ADI - Adelphi Energy

[Agentm]

"Significantly, this test at Kennedy was a relatively small fracture stimulation conducted over a relatively small horizontal section of the well and we would expect that much better flow rates can be achieved using knowledge gained from these early wells. The completion technique used on this most recent test should measurably improve the production rates for the third potential pay zone, a lower zone some 50 feet thick, which was initially tested by the Sugarloaf-1 vertical well."


so a mini frac on a couple of perforations.. and its this test is delivering them the confidence that zone 3 is a vaible zone utilizing mini fracs..

it shows signs that the high matrix of these chalks is seperating this play from all other traditional chalks fields like giddings and pearsall..

promising indeed that eme believe the potential reserves can be doubled.

 

[tomcat]

WOW - EME will be cooking tonight, good news for the play!!

Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))
Sugarloaf Block A, Texas USA
* Spectacular condensate and gas flows following a very limited fracture stimulation
of the TCEI JV Block A-1 well.
* Well flowing at an average rate of over 950 barrels of condensate with an average
rate of over 2.5 million cubic feet of gas being
an equivalent of around 12 million cubic feet equivalent gas per day.
* Rate is over 6 times the pre-stimulation rate.
Empyrean, the AIM listed energy company with exploration and production assets in Germany
and USA today announces the following initial
test results from its TCEI JV Block A-1well on Block A at the Sugarloaf Project in Texas:
Fracture stimulation operations at the TCEI JV Block A-1 well commenced over the weekend
using a small acid frac in 5 sets of
perforations over approximately 900 feet of the horizontal section of the well. As of the
latest report the well was flowing on 14/64" choke
at approximately 2.5 mmcfgpd (million cubic feet gas per day) with approximately 950 bcpd
(barrels of condensate per day) and nil bwpd
(barrels of water per day) with a FTP ("Flow Tubing Pressure") of around 4000 psi.
On the present day prices for condensate and gas whilst converting the condensate to a gas
equivalent, recent recorded equivalent gas
flow rates approximate (using a 10:1 conversion) 12 mmcfepd (million cubic feet gas equivalent
per day). The well flow rates had increased
incrementally in the 24 hours to the last report as the well cleaned up and recovered frac
fluids.
Commenting today, Empyrean Director - Tom Kelly said "These flow rates are spectacular
from an acid frac of only 900 feet of horizontal
with only 5 sets of perforations. To be getting such a great condensate flow is also very
pleasing given where the oil price is right now.
Our shareholders have been patient and it is pleasing to see this being rewarded as the
completion methods learnt early on in the project
are being successfully implemented by the operator."
Further announcements will be made as significant developments occur.
The information contained in this announcement was completed and reviewed by the Technical
Director of Empyrean Energy Plc, Mr Frank
Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.

 

[Lucky_Country]

News coming thick and fat on the SK area.
Lets see how it affects ADI tommorow must be a positive.
Seriously looking forward to the next 6 months with ADI drilling campaign.

 

[sam76]

Well you know how people say a picture is worth a thousand words?

Well this one may say it all



*EME up 22% already according to bloomberg*

http://www.bloomberg.com/apps/quote?ticker=EME:LN

 

[fflintoff]

Empyrean pumps up Sugarloaf flow

http://www.upstreamonline.com/live/article155784.ece

Empyrean pumps up Sugarloaf flow



By Upstream staff
AIM-listed Empyrean Energy said fracture stimulation on the TCEI JV Block A-1 well on the Sugarloaf prospect in Texas has boosted flow rates six-fold.
In April the company had reported that the well was flowing at about 65, 000 cubic feet of gas per day, 130 barrels of condensate per day and 45 barrels of water per day.
The well I snow reported to have average flow rates of 2.5 MMcfd and 950 bpd of condensate.
“These flow rates are spectacular from an acid frac of only 900 feet of horizontal with only five sets of perforations. To be getting such a great condensate flow is also very pleasing given where the oil price is right now,” said Empyrean boss Tom Kelly in a statement.

28 May 2008 09:01 GMT | last updated: 28 May 2008 09:11 GMT

 

[Agentm]

time to update the meridian slide..

the region is begining to look very very "encouraging"

not changing my view on it one bit myself, continue to hold and accumulate

 

[Lucky_Country]

Looking forward too some drilling results over the next 6 months and seeing ADI with some revenue flow !
Would also like to see ADIs plans for the next 2 zones but obviously Z1 is the main priority.
Stil have futher testing of K1 and NT has just gone missing whats going on there ?

 

[prawn_86]

After about 18months of all hype and no action, its good to see that ADIs managment actually can do something aside from talk.

Well done to those who kept the faith, and even more congrats to those who bought under 30c.

Im still watching with interest and the amount of news flow sounds promising now they are actually starting to put runs on the board

 

[Lucky_Country]

After about 18months of all hype and no action, its good to see that ADIs managment actually can do something aside from talk.

Well done to those who kept the faith, and even more congrats to those who bought under 30c.

Im still watching with interest and the amount of news flow sounds promising now they are actually starting to put runs on the board

Wouldnt exactly say ADI management have done nothing over the last 2 years !
Fighting court case with NT, securing leases for Sugarkane, Indonesia, Yemen, Fought hard for Thailand, Fracing and drilling plan for Sugarloaf.
Been real busy imo and about to be rewarded for our patience !

 

[Broadside]

After about 18months of all hype and no action, its good to see that ADIs managment actually can do something aside from talk.

Well done to those who kept the faith, and even more congrats to those who bought under 30c.

Im still watching with interest and the amount of news flow sounds promising now they are actually starting to put runs on the board

It was actually quite easy to keep the faith because throughout, despite lack of news flow from the JVPs themselves and considerable scepticism from some posters, AgentM was keeping the fire burning. He is an asset to this forum.

 

[Agentm]

the beauty of adi right now is that there is a abundance of anecdotal evidence to be conclusive that the zone 1 chalks are more than commercial.
My own conclusions are that all three zones are more than capable of commercial flow.

ADI are not in a position to announce any official figures and claim any value in zone 1 until they get flow in zone 1.. so 3 miles away the zone is going gangbusters and adi are unable to claim their zone is commercial.. you have to see the value there!!

ADI are in a position to achieve success in zone 2 which would increase their reserve potential by 125%

ADI could still be seen as great value as they are trading at 25% to thier risked NVP, which is $1.74

right now today the adi share has some ability to actually gain significant value, its still way undervalued imho.. very very good value for a high risk high reward outcome, with a safety buffer of wisteria, indonesia and yemen to keep some underlying value in the investment..

 

[nioka]

Has anyone noticed that AUT is racing ahead of ADI, especially today, with good volume as well for AUT. Makes it a good proposition for those wanting to trade AUT for ADI. I wanted to go the other way this time. Either one seems good buying considering the news.

 

[Agentm]

nioka

overseas buyers are hitting aut with massive orders, they have 1.5 million shares this morning first up, so its not aussie investors coming after them its from overseas right now.. things are starting to hot up i think..

cheers

 

[nioka]

nioka

overseas buyers are hitting aut with massive orders, they have 1.5 million shares this morning first up, so its not aussie investors coming after them its from overseas right now.. things are starting to hot up i think..

cheers

Let's hope someone tells them about ADI. AUT does have the advantage of better acerage in the area although according to my calculations the acreage per share is similar and ADI do have better backup projects. Six of one and half a dozen or the other. I only trade across when I end up with more shares.

 

[Lucky_Country]

I would like to see someone try to buy 2.5 million shares in ADI on the market would send the price through the roof !
Just a matter of time before ADI has a good sustained run.

 

[Lucky_Country]

Well I thought we may have got some kind of update from K1 by now.
All very quite even AgentM has burnt out understandable I must admit.
Looking forward to the drilling program to start that should be a great source of constant news flow.

 

[Agentm]

BLOCK B




Sugarloaf-1 Well (Empyrean Interest 6%)




Remedial cementation was required prior to the fraccing operations of the lower part of the gas-bearing chalk interval in which there are at least three separate intervals of enhanced porosity development. Testing operations began on 11 September 2007.




The first fracc attempt was unsuccessful due to premature screen out of the proppant with only 6% entering the formation; all of which required redesigning a second fracc attempt which was executed on 19 October 2007.




Despite initial gas flows of 387mcfgpd with associated condensate, the flow rate declined. Following the completion of swabbing operations and the setting of production tubing, the well was shut in until results from wells already being drilled and tested in Block A could be used to modify the continued testing programme of the remaining porous zones of the Austin Chalk.




Kennedy-1H Well (Empyrean Interest 6% - 12%)




This well was originally called Sugarloaf-2 and is the second well to be spudded in the 16 well deal mentioned above. It is located 1.6 km from Sugarloaf-1 well. The zone targeted in the horizontal section of approximately 5,000 ft of Austin Chalk reservoir is believed to correlate with the producing section in the Sugarkane Field discovery well located 8 km to the west of Kennedy-1H well.




Backround gas readings increased significantly on entering the Austin Chalk.




The rig was released on 8 December 2007 following the emplacement of a 4 ½" liner in the horizontal part of the well. On 15 February 2008 it was announced that fraccing and testing procedures were necessarily dependent on the results of the operations in the adjacent Block A, and it was not until 16 April 2008 that Empyrean received notification of the details of the final completion programme.




The fraccing operation was carried out on 14 May 2008. A total of 95,000 lbs of sand and 5182 barrels of fluid were injected under pressure into four sets of perforations over an approximate 600ft horizontal interval. Initial flow results of gas condensate and fracc fluid recovery were announced on 25 May 2008, and since then the well has been slowly expelling the fracc fluids prior to the measuring of full gas condensate flow.




The result is particularly relevant to the overall prospectivity of the area as it has shown that the so-called "middle pay zone" contains gas condensate and could therefore add 150% to the recoverable reserves attributed to the "upper pay zone".




As of 29 May 2008 the plan was to run pressure gauges while the well was continuing to flow, then shut in the well for a prolonged pressure build up. There still remained approximately 4,120 barrels of fracc fluid to recover.

 

[Lucky_Country]

Looking forward to an additional 150% increase in reserves and theres still Z3 that has not been touched yet.
Its been along wait and has tested the patience but there is light at the end of the tunnel.

 

[maverick11]

Thanks mate, it is worrying that they have only recovered a small portion of the frac fluid

 

[Agentm]

Baker 2 is the next well for EME and Conocophillips will no doubt be keen to actually fully complete the well this time..

the TCEI guys will no doubt put through their permit also as they are also drilling in the very near future.. both these wells will be deisgned to be completed with slotted liner and open hole completion according to recent releases..

I have no doubt that baker 1 would have possibly had formation damage when you consider all they had to do to it.. so the next well will be targeting the same fractured regions again.. and this time they can design the drill to minimize any potential damage..

interesting days ahead..