monday news, page-6

wondering how good this announcement needs to be to ensure strong gains for gdn. will any gas shows at all do the trick or do we think that the shows have to up there with para2 to ensure a sustained rally?

i suspect any decent shows will be overly rewarded because the company will be derisked going forward and production likely ...

given the wcu stake, at the moment gdn appears priced as if no value attributed to golden eagle at all. almost as if no one believes there is gas down there. its there, can they get flowing. we won;t know tomorrow, but good shows will give us a shot at the title.

things i like very much about gdn going into this hoped for pre-open announcement.

1. para 1 and 2 show the potential and that the gas is from the one zone. ie: a large motherload coud be down there if you find the best hydrocarbon capture spot.
2. para 3 is on target, on time and on budget.
3. they appear to be set to hit the crest in the sweet spot with formation higher than expected suggesting a possible bonanza updip; and or liklihood of updip having better reservoir potential.
4. oil shows in earlier wells. where the hell did they come from?
5. potential for multiple new gas wells, with para1 and 2 almost certain to be a quick drill and production tie in if para3 is a success. para 4,5,6,7 etc all could be bank financed to ensure minimum dilution and growth in share price.
6. leadville still an interesting target that could be easily attacked from a sidetrack from para2. too close to the faultline last time and if cash flows from para3 this could again be a blue sky wildcat risk worth taking.
7. oppies are value and were priced for failure. artificially low due to corporate machinations that had nothing to do with the inherant value of golden eagle prospect and outcomes. ie: risk reward was out of whack for the brave/ or foolhardy. lol
8. no leaks no hype thus far. price moved up as they approached the target then consolidated. those who are in want to be in, those who got out probably did so because of risk. failure means gdn probably worth .04 -50% before recovering. upside .20? +325%.. again risk reward equation favourable to holders.

good luck guys.