All in all the most honest and thorough report so far.If they...

All in all the most honest and thorough report so far.
If they had given those explanations of the problems when they happened I think we all would have been a lot happier.
BLM and Cochise seem to be at some fault for delays in Para 2 .
Lifted from the Annual Report, the CAPITALS are mine.

Paradox Basin #1 well

Paradox Basin #1 has been acknowledged as the most significant well drilled in the Paradox Basin in recent history.
It had gas shows from the Permian Cutler Formation (6,576’) to the Devonian Ouray (15,916’). 31 gas shows were noted across 9,000 feet of section. COMPLICATIONS WITH SETTING A LINER DAMAGED THE WELL CONSIDERABLY AND PREVENTED VALID TESTS IN THE LOWER BARKER CREEK, CANE CREEK, PINKERTON TRAIL, MOLAS LEADVILLE AND OURAY ZONES, ALL INDICATED BY GAS FLOWS DURING DRILLING AS HAVING PRODUCTION POTENTIAL.

Paradox Basin #2 well
Permitting of the follow-up well, Paradox Basin #2, WAS DELAYED BY BUREAU OF LAND MANAGEMENT (BLM) STAFF SHORTAGES - 9 MONTH STAFFING DELAYS THAT DID NOT FORMAL ENVIRONMENTAL ASSESSMENT TO COMMENCE UNTIL MARCH 2008. The location inspection was completed successfully in April 2008. The BLM has completed its engineering and
environmental review for the new well location. A public comment period for the permit concluded in August. PRIOR TO PROGRESSING THE GRANT OF THE PERMIT,THE BLM ELECTED TO SEEK COMMENT FROM LOCAL AMERICAN TRIBES UNDER THE CONSULTATION REQUIREMENTS OF THE NATIONAL HISTORIC PRESERVATION ACT. This consultation is normal at an early stage of the development of oil and gas projects. The consultation process is due to conclude in early October

Legal Proceedings

During the previous year, Weatherford US LP launched a legal claim for US$940,000 against Golden State
Resources Limited’s US subsidiary Golden Eagle Exploration LLC. In current year the legal action, in the District Court of Utah was dismissed. Weatherford, with the Company’s consent, withdrew its lawsuit.
Golden State continues to vigorously pursue its counter action against Weatherford to recover amounts expended by Golden State as a result of the failure of a casing hanger operation attributable to Weatherford. The failure of the casing hanger operation resulted in additional well costs, already expended by the Company, of approximately US$7 million. THE CASE IS CURRENTLY AT A STAGE OF PRE-TRIAL DEPOSITION OF PARTIES AND WITNESSES.
IT IS EXPECTED THAT THE CASE WILL COME TO TRIAL WITHIN THE NEXT 6 MONTHS.
The Directors have been advised by our legal representatives that our case against Weatherford has considerable merit.
The Company was not party to any additional legal proceedings during the year.