paradox basin The following is off a share site in the US...

paradox basin The following is off a share site in the US (www.3stocksonfire.com) refering to Denver based Delta Petroleum and gives some insight into the care GDN are taking in protecting the well etc prior to entering the main target formation with possible very high pressures;


"The Paradox Basin (possible trillion cubic feet of natural gas potential)
Delta is in the process of completing 3 wells in the Paradox basin. The results of the drilling exceeded Delta’s expectations and they have applied for additional drilling permits. One of the wells not only exceeded expectations of Delta but did it in a large way. During completion activities, the Greentown State 36-11 well blew out at over 8000 PSI possibly as high as 18,000 PSI.

Delta’s statement about this was, “The Company has perforated the first interval in the Greentown State 36-11 as part of a multiple-zone, multiple-stage completion. During post-frac flow back, the well encountered unexpectedly high pressures that exceeded the rated limits of the wellhead equipment, thereby causing the well to produce in an uncontrolled situation. Flow rates were estimated to have exceeded 12 million cubic feet of gas equivalent per day (Mmcfe/d) from less than 15% of the projected productive intervals. Company personnel worked in conjunction with a leading well control company and contained the well over the next five days without property damage and without injury. Subsequent production testing indicates that the well will produce at a stabilized rate of 3.8 Mmcfe/d from this interval alone. Additional intervals will be tested over several weeks.”

The Paradox basin may have a multi-trillion cubic meter of gas potential. The company’s assessment was not updated after the blow-out but prior to the blow-out, their public assessment was that they had 5 prospects in the Paradox basin with a potential greater than 100 billion cubic feet of gas. Delta has 120,000 gross acres and 75,000 net acres in the Paradox basin.

There are very rarely companies that have three great reasons to buy their stock. In fact I’ve never came across any company that had three different major reasons to buy. The Paradox Basin is farther along in that they already have a well that initially appears to be a block-buster. The Paradox basin itself might be large enough to more than double the company’s natural gas reserves. Paradox basin therefore is enough to justify the recent stock price increase. On top of the Paradox basin, Delta has two other potential block buster resources."