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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	GDN
Latest Price:	0.02 (0.00%)
52-week High:	0.02
52-week Low:	0.01
Market Cap:	18.54M

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Golden State Resources Full Golden State Resources profile here

Golden State Resources (ASX: GDN) is primarily focused on oil and natural gas exploration in the USA and Ukraine

Golden State Resources gains momentum, to connect gas discoveries to Williams pipeline

Monday, September 20, 2010 by Proactive Investors

Emerging U.S. gas producer Golden State Resources (ASX: GDN) is making significant headway toward connecting its Golden Eagle Gas Field discoveries to the Williams pipeline in February 2011, as well as monetising non-core oil & gas assets.

Presently, the tendering specifications for a permanent gas processing plant "can be completed on time and well within budgeted figures."

Many of the aspects of the project "are now well under way and are awaiting regulatory approvals."

Richard Sciano, managing director of Golden State in an update to investors said the tender process for a permanent gas processing plant and pipeline is expected to continue until the 2nd week of October and involved complex variables.

A number of proposals and quotes have already been received for various aspects and the company is also currently responding to specific vendor queries from independent gas gatherers.

The application for Right Of Way to facilitate the pipeline was dependent on recognition by the Bureau of Land Management (BLM), that the Golden Eagle Gas Field is capable of commercial production.

This has now been achieved. The company has applied to convert the water ROW into access for the gas pipeline.

Actual construction of the pipeline and placement of the permanent gas processing plant will be completed within one month after finalisation of outstanding items.

The company continues to ensure that all preliminaries are attended to in order to meet the earliest practical commencement of construction.

Golden Eagle Reserves

An independent appraisal of Golden Eagle reserves in underway by RPS and the release of the report detailing final reserves certification is "imminent".

Evaluation of Minerals Royalties

As part of its strategy to monetise its mineral assets, the company said it will endeavour to determine the investment performance of minerals royalties held on past resource projects.

The company has already prepared a brief to form the scope of the report and is giving urgent attention in completing it to ensure that it corresponds with the prepared timeframe to showcase the assets of the company.

Share Sale Settlement

Previously, the company informed shareholders that it had sold 35m WCU shares for a significantly higher price of $3.5m than a previous offer of 45.6m WCU shares for $2.1m.

Shareholders were informed that the Company was negotiating a settlement with the original purchaser. The directors are happy to announce that they have reached a mutually satisfactory settlement with the original purchaser at the cost of 3.5m GDN shares.

GDN will retain 10.6m WCU shares, which has further significantly enhanced the outcome of the deal to the benefit of the company.

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