ABN 39 063 074 635181 Roberts Road Subiaco Western Austral...

ABN 39 063 074 635
181 Roberts Road Subiaco Western Austral ia
Postal: PO Box 616 West Perth 6872 Austral ia Ph: +61 8 9381 9522 Fax: +61 8 9381 9525
Emai l: [email protected]
UPDATE – 21 MAY 2009
Paradox Basin #2 Grand County Utah
• A gas show of 207 Units was encountered in fractured limestone and
sandstone of the Barker Creek Formation from 13,430’ to 13,440’.
• The well is currently at 13,839’ (4218m) in the Alkali Gulch Formation
and is drilling ahead at rates ranging from 16 to 37 feet per hour.
• Final petrophysical results confirm a minimum of 95 ft of net gas pay
in 6 intervals, three of which have commercial potential and will be
tested at the completion of the well. It is likely actual pay is higher.
• Drilling progress was slowed when the well encountered a thick
extremely hard and abrasive dolomite cemented sandstone which
has required four bit changes since 12,967’.
• The abrasive sandstone corresponds to a subtle fault zone on the
seismic and current indications are that the well has crossed to the
upthrown fault block into the Alkali Gulch Formation.
• Remaining targets are the Alkali Gulch, and Pinkerton Trail
formations and Mississippian Leadville Limestone.
Paradox Basin #2 is currently at 13,839’ (4218m) in the Alkali Gulch Formation and drilling
ahead in carbonates and evaporates comprising salt dolomite and limestone. Drilling
rates are currently high ranging from 16 to 37 feet per hour. A gas show of 207 Units was
encountered in fractured limestone and sandstone of the Barker Creek Formation from
13,430’ to 13,440’. Back ground gas before and after show ranges from 18 to 25 units.
Due to the presence of mineral salt the mud weight has increased to 10.5 suppressing
background gas. A propriety gas referencing system is being used to assist in recognising
suppression of formation gases, and confirms that gas detection is currently fully
functional.
Petrophysical evaluation of the 8 ½” section has been finalised by RPS Energy including a
review by tight gas experts in the US. The results confirm net pay in six intervals including
three with commercial potential. Golden State Resources is currently planning production
tests on the Ismay, Chimney Rock and Barker Creek formations. The net pay thickness in
all of the zones has potential to increase as several sections which are in likely pay zones
previously reported in the preliminary results associate with poor hole conditions and gas
effects on the logs.


PARADOX 10100.0
ISMAY 10270.0
HOVENWEEP 10540.0
LOWER_ISMAY 10560.0
GOTHIC 10740.0
DESERT_CREEK 10850.0
CHIMNEY_ROCK 10986.0
AKAH 11200.0
BARKERCREEK 11488.0
TABLE 1 PETROPHYSICAL SUMMAR
Progress since drilling out of the shoe was slowed when the well encountered
abrasive dolomite cemented sandstone. A PDC bit and mud motor was used to drill out
from 12,967’ which required a planned trip. The PDC bit was replaced by a button bit at
13,035’ as rates of penetration were
have worn out. A PDC bit was run at 13,427’
and rates of penetration have increased ranging upwards from 16 feet per hour and the
upper penetration rate is
6” hole. Due to the depth of the well trip times are approximately 20 hours.
The well is currently in a series of carbonates and evaporates of the Alkali Gulch
Formation. Lithologies enco
siltstone. Preliminary interpretation suggests that the well has passed through a heavily
cemented fault zone, and has crossed into the
the Alkali Gulch and Pinkerton formations and Leadville Limestone.
to have crossed a fault in the Barker Creek Formation, part of the Lower Barker Creek
Formation was not penetrated. The gas show of 207 units is considered to juxtapose the
lower Barker Creek gas zone.
Golden State resources is currently planning the testing and completion programme for
the pay zones in the Ismay, Chimney Rock and Barker Creek Formations.
Richard Sciano
Executive Director
21 May 2009
2
Net Pay
(ft)
Porosity
(%)
0.5 5.0
14 7.8
0 0
0 0
1 5.7
0 0
14 11
4.5 13.5
61 6.0
SUMMARY
below 3 feet per hour. Since then
once the well entered carbonate formations
being limited to below 37 feet per hour to control solids in the
encountered include massive salt, limestone, dolomite and
high side block which contains targets in
nkerton a thick hard
. two button bits
untered As the well appears