ADI - Adelphi Energy

[Sham]

EKA swallowed up another company to get a piece of sugarloaf, maybe just maybe someone is going to do the same to eka .......
Whatever happens it will have no impact on the sugarloaf result although if we are looking at another capital raising that may well considerably dilute things for eka holders. Another way to look at is if eka are raising funds then why ? 100 step out wells targeting the austin chalk ?
Guess we will know soon enough

 

[unixspice]

the announcement refers to a new project

What's the new project ?

 

[Broadside]

the company hasn't disclosed that information yet

 

[stereo21]

the company hasn't disclosed that information yet

I didn't think the company refered to a new project in its trading halt? How certain are you that its a new project?

 

[nioka]

I didn't think the company refered to a new project in its trading halt? How certain are you that its a new project?

It certainly did

 

[stereo21]

It certainly did

...so it did. Interesting!

 

[HOMER J]

here it is:


ASX RELEASE 30 OCTOBER 2006
Eureka acquires interest in Bismil Oil Prospect in Turkey
First well to spud in early November
Key Points
• Eureka has acquired rights to earn a 20% interest in two exploration Licenses
in South Eastern Turkey
• First of two turnkey farm in wells, the ‘Koyunlu-1’, to spud in early November
2006 and is expected to reach target depth within 2 weeks
• First exploration well located 17 kilometres south and up-dip of the giant West
Raman oil field
• Koyunlu-1 exploration well to drill to 1,380 metres and will test the eastern
portion of a structure with similarities to the Raman field structures.
• The target reservoirs are Cretaceous age carbonates of the Mardin Group,
the same reservoirs which host oil in the Raman fields and numerous other oil
fields in the region.
• The structure has the potential to host recoverable reserves of 31 million
barrels (P50) or 204 million barrels (P90), if oil is present and commercially
extractable.
• Eureka has also acquired an option to increase its interest in the Licences to
45%
Prospect Background
The two Licences, covering an area of approximately 500 square kilometres are
located in South Eastern Turkey in the major oil producing region of that country.
Koyunlu-1 is located about 17 kilometres south of the West Raman oil field (original
oil in place 1.5 billion barrels) and about 40 kilometres south of the Selmo oil field
(original oil in place 500 million barrels), presently operated by an ASX listed
Australian company.
The Koyunlu-1 target is located in a regionally well established oil system and good
oil shows were obtained in the nearest well, which was out of closure some 8
kilometres to the north east. Oil generation, migration and reservoir risk is considered
to be low.
Although the Koyunlu-1 well is up-dip from the West Raman field, structural integrity
is the largest risk due to the wider than optimum seismic grid. Licence conditions
require a well to be drilled in November so it is not possible to acquire further seismic
before the due drilling date. Subject to results from the Koyunlu-1 well, it is intended
to fill in the seismic grid prior to drilling the second farmin well.
The oil recovered from the Raman fields is relatively heavy (13-18 API gravity) and
any oil at Koyunlu -1 is likely to be similar. This oil is readily saleable at a small
discount to standard Middle Eastern Crude prices.
The area has good oil and gas infrastructure with the regional oil refining and
handling centre at Batman, 24 kilometres north of the well location.
Farm-in Terms to Acquire 20% interest & Option to acquire a further 25%
interest
Eureka will earn a 20% interest in the two adjoining Exploration Licences from
Turkish company, ARAR Petrol Gaz AUPAS (registered license holder and operator
of the Licences) by funding 20% of past exploration costs and 30% of the Koyunlu-1
well dry-hole cost on a turnkey basis. Eureka’s total cost including drilling of the
Koyunlu Well – 1 will be approximately A$800,000.
Eureka’s share of the second farm-in well costs are capped at the lesser of
US$525,000 or 30% of dry-hole cost.
Following drilling of the Koyunlu-1 well, additional seismic may be required to
determine the exact drilling location for the second farm-in well. Eureka’s share of
seismic costs will be 20%.
Eureka may withdraw from the farm-in agreement and licenses at any time following
the drilling of the Koyunlu-1 well.
Eureka has an option to increase its interest in the Licences to 45% by purchasing an
additional 25% of the Licences for US$ 2,000,000. Eureka will pay an option fee of
US$191,000 and the option will expire 3 weeks after the second well is drilled. The
option would only be exercised in the event of the discovery of commercial oil in
either or both wells and gives Eureka significant leverage to drilling success.
Mr Graham Dowland, Chairman of Eureka said “the Board is very pleased that
Eureka has acquired the opportunity to participate in the drilling of such a significant
oil play at a relatively low entry cost and protected from well cost over-runs by the
turnkey contract. The project fits Eureka’s strategy of targeting significant sized
international projects heavily leveraged to success.
For further information please contact Graham Dowland or Alex
Neuling on 08 9440 2640.
Information contained in this report concerning the background to the Sugarloaf
Project, was compiled from material provided by Texas Crude Energy Inc and
reviewed by P D Allchurch, BSc, FAIMM, MPESA, who has had 35 years experience
in the practice of geology and more than 5 years experience in petroleum geology.
Mr Allchurch has consented to the inclusion in this report of the matters based on this
information in the form and context in which it appears.

 

[Broadside]

thanks Homer looks interesting and is just around the corner, November is going to be a massive month in the history of Eureka

 

[HOMER J]

Hope your right Broadside. this should help support the share price if hosston doesnt come off imo. Lets hope ADI flys in november too

cheers

 

[Agentm]

EKA gets a project or 2 in turkey.. How does the board of AUT and EKA split the decision as to which company gets the projects?? both are smallcaps.. ADI and ARQ have guidelines, and risk evaluations.. makes you wonder..??


I guess EKA goes to the market now and gets more capital for the turkey project,, no doubt they wont be spending the cash they raised for the Sugarloaf shortfall..

drilling this deep is complicated and slow.. a 6 1/2 drill bit is going to be so much slower than before..

this is best described as a exploritory well,,, no ones been there before and where exactly the formations start and end is still a lot of guess work and conjecture.. they could be 500+ feet out on their estimates and today could still be only on top of the hosston play..

wednesday gives us the update and until then anything found will be reported..

lets sit back and enjoy the commencement of the hosston play.. theres many thousands of feet of plays to be explored and drilled.. and for those on board there is the security of he secondaries being successful, and a fully funded well to go within 30 days at new tiaton.. .60 and $1.50 ish


AUT and EKA got please explains and ADI has been unscathed, management seems to be on top of things and capable in my books..

cheers

 

[Dukey]

Agentm - nice calm post...

Just wondering - can you fill me in ? - why would a smaller drill bit mean slower drilling? I have no experience with this kind of drilling, but my intuition would expect a little faster if anything. I have worked with some much shallower soil rigs (scientific sampling) - and I seem to remember smaller hole sizes were faster in that case. Though i could be mistaken.
No doubt the set-up for these rigs is quite different.

Roll on 'sugarloaf train'... Roll on.

 

[nioka]

here it is:


ASX RELEASE 30 OCTOBER 2006
Eureka
Information contained in this report concerning the background to the Sugarloaf
Project, was compiled from material provided by Texas Crude Energy Inc and
reviewed by P D Allchurch, BSc, FAIMM, MPESA, who has had 35 years experience
in the practice of geology and more than 5 years experience in petroleum geology.
Mr Allchurch has consented to the inclusion in this report of the matters based on this
information in the form and context in which it appears.

I could not find "information on the sugarloaf "in the report. Was is censored???????

 

[Agentm]

i think its just a simple case of cut and paste haste..

 

[cicak_kupang]

For ADI, in terms of its sugarloaf, new taiton and yemen on its drill programe, and with so much god damn potential, i can picture another sp graph similar to MCC when it took of a few years ago. This is exciting times to be involved with ADI. With in a short time we will all know about the success of sugarloaf, then its on to New taiton. I have found myself doing a bit of day dreaming at work lately.....and enjoying the ride.
Hope there will be a bit more of a sell off as people take profits, hope to be able to take advantage when/ if it does, this may happen on the other side of wednesday, post weekly drilling report if its just "stock standard", somw may get itchy feet and bail....?

 

[maverick11]

Agentm - nice calm post...

Just wondering - can you fill me in ? - why would a smaller drill bit mean slower drilling? I have no experience with this kind of drilling, but my intuition would expect a little faster if anything. I have worked with some much shallower soil rigs (scientific sampling) - and I seem to remember smaller hole sizes were faster in that case. Though i could be mistaken.
No doubt the set-up for these rigs is quite different.

Roll on 'sugarloaf train'... Roll on.

It's the depth more than the drill bit diameter. Usually, yes, wider drill bits are slower, but at these depth you have to drill slowly no matter what size. Mainly because the shaft is being turned from the surface then thousands of metres of rods must flex/turn before the actual drill bit turns down the toe of the hole. The smaller drill bits/rods are also more susceptible to this flex and drill deviation under extreme weight and pressure.

 

[HOMER J]

yes i think its just standard text the company has used on sugarloaf and didnt realise they used it in this announcement. i re checked and am pretty sure i posted the entire document.

cheers

 

[Dukey]

It's the depth more than the drill bit diameter. Usually, yes, wider drill bits are slower, but at these depth you have to drill slowly no matter what size. Mainly because the shaft is being turned from the surface then thousands of metres of rods must flex/turn before the actual drill bit turns down the toe of the hole. The smaller drill bits/rods are also more susceptible to this flex and drill deviation under extreme weight and pressure.

Thanks Maverick. You come up with the good-oil once again!!
And interesting at that. Can't say i miss working with the soil rigs. Not that much fun until you reach the camp and the cold beers. (IMHO).

 

[maverick11]

ADI taking a bit of a hammering all of a sudden??

 

[Sham]

Certainly looks that way, wondering if this could be a top up opportunity....Just remember plenty of hosston formation to drill yet and a gas hit will see the sugarloaf triplets in the money big time.

 

[maverick11]

No one really willing to sell.... up she goes again :

Seems small pissy orders and volume are moving the SP around a fair bit. Bring on the ANN!!!