Interesting Article to read:That drilling at Paradox #2 this...

Interesting Article to read:
That drilling at Paradox #2 this time around is ahead of schedule, under budget and problem free (to date) qantifiably demonstrates that Golden State management has come a long way from the problems surrounding Paradox #1.

The independent report of the Golden Eagle Project by oil consulting major RPS Energy Group further validated the drilling of Paradox #2 when it indicated that there is a huge potential gas resource at Golden Eagle. "Gas In Place estimates for the Golden Eagle gas field resource (mid-case estimate) could be...120 billion cubic feet (Bcf)."

GDN management has been able to raise cash, (in a tough market) - the exercise of attaching 20 cent options in June by investors would add further cash to the till - and deliver a 67% running profit to investors who took the placement at 6 cents per share, is further evidence of the improved prospects for GDN in 2009. In addition, Paradox #1 provided GDN with far more information and data as to where to set their sights at Paradox #2.

With drilling likely to reach the first objective later this week at the upper and lower Ismay formation, Paradox #2 is starting to look an interesting play indeed. However, it should not be forgotten that the Pinkerton Trail and Leadville formations had the strongest indications of gas in the previous Paradox #1 well.

So while short term investors have their hearts set on gas shows in the Ismay formation, it isn't the whole game. Drilling below 10,000 feet in the areas is largely virgin territory and opportunity for GDN. Assessing whether gas shows are "commercial" also takes time.

While oil explorers are not for the faint-hearted or under-funded investor, GDN offers a high risk-reward equation; upside; time-frame; leverage, volatility, trading opportunity, complete with devout followers (and naysayers) that is almost un-rivalled in Australian oil & gas exploration stocks.