ADI - Adelphi Energy

[rolisatosser]

GREETINGS FROM THE UK

Hi guys, I'm a new holder of ADI, kept some EME but have moved most of my available cash here.

sit back, relax, and let it happen

 

[Agentm]

GREETINGS FROM THE UK

Hi guys, I'm a new holder of ADI, kept some EME but have moved most of my available cash here.

sit back, relax, and let it happen

welcome aboard,

i cant wait for the ride to begin..

what made you decide to shift most of your exposure to SL into adi??

 

[rolisatosser]

agentm - mainly for the medium term and primarily for the SL shallows, I did bail out of eme of most of my holding at 37p and now things have settled downhave decided to jump back in. But eme are not conducting themselves properly. adi appear to be a more professional outfit.
With their 20% of the so far announced acreage adi have far more to gain imo.
In the medium term it is my assessment is that adi's other projects especially NT have the more potential and possibly the less risk.
You will know me as jumping_jackflasher and that I have been following Couch's words for some time. I have read every single comment he has ever made on the web as well as the viewable areas of his server! A much maligned individual it seems. Although the guy is not particularly my 'cup of tea', if you follow his words, you will see that he is quite a genuine guy when it comes to oil exploration. If only all o&g companies gave his level of reporting combined with the way he puts across his information!

 

[Agentm]

hey i know you now..

i agree with couch.. the companies he runs are doing well, and they have their way of doing things much like all in texas..

Things are hotting up in texas as they say, and i somehow feel the talk of tcf potential is begining to be the norm when talking SL.

much is happening behind the scene, and i am aware the workover rig is on site at NT and they have announced they are testing the well in possibly right now.. all results will be issued immediately i am told, so i expect it to break any moment.

ADI has many projects about the place and management have not been sitting around waiting just for SL and NT, I tend to think the next 60 days will be the most interesting days for ADI as it becomes an oil and gas producer..

 

[surfingman]

NT will be frac tested, will that be because there not getting the flow rates expected from this well? Hope all comes good after frac.

 

[Agentm]

in all honesty, i think it had to be expected.

we need maverick again... but they had to use some incredible mudweights to stabalise the well and get equalibrium, and then were forced to remove the drill bit real slow and the safety of the rig and the crew was paramount then.

The fracing processes can call in flushing techniques and all sorts of processes that are needed to overcome these type of problems. I cant see it as being a big deal, its not a unique situation by any means, and texas certainly has the best crews on the planet. Next week we get the flow results on NT, and it seems the pipeline is connected.

 

[maverick11]

Sounds like they encountered extreme pressures while drilling and had trouble stabilising the hole. They may have even jarred the drill bit as a result?? The announcement today indicates that there may have been slight borehole damage due to the mud weights they were using to keep it open to remove the drill string. This can either be physical damage from the drill string and mud pressures or even from the mud entering into the rock. It was a new crew and rig, which may also be partly to blame?? Either way, nothing really out of the ordinary.

It seems the pipeline is in and fracturing is about to commence. Fracturing is definitely nothing unusual and will maximise flow once it is opened up for production. Next week...

 

[fflintoff]

EME AGM - First reaction re Sugarloaf

"Great News" " Extremely exciting" ref. SL 2ndries and Blocks A + B . Quotes from Frank. More to follow later today, if I get time"

From the ADVFN thread 12.30 BST.
Much more to follow later no doubt.
Frank is Frank Brophy from Perth WA. Technical Director of EME.

 

[Agentm]

look forward to the news.. the secondaries are the key

i think tomorrow will be a very exciting day for adi..

 

[surfingman]

Whats that all about? Agent can you get an overview of the SL situation from EME Annual General Meeting please?

P.S any NSW supporters out there great game!!!!!!!

 

[fflintoff]

Liquids at sugarloaf ?

...and testing this week!

From the ADVFN thread:-

freedosh - 23 May'07 - 13:44 - 39983 of 39986


Notes from the AGM by freedosh amateur secretarial services.

Usual formalities and votes passed including ability to issues shares to 20% of existing number at discretion of directors

Frank did an overview.
1st historical on Eagle, Glantal and SL all in the public domain and not requiring repetition.
SL deep was fracced at upper end of the deep zone (sands) and still no flow of any consequence due to poor permeability. Frank remains keen on the deep zone and does not preclude a return in another drill. EME costs were just under $1M (He confirmed to me that we still have £4.5M in the bank)
For the record SL is contained within “block B”. I shall return to “blocks” later.
The secondaries are in chalk and limestone and had “good” shows. ? 92ft. “may have liquids”
Testing starting “this week” and early results will take 2 weeks approx. “Watch out for announcements”
“Great news and extremely exciting”
Texas crude are excellent partners

“Blocks” – are not geographically clearly defined blocks of acreage, but should (I think) be considered more as “packages” bundled by their land agents
Block A contains the “very well known anonymous American multination” who have a flowing well including liquids. We are not partners in this well but have 7.5% (for 12.5% costs) of the remainder. Texas Crude are partners along with the major multinational (? Expected to declare this find within 2 months but must remain confidential until then).
A further adjacent well in which we are partnered spuds shortly
EME interest in Block A is for the shallows only (cretaceous carbonates and above) at this time. The multinational appears to have limited acreage within A and confined to their existing well.
The wells are drilled with a horizontal and costs are approx. $5M each.

Block B. we have agreed an additional 20% costs for 12% taking our total (excluding SL) to 18%. This includes all depths (remember Frank remains enthused by the deeper zones as well). See also SL above.
Excellent local infra stucture, but initial liquids may first be tankered.

EAGLE only delay is Vic Pet choosing a farmout/operator (yes there will be a new operator) for their share. 6 are short listed. Current estimated spud for (probably) a completely new and bigger diameter drill is Sept 2007. Clearly they remain very positive given the proven oil resource. It is an important target with lower risk than the potential blockbuster but very high risk Glantal.
Margarita.
Identified using Amplitude versus Offset”? AVO, a 3D variant. This technology has now been ratified by the first 3 shallow wells at little cost. Take about 10 days only to drill.
1st is water coned but not abandoned, just shut in pro tem (originally flowed 210 thou cu ft/d). 2nd. Milagros flowing nicely with 461 thousand cu ft/d and some liquids identified in the sidewall cores “can be expected to flow more liquids (? Oil) as the gas is taken off”. 3rd? 160 thou cu ft/d? Still testing and soon to be tied in.
3 more shallows to spud soon then onto 3 deeps, also identified by AVO.
These shallow wells can be expected to “payback” in an average 4 months. We pay 77% of costs for 44% earn, BUT only after recouping our costs thro an initial 90% earning flow to EME (more complicated formula but I didn’t take detailed notes here).

The general demeanor was different and happier this year. The whole board including Tom (nice guy) the FD, Frank and the Chairman were there and were open and seemed much more relaxed than last year.
Others please correct any errors and add where there are omissions.
Good luck all, I have come away far more positive than last year.
All the usual caveats. I have reported what I heard but DYOR etc. Not investment advice
freedosh

 

[surfingman]

Thanks for the info Fflintoff much appreciated, the multinational entity has my full attention always makes for exciting days ahead.

Results taking 2 weeks, that is faster than expected. Look forward to hearing more....

 

[Agentm]

totally agree surfing guy..

you know this news is interesting. Sl is being tested, and the aussie shareholders have no knowledge, thankfully the EME board are keeping us informed..

I hope the JVP's have coordinated the news a little, and we may see some follow up announcements. I looked at the EME AGM rns, and it doesn not mention any news, just that all resolutions were passed, and they dont feel the testing of SL is newsworthy.

If Sl is being tested we will soon know, and i feel there is plenty of news to come from SL.. i maintain my view that the jvp's are looking at much higher prospective targets than 170bcf, i am convinced the testing will reveal what they truely suspect is a spectacular play, and with all the behind the scene activity i think the targets they are considering achievable are 1tcf+ .. its not feasable for there to be this much interest and and forward planning for 170bcf,, the major oil companies are not into that type of play and for there to be one on the scene means significant reserves.

The fact that condensate is being mentioned again, and this time by a JVP director in public, is very interesting, I would say that will raise some eyebrows around texas, and confirms yet again the 100 wells on the oil alone that couch oil has proclaimed..

we also have a director of a JVP saying the sands are not out of the picture.. well thats gotta be worth investigating further dont you think?

i have been saying for some time the SL well was designed to TEST all zones of interest, and was never able to bee in the sweet spot for all plays.. and remember they are still buying acerage for ALL DEPTHS..

everything thats being said by EME is mirrored in all the announcements, you just have to understand what they mean by it..

people are selling their shares still at .75 when its worth $2+ easy.. there is statement from ADI saying 150bcf for the chalks, and I think we are way over that.. there is exceptional value across all jvps right now..

wont last long i feel..

 

[Agentm]

the news on testing doesnt fit entirely with what we know..

i seem to think if SL was about to be tested then we will be informed.

I dont think that aspect of the info is correct, i say SL will be tested as previously announced..

I think some of the information he posted was confused, and may be he is confusing the next well on block A spud with the testing???

lets see where this goes, i cant seem to get any confirmation on the testing dates being changed..

 

[Dukey]

Re: Liquids at sugarloaf ?

Partial quote only!!

...and testing this week!

From the ADVFN thread:-

freedosh - 23 May'07 - 13:44 - 39983 of 39986

.... The secondaries are in chalk and limestone and had “good” shows. ? 92ft. “may have liquids”
Testing starting “this week” and early results will take 2 weeks approx. “Watch out for announcements”
“Great news and extremely exciting”
Texas crude are excellent partners
....

freedosh

It`s all a bit strange isn't it?? maybe bizarre is the correct word.
The above statement from EME's AGM about testing and results seems to be very clear.

... and yet all the other JVP's remain silent and the SP plummets today by 15% so far!! (though volume is quite low as yet).

I don't get it. Although I can understand some folks patience may be wearing thin, with delays at NT etc.

Anyone topping up at these prices??

 

[Agentm]

one seller getting out 50k.. at market.. just in a hurry..

i know plenty who have been and are buying..

EME did not make any official announcement on testing,, Alex has replied to an email from me, and its news to him!!

the guy must be confused at the AGM,, he is probably confusing the new well, which is due to go any day now, and the SL well.

There is no panic selling going on, just one hasty exit.. probably has somewhere better to go short term and needed to go in a hurry..

NT is about to be fracin fraced.. (excuse the french) and teh jvp's have secured amazing acerage.. and interestingly the EME guys are talking about wet suff,, the texas tea, which i find astounding. i would love to see any presentation or announcemetn from EME on reserves on the wet stuff, but so far we have only an eye witness to an AGM. with no follow on announcements from the JVP's or EME on anything they have declared verbally..

patience is required (and i am learning it real hard)

 

[megla]

Originally I got in at .90 in Feb, then .81, then @ .49 and recently at .61. I'm trusing my gut on this one and if it drops below .60 I think I will go in again, nothing like a bargain! Mind you, .60 for me is just an arbitrary number... nothing special or anything.

Of course if it goes south, then it aint no bargain, but through my rose coloured glasses everything looks good..

 

[surfingman]

Looks to be an exciting afternoon, a buy order for 57 000 @ .70 and recovering well with a little more support now starting to show....

 

[Agentm]

megla, you crack me up..

i was relating what you say exactly to myself.. I started pre magnolia (first well) and post magnolia when it was .24 and that was simply too good to miss.. I have bought again all the way into the 70's and 80's and topped up again last week at .76

I know its all about timing,, and mine isnt brilliant, but the rose coloured glasses got me.. i have them, and with blinkers..

In all seriousness, a lot of investors came in when alex did the road show in dec 06.. brokers spread the work and the sp went up on demand and on the pre hosston sands expectation,, its flowed, but wasnt commercial flow.. and if there was formation damage, or whatever, its all academic.. it seems EME have not lost sight of the play and dont discount it. and i am also a fan of the hosston sands, and have an open mind to a future on the play in another part of the lease (pure speculation)

Nt will deliver some short term stability and maybe a revisit to the 90's or above, but Sl has as we all know something else, and perhaps when the next well is announced and some detail of what it is drilling for, then i think a new perspective on the AMI will transpire..

 

[cicak_kupang]

It concerns me that we have an JVP saying things that ADI claims not to know nothing about. Just doesnt sit good. All i can think of, is it comes down to the laws of announcing what to the poublic in England must be vastly different than what we have here in oz. That aside, if they are testing at SL now then that would warrant an announcement would it not. Anyway, if they are indeed testing we will know about that when the results come through, cant hold that from us.......mmmm.
Well done whoever got in at the lower end of today.