Read it and weep DeemanFrom 2/2/07 West Australian Article...

Read it and weep Deeman


From 2/2/07 West Australian Article quote:

“Oceanic Asset Management fund manager Elliott Rowton said he had invested in Golden State based on what the company had discovered to date not for the yet-to-be reached main target.

Mr Rowton says he expects the company has the potential to move into production within 12 months.

"We are not too bothered by what occurs at depth, to us that is the cream on top, we are happy with the data we have seen to date," he said.

"We believe that the market is overlooking that factor at the moment, if the market was not focused on that bottom target then psychology of this company would be a lot different."

Significant Gas Shows Discovered
To date gas shows have been intersected in a large number of separate zones in the well, from the
Elephant Canyon Formation, at 6,552 feet (1,997 m) through to the Pinkerton Trail Formation at 15,292
feet (4,661 m), over a gross section of 8,740 feet (2,661 m).

The shows thus far indicate a significant gas discovery. Five target zones tested so far are considered to
have the most potential for development, from the Upper Ismay to the Pinkerton Trail Formation (5,600
feet of section).”

“Paradox Basin #1 has remained close to the original forecast in regard to the anticipated geology except that the gross sand interval indicated by wireline logs, is much larger than originally forecast and indicates significant upside for hydrocarbons in the Paradox Formation.

The current mud log and wireline log gas indications in the well are significant as the well penetrated
the upper Paradox Formation (the secondary objective) well down-dip based on the current mapping.

The potential area at the top of the Paradox Formation up-dip to the well is large.”


Work is proceeding towards completion of permitting and the establishment of production infrastructure
for the gas horizons already discovered in the Pennsylvanian section of the well and any further
hydrocarbon sections that may be located within the Mississippian (including Leadville Limestone)
targets yet to be tested.
The permitting process for a pipeline right-of-way is proceeding, and discussions have commenced with
gas gathering companies on the design, procurement and finance of the connection pipeline and
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associated gas plant. Discussions on design and engineering of a tap-in to the 26” gas transmission
pipeline are proceeding with the pipeline owner."