not as expected..., page-16

Todays trading for announcing such low results for a interval so much time and money was spent on wasn’t as bad as many would have expected. If no buyers were around at the 30 cent mark the share price could of dropped into low 20’s I would have thought the way the selling started.

There were lots of large purchases today, since can only see the amount of shares each seller sold its hard to know the amount of shares buyers were buying but seeing there were a lot of 50-100 000 share trades there must have been lots of buyers happy to pay 30-33 cents. 87 or more trades today were of a large size from 40-100 000+ shares sold and bought, but not sure how many of the smaller 10-20-30 000 trades added up into larger purchases.

Why would anyone buy 50-100 000 shares in one purchase on a day where bad news was released on a gas interval which had high expectations? I realise $32000 for a 100 000 shares may not be much to many traders and investors, but that is a lot of money to some people and for those willing to buy in such large amounts to me shows either confident in other gas intervals, or just people with lots of money to risk on a speculative stock which would be considered a high risk high reward stock.

0.2mmcf per day is 200mcf per day? Not sure if that’s right but if it is I have found a few different documents that have producing wells at 0.2mmcf per day.

A fracture treatment of the Tyner sand zone in the Redfork #1-17 well has delivered oil production equivalent to approximately 200Mcf per day, almost three times the field average for coal bed methane (CBM) wells in this field.

I realise the above is about coal methane but they still say producing at 200mcf.

Investments LLC and Joseph Shunta of Hybrid Energy Inc. agree to give to the Company an option to purchase a combined Working Interest of 52% in the Pantel Gas Unit #1 in Goliad County, Texas. The Working Interest is limited to the Well Bore Only and is Depth Restricted to 3200 feet. Current production levels have been ranging between 200mcf and 250mcf per day. Engineers have determined that these production levels should remain steady for the next several years. The oil and gas mineral leases associated with this property have been recorded and are official public record at the Goliad County Courthouse in Texas. This non-exclusive option agreement with Energy Royalty Investments, LLC and Hybrid Energy Inc is valid through September 1, 2005. The purchase price to exercise the option is $550,000 and is payable upon closing. The Company hopes to raise the acquisition money through a private placement of equity and debt. This 52%working interest would produce income of between $14,950 and $19,500 per month.

The above is another paragraph I found where they are producing 200mcf per day.

www.bedfordenergy.com on there website have mentioned about some of their producing wells productive at 200mcf per day too. They mention about 160mcf per day for a well at the east chandler project I realise the size of the projects are completely different but just shows there are companies producing commercial quantities at 150-200mcf per day, and gdn can increase this amount when they test other gas intervals.


They have now tested 12561-12599, in a recent announcement the table said testing after the barker creek zone was to test 9845-9858, 10815-10834, 11005-11040. In other reports last year before the gas interval was found at 12561-12599 they had reported saying they believed production would come from 9742-9746, 9930-9960,10714-10765. There are other intervals that may or may not be tested but could assume after the 3 intervals they have mentioned on the tables in recent announcements that those other 3 above would also be tested since they did expect production to come from those zones. Don’t think they would just leave them after the statement they released in a report back in October about those 3 intervals. Those 6 intervals to be tested if they test the 3 others they haven’t mentioned would mean 152 feet of possible gas intervals. Still some gas shows to test, which could help make the well productive.

The next interval they are going to test is the 11016-11031 gas zone, but in today’s report that has now been changed to 11005-11040 an increase of 20 feet. Why would they increase it by so much?

Looking at todays demand and smart money chart it was not what you would expect to see on a high volume day with bad news. The announcement was out around 9:42am today so that gave about 25 minutes before gdn started trading which would have been enough time for people to read the announcement and decide if good or bad.

13 million shares were traded today with a price move from 0.355-0.305. There’s about 180-190 million shares on issue now with the options conversion going through last Friday? Is 13 million shares traded today considered low for such bad news if the news was really that bad when there is 180 million shares on issue? There has been days where over 20 million shares have traded in a day.

Looking at the demand and smart money chart I’ve mentioned is only to show what the market depth is doing which can give you an idea of where a possible price move might happen. Looking at the daily chart from the 04-07-07 the demand blue line started to increase maybe based on expected results. It started at 0.7624 which meant more sellers at end of that day then buyers in the top 5 price levels. On the 05-07-07 the demand finished at 0.8303 for the day. On the 06-07-07 1.0279 is what the demand finished at and today the demand finished at 1.3229 so almost a 100% increase in demand since the 04-07-07. The news which is considered not very good by a lot of people I would of thought the sell side would have been a lot stronger then the buy side which would mean the demand would be under 1.

Today’s intra day chart wasn’t what I thought would of happened after reading the announcement. In the first hour of trading demand had reached 2.5 which meant buyers wanted 2.5 times more shares then sellers wanted to sell. It wasn’t till 11:50am that the demand dropped below 2 but by 12:28 it was under 1 and sellers were selling more shares in the top 5 then buyers were willing to buy. Around 1:30 this changed and buyers were wanting more shares then sellers wanted to sell. The demand did drop below 1 during the day for a total of 1 hour and 24 minutes which isn’t much for a stock that was trading for 6 hours and had released negative news before open. The blue line stayed above the red line most of the day except for 1 hour in today’s trading. This means smart money was entering, which just means a larger amount of shares were being bought then sellers were selling. This is seen in the trades today with a large number of big purchases being bought today. With the news released today I would of assumed no smart money would of entered and the red line being above the blue line, I would have also expected the blue line to stay below 1 all day today with sellers selling out , but the opposite happened all day today with the trading which might suggest someone knows good news is coming out soon and the testing is further advanced then we have been told, or a lot of people are just hoping good news will be out soon.

This is todays chart



Just thought i would share what the market depth was doing today since i thought it was interesting to see the buyers were wanting so many shares today on bad news around the 30 cent price.