GDN - Golden State Resources

Surely they knew they had found nothing when they decided to issue these new options, I pulled out after reading it. It sounds like they're digging in for a long period of inactivity

mastatrada said:

Surely they knew they had found nothing when they decided to issue these new options, I pulled out after reading it. It sounds like they're digging in for a long period of inactivity

Click to expand...

"Preparations are now underway to test the Chimney Rock Formation.

"Future development wells will be focused on exploitation of the productive Ismay Formation within the shallower Pennsylvanian structure."
I wouldnt call that a long period of inactivity.
PIlots,
The ann had this..
"Golden State Resources through its US operating subsidiary Golden Eagle Exploration LLC has achieved final settlement in reference to the litigation with Weatherford US LP. The terms and conditions of the Settlement Agreement are confidential and as such will not be disclosed."
Wont that amount show up in the next 3B??

go to hell GDN, i have just sold my holdings yesterday, lost 32%..... @!@#$%...
first lost for the year!

You have to hand it to GDN when it comes to WOOD DUCKS. First why would you frack a zone that was flowing water, the fracking will ONLY increase the water flow. I said GDN was getting milked on the first well, and after reading this last report I have NOT changed my mind. This neck of the woods are all fraced to hell and back, this is why the Yanks won't touch it. Good luck to all you long term holders.

Yes I am a novice as my name suggests, and for some reason got stuck into these shares a few months ago. I think stoopidly from reading a news article that looked promising. Anyway they seem to be getting a right slagging off on this forum.

I just received the paperwork yesterday to purchase more shares, are many people taking this up? It will bring my average price down a fair bit, but don't want be throwing good money after bad

Help

Be aware that you are only buying the rights.
If you have ..say 100,000 shares atm you will be entiltled to 96000 options.
You fork out $960 now and in Nov 2010 you have the right to buy 96000 shares at 12c each. ie $11,520.
If the SP is 50c you make money, if its 6c you blow yr $960.
I dont believe you can trade tiil that Nov 2010 date.

sorry, you CAN trade once you have exercised your options and that can be any time from when you recieve yr shares until 30 Nov 2010

Just means the market will be hit with heap more shares as they convert to head shares and push market price down or at least thats the impression im under ?

I have recieved letter offer for the option rights. I have never traded option b4, and dont really know how it works, can any one explain to me? or should I take it up or not?

Anyone else going to take up there options?


I believe they are non - renouncible with a exercise price of 12c on or before 12November 2010 so the way i see it if the head shares hit 12c before that you can sell in the mean time you cant sell or trade them, this to mew is the CO asking holders to again help out with no real prediction of GAS now soon or in the future, it seems pretty hard for me to swallow having bought into them 4 months ago at 8c due to all the hype on the HtoCpper site plus the fact that they were picked 4 months in a row as number 1 pic on stock tipper and once twice as much as any other stock, i just cant get it into my mind to buy more and into something which really does seem to be a dead duck, i sold my other shares after the acceptance date and ewas hoping a GAS find would be out before that but nup, so i sold for 6c lost abit but could make it up if i take the oppies, only thing is i need to wait over a year just to make that money if at all and only if they hit 12c..hard call really when 7 weeks ago i put MEO on my watch list and should have bought them instead of GDN ..as at yesterday MEO had returned 157% in that 7 weeks !!!

You can convert the oppies anytime after 13th Aug up till 30 Nov 2010.
Its a hard call as to whether to take up the rights.
I guess we have up till 5th Aug for a decent ann and make up our minds.

I have taken up my rights. Why not, they are cheap at 1c. Plenty of time before needing to excercising them.

WCU (GDN own 25% of that) will be mining Uranium by then and its sp will likely be far greater than it is and on that alone will represent value for GDN sp.

Drilling of PB#3 is likely targeting upper zones only.

And then theres the gold spin off.

Seems PB#2 was drilled on the fault not next to it.

RdBer must be feeling sick about his statement "its as good as it gets" :sheep:

When I look at GDN I think that CVI and GDN could be brothers, both have nothing so far, both have promised the world to the share holders, both have mores shares that you could poke a stick at, both have seen the SP go to all most nothing, both have at least gold, oil, the big U, both was ramped by T4P
Good luck to the long term holders.

GDN 0.048 -0.003 -5.88% high of 0.052 low of 0.048 7,605,723 shares $380,586 @ 23-Jul 03:04:01 PM

ASX ANN
23-07-2009 02:27 PM GDN Testing Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00970862

PRODUCTION TESTING UPDATE –23 JULY 2009
Paradox Basin #2 Grand County Utah

• Testing of the Chimney Rock Formation has been completed.
  
• The Chimney Rock Formation was perforated and acidized before a series of flow periods.
  
• The formation was found to be a good reservoir and was not fracture stimulated due to high formation permeability.
  
• Gas was not produced during the initial testing so additional perforations were placed over the interval 12,284’ to 12,299’ which had displayed a strong gas show while drilling. Further flow periods did not recover any hydrocarbons.
• The up dip potential of the Chimney Rock Formation is of interest as a stratigraphic trap.
  
• Preparations are now underway to test the Primary gas bearing zone the Pennsylvanian Ismay Formation.
• Work is also currently underway to source a work-over rig for Paradox Basin #1 to prepare the well for production.
  
• Preliminary VSP results indicate the Leadville Limestone is structurally higher than expected.

The Chimney Rock Formation is being abandoned after completion of acid stimulation and testing. The Chimney Rock Formation was not an objective in Paradox Basin #2. On initial penetration the Chimney Rock Formation was found to contain significant gas shows and had strong gas indications on logs.

The Chimney Rock Formation was perforated over a gross interval of 41’ from 11,152’ to 11,193’ (3399-3411m). Expectation was that the Chimney Rock would produce either naturally or after fracture stimulation. An initial injection test confirmed high formation permeability. Due to the better than expected formation permeability the formation was not able to be fractured. Gas was not recovered during a series of flow tests which recovered all of the injected fluids before a change in salinity indicated the well was flowing formation waters.

As the Chimney Rock Formation was considered to potentially contain both water and gas bearing zones an additional set of perforations were placed over the interval 11,284’ to 11,299’ corresponding to a gas show seven of 545 units. No gas was observed after perforating. Had gas been observed the lower zone would have been isolated and independently tested.

The Chimney Rock Formation was not an objective in the Paradox Basin #2 well and does not contribute to the current discovered gas. It is one of the best reservoirs encountered in the field and is considered to have a stratigraphic closure and pinch-out up dip towards the Paradox Basin #1 well.

Preparations are now underway for testing the Ismay Formation which has proven production in Paradox Basin #1 and is considered the principle zone of interest in commercialising the Golden Eagle gas field.

The Ismay Formation is the main productive interval in the Paradox Basin accounting for 25.9% of all produced gas and 85% of produced oil. Paradox Basin #2 has encountered the Ismay Formations 283’ (86m) lower in the structure than the confirmed productive zone in Paradox Basin #1.

The Ismay Formation will be perforated from 10,344’ to 10,383’ (3153-3165m) prior to a series of flow and injection tests. It is planned to then conduct a hybrid frac which is modelled to penetrate approximately 2000’ (600m) into the formation. Operations are currently underway and are expected to take about 12 days. It will be several days before perforating, which will be followed by a series of performance inflow tests and pressure build-ups, required to plan the fracture stimulation. The Inflow tests will be followed by an injection test, further build-ups and possibly acidization. It is unlikely the fracture will be conducted until next week. Following the fracture the well will be flowed and a coil tubing unit will be utilised to assist flow-back of load fluids.

Preliminary results of the VSP survey have arrived and are being evaluated. They suggest the Leadville Limestone may be higher than expected. When the final results become available Golden State will review the viability of re-entering the well to assess the Leadville Limestone.

Golden State Resources is currently preparing to get a completion rig to work-over Paradox Basin #1 in order to rerun the tubing and conduct an extended flow test and prepare the well for production.

If methane was worth anything than this company would be worth $1 ....................DYOR.................................

You cant believe what you read from GDN, they are now looking for a rig to work over the first well, hello you had a work over rig on that well doing work over, WHY DID YOU STOP THE WORK OVER????????

ASX ANN
27-07-2009 09:17 AM GDN Testing Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00971419

PRODUCTION TESTING UPDATE –27 JULY 2009
Paradox Basin #2 Grand County Utah
• The Ismay Formation was perforated over the interval 10344’ to 10,376’ (3152.8m to 3162.6m).
•An immediate increase in pressure was observed at surface.
•The well was shut in for a brief period prior to an initial flow test.
• Gas was produced at a rate of 237 Mscf/day which was flared.
•Paradox Basin #2 has tested Ismay Formation gas 317’ structurally lower than Paradox Basin #1 considerably extending the thickness of the gas column in the Golden Eagle gas field.
• Preparations are now underway to conduct a fracture stimulation which is currently scheduled for Thursday Central Mountain Time.

The Directors of Golden State Resources are very pleased to announce that the perforation of the Ismay Formation has been completed and pre fracture the well flowed gas at an average of 237 Mscf/day. These rates are similar to those observed in Paradox Basin #1 prior to fracture stimulation.

Confirmation of live gas in the Ismay Formation in Paradox Basin # 2 extends the lowest tested gas in the Ismay Formation by 317’ (96.6m). This confirms an appreciable increase in the known area within closure for the Ismay Formation. Current mapping indicates there is also several hundred feet of closure up dip from Paradox Basin #1.

The current plan is to conduct a series of injection tests and determine key parameters required to design the fracture stimulation. The Fracture Stimulation operations will commence on Thursday (US Central Mountain Time). They will be followed by a cleanup flow and the well will then be flow tested. Flow testing and build-ups will take at least 12 days in order to conduct extended production tests and shut-ins with suitable build-up times.

Paradox Basin #2 has appreciably increased the Ismay Formation gas accumulation in the Golden Eagle Gas Field. If the fracture and subsequent flow tests are successful the well will be completed as a producer.

740

Got to feel sorry for the long term holders who got sucked in to this dog, now they are going to make the dream come true with the Ismay formation, this is the same formation that they tried and tried again on the first well to make COMMERCIAL with no luck. The next ramp will Be, GDN are pleased to inform you that the third well will start soon, and work over work on the first well will also start soon. LOL. LOL.

pilots,
While sharemadder and I are bankrolling the project, they can drill as many Paras as they like.
Seems they will need the flows from P1 and P2 to make a few bucks, but the re entry of P1 could boost the figures along.
I am currently sending my BBQ gas bottle to Utah to add "to the grid"

DAZT49 said:

pilots,
While sharemadder and I are bankrolling the project, they can drill as many Paras as they like.
Seems they will need the flows from P1 and P2 to make a few bucks, but the re entry of P1 could boost the figures along.
I am currently sending my BBQ gas bottle to Utah to add "to the grid"

Click to expand...

Looks like you will have to bank roll the work over as well, they DON'T have the money for that looking at the cash in the bank, more 3Bs.