NOT SURE IF READERS SAW THIS. DIDN'T HAVE TIME TO REVIEW PAST POSTINGS. Sorry if posted earlier.
Dated 7 April 2009
Speaking with Rick De Boer (Chief Geologist at GDN), who previously worked at AED Oil as Chief Geologist, on today's announcement the difference between the wildcat #1 well and #2 to date is night and day. While the drilling programme still in early days, this time GDN appears to have got it right with Rick and the technical team in place.
The increase in gas shows from 26 units to 398 is important for the sheer qantum increase in gas shows as anything else. There appears no question, that a gas zone was encountered. As Rick indicated about the gas shows in Upper Ismay formation, "it is a nice little pay zone". The good porosity was also a big positive.
Hitting marine sandstone was important as it could indicate a "better and bigger reservoir" putting GDN in a "wonderful position" as Rick put it.
Rick and GDN will now re-evaluate the approach given the positive results in the Upper Ismay Formation on next steps. The Lower Ismay, Barker Creek and Alkali Gulch are next targets.
For GDN investors, it has been an excellent run in price from 6 cents to 15 cents. Given results to date, it would be hard to bet against further gas shows and further market action.
GDN Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
