Just a little article I hadn't come across before, old news really but I like the references to fields on the same stuctural trend. As we all know this area has proved its potential over and over. What do the current buyers know that the stale old holders are forgetting. For someone looking at this prospect without the baggage of past failure, I'm sure this play looks attractive from these levels.
"Golden State Resources Ltd., Perth, has spud a third exploratory well since 2006 in the northern Paradox basin in southeastern Utah.
The Paradox Basin-3 well, in 16-23s-23e, Grand County, targets the Upper Ismay zone of Pennsylvanian Paradox above 10,000 ft, which demonstrated gas flow capacity as high as 3.6 MMcfd in the first two wells. A Williams Cos. gas pipeline comes within 6 miles of the Paradox Basin-2 well.
The three wells are in 21 and 16-23s-23e, two townships south of the Cisco Springs area. Consulting engineers offered low estimates of 9 bscf of gas in place in Ismay and 6.2 bcf in Pennsylvanian Barker Creek, and the company has dubbed the area Golden Eagle gas field.
Objectives in the deeper Pennsylvanian section such as the Barker Creek, Alkali Gulch, and Akah formations were intersected close to the bounding fault and are potentially isolated from the main structure. The first two wells bottomed at 16,471 ft and 14,216 ft.
Golden State holds 100% working interest. Eclipse Exploration Inc., Denver, has the right to back in with a 16.67% working interest.
The Golden Eagle structure lies along the Paradox fold and fault belt and is on structural trend with Big Indian, Lisbon, Lightning Draw, Little Valley, and Lisbon South fields."
More importantly, what do the directors know that they aren't telling us. Why are they putting all thier eggs in the one basket. I don't get it. Selling all they have to fund this project. All thier actions and words point towards them having a belief in success of achieving commerciality, yet at the same time they manage to alienate shareholders and potential investors with a lack of clarity. Is this a game to them? Do they have any regard for current holders? Are they helping "friends" take a position at the expense of ordinary holders? Or are we just over dramatising the whole thing and they are just slowly and cautiously working towards thier one and only goal of achieving commerciality while retaining 100% ownership. IMO they are showing a level of arrogance in thier announcements and reporting that shows they either have absolutely no idea what they are doing(not very likely IMO with the level of expertise they have on site) or they have a confidence far above what the market is currrently building into the price. I am one of those who believes the options are the key to developing this field and can't see any reason why the directors would see it differently. I am prepared to see this out until at least some sort of definitive news one way or the other but I certainly don't claim to be anything other than a punter as far as my oppies play goes. Good support today for the heads on an otherwise very ordinary day for the general market. DYOR and make your own decisions. So many questions still to be answered, but when? B Rubes
GDN Price at posting:
5.6¢ Sentiment: None Disclosure: Held
