Todays announcement says they are starting testing the zones within 36 hours and the ones listed in the table will have results within 2 weeks. A lot better then waiting 1-2 months for a workover rig.
In todays table the akali gulch show they reported in november is now a zone in Barker Creek.
The total feet of gas zones they are testing in the next 2 weeks is 121 feet.
This is not all the gas zones they plan to test its just what they will have completed within next 2 weeks. They even say on page 2 of the announcement that other oil and gas shows may be tested in conjunction with the shows in the table.
If you go over the reports you will find there is a lot more gas to be tested which they may or may not choose to test.
The ones they didnt mention that wont be tested in first 2 weeks but might be tested after are; 41 feet of gas shows between 10377-10418, wernt told were or how big those shows were but they mentioned it so they might test it at some stage.
In the table they are testing a gas show at 10815-10834 (19 feet), that leaves 52 feet of gas shows still to be tested if they decide to since they announced 71 feet of gas between 10825-11379. But then they are testing from 10815 10 feet before the gas show they reported so maybe they have 62 feet of gas still to test in that formation. If they decide to test it after the 2 weeks of testing other zones.
In a report on the 24-10-06 they mentioned likely production from a zone of 30 feet at 9930-9960, this was never mentioned as a gas show but was reported as likely production zone. This isnt planned to be tested in first 2 weeks but could be after if they decide to test it.
One last zone they may test is 10714-10765, they currently dont plan to test it but doesnt mean they wont this is a 51 foot gas show, not sure how much of that 51 foot had gas or if they are going to test it but its a possibility.
So the ones they havent mentioned they are testing in next 2 weeks has an extra 174 of gas shows.
They then still have the 20 foot column of oil to be tested. Dont know if that will contain much oil but they still have it to test after the other zones have been tested.
This well was a wildcat well they found enough gas to in the upper zones to spend 4 months recovering lost pipe, they also had a fund invest into the company based on the upper zones which as far as we know havent sold. The directors havent sold either and if it wasnt that good they would of sold when they thought the price was high.
They have already decided where they plan to drill the 2nd well which will be better placed to intersect leadville.
Compare adi to gdn adi has 20% of a well that tested its primary target and was unsuccessful, they finished drilling in december and wont be testing the secondaries till may june and their share price is higher than gdn's. GDN has 100% of the well we will have results of several zones within 2 weeks and they already have plans in place for a second well.
Can someone explain why adi is higher than gdn?
Comparing lisbon to gdns well, only because of the size is about the same. Lisbon has 225 feet of net pay, if the shows gdn is testing in next 2 weeks are all successful gdn will have 121 feet of net pay. Lisbon produces 4.4bcf per foot of gas, only a estimate by 1000bcf divided by 225 feet of net pay came to 4.4bcf per foot.
If we use 1bcf, 2bcf, 3bcf, and 4bcf to get a idea of what gdn may be able to produce it works out to be; 1bcf per foot is 121bcf 2bcf per foot is 242bcf 3bcf per foot is 363bcf 4bcf per foot is 484bcf
That is without testing the oil zone and without testing the other 174 feet of gas shows if they decide to test them.
If you use $1 per 50 bcf you get a price of 121bcf is $2.40, 242bcf is worth $4.80, 363bcf is worth $7.20, and 484bcf is worth 9.68. That is only if all 121 feet is producable and depending on how many bcf per foot is produced. You get higher prices if you decide to use the valuation of $1.50 per 50bcf.
If they test the other 174 feet and thats produable too then only need to produce 2bcf per foot to get the 440bcf gdn was aiming for. Then you have to add the oil column aswell.
Im sorry if this sounds like ramping, but the prices were from the report on the gdn website, all the amounts are if all 121 feet is producable which is what they are testing first. I didnt add the extra gas shows but just thought to point out that they still have a lot more shows to test if they end up doing so and an oil column still to be tested which might not be tested till the end.
GDN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
