ADI - Adelphi Energy

[Lucky_Country]

Cant come quick enough I must admit Im getting a bit restless with this SugarKane project.
There has been alot of talk and speculation but no results throw in NT and I sometimes wonder when we will get any results form any wells.
Good to see the directors taking up their option and have been impressed with their proffesionalism in the whole saga as Im sure they are keen as all of us to get things moving.
6 months time one would hope we will all be smiling.

 

[Lucky_Country]

Well record Oil Prices and ADI and its jvp getting ready to do a great drilling campaign to confirm their reserves.
Timing may become impecable and maybe that was their stratergy from day one.Lets just hope we reap the rewards of the oil price gains and just get great results and many wells drilled.

 

[Agentm]

looking forward

Early july 2008 new wildcat well in karnes county sugarkane target.

late July 2008 wisteria offshore timor..

then i believe the bidding rounds for indonesia are next

 

[blues]

Hi Agentm,

It is coming into exciting times for all holders with the testing of Kennedy still continuing, drilling in Texas to begin soon, drilling in the Timor Sea etc. Lots on.
Have you heard of a rough spud date for drilling in the US?

Cheers

 

[Lucky_Country]

Lets get Sugarkane up and running and become a producer.
Cashflow would be a main priority and ould fund alot of great projects ADI have and are going for.

 

[Agentm]

Hi Agentm,

It is coming into exciting times for all holders with the testing of Kennedy still continuing, drilling in Texas to begin soon, drilling in the Timor Sea etc. Lots on.
Have you heard of a rough spud date for drilling in the US?

Cheers

last conversation i had said early july was still very real target... my view is that is still the case, permits should be going through soon.

imho yemen has been totally overlooked and not at all understood.. oilsearch kept block 3 and 7, and they are deadly serious about a region in the north west corner of block 3 trending up into the south west corner of block 7 (our block) they are about to do a 3d there..

i recommend this presentation is worth looking at

http://www.oilsearch.com/resource/2007 Investor Field Trip - MENA.pdf

 

[Lucky_Country]

Well seems like an eternity since we had any news and as a result the share price is suffering.
K1 well where are the results surely the jvp have had enough time to let the pressure build up.
Looking forward to the start of a new FY and a better news "flow" excuse the pun.

 

[nioka]

At least we have some positive news as far as the SP went today. Someone must know something that I don't know. Up 16%+ for the day.

 

[Lucky_Country]

Well its got to be close to hearing something from K1
Combined with a share price that looks good value for money and the start of a drilling campaign in July seems to show a few have an interest in ADI.
It was over $1 some time ago on the drilling of Sugarloaf and oil and gas were far cheaper then alot havent forgotten that.

 

[Agentm]

this is the eme questions answered from the other day, i took out the eagle and glantal stuff as adi is not involved in it, and left in the eme project with conocophillips, and our jvp stuff

Empyrean Energy: your questions answered
ONLINE Q&A: Empyrean Energy director Tom Kelly answers IC readers' questions on prospects, funding, drilling programmes and more
18 June 2008

http://www.investorschronicle.co.uk...a/Empyrean-Energy-your-questions-answered.jsp


Created:
18 June 2008
Written by:
Jonathan Eley

Empyrean Energy is on a roll. Shares in the Aim-quoted oil and gas exploration company have almost tripled over the past month, following a gas and condensate discovery in Texas, and the company has just raised £4.5m via a placing. Here, executive director Tom Kelly answers questions submitted by Investors Chronicle readers, ahead of the company's annual meeting in London next week.
Advertising


Any information on plans for fund-raising to complete drilling at Sugarloaf/Sugarkane?

Empyrean has just completed a placement to UK and European institutions and other investors, raising £4.48 million before expenses [this was completed between submission of questions and receipt of answers - Ed] This raising will hold Empyrean in a strong position as we continue to appraise and develop the exciting Sugarloaf Project within the Sugarkane Field Gas/Condensate discovery area.

I've read that flow rates decline very quickly in these onshore wells. How representative are these test numbers of what we're going to see if Sugarloaf gets to production?

We need more test data before we are able to provide longer term representative numbers for the flow rates. The initial flow rates are often greater than the longer term stabilised rates. We will also get a variation in flow rates from well to well, depending on the natural fracture swarms that the horizontal wells are able to intercept. Where the wells intercept multiple swarms, we are likely to see spectacular initial flow rates with good permeability that may not require fracture stimulation. Where we do not intercept these fracture swarms, we have proven with the TCEI JV Block A-1 (KUNDE 3) well that successful fracture stimulation can achieve great results. The results to date indicate good pressures and long reservoir production life. (WTF????)


What's the outlook for US gas prices? Are they directly linked to the soaring oil price?

Although it is not our job to predict energy prices, the current oil and gas price regime in the US is obviously strong. The important thing to note with Empyrean is that at both our production assets (Margarita and Sugarloaf) we have production from both gas and oil. Especially at Sugarloaf where the condensate fetches a price directly linked to the oil price - and we have a terrific condensate to gas ratio that provides a greater value from the condensate than the gas production. To conclude, we have direct exposure to the soaring oil price through oil production at one of the Margarita wells and condensate production which makes up the bulk of the Sugarloaf production in terms of value.


The share price has been very volatile, and despite the recent gains, it's still well off previous highs. How confident are you that we are ending 'famine' and entering 'feast'?

Empyrean is now part of a major discovery in onshore USA and the early results from this project should give everyone confidence. This is the second project that Empyrean has brought into production in just under three years since floating on Aim. Some projects take more than 10 years from conception before a first well is drilled. Empyrean has a tight committed team dedicated to continuing the momentum that exploration success brings. At Sugarloaf Block B alone there is the possibility of at least another 34 wells to be drilled to develop the acreage. If these wells are brought successfully into production with anything like the initial flow rates from the first Block A-1 (KUNDE 3) and A-3 (BAKER 1) wells then it will likely be a worthy "feast". If we have additional exploration success from our other projects then it has the possibility of being described more as a "smorgasbord". Empyrean is in the strongest position it has ever been in during its short history.

With your plans to develop more oil/gas wells on the Sugarloaf complex in Texas USA, can you explain how you intend to finance this development programme and highlight in what time frame you intend to start and finish this?

The recent fundraising puts Empyrean in a strong position as we continue to appraise and develop the exciting Sugarloaf Project within the Sugarkane Field Gas/Condensate discovery area. In terms of development timeframes, we would expect that there will be a number of wells drilled on both Block A and B before the end of this calendar year. I would say a minimum of two wells and a maximum of six wells likely before year's end. As development wells are brought into production successfully it is natural for the development schedule to speed up. These are our best estimates right now and we will obviously notify the market as the operators confirm the development schedule and the timing of wells.

Is it intended to test Zone 2 at SL/SK in parallel namely Kennedy at Block B & Kunde #2 at Block A. If so, has the testing started at Kunde 2 yet ?

Blocks A and B each have different operators. The TCEI JV Block A-2 (KUNDE 2) well is likely to test the "middle" pay zone but has not commenced testing yet as it is being used to monitor the fracture stimulation of the TCEI JV Block A-1 (KUNDE 3) well. Kennedy testing has commenced.

When you expect to be able to issue estimated production numbers and reserves etc for the Sugarkne condensate fields?

There is already an estimate of recoverable production to Empyrean based on our net acreage position in Block B and the additional wells in Block A. That estimate is 32.5 billion cubic feet of gas equivalent, and relates to the uppermost pay zone only - i.e. the zone that the TCEI JV Block A-1 (KUNDE 3) and A-3 (BAKER 1) wells are producing from. If we get good flow rates from a second or third zone, then that estimate will be revised.

When do you plan to name the major partner in Block A with TCEI ?

We are not able to comment on the identity of the block A operator at the present time due to confidentiality agreements (CONOCO PHILLIPS )




just finding this statement completely perplexing myself.. if i read it right, then Tom kelly is saying the fractures done on Kunde 3 were not in a part of the well that was intsecting naturally fractured chalks, or "fracature swarms" as he calls them.. are we to assume the 12mmcfpde is coming from the high matrix chalks with artificial fractures?????????????


Where we do not intercept these fracture swarms, we have proven with the TCEI JV Block A-1 (KUNDE 3) well that successful fracture stimulation can achieve great results. The results to date indicate good pressures and long reservoir production life.

 

[sam76]

Nice run down for the Layman, Agent M

ADI has seen some support over the last couple of days. Hopefully it's related to K1

 

[Agentm]

i think the new permit, KOOPMANN A274 - Well # 1 that conoco are doing next in dewitt says something more about how propective they see this region!!

as for the statement by Tom Kelly that kunde 3 is not producing from fracture swarms and is producing from the perforating and fracturing of the well mechanically is staggering...........

 

[EEE]

So are we to say that the best is yet to come from Kunde 3?

Thats my only question but need some more filler to make the 100 character min

 

[Agentm]

So are we to say that the best is yet to come from Kunde 3?

Thats my only question but need some more filler to make the 100 character min

we know kunde 3 hit a sreies of fracture clusters, but it appears from what tom is saying that COP have fractured regions that are not fracture clusters.. just the rock matrix... so its fair to say if the rocks are doing 12mmcfpde then what will the staggering flow rates be if they open up the fracture clusters??

if we believe tom kelly is not yanking our chain, then if i read his answers right then kunde 3 has got some amazing flow rates to come if they open up the other zones...

 

[Agentm]

next well is KOWALIK 1

its a horizontal into the SUGARKANE (CRETACEOUS)

maybe 3 miles north of our wells now..

spud is scheduled for early july

 

[Lucky_Country]

Am looking forward to seeing confirmation of the spud of our next well in the Sugarkane.
Also very keen to hear how K1 is going ?

 

[Lucky_Country]

4 new wells first to spud mid July
K1 40 barrels a day with futher frac stimulation to come.
This is sounding real positive even worth the wait !
Looking forward to xmas and we should really now alot more by then.

 

[Agentm]

SUGARLOAF OPERATIONS UPDATE

Adelphi Energy (“Adelphi”) is pleased to provide an update on operations within the Sugarloaf Area of Mutual Interest (“AMI”).

Kowalik -1H

Adelphi has been advised by the Operator of the Sugarloaf AMI, Texas Crude Energy Inc (“TCEI”) that the next well will be called Kowalik -1H. The well will spud as soon as the rig completes operations on another well and is mobilised to site, possibly by mid July. The well is engineered to take advantage of the knowledge gained from the work carried out to date within the area and an analogous offset field in the region.
It will target the upper pay interval that is understood to have successfully produced gas and condensate in three wells in adjacent acreage. The well is planned to have a 6,000ft horizontal section. The Joint Venture is working towards this being the first in a continuous sequence of 4 wells and it is expected that further announcements will be made to this effect in due course.


Kennedy -1H

Adelphi has also been advised that preparations are underway to further fracture stimulate the deepest 600 feet of the horizontal section of the Kennedy -1H well. The fracture operations previously reported by Adelphi in May, 2008 have been partially successful. Although stable production of minor gas volumes and 40 barrels per day of condensate were achieved, it is believed that the well would benefit from a larger fracture stimulation with a modified design.

As previously reported, the Kennedy -1H well is believed to be located in the middle interval of the reservoir which has not previously been fully tested. Adelphi is encouraged by the demonstrable productivity and looks forward to the results of the second stimulation. Subject to equipment availability, TCEI has advised that this work will take place within the next 14 days.

 

[Agentm]

One mile is 5280 feet,

this kowalik will be 6000 feet, so i hope i got the scale fairly accurate..

 

[tarzanhey]

Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))
Sugarloaf Block A, Texas USA
* New horizontal well planned for Block A - the TCEI Block A-4 well.
Empyrean, the AIM listed energy company with exploration and production assets in Germany
and USA today announces the following on Block
A at the Sugarloaf Project in Texas:

TCEI Block A-4 Well
Texas Crude Energy Inc ("TCEI") has advised that the operator of Block A is preparing for
a new horizontal well to be drilled following
the success of both the TCEI Block A-1 and A-3 wells. The new well is planned to be completed
horizontally into the upper zone that has
proved productive in the TCEI Block A-1 and A-3 wells.
The well is expected to commence as soon as the rig is able to finish drilling and
mobilize from the well it is currently being used by
the Block A operator to drill.
Empyrean will have a 7.5% working interest in this well.
A further announcement will be made when the well spuds.
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 g