ADI - Adelphi Energy

[Lucky_Country]

It has been hard watching my investment in ADI going up too over $1 then retrace to around the 45c mark now seems to have stabilised around the 70c mark pre test result.
Although nothing is assured ADI management have conducted themselves with great distinction with no ramping of the stock and just giving us the facts to date this company is well run and professional with a great future all imo before I get accused of ramping!

 

[Lert]

I'm another long time holder and have greatly appreciated Agents posts. Although not a large proportion of my SMSF I have great hopes that in the long term ADI will be a solid contributer.. As long as Missus Streitberg is holding 1.2mil shares, I'll hold mine. Good luck to holders and please DYOR

 

[tomcat]

Hi Lert,

I think a lot of us think in terms of short term gain on ADI, but your right if things go well then it could be a great solid contributer to any portfolio...lets see those dividends at goodness knows ??? per share in 12 months... hey ADI We may have to stop them selling the company too cheap if the lower zones hit pay dirt and sugarcane is all we hope for ;-)

Good luck Lert, if missus Streitberg likes it then I'm in as well.

Cheers

I'm another long time holder and have greatly appreciated Agents posts. Although not a large proportion of my SMSF I have great hopes that in the long term ADI will be a solid contributer.. As long as Missus Streitberg is holding 1.2mil shares, I'll hold mine. Good luck to holders and please DYOR

 

[mpls]

Spot the discrepencies:

29 August 2007


Empyrean Energy PLC
('Empyrean' or the 'Company'; Ticker: (EME))

Sugarloaf Block A, Texas USA
----------------------------

- TCEI JV Block A # 1 well reaches total depth
- Encouraging gas shows throughout the horizontal well
- Gas flares measuring up to 65 feet observed

Empyrean has been advised by Texas Crude Energy Inc that the TCEI JV
Block A #1 well has reached a total depth of 4,400 meters (measured
depth). Current operations are preparing to run casing.




Empyrean Energy PLC
25 July 2007




Empyrean Energy PLC

('Empyrean' or the 'Company'; Ticker: (EME))

Sugarloaf Block A, Texas USA

• TCEI JV Block A # 1 well update

Empyrean has been advised by Texas Crude Energy Inc that the TCEI JV Block A
#1 well, the first well to be drilled as part of the recently announced 16
well deal, continues to drill ahead having drilled to date approximately
1500 feet of the planned 4000 feet horizontal drainhole in the Cretaceous
Carbonate.

The well has encountered encouraging gas shows in addition to fluorescence
in the cuttings. Multiple gas flares measuring between 10-40 feet have been
reported during the circulation of bottoms up accumulations as the mud
weight has had to be substantially increased.

The well is planned to be drilled 4000 feet horizontally (about 15500 feet
measured depth) after which appraisal and analysis of the hydrocarbon shows
encountered during drilling will be carried out. Although encouraging, no
conclusions should be drawn from these gas shows, fluorescence and flares
until the drilling is completed and testing operations have been conducted.
Further updates will be provided as relevant information comes to hand.



Normalised to feet.

Kunde#3
25 July 2007 - The well was planned to be drilled 4000 feet horizontally (about 15500 feet measured depth)
29 August 2007 - TD, measured depth, 14435 ft.


They drilled 1065ft short of planned TD.
The Horizontal is crica 3000ft not 4000ft.

"Gas shows were observed over approximately 2,500 gross feet" thats 83% of the horizontal.


Was this because there was so much kick back from the horizontal they could not push any further?
Draw your own conclusions ...

 

[Agentm]

interesting that this family member or perhaps his wife has got the fortitude to back eric at ADI.

i agree on the long term aspect,, and wonder what sort of dividend the multitcf play can deliver long term..

i dont know what way to think on the testing.. do you assume that if the lower zone was unable to flow and held no pressure the release would be out already? I imagine the probability of news that there was no flow is less likely the longer the announcements take.. is that a fair assumption?

surely Alex cant expect holders to be able to stand waiting a weekend.. Imagine Mrs Streitberg not being able to ask her husband all weekend about the sugarloaf well!

we have waited a year,, just a hint would be appreciated!!

getting slightly anxious as you may tell

 

[mfunksta]

I think that seeing Agentm has filled the majority of the last 117 pages with informative observations he is entitled to a little bit of unbridled enthusiasm

 

[chance fate]

hope we're still progressing ok.. looks like they had some heavy weather...

Texas drenched by tropical storm

Humberto was the third Atlantic hurricane so far this year
Heavy rain has been falling in Texas after Hurricane Humberto, the first hurricane to hit the US Gulf coast in two years, came ashore on Thursday.
One person was reported to have been killed and there were fears of flash flooding in areas already inundated in the wettest summer in 100 years.

Power was knocked out in some districts by Humberto's 85mph (140km/h) winds.

By mid-morning, the hurricane had weakened to a tropical storm and had moved into neighbouring Louisiana.

At 1500 GMT, Humberto was 125km (75 miles) west-northwest of Lafayette in Louisiana with winds of 100km (75 miles) per hour, the National Hurricane Center in Miami reported.

Humberto had strengthened quickly to a Category One hurricane before making landfall early on Thursday, but then rapidly lost strength.

Flooding fears

Some 100,000 customers were without electricity in Beaumont and Port Arthur in Texas, a spokesman for Entenergy Texas said. Three oil refineries were also shut down after losing power.

No evacuations had been ordered as Humberto neared the coast of Texas.

But Texas Governor Rick Perry activated military rescue teams including helicopters and water rescue workers.

"Some areas of our state remain saturated by summer floods, and many communities in this storm's projected path are at high risk of dangerous flash flooding," he said.

At least 40 people have been killed in flooding in Texas this year.

The National Hurricane Center in Miami said four to six inches of rain (10-15cm) of rain were expected across much of Louisiana and Mississippi.

Humberto was the third hurricane of the 2007 Atlantic storm season.

But it was far weaker than the deadly Hurricanes Dean and Felix which both reached Category Five status - the most powerful on the five-point rating scale - before lashing Central America, the Caribbean and Mexico.

 

[Agentm]

as far as i am concerned.. send the frac team out there on the deck!!!!

pay them triple,, pay them whatever they want!!

bit of rain isnt going to harm them!!

on a serious note...

i had no idea there was a hurricane,, thanks for pointing it out.. and i do hope it doesnt cause any more harm nor damage.. its frightening stuff..

 

[mfunksta]

There's a good reason why the news of this hurricane may not be common knowledge. I quickly Googled the weather forecasts - they don't seem too bad, but there are flood warnings for most of Texas.

Hurricane Humberto Breaks Record
Hurricane Humberto made landfall at 2:09 this morning just east of High Island. Wind speeds at landfall were estimated to be 85 mph. We speculated on this blog that the storm could reach hurricane strength, but the fact that it did so surprised just about everyone, including the National Hurricane Center. Check out the last paragraph from their 10 am discussion (I have translated the speeds and times in parentheses):

"BASED ON OPERATIONAL ESTIMATES...HUMBERTO STRENGTHENED FROM A 30 KT (35 mph) DEPRESSION AT 15Z (10 am) YESTERDAY TO A 75 KT (85 mph) HURRICANE AT 09Z (4 am) THIS MORNING...AN INCREASE OF 45 KT (50 mph) IN 18 HOURS. TO PUT THIS DEVELOPMENT IN PERSPECTIVE...NO TROPICAL CYCLONE IN THE HISTORICAL RECORD HAS EVER REACHED THIS INTENSITY AT A FASTER RATE NEAR LANDFALL. IT WOULD BE NICE TO KNOW...SOMEDAY...WHY THIS HAPPENED."

Technically, the storm had 85 mph winds as early as 2 am, but the point is that we have never seen a tropical depression intensify this rapidly into a hurricane just prior to making landfall.

 

[Metron]

Yeah they better not delay because of the weather... The storm hit to the north east. I would be surprised if they even got a single drop on the Rig.

Here is a 36hr Sat image...

http://www.weather.com/weather/map/...animation=true&zoom=5&interactiveMapLayer=sat

Metron

 

[Agentm]

i did ask adi two things today.. actually three..

i can confirm they dont believe any weather has been experienced in the sugarlaof area,,

i can confirm that adi are not going to let me know how the testing went,,

i can confirm the second time i asked in the same email i got the same remark!!

i can confirm i am no wiser than i was 12 months ago..

now i intend to have a fine bottle of red, and watch the pies thump the eagles (but secretly want the eagles to win as underdogs)

as far as i am concerned the longer the better is my view on this..

 

[chance fate]

I doubt we're going to see any news today - they usually issue operational updates early/first thing in the morning... reckon 48 hours into it they're back flushing frac fluids etc... so testing today/weekend accounting for time diff...so will be surprised if there's nothing in the mail box first thing on Monday morning!

 

[Lert]

The Eagles underdogs Agent ? I reckon 22 fit Eagles are at least as good as 22 fit Pies at Subi.. Hissing down here in Perth atm so hope the pies are good on a wet track.. Geelong are the ones I'm worried about.. Anyway, agree with you on the bottle of red, should be a good game.. enjoy
Oh, and about ADI, a couple of pages back in this thread where the ADI top20 list was posted I was surprised that no one mentioned that Eric's missus had a large holding. Quite interesting.

 

[Agentm]

if you tell me to back the eagles i will.. especially on a wet track..

all the directors piled in their own hard earned cash on the share,, they have not been loading up on options and giveaways like some in the jvp have.. its genuine cash sitting there,, so another reason why mine sits there right next to theirs..

 

[fflintoff]

Oil Barrel 14.09.2007
"Investors Hope For Some Sweet News As Empyrean Energy Prepares To Test Sugarloaf And Looks For A Sugarkane Look-Alike On The Surrounding Acreage
The onshore US is proving a useful playground for oil juniors chasing near-term development and production to bolster their balance sheets, among them Nighthawk Energy and Meridian Petroleum. Low cost, low risk drilling and high gas prices can make for a convincing business case, particularly when new imaging and completion technologies enable today’s companies to access previously overlooked or difficult-to-access reserves. There are many projects out there looking for financial backing but not all are worthy of the investment: the secret is finding the right project at the right price.

Empyrean Energy is among those increasingly seeking its fortune in these mature but resource-rich lands, and its initial efforts appear to justify its investment choices to date. The AIM company, which also has onshore interests in Germany, has just concluded one drilling campaign in Texas, the successful Project Margarita shallow drilling programme which yielded three commercial gas finds and is already generating cash flows. It is now in the midst of another, this time testing the potential of the Sugarloaf prospect and surrounding acreage in Texas. And the fourth quarter will see the start of a higher risk drilling programme as the company chases deep gas reserves.

For now the focus is on Sugarloaf. This prospect covers 80 sq km in the prolific Gulf Coast Basin of Texas and lies just 6.6 km east of the producing Sugarkane gas-condensate field. Empyrean has a 6 per cent working interest in the Texas Crude Energy-operated project, which was first drilled in 2006 when Sugarloaf-1 found tight reservoir sands in the primary Cretaceous-aged Hosston Formation.

This was disappointing but there was compensation, with at least 92 ft of potential gas pay in a shallower secondary target, the Cretaceous-age carbonates. There are three distinct zones in these carbonates and it is these zones that are now being tested, with the deepest zone being tested first. Of most interest, however, will be the uppermost zone, which correlates with the apparently extensive Sugarkane reservoirs.

Encouraged by what it has seen here, Empyrean has acquired additional interests in this area, having farmed into a 16 well programme over Sugarloaf Block A and Block B. Empyrean will earn a 7.5 per cent working interest in Block A by paying 12.5 per cent of the pre-production costs. The first well here, a horizontal appraisal of a gas filled reservoir already proven to exist at Sugarkane, is still drilling ahead having encountered encouraging gas shows to date. Investors will be impatient for news on this well, which has been drilling since May and could, if it yields a Sugarkane look-alike, prove to be a very attractive project and justify the additional investment.

Empyrean also has an 18 per cent working interest in Block B, where the first well to drill will be Kennedy-1H some 5.5 miles to the east of the Sugarkane field. This will spud in the coming days and will be a vertical well drilled to a depth of 12,000 feet, at which point the well will drill a 5,000 feet horizontal section into the upper zone of the Cretaceous-aged carbonate reservoir. This should take 45 days, followed by fraccing and testing operations.

This drilling work follows the completion of a six-well shallow drilling programme at Project Margarita in South Texas. This resulted in three commercial gas discoveries, which should generate 2.3 million cubic feet of gross gas production per day when all are onstream. Empyrean has a meaty 44 per cent interest in the project, which commercial director Tom Kelly said has produced a “terrific result” for the company.

The fourth quarter will see drilling on three deep, high impact gas prospects. The first proposed prospect is a potential gas accumulation of between 15 and 48 billion cubic feet. This is a different scale of resource from the shallow prospects targeted to date but carries a higher risk profile. Investors like to see this mix of bread-and-butter shallow drilling (particularly when it yields the kind of strike rate seen at Project Margarita) with “jam tomorrow” high impact wildcatting, particularly when oil juniors can point to some early production to act as a financial buffer against a run of dry holes. To date, Empyrean has done a pretty good job of delivering its US strategy. "

 

[Agentm]

Empyrean also has an 18 per cent working interest in Block B, where the first well to drill will be Kennedy-1H some 5.5 miles to the east of the Sugarkane field. This will spud in the coming days and will be a vertical well drilled to a depth of 12,000 feet,

Correct!!!!!!!!!!

but even though kennedy is about to spud,, i am still more interested in the SL1 test results on Zone 2 & 3... As for Zone 1... its a proven play,, not that concerned there really.. Kennedy is already targeting the sugar on current plans at least!!

enjoy the weekend.. looks like the author there got more info than the market really knows..

 

[fflintoff]

I bet that this guy Syed Shibli who is the Conocophillips Chalk Team Leader knows all about the Austin Chalk in Texas

Conocophillips Chalk Team Leader attending fractured reservoirs seminar on Thurs in London.

"September 20 - 21, 2007 • Thistle Victoria, London, UK

Fractured Reservoirs
Reduce uncertainty in your characterisation of natural & induced fractures with a thorough understanding of fracture initiation, propagation & arrest


Event description

Every fracture has unique properties and responds differently to changing stress. As an upstream geoscientist or engineer, how do you handle this uncertainty and build a model to the level of accuracy required for your project?

Do you think accuracy is possible when modeling fractures? And, is this lack of accuracy a problem?

Attend Energy IQ’s inaugural Fractured Reservoir Modelling & Simulation event to discuss these issues and get to grips with the latest practical approaches to understanding fractured reservoirs.

Share in the best practice advice from leading operators active in recovering from fractured reservoirs, and come away with hands-on experience of measures you can take to improve accuracy in your modeling without wasting time.

Speakers include

Syed Shibli, Chalk Team Lead, ConocoPhillips (UK) Ltd

10:20 Round Table Interactive Session: Plan Secondary Recovery From A Tight, Fractured Reservoir
1. What are the key data requirements for the design of fracture stimulations?
2. What methodologies are used to interpret the data and piece together a field specific stress pattern?
3. What data will help you understand present day stress and its relationship with paleo-stress?
4. Preventing water injectors from short-circuiting: How can you best predict preferential flow paths and understand how to mitigate the negative effects of these?
5. Where in your design should you work on increasing accuracy to ensure maximum performance of hydraulically fractured wells?
In 5 groups, the delegation will address each question, and report their findings back to the room.

Facilitated by:

Syed Shibli
Chalk Team Lead
ConocoPhillips (UK) Ltd"

http://www.iqpc.com/cgi-bin/templates/singlecell.html?topic=545&event=13906

 

[Agentm]

thanks father ted for the significant news

kunde 2, is reopened.. its now going to go directional into the chalks..

permit (amended) went out on friday!

that will give CP a third well to closely look at the deeps..

seems the zone 2 & 3 are very interesting zones in the CP leases also!

looking good.. our chalks must have created a spark of interest in the CP camp..

 

[fflintoff]

Therefore Kunde #2 hasn ´t been truly lost which is excellent news & therefore the well could complement the current lateral Kunde #3 well & the imminent Kennedy H#1 well ?

 

[Father Ted]

Agentm

thanks for that, I'm beginning to get to grips with this now.

Just like to add a couple of points.

First of all, it seems that Kunde 2 is a directional well (not horizonal) and is angled down towards the line of the horizontal section of kunde 3.

More interesting, is that the postion of the horizontal leg of the kunde 3 well - as shown on the new kunde 2 survey map - is different from that on the original kunde 3 survey.

It ends much closer to the bottom right hand corner of the field, nearer the well head. Its therefore shorter, than intended and runs out in a more westerly direction, at a dirrerent angle.

This means that the bottom is 611ft from the horizontal of kunde 3 - or is it?

either they have drilled kunde 3 somewhere different to where they said they were going to - or they have it wrong on the new survey map.

If its wrong on the new map - then kunde 2 would be a lot closer than 611 ft to kunde 3

the permit states that his well cannot be produced concurrently from the same reservoir as: Kunde Gas Unit #1 Well 3

I wonder if this is looking for connectivity between the zones? (which they may be trying to do even if it is 611ft away.)


what do you think

FT