This is how I am reading the current scenario with GDN.1....

This is how I am reading the current scenario with GDN.


1. Drilling commenced (8 potential zones to be drilled)
2. Everything going very well (ahead of schedule, below budget)
3. Significant gas shows intersected in the same zones as PB #1
4. Evidence that the reservoir extends all the way from PB#1 to PB#2
5. This extension therefore will result in RPS Energy increasing numbers particularly for Upper Ismay
6. Porosity much better than PB#1
7. All the necessary fund raised to drill and test PB#2 to completion
8. Stock price rallies ahead of casing before lower 4 zones were drilled.


Now this is where the share price starts to get a bit shaky...why?


1. Drill penetration rates slowed due to need to change drill bit 4 times within a week
2. The lower barker creek zone may have fallen victim to the well temporarily crossing onto the other side of the fault..
3. This was always a risk given that the well was deliberately positioned very close to fault so as to optimise the testing of the Leadville (as part of the agreement with Eclipse)
4. The Alkali Gulch is currently being drilled (zone was approx 2200ft in PB#1) GDN currently into Alkali approx 900ft
5. The Pinkerton (which showed great promise in PB#1) and Leadville (the zone this well has been designed for) are still to be intersected in next 10 days
6. GDN are certain that they will be well inside the fault so that they will not miss these two primary target zones
7. Upon completion of drilling GDN will begin production testing.. The company is already assessing with Unit drilling which rig to use for this purpose
8. GDN to be in Production feeding the Williams pipeline within 5 months.


Based on the above I reiterate that the price movements we are seeing are now a function of fear, greed and very short term trading activity. This well has already been very successful and I am somewhat baffled as to what I am viewing in the market. I think too many traders look to the screen for direction instead of assessing the facts.