significant prospect upgrade here..., page-14

Worth noting...

The previously identified "significant oil interval" from 9,411' to 9,431' (6m) occurs in the Paradox formation (Pennsylvanian level), which has been seismically mapped at some 1,200ha.

This single oil column alone (if commercial) could be worth many multiples of the current price...lol...and you can forget about the rest of the hole!

Lets assume they have charge in half...no...lets assume just one quarter of this mapped area, which gives us a volume of some 18,000,000 m3.

Remember, this is in the same formation which hosts the giant "Greater Aneth Field", which has already produced some 448m barrels of oil and 390bcf gas, suggesting decent accumulations here are quite possible.

But...is it fully charged and does it continue over the entire mapped footprint of closure? These are questions that can only be answered once flow/pressure tests have been conducted on the interval...which for now, is sitting patiently behind casing, just waiting to get out!

People talk about "getting in for the announcement" and deeper targets...all very good...but heeeeeeeelooooo, we have already had more than enough news to support the current price (and then some) in my view.

Sure, traders are all over it, both long and short term, which means volatilty could take the share price all over the place near term...but underlying this is some great fundamentals supporting even higher prices than we have now.

I wonder how many bought today based on the on-screen "noise"...and will get a major surprise at just how undervalued GDN really are when they conduct their due dilligence tonight?

Regardless of the "major targets"

To give you an idea of the potential of just this upper oil column...(lol..dust the cobwebs off my oiler notes)...

Area = 3,000,000 m2 (300ha)
Pay = 6m
Recovery = 330 m3 per hectare meter (0.033%)
1 m3 = 6.3 barrels

300 x 6 x 330 = 594,000 m3 recoverable.

This equates to 3,742,200 barrels

This is recoverable!

High side (1,200ha) = 15m barrels
Mid size (600ha) = 7.8m barrels
Low side (300ha) = 3.7m barrels
Ultra low side (100ha) = 1.2m barrels

lol...if only it were that simple. Of course there is so much more to be done here before we even begin to start realising the likely commerciality of the oil horizon, but with porosity already confirmed at 4% (448m bbls Greater Aneth Field = 6%), we are probably looking at a favourable outcome here in my view.

Then of course we have the gas horizons already offered as likely producers, all with similar footprint potential as the above oil horizon (Pennsylvania)...again, some significant numbers.

lol...but perhaps enough for now?

The point of all this is that in my opinion, the well is already a success.

With at least 4 gas horizons already suggested as likely "producers" and a "significant oil column" of 6m with 4% porosity waiting behind casing...and if that's not enough, we have today's explicit reference from the company that results to date are "material"...well frankly, I am surprised the price didn't go higher?

In fact, I suspect some serious players are churning this over to aid in their accumulation tactics...it was pretty obvious they were working hard at capping it this morning...lol...ring a bell?

If not for these players in my view, the shares would already be over $1.50, but trading only 2-3m shares per day!

So...as of tonights close, the market value is $125m (fully diluted), of which some $11m will be cash, giving this discovery (so far)...and the rest of the permit (which has just been upgraded considerably)...and their uranium assets...a combined total value of some $114m

Cheap in my view for what they already have...let alone for what could lie beneath?

Traders may well be all over it, but they were also all over CDU at 70c...and $1...and $2...and $3...and...

Cheers!