on your marks ..., page-15

Bazzledog, I have made my motivation clear. You have read it, and refuse to accept it. It's just that we think differently. I held GDN from 2003 or 2004 until 2007. I am used to the way in which they operate, and in particular, the way they word their announcements and have learnt the painful way how to interpret them.

When I looked at GDN for the first time in a long time I was surprised to see that they had finished drilling P3. I knew about P2, and had been amazed that they had got finance for that, let alone P3. And the announcements are just the same as ever - vague, and capable of several interpretations. My comments were aimed at providing a realistic translation from GDNspeak which on past experience will be more accurate than most other current commentators, from what I have seen so far. For instance, I expect that the next announcement will read along the lines of:

"Golden State Resources is pleased to announce that the fracture stimulation of the Paradox 3 well has been successfully carried out. Subsequent to the stimulation of the interval between 11,674? to 11,790?, substantially increased gas flows were recorded, and the well has now been shut in to allow the pressure to stabilise."

This will be leapt upon with glee by the hopeful that the fraccing has caused the well to be commercial, the money's in the bank and all we have to do is wait for a flow test.

What it would really mean is that the fraccing went as planned. Rock was fractured where it should be, to a greater or lesser extent, the well didn't collapse upon itself and the casing hasn't been twisted beyond serviceability requiring a redrill. That is a successfully CARRIED OUT operation. Naturally the gas flows will increase - and as the original flows were only shows during drilling then they would be SUBSTANTIALLY increased, in percentage terms anyway, but not necessarily commercial.

Three years later they will open the well for a few hours, record various flow rates and make another encouraging announcement - no, sorry, that was P1, wasn't it?

I really didn't want to get into a slanging match about motives or whatever. We had that enough the first time round with sue45, whom I now recall was slammed with the same comments. He was forever throwing a damper on the company; and in the end he was right. All the way. Now, I am not a patch on sue45 in terms of geological knowledge, and maybe I only know enough to be dangerous, but I know that a lot of the posts here are not based on any facts at all. Hope is not really an investment strategy, IMO, especially when most of the hope ran out at the end of P1 in 2007. If P3 turns out to be a gusher, I will be really happy for all those who have held through the tough times. Their rewards will be well deserved. And yes, I would be only human if I didn't have any regrets that I wasn't on board for a ten bagger but that's life.

To answer your other question, I wouldn't buy it at any price. If I did, for example, buy at 1c, it would be a pure, opportunistic gamble, and no, it wouldn't change the way I rate the company's announcements. Unless they started suddenly issuing clear, unambiguous statements. Then we'd know it was a winner!