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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:	17.38M

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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 anticipates commercial production from Paradox Basin #3 well

Tuesday, June 08, 2010 by Proactive Investors

Utah-oriented oil and gas company Golden State Resources (ASX: GDN) received a shot in the arm today as testing on the Paradox Basin #3 well indicates that independent commercial production is possible with anticipated intial production levels of 2 million cubic feet per day.

The well was subject to fracture stimulation on 18 May which covered the lower three of the eight gas bearing intervals representing 15 feet of the 116 feet of pay identified in the well. The fracture has accessed permeable gas bearing formation suggesting the screen-out observed during the fracture stimulation was due to better than expected formation permeability, rather than blocking of the perforations.

Rick de Boer, director of Golden State said production casing will be run in Paradox Basin #3 and that the fracture stimulation has been effective and that the currently stimulated zone is capable of independent commercial production.

Strong gas rates and rapid pressure recovery during the initial clean-up operations on the well indicate the fracture is effective. A pressure survey and tracer log have since confirmed effective placement of the stimulation and high reservoir pressure. The reservoir pressure was measured at 4910 psi.

The reservoir pressures are higher than the previously drilled Paradox Basin #1. Gas rates are expected to increase significantly on previously stated results as the well unloads the remaining fracture fluids

A second stimulation which was booked for the 12 June has been cancelled.

With the strong results the directors of Golden State have elected to run the production casing and to conduct a production test on the currently stimulated interval. De Boer said the directors are "confident of achieving commercial rates."

The company is endeavouring to potentially increase production rates by completing additional pay zones, in tandem with the completion and testing.

The completions rig is on site and will commence running the production casing later today. The current completion covers the lower three of eight gas bearing intervals identified in the well.

The gas occurs in the Pennsylvanian Ismay, Desert Creek and Akah formations.

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