Golden State Resources (ASX:GDN) has advised of the following progress of Paradox #2 well in Grand County,Utah:
Since encountering gas in the Upper Ismay Formation, Paradox Basin #2 has required a bit change and is now back on bottom drilling ahead at nine feet per hour. Very high levels of trip gas were observed at 10,569’ with 5102 units. Trip gas is the result of formation gas entering the mud. Ditch gas levels below the previously reported show zones remained above 30 Units with peaks of 155 units over the interval 10,524’ to 10528’, 170 units at 10,547’ and 131 units at 10,560’.
A stratigraphic expert on the Paradox Basin has reviewed the formation tops in the Paradox Basin #2, and correlated against Paradox Basin #1. The review indicates that the Upper Ismay Formation was encountered at 10,270’ . The position of the formation top confirms that three of the previously reported gas zones are in the Upper Ismay Formation. The gas shows could indicate a continuous accumulation within the proven Ismay Formation production zone.
Golden State Resources considers that the shows encountered are significant and will be further evaluated after the next logging run and tested after completion of the well. The next logging run will occur prior to setting casing above the salt. Seven inch casing will be run at 13,200’ or the top of the Alkali Gulch salt.
Proactive Investors Comment:
Speaking with Rick De Boer (Chief Geologist) indicates the results are exciting. The high level of trip gas or formation gas entering during drilling at 5102 units indicated a "significant influx of gas", or in Rick's words, a "significant slug of gas". Clearly alot of gas coming out of the mud. These levels were not expected in the Upper Ismay Formation and a huge plus.
Ditch gas is likely similar to #1. It could be that they are already in Hovenweep and in the Lower Ismay.
Clearly, it's way to early to say whether gas shows to date are commercial, but it looks very positive.
Rick is "looking forward to getting to the lower zones". With these kinds of gas shows this early, who wouldn't?
GDN Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
