its commercial and its big

The truth is out there - you've just got to piece it all together sometimes. After doing a bit of research tonight, it's painfully obvious to me that the GDN Directors have been trying their best to tell us shareholders that the Barker Creek gas interval currently undergoing extended flow testing is not only commercial - it's big and it flows. By concentrating on the announced facts, rather than the H/C speculations of the 'agenda driven', it all becomes so obvious and so positive. For those interested in the facts, scroll down the announcement excerpts as follows:

excerpt from October 31st, 2006 announcement after coming back on via Trading Halt as follows:

Paradox Basin #1 is at 12,985 feet (3,958 m), in the Alkali Gulch Member of the
Pennsylvanian Paradox Formation (see table and graphic below). The Alkali Gulch
Member comprises a cyclic sequence of sandstone, dolomite, black shale, salt and
anhydrite.
The well intersected a major pressured gas interval, from 12,549’ to 12,577’ in
dolomitic sandstone at the top of the Alkali Gulch member. Gas (methane and ethane
with trace propane) was present at levels of up to 2,300 units.
Connection gas ranges from 2,000 to 3,300 units. Background gas has increased 40-fold
to consistent levels of 500-900 units. Trip gas ranges up to 3,520 units. All gas levels are
highly significant, however full assessment of the production capacity of reported gas
shows will follow testing at the completion of the well.

DEFINITIONS
Connection gas: Pressured formation gas introduced into the well during short periods of
mud pump shutdown, such as when connecting additional drilling pipe.
Trip gas: Gas that infiltrates the well when withdrawing the drill string (i.e. making a trip).
Gas units: 10,000 units = 100% gas i.e. 3,000 units =
30% gas.

excerpt from May 24rth,2007 announcement as follows:

The Company has proceeded immediately to well completion, initially testing gas shows in the
Pinkerton Trail Formation, Alkali Gulch, Barker Creek, Akah and Upper Ismay intervals. Other oil
and gas shows in other formations, may be assessed in conjunction with the these intervals.
The Company is a third through its initial testing of the major intervals defined during the drilling.
Perforation of the major Barker Creek interval at 12,560 feet (see below), is expected
to commence within 30 hours.

excerpt from 28th May,2007 announcement as follows:

Golden State is pleased to announce that, following initial perforation of the Barker
Creek interval between 12,561’ and 12,599’, gas flowed to the surface and was flared.
Gas flow was shut in pending mobilisation of a detector array and CO2 to site. Initial
fracturing of the formation was performed using CO2 and ongoing testing will allow
measurement of an indicative flow rate.
Testing of the Barker Creek interval will proceed until late in the week when a decision will be
made on whether to continue testing with this rig or demobilize DHS Rig 12 and proceed
immediately to development using a specialised workover rig.

excerpts from 31st May,2007 announcement as follows:

Following perforation of the Barker Creek interval between 12,561’ and 12,599’, gas flowed to the
surface and was flared. Initial fracturing of the formation was then performed using CO2. 37 tons of
carbon dioxide was injected into the formation to clean up the productive interval without
adversely effecting any of the reservoir characteristics.
The carbon dioxide stimulation (a “mini-frac”) has resulted in flaring progressively increasing levels
of gas over the last 48 hours.
The directors of Golden State are encouraged by the results so far that indicate that
Paradox Basin #1 has excellent potential to achieve gas production as soon as
permitting allows.
To this end the rig, DHS #12, has been released and a completion rig engaged to come on
location directly to finish completion activities on the Barker Creek interval, and to test the further
gas intervals indicated during drilling above the Barker Creek, including:
• Upper Barker Creek
• Akah
• Upper Ismay.

PERMITTING AND PRODUCTION
The Company had a meeting with the Bureau of Land Management (BLM) on 29 May to progress the
permitting process for next well location and for the connector production pipeline to the main trunk
pipeline 7 miles north-west of Paradox Basin #1. The timing for these will be announced once firmer
dates are received from the BLM.

excerpts from June 12th,2007 announcement as follows:

* In May, following perforation and initial fracturing using carbon dioxide of the above
Barker Creek interval, gas flowed to the surface and was flared with progressively
increasing levels of gas before shutting in. 37 tons of was injected into the formation to
clean up the productive interval without effecting any of the reservoir characteristics. The
zone will be further fractured and tested using the completion rig.
The Pennsylvanian-age Barker Creek was one of the primary targets for Paradox Basin #1.

The well location was chosen as an optimal place to test this deep target due to good seismic
control at this point and coincidence with a large flexure throughout the Pennsylvanian
section. The oil and gas shows encountered at this level are very encouraging and indicate a
further potential accumulation east and up-dip from the well.
This provides a priority target to be tested in the second well location, Paradox Basin #2,
currently being permitted.
A review of the well results in the Pennsylvanian section above the Barker Creek interval,
conducted by an independent consultant, announced on 12 October 2006, concluded:
“This remains one of the most significant wells to be drilled in this region if not in the US
this year.”

excerpt from 3rd July,2007 announcement as follows:

PARADOX BASIN #1 OIL & GAS WELL, UTAH USA
A slickwater hydraulic fracture treatment of the Barker Creek interval (12,561’ - 12,599’) was
completed successfully. Following a shut in period the well uploaded gas and process water, and
remnant drilling fluids. Pressure recorders left in place while the well was shut in indicated a
formation pressure of 8,700 psi.
The well is currently undergoing a 48 hour extended flow test. Flows rates and their commercial
significance will be determined once gas flow rates from the interval have stabilized.
Following assessment of this interval, further stimulation work is contingently planned for higher
hydrocarbon intervals in the well indicated by drilling in the Upper Barker Creek, Akah and Upper
Ismay intervals, between 9,845’ and 11,031’.

*Now some of you were puzzled by the word 'contingently' in today's announcement. Some of you were thinking 'does this mean if this current flow test shows that its not commercial, then the other layers won't be tested?' After much research tonight the conclusion becomes much clearer. The Barker Creek
interval is commercial, it is big, it's already proven to have flowed, it's just got even bigger via the successful slickwater hydraulic fracture treatment, and the permits and connector pipes have already been organised. After this flow test confirms/shows the big result, I don't think they will test the other levels - they won't need to. They have already alluded in anouncements along the way that they have a better chance of achieving commercial success at the other levels by way of horizontal drilling - because on those indicated formations, they'll all be updip and can be tested in Golden State's subsequent wells on the prospect.

That is what it all clearly says to me ........ and I'm happy to lay my cred on the line. Let's just see!

wrxsti