a company maker if successful

Anyone interested in getting a handle on the reason for the buzz behind this junior oil and gas explorer might like to follow the link below:

http://www.goldenstate.com.au/ResourceStocks.pdf#search=%22Golden%20state%20resources%20analysis%22

It provides an analysis of GDN's prospects by Resource Stocks magazine from late last year. Of course what was still hypothetical then is currently unfolding over in Utah - hence the excitement.

The company is drilling serious oil and gas country which, historically, has delivered major finds nearby. The well is 100% owned (high risk but massive reward) so if they do hit even the middle-range target they are aiming for, it is potentially worth US$4 billion. With a market cap of A$40 million and around 136m shares on issue, it's not hard to see the upside for GDN.

Should they fail, well... I guess the share price could plunge to 10 cents (it closed at 30.5 cents today). But with 11 targets on the way down - the first of which should be breached within a few days - punters get several shots at the big prize - and it is BIG. The mid-case target is around 400 billion cubic feet of gas with 3000Bcf the upside.

Some minor gas shows and 20 feet of 'significant' oil indications have been detected thus far above the first main target, raising the hope that oil and gas MAY be in the vicinity. Oil indications were not expected from the seismic (to my knowledge) but given the acreage not surprising. It's all very tantalising but only patience will tell.

I hold a significant number of shares and plan to hold through the first few targets at least to see what unfolds.

This is a very high risk play for those who got set late so DYOR and caveat emptor. Good luck to all holders.

Gupper