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re: drilling stat rep Drilling Status Report – 11 December 2006
• Paradox Basin #1 well is at 15,397 feet (4,692 m) in the Pennsylvanian
Molas Formation
• The well has been cased to the bottom, and the rig is recovering pipe
attached to the casing hanger prior to drilling into the Leadville
Limestone objective
Golden State Resources is pleased to announce progress on the Paradox Basin #1 well in
Grand County, Utah.
Paradox Basin #1 is at 15,397 feet (4,692 m), in the Pennsylvanian Molas Formation, a
distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone.
The well is cased to the hole bottom at 15,397’. The rig is currently running washover pipe to
recover 1,000’ of drill pipe left in the hole attached to the casing hanger at 9,150’. Recovery
rates have been significantly reduced due to difficulties in cutting cement within the casing.
A custom heavy duty mill bit has been ordered for the washover pipe and is expected on
location on Tuesday. Once the new equipment is installed it is expected to take
approximately two weeks to complete the recovery operation. The recovery operation
method is slow but has negligible risk.
Once recovery is completed the well will drill on into the primary objective Leadville
Limestone.
PARADOX BASIN #1 WELL
Formation or
Zone
Geological Age Lithology Depth
(metres)
Depth
(feet)
Result
Upper Ismay Pennsylvanian Limestone 2,991 9,814 * Gas shows
Lower Ismay Pennsylvanian Limestone 3,050 10,006 Minor gas show
Desert Creek Pennsylvanian Limestone 3,133 10,279 Gas shows
Akah Pennsylvanian Limestone 3,209 10,528 * Gas shows
Barker Creek Pennsylvanian Limestone 3,358 11,016 * Gas show
Alkali Gulch Pennsylvanian Dolomite 3,950 12,960 * Major gas interval
Cane Creek Pennsylvanian Dolomite 4,613 15,135 * Gas shows
Pinkerton Trail Fm Pennsylvanian Limestone 4,657 15,280 * Major gas interval
Leadville Fm Mississippian Limestone 4,709 15,450
McCracken Devonian Sandstone 4,923 16,150
Lynch Dolomite Cambrian Dolomite 4,953 16,250
BOLD: Primary Targets
ITALICS: Minor Targets
* Potential Production
The production potential of the above intervals will be determined upon setting production
casing and conducting flow tests at the completion of drilling.

DEFINITIONS
Palaeosol: A buried soil horizon of the geologic past.
Terra rossa: A reddish-brown soil overlying limestone rock.
Washover pipe: A pipe of slightly larger diameter run at the end of drill pipe, which can slide over pipe
(“fish”) left in the hole, to wash out the space between the fish and the outside casing of the hole and
thus free the fish. In this case this space is occupied by cement, requiring the use of a cutting bit or mill
on the end of the washover pipe.

Initial 100% Ownership and Operator
Golden State holds an initial 100% interest in this well, and operatorship through its 100%-
owned US subsidiary, Golden Eagle Exploration LLC. Denver-based joint venture partner
Eclipse Exploration Inc has the right to back in with a 16.67% working interest after the
drilling of two wells by Golden State.
John Hasleby
Director - Exploration
11 December 2006