkerton Trail Formation and Mississippian Leadville Limestone.

Testing operations are being organised to commence during June. Preparation and planning for tests has been progressing since setting the 7” casing.

Drilling operations have been suspended at 14,216’ in the Alkali Gulch Formation.

The six inch hole from 12,956’ to 14,216’ will be logged and drilling suspended in such a manner that the deeper section can be re-entered at a later date.

Paradox Basin #2 is a successful well that has discovered further gas resources in the Golden Eagle Field. A revised reserves report will be prepared by RPS Energy after testing is completed. Based on the results reserves are expected to increase.

 

[sharemadder]

if they use the existing rig Pilots I'd be very happy. Hope they do for the testing, lets see. My average is 5.7c and I'm in for long haul anyway. The wells will flow into the williams pipeline soon.

I still believe and did so for some time even in discussions with drillers, geo's etc I know that they should of left the lower zones alone until the commericialised the upper sections for cash flow.

Still the sp could get down to that 5.7c, anything goes now days in this market. See what RS does now to get the cash from oppies.

Underwrite? Mac Bank were quoting this a but even as of last week? Maybe they will underwrite same as last time.

 

[pilots]

if they use the existing rig Pilots I'd be very happy. Hope they do for the testing, lets see. My average is 5.7c and I'm in for long haul anyway. The wells will flow into the williams pipeline soon.

I still believe and did so for some time even in discussions with drillers, geo's etc I know that they should of left the lower zones alone until the commericialised the upper sections for cash flow.

Still the sp could get down to that 5.7c, anything goes now days in this market. See what RS does now to get the cash from oppies.

Underwrite? Mac Bank were quoting this a but even as of last week? Maybe they will underwrite same as last time.

If I had been running GDN at the start of this hole, and had found commercial gas, good commercial gas, I would have had it on line to get the money coming in, once the money was coming in drill the next well. GDN had a bad smell at the start of the first well, mate that smell has turned in to a big stink now. If you are a long term holder all the best, you are going to need a lot of luck now.

 

[urgalzmine]

If I had been running GDN at the start of this hole, and had found commercial gas, good commercial gas, I would have had it on line to get the money coming in, once the money was coming in drill the next well. GDN had a bad smell at the start of the first well, mate that smell has turned in to a big stink now. If you are a long term holder all the best, you are going to need a lot of luck now.

I am with Pilot on this one, something is not right. The market sense this too. Share price got hit hard. 25% down and now 8.4 cents, ouch

Wise owl stop loss was 10.5 cents, so there out of this one

 

[DAZT49]

Well i was out this morning and missed the ann and the huge drop.
By out ,I mean I was not here,not out of my trades
The problem for me now is what to do about the oppies
I cant imagine they would leave the rig there untill after the top zones have been tested and connected to the pipeline.That would be an expensive excersise wouldnt it??

 

[sharemadder]

Urgal

np mate. Every one to their own risk. Better out with profit.

I still will be interested how they plan to work this over, with current rig or another.

They would be logging, setting plug at bottom and putting prodcution casing in now, is that right Pilots. About 7 days all up maybe? Then they could if they liked move to well development.

 

[mastatrada]

I think the level of doom-mongering and panic apparent in some of the previous posts is exactly what is to blame for the massively volatile sp and landslide selloff. Although the ridiculous frequency of drilling updates does make you wonder whats going through their heads, it doesn't mean there's a conspiracy afoot and when they start producing commercial gas i hope everyone who panic-sold the price down feels a bit foolish. Having said that if i had bought the share at 5 c a few months ago I would have probably sold it for 10c as well when the price was coming back down. But it still doesn't mean they're finished.

 

[Sean K]

in all fairness, the opportunity that has just been presented to gdn holders to make a fortune off the well and the announcements must leave most with some massive profits.. how could anyone not make a bundle in this one?

I'd say it depends on your trading capability. Not your 'investment' capability.

Most buy and holders of this stock on 'fundamentals' would be trashed.

Not too much room to have traded this on the long term chart either really. Maybe if you were lucky enough to have seen 5 ish c as an opportunity.

Buy and holders may still be rewarded, if they're lucky.

 

[pilots]

Urgal

np mate. Every one to their own risk. Better out with profit.

I still will be interested how they plan to work this over, with current rig or another.

They would be logging, setting plug at bottom and putting prodcution casing in now, is that right Pilots. About 7 days all up maybe? Then they could if they liked move to well development.

What I would like to know is what depth did they stop drilling, and what day, was they stuck in the hole when Rick was back in Perth, is that why they could all come back for a few days off, if this is the case, who also was in the know, it is a never ending story.
Don't know when they will finish logging, but it should only take two days to get ready to test the upper zones, my bet is they will have to stall for time, they WON'T take the risk that the top zones are dusters b4 the oppeys get over the line. I think we will now see a lot of talk about how we will get the first well on line, and a lot of yak yak yak.

 

[DAZT49]

drilling stoped at 14216ft.
I cant see the oppies getting anywhere near over the line.
Oppies expire on 31st June.with trading finishing a week before.
In that ann they said..
"Testing operations are being organised to commence during June."
IMO they will run out of time.

 

[DAZT49]

I think the level of doom-mongering and panic apparent in some of the previous posts is exactly what is to blame for the massively volatile sp and landslide selloff. Although the ridiculous frequency of drilling updates does make you wonder whats going through their heads, it doesn't mean there's a conspiracy afoot and when they start producing commercial gas i hope everyone who panic-sold the price down feels a bit foolish. Having said that if i had bought the share at 5 c a few months ago I would have probably sold it for 10c as well when the price was coming back down. But it still doesn't mean they're finished.

There is no doubt in my mind that the huge drop is, to a large extent, caused by the hysteria in another place.