bear trap, page-23

So, if the casing design and shoe placement is successful in PB3, and we have a flow tested result of 3.6 mmcfd from PB1 and 1.6 mmcfd from PB2. This gas is still down there. So when they drill the directional completion well off from existing PB1 and PB2, this gives us 5.2 mmcfd plus whatever they find in PB3.

Let's look at a feasible example:

PB1 @ 3.6 mmcfd
PB2 @ 1.6 mmcfd
PB3 @ 2.0 mmcfd
-----------------------------
Possible --> 7.2 mmcfd or greater

That is a total production for Golden State resources from the current 3 wells of 7.2 mmcfd.

Current share price is 6.1 cents.

So for me personally, I am very interested in seeing if well design of PB3 is successful because if it is, the company could within 3 months be producing at > 7 mmcfd.

Given that GDN owns 100% of all three wells, this to my mind represents an enormous capital gain potential in a very short time frame of 3-6 months. IMO SP would be over 50 cents. On initial proven success of well design on average commercial flows from PB3 would re-rate to at least 20 cents pending completion of the other 2 wells.

Bargain of the century IMO. Additionally the interstate gas grid pipeline runs right past the door!!!

DYOR.