Tuesday, 7 July 2009

Golden State Resources production tests first gas shows at Paradox Basin #2 well

Production testing is continuing at the Paradox Basin #2 well, 100% owned by Golden State Resources (ASX: GDN) in Grand County, Utah.

The Barker Creek formation, is the first of three intervals to be tested, where there were significant gas shows during drilling in three zones and minor oil shows.

Testing involved perforating and fracture stimulating the Barker Creek formation over a gross interval of 283 ft (86.25m). The fracture stimulation proceeded according to plan with placement of 110,640 pounds of propant injected into the formation in addition to 1897 barrels of load fluids.

The well is currently flowing back load fluids with a total of 1395 barrels recovered of the 1897 barrels injected into the formation. Initial flow back rates were extremely high as the well unloaded super charged load fluids. The well will be shut-in and monitored overnight prior to running a tracer survey to determine the position of the fracture.

Following the tracer survey a coil tubing unit will be used to unload remaining fluid prior to flow tests.

Further tests will be conducted on the Chimney Rock and Ismay Formations. The Ismay Formation has proven production in Paradox Basin #1 and is considered the principle zone of interest.

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