Golden State Resources drills ahead at Paradox Basin #3, due to gas shows

Utah-focussed oil and gas company Golden State Resources (ASX: GDN) is preparing to drill ahead at Paradox Basin #3 well, currently at 11,194 feet depth.
Progress since the last report has been limited due to a bit failure.
PB #3 is the third well on the Golden Eagle Gas field in the productive Paradox Basin region of Utah.
Rick De Boer, executive director of GDN said the shows to date appear to have encountered a live gas zone which demonstrated flow during standard flow checks, which are conducted as normal safe drill practice.
As a result of the encouraging shows, Golden State has commenced planning for completion and testing and evaluation.
Show 3 occurred over a 42’ interval during a drilling break in limestone from 11,012’ to 11,054’. Cuttings gas increased from a background of 90 units and reached 759 units.
Elevated gas readings persisted to 11,127’ and as the well demonstrated flow the mud was circulated and conditioned. The mud weight was initially increased to 8.6 pounds per gallon, and then to 8.7 pounds per gallon.
The gas has a mixed composition including methane and ethane which is similar to gas produced on test in Paradox Basin #1. Overnight the well was reamed with hole opener from 8,265’ to 11,164’ gas levels reached 1400 units during reaming over zone 3.
Additional 5” completion casing has been sourced.
Due to the encouraging gas shows at Paradox Basin #3, GDN has decided to extend the well to an additional 350’ to 12,000 feet.
Drilling is expected to resume today.
The company will conduct an extensive logging programme which includes borehole imaging, nuclear magnetic resonance as well as a complete suite of conventional logging tools.
The logs will be processed and interpreted prior to running 5” production casing.. At which time Unit rig 234 will be stacked on location pending the sidetracking of Paradox Basin #1.
Data from the well will then be provided to the company's advisors RPS Energy to design and recommend completion, testing and stimulation programme.

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