ADI - Adelphi Energy

[solomon]

Go you good thing GO ! EME up significantly at the open again in London.

Without doing a full company analysis and comparison, until recently EME (18% of our acreage) and ADI (20%) had reasonably similar prices hovering in the low 20s, EME just hit 47c before falling back to 43c !! Woohoo ! )

 

[solomon]

Oct 31 (Reuters) - British oil and gas explorer Empyrean Energy Plc said on Friday a Texan well flowed gas and condensate on test at commercial rates, sending its shares up almost 7 percent in early trade.

Empyrean said the Sugarloaf Prospect, Block A-4 well, a joint venture with Texas Crude Energy Inc, had consistent flow rates in excess of 2 million cubic feet of gas per day (mmcfgpd) and 200 barrels of oil per day (bopd) over the test period.

The company said the initial flow rates during the test period were as high as 2.5 mmcfgpd and 260 bopd, adding that work was in progress to connect the well to a sales pipeline and put it on long-term production.

The sales pipeline and production facility are likely to be connected in December, Empyrean said. The company has a 7.5 percent working interest in the well.

http://www.hemscott.com/news/static/tfn/item.do?newsId=69778186210981

 

[solomon]

Can someone remind me the real name of the block A-4 well?

This news release seems confusing? Has the reporter got their wires crossed? Anyway can't wait to hear what Kowalik does!

 

[fflintoff]

International Herald Tribune

Hot small caps - Empyrean Energy up on positive well result
Published: October 31, 2008



LONDON: Following is a roundup of key small cap movers on the London stock market on Friday.
10:19GMT -Empyrean Energy up on positive well result
Shares in AIM-listed oil and gas exploration group Empyrean Energy jump as much as 29 percent after the group gives a positive update on its Sugarloaf Prospect in Texas. The company said the Block A-4 well had consistent flow rates in excess of 2.0 million cubic feet of gas per day.
Craig Howie, an oil analyst at Blue Oar Securities, said the flow results were "very positive news" for the company and bring the full commercialisation of the SugarLoaf Project a step nearer. "Flow rates from the A-4 well are commercial and will be put into long-term production. This bodes well for the full development of the field," he said.

http://www.iht.com/articles/reuters/2008/10/31/business/OUKBS-UK-MARKETS-STOCKSNEWS-UK-SMALL.php

 

[solomon]

This report has a little more in it, check out Tom kelly's comment.

"Shares in Empyrean Energy were given a boost this morning after the company reported that A-4 well on Block A of the Sugarkane Gas and Condensate Field had flowed at commercial rates. Empyrean Energy has a 7.5% working interest in the well; the operator is Texas Crude Energy Inc.

Texas Crude informed Empyrean that on flow testing the well returned initial rates as high as 2.5 million cubic feet of gas per day and 260 barrels of oil per day with flow tubing pressure of 4400 psi.

Empyrean Executive Director Tom Kelly added:

“This un-stimulated flow from a 1,500 odd foot interval of horizontal well is a great result for the A-4 well. This further de-risks the project and provides another successful well that will shortly go into production to a sales pipeline. There is still great potential for wells that have longer horizontal completions in the productive zone to have even better or multiples of these flow rates without stimulation – and we already know that stimulation can achieve excellent results.”

http://www.proactiveinvestors.co.uk...commercial-flow-rates-from-a-4-well-3340.html

 

[solomon]

Do you think Tom Kelly had Kowalik in mind when he said ...

"There is still great potential for wells that have longer horizontal completions in the productive zone to have even better or multiples of these flow rates without stimulation"

 

[Agentm]

From EME Block A

TCEI JV Block A-4 Well

Empyrean has been advised by Texas Crude Energy Inc ("TCEI") that the well has been opened to flow during testing and has flowed on a choked back basis using 10/64" choke at initial rates as high as 2.5 million cubic feet of gas per day ("mmcfgpd") and 260 barrels of oil per day ("bopd") with flow tubing pressure of 4400 psi. This equates approximately to a gas equivalent rate (10:1) of 5.1 million cubic feet of gas equivalent per day.




Flow rates over the test period have consistently been in excess of 2.0 mmcfgpd and 200 bopd using 10/64" choke. During flow back operations the well has continued to clean up. It is understood that the operator intends to continue flow back and testing for a day or so and then shut the well in temporarily while production facilities and a sales pipeline are connected to the well. Pipeline sales are typically with the well wide open at a flow tubing pressure of 1000 psi.




Preparations for the sales pipeline connection and production facility have already commenced. The pipeline and facility are expected to be connected during December 2008.




Commenting today, Empyrean Executive Director - Tom Kelly said "This un-stimulated flow from a 1500 odd foot interval of horizontal well is a great result for the A-4 well. This further de-risks the project and provides another successful well that will shortly go into production to a sales pipeline. There is still great potential for wells that have longer horizontal completions in the productive zone to have even better or multiples of these flow rates without stimulation - and we already know that stimulation can achieve excellent results."


choked back a fair bit imho, i wouldnt be surprised if the baker 2 well produced at far higher rates after choke adjustments and after clean up.


this picture below is kowalik flaring on test

kinda suggests were in for nice announcement on monday imho

 

[seasprite]

Flow rates over the test period have consistently been in excess of 2.0 mmcfgpd and 200 bopd using 10/64" choke.

That's a very small choke indeed . If they double the radius of choke , area increases by a square relationship as we all know . So those are very good results . Very similar to another company operating in the Texas area . Im impressed. Well done Agentm

 

[estseon]

Can someone remind me the real name of the block A-4 well?

This news release seems confusing? Has the reporter got their wires crossed? Anyway can't wait to hear what Kowalik does!

Hi Solomon

A-4 is Baker 2.

A-1 is Kunde 3 (cemented liner/fracced/did nothing/closed in/re-opened/flowed/acid fracc/flow x 6)

A-2 is Kunde 2 (re-drilled vertical used to house sensor equipment to monitor Kunde 3 fracc)

A-3 is Baker 1 (about the same length as Baker 2 - nearly blew the rig into orbit but then they lost a drill string and partially blocked it)

A-5 is Marlene Olsen ("vertical" targeting "all 3 zones" but will be looking at the shales - agentm is following this one with interest - probably limited permit to vertical because there was no plan where to kick out a lateral - exploratory well)


Kowalik flared from 1,200 ft along the lateral - i.e. for over 3,000ft of drilling.

 

[Agentm]

i hear that it looks like kowalik is burning tyres right now..thick black smoke is coming from the site.. condensate is what i think is causing that.

again i am looking forward to the monday announcement.. these chalks oil wells are remarkable imho

 

[solomon]

Thanks etseon, I was confused, not the reporter. I feel like a kid waiting for christmas at the moment!

As it turns out I won't be anywhere near a computer on monday, so I won't be able to watch things unfold.

Anyway, best luck to all holders.

Thanks Agentm for the photo! What are all the white circles, rain, or dust in the lens or something?

 

[Agentm]

Thanks Agentm for the photo! What are all the white circles, rain, or dust in the lens or something?

the picture does not do either the flare nor the roar that it gave off any justice..

the picture is about 45 degrees from behind at least.. to your seeing a flare disappear away from you..

regarding the particles on the lens.. condensate and smoke was real thick in the air there..

all of yesterday the previous nights flaring and smoke during the day from kowalik has been the talking point of the county..

monday morning pre open the jvp will be announcing.. i think the large separator, and the 8 X 500 bbl capacity tanks (4000 barrel max capacity) to store the condensate on site will be well used, and soon we will be learning if they will be having multiple tankers arriving per day to the site or not i guess..

 

[Evangeline]

well i'm back in. this is looking pretty exciting. finally testing the upper chalks

good luck guys

 

[Agentm]

Kowalik -1H

Adelphi has been advised by the operator, Texas Crude Energy Inc (TCEI), that on 31 October 2008 operations commenced to unload the Kowalik -1H well. As at 6am Texas time on 2 November 2008 the well was still cleaning up and was flowing gas, condensate, drilling and completion fluids. Once the well is fully unloaded, which may require a second chemical wash to remove mud from the well bore, the fully stabilised production rate will be advised.

Weston -1H

Adelphi has also been advised by TCEI that the Weston -1H well spudded on 2 November 2008. At 6am the well was drilling ahead at a depth of 392 feet. The well site is located ~1.5km to the east of the Kennedy -1H well which is designed with a 6,000 feet horizontal section drilled to the south east.
As previously advised, the well is targeting the upper chalk interval that has been reported to have successfully produced gas and condensate in four wells in the adjacent acreage and in which the Kowalik -1H well has been drilled.

 

[Hatchy]

Well that's a little disappointing isn't it? Surely it shouldn't take so long! Last chance to buy some more before we see some blue skies?

 

[banska bystrica]

You're kidding aren't you? We've waited two years for commercial flow and you can't wait another day or two for clean up and production figures.

 

[Agentm]

a bit disappointing in what regard?

i believe the well was briefly flowing gas and condensate into the sales pipline.

second clean up is on the cards.

one thing you dont do, is put mud down the sales pipeline..

that well has given a huge oil hit, which imho made them run the separators, then imho they just went far too quick onto sales..

all kowalik needs is a good clean up..

 

[seasprite]

a bit disappointing in what regard?

that well has given a huge oil hit, which imho made them run the separators, then imho they just went far too quick onto sales..

all kowalik needs is a good clean up..

here is a picture of one of the processess they may use if anyone is interested
http://upload.wikimedia.org/wikipedia/commons/e/e7/NaturalGasCondensate.png

 

[sam76]

Cheers for that SeaSprite.

I agree a couple more days aren't going to hurt anyone. It just allows a bit more positive pressure on the share price.

 

[red rats]

Superb news IMHO, it sounds like this is going to be the one at last. I am amazed that the well has been plumbed into production piping so quickly, it shows the confidence that the JV has in the Kow even if as Agent M suggests this was a touch premature.
From my point of view the best of both worlds as the price should be at the worst stable, while at the same time enabling the believers to load up even further - great stuff.

How is the SP in Oz doing? I expct you are up a few percent.

Also hi to Agent, looks like you were pretty spot on this time!!!

Ratty