ACTIVITY UPDATE: PARADOX BASIN #3 KEY POINTS: h Paradox Basin #3 is currently flowing gas h The initial gas rate was estimated at approximately 900,000 cubic feet per day h A flow test will be conducted prior to fraccing US focussed oil and gas company Golden State Resources Limited (ASX: GDN) (Golden State or the Company) is very pleased to announce that on commencement of the clean-out operation Paradox Basin #3 began to flow gas to surface. The gas has been diverted to the flare. The flow was estimated at 900,000 cubic feet per day. The flow will be monitored over the next few days as part of the clean-up. The well will be fracture stimulated. The initial stimulation conducted 18 May was only partially successful in that only 60,000 pounds of the intended 125,000 pounds of proppant was able to be injected into the formation. The remaining material was left in the casing and the mixing tanks. 2 A coil tubing unit was able to clear the casing in a few hours yesterday, and after circulating and conditioning during the past 24 hours, the well was displaced to nitrogen. Flammable gas was observed at surface almost immediately and the flow was diverted to flare. Paradox Basin #3 will be flow tested over the weekend as preparations for the larger fracture stimulation continue. The current completion covers the lower two of six gas bearing intervals identified in the well. The gas occurs in the Pennsylvanian Ismay, Desert Creek and Akah formations. The directors of Golden State are very pleased with this result. This result has greatly lifted our confidence in the casing design, which augments well for successfully completing Paradox Basin #3 as a producer. Rick De
GDN Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
