paradox basin no 2 update ..., page-3

PARADOX BASIN #2 UPDATE – 4 MAY 2009
Grand County, Utah
 Wireline logs indicate 73’ of likely gas bearing fractured formation in
shows 1, 3 and 4. Shows 5 to 10 are pending further logging runs.
 Preliminary interpretation of the wireline logs indicates:
o Show 1 (originally 4’) is likely to extend 21’ from 10,109’ to
10,130’
o Show 2 does not contain significant gas.
o Shows 3 and 4 (originally 37’) associate with a single gas
bearing zone in fractured formation extending over 52’ from
10,344’ to 10,396’.
 Production tests are planned for Zones 1, 3 & 4 as they appear to
represent commercial gas.
 Paradox Basin #2 is currently being logged, following additional
reaming to assist passing the logging tools below 10,952’. This will
allow the full petrophysical evaluation of all shows.
 MDT pressure will be run as the final logging suite
 Drilling is expected to resume this week on completion of logging
and setting 7” casing.
 First target expected when drilling recommences is the Lower Barker
Creek Formation, which is expected within 300’. Deeper targets
include the Alkali Gulch, Pinkerton Trail and Leadville Limestone.
The directors of Golden State Resources are very pleased to report that initial
interpretation of wireline logs indicates that three of the upper four gas shows associate
with fractured gas bearing limestone formation. Show 1, which was originally 4’ is likely
to extend 21’ in from 10,109’ to 10,130’. Shows 3 and 4 (originally 37’) associate with a
single gas bearing zone in fractured formation extending over 52’ from 10,344’ to
10,396’. These zones will be flow tested on completion of the well.
Shows 5 to 10 have not yet been logged as logging tools were unable to pass below
10,952’ due to well rugosity. Reaming of the hole has since been undertaken. The
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reaming was completed on Sunday evening and a second wireline logging run is
underway over the interval 10,952’ to 12,956’.
Paradox Basin #2 penetrated six regionally proven potentially productive intervals with a
total of 153 feet of gas shows in ten zones, and one minor oil show. Shows in the well are
comparable to Paradox Basin #1 and reservoir quality from cuttings samples has generally
been better. Significant shows also occur in the Chimney Rock Formation.
Paradox Basin #2 Preliminary Wireline Interpretation
Show Formation Preliminary wireline
evaluation
Show Depth Ft
(RT)
Show
Thickness Ft
Gas (Units)
1 Paradox Fm 21’ of gas bearing
fractured limestone
extending from 10,109’ to
10,130’ (likely pay)
10110‐10112 4 621
2 Paradox Fm Unlikely to be gas bearing
zone
10252‐10276 24 82
3 Upper Ismay Zones 3 &4 are in a single
gas bearing zone in
fractured limestone
extending 52’ from 10,344’
to 10,396’(likely pay)
10,336‐10368 32 398
4 Upper Ismay 10,387‐10,392 5 787
5 Chimney
Rock
Logging in progress 11,152‐11,162 10 459
6 Akah Fm Logging in progress 11,228‐11241 13 426
7 Akah Fm Logging in progress 11,274‐11,296 22 545
8 Akah/Barker Logging in progress 11,602‐11,621 19 1042
9 Barker Creek Logging in progress 12,404‐12,418 14 562
10 Barker Creek Logging in progress 12,462‐12,503 41 1483
Seven inch casing will be run and cemented on completion of logging operations. This is
expected to take several days and may require additional conditioning of the hole due to
the presence of elevated gas levels and well bore rugosity.
On completion of the casing the well will be deepened to test objectives in the Lower
Barker Creek, Alkali Gulch, Pinkerton formations and Leadville Limestone. The Lower
Barker Creek Formation is one of the principle objectives of the well. In Paradox Basin #1
the Lower Barker Creek Formation displayed up to 2313 units of gas over an interval of
220’. The Lower Barker Creek Formation is anticipated to be encountered within 300 feet
of the current depth. The Alkali Gulch is immediately below the Barker Creek Formation.
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Richard Sciano
Executive Director
4 May 2009
Golden Eagle gas field Pennsylvanian gas shows