ADI - Adelphi Energy

[Lucky_Country]

Been away for a while and miss all the action !
Capital raising, K1 fraccing, Wisteria spudding gees and the sp is still not doing much its a tough market at the momment.
Capital raising looks to be a way of rewarding holders before K1 results come in well thats what Im hoping for.
The SA reprt was well timed and gives a good insight Im sure the directors will be buying there allocation even got their options in before the rights issue !
Lets see some results !

 

[tomcat]

Quarterly Report Out


http://www.adelphienergy.com.au/fil...08 - Quarterly Report ending 30 June 2008.pdf

 

[tomcat]

These are the main points I like:

Kennedy

The well has since been cleaned up and is now being prepared for continuation of testing and flow-back operations.

Kennedy -1H well is believed to be located in the middle interval of the reservoir which has not previously been fully tested.

We are most likely a week or so away from knowing if zone 2 can be stimulated to produce commercially on matrix porosity alone!!

Kowalik

located approximately 5km north of Kennedy -1H in an area thought more likely to contain natural fractures

Do we remember how Baker got on when it encountered natural fractures...and this well will be completed with the advantage of all the experience gained so far. This is the first of 4 wells to be drilled continuously one after the other!!

The rest is a good read, New Taiton resolved...Wisteria about to spud...Farm In's already sorted for Indonesia...and then Yemen which could be really exciting next year.

Good luck all holders...we are moving into a very exciting stage in ADI's development from explorer to producer IMHO

 

[nioka]

Capital raising looks to be a way of rewarding holders before K1 results come in well thats what Im hoping for.
!

I can't see it being much of a reward. The price is not much below the issue price and it will dilute the number of shares by around 17%. Discount the price before the announcement by 17% and the new issue is at a premium. Of course that matters little if there is some good results.

The new issue has made me rework my AUT/ADI relationship. Vulue ADI down, value AUT up. Luckily I hold more AUT than ADI this month. Both are good bargains in my humble opinion but DYOR.

 

[Agentm]

the hartleys report is very interesting, i like the 2500 bopd from kowalik!!

worth a read, i will post it up..

its on the adi website also along with

 

[Lucky_Country]

I can't see it being much of a reward. The price is not much below the issue price and it will dilute the number of shares by around 17%. Discount the price before the announcement by 17% and the new issue is at a premium. Of course that matters little if there is some good results.

The new issue has made me rework my AUT/ADI relationship. Vulue ADI down, value AUT up. Luckily I hold more AUT than ADI this month. Both are good bargains in my humble opinion but DYOR.

The reward would be on success of K1 and the rest of the drilling program.
Rther than a placement to an institution release the share to existing holders that the majority of are holding tightly which will benefit all the company has more capital directors get a nice little increase in there holdings and no real increase in liquidity.

 

[Agentm]

Kennedy -1H well is believed to be located in the middle interval of the reservoir which has not previously been fully tested

again adi continues to believe they may be in the middle interval.. the question remains is where else can it be believed to be??

i guess we have to wait until tcei knows for sure?

 

[nioka]

No quotes for ADI this morning. Anyone know what is going on. Aut still quoting. Can't get my potential swapover trade orders accepted???

 

[nioka]

No quotes for ADI this morning. Anyone know what is going on. Aut still quoting. Can't get my potential swapover trade orders accepted???

Quotes comingin.

1 x 35,000 @ 32c buy
1 x 40,000 @ 20c buy
and only one sell 7,500@ 50c ???????????????????????? this is a puzzle

 

[tomcat]

Nioka,

Yesterday was the last trading day where any shares bought would be entitled to the 1 for 6 share offer.

They then clean out the system overnight and trading restarts today and any trades done from now on are not entitled to the offer...at least that is the way I understand it.

 

[blues]

Another well for EME in the Sugarloaf area cant be too long now before we get a spud announcement for Kowalik-1H!



Empyrean Energy PLC

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

Sugarloaf Block A, Texas USA

TCEI JV Block A-4 well has spudded and is drilling ahead

Empyrean, the AIM listed oil and gas explorer and producer with assets in Germany and USA announces that it has today been advised by Texas Crude Energy Inc that the TCEI JV Block A-4 well has spudded on Block A. The report showed that operations had commenced on 4th July 2008 and that presently the well had reached a depth of 9,664 feet and the operator was drilling ahead.

The TCEI JV Block A-4 well is designed to drill to the upper pay zone that has proven productive in the TCEI JV Block A-1 and A-3 wells and then drill approximately 6,000 ft horizontally within that zone in order to effect a lateral completion.

The TCEI JV Block A-1 and A-3 wells had early production flow test rates of 12 million cubic feet gas equivalent per day ("mmcfepd") and 7.8 mmcfepd respectively from shorter lateral completions than the 6,000 ft (approximate) lateral completion planned in the TCEI JV Block A-4 well. It is believed by the operator that there is a correlation between the length of successful lateral completion and the flow rates that can be achieved.




Empyrean has a 7.5% working interest in this well.

 

[resourceboom]

WTF ???? How funny is that comment about ConocoPhillips, I'd damn well hope that there'd be a correlation !!

It is believed by the operator that there is a correlation between the length of successful lateral completion and the flow rates that can be achieved.

 

[Agentm]

looking ahead, its clear the drilling takes 14 days to reach 9664 feet, and we have been told kowalik is practically ready, so its either drlling ahead now or will be this weekend imho.

it would be reasonable to assume then these sequences are very likely.

in the coming week, probably early next week, i expect news of the spud of kowalik and drilling ahead, plus the news on kennedy and its flow rate.


two weeks later, week commencing 4th August, i think kowalik would have drilled its pilot hole to TD and have wirelined, and a report on what the chalks are like there, gas shows etc etc, and they would go back up the hole and commence a horizontal..

in that week it would be expected that wisteria would be spudding.. kowalik would have completed its turn into the zone 1 chalks and would be running a horizontal section..

by the last week of august there would be much learned about kowalik, and wisteria would have been completed to TD..


it would be fair to say the news flow from monday, and the results of all 3 wells will have an impact on the adi share in the near term..

 

[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 Kowalik #1H spudded on 18 July 2008 and on 20 July 2008 preparations were being made to commence drilling the 12 1/4" hole section having set and cemented 13 3/8" casing to a depth of 825 ft.
The well is located approximately 5km north of the Kennedy -1H well and on trend from producing wells in adjacent acreage.

As previously advised, the well is engineered to take advantage of the knowledge gained from work carried out within the nearby Sugarkane Gas and Condensate field and an analogous offset field in the region. It will target the upper pay interval that has been reported to have successfully produced gas and condensate in three wells in adjacent acreage.

The well is planned to be drilled vertically to approximately 12,000 ft, as a pilot hole, when it will be logged, plugged back and kicked off to drill a 6,000ft horizontal section in the upper pay interval of the Austin Chalk.
It is expected it will take approximately 30 days to drill the pilot hole and a further 30 days to conclude the drilling of the horizontal section.
The Joint Venture is working towards this well being the first in a continuous sequence of 4 wells.

Kennedy -1H
The second stage of fracture stimulation (frac) took place on Thursday 3rd July. As previously advised, in preparation for the stimulation, an additional three sets of perforations were placed in between those used for the first stimulation in the bottom 600 ft of the well. The fracture operation successfully placed approximately 100,000 lbs of high strength proppant into the fractures before high pumping pressures prevented the full program being completed which represented 90% of the planned fluids and 50% of the planned proppant.

Flow back initially recovered about 1,200 barrels of the 6,540 barrels of fluids pumped during fracture operations along with trace amounts of gas and condensate recovered towards the end of this period.

Clean out operations were implemented to wash out fracture proppant that was left in the well bore as a result of the early termination of the frac and well production testing of the well resumed on 15 July 2008.

The well flowed initially at an unstabilized rate of approximately 425,000 cubic feet per day, 106 bbls condensate per day and 48 barrels of water per day. After a few hours at these rates the well commenced slugging and produced intermittently with rates varying between 46 – 107 barrels of condensate per day and gas rates of 200,000 to 300,000 cubic feet per day with periodic influxes of water.

To ensure that the remaining frac water (at least 5,000 barrels has not yet been recovered from the most recent fracture stimulation) was not preventing the well from unloading efficiently, coiled tubing was mobilised to the rigsite on Friday 18 July. Two attempts have been made to use nitrogen to jet the water and condensate from the well bore. Although additional fluid was recovered, the operation did not improve the flow rates. The well has recovered 44 barrels of fluid with associated gas in the last 24 hours, with the most recent fluid sample showing 80 % condensate. The well will continue
to be monitored.

Further updates will be made as required.

 

[Lucky_Country]

Well there were some positives from the K1 result but still alot of uncertainty.
106 barrels of condensate an improvement but not great so whats the next move ?
Will be interesting to see what happens over the next couple of weeks there but the spudding of Kowalik 1 will be the definative time for the future of this project.
No ramping has been done by the management and has been played with a straight bat but Kowalik is expected to be a producer and anything less will be a severe disappointment.

 

[Broadside]

See investor presentation today which has a few timelines....I like this statement with respect to Kowalik-1H: "will be drilled and completed using latest techniques including immediate testing"

Enough of the waiting.

 

[godzillaismad]

Any existing shareholders interested participating in the capital raising offer? Have been thinking about it but you can easily pick up a share cheaper in the market at this moment though.

 

[nioka]

Any existing shareholders interested participating in the capital raising offer? Have been thinking about it but you can easily pick up a share cheaper in the market at this moment though.

According to the initial notice ARQ are committed to take up their quota which is around 30%. There may not be a lot more unless the SP rises so look out for any good news that the company could release. Some good news could come before the final date and if it does not then the offer date will possibly be extended. The offer is NOT underwritten and company will need the money. Then again the SP is around the offer price and there is no brokerage which does help with small purchases. Like the commentators say at election time "too close to call".

 

[speculator101]

Well holders, I am going to take up the offer, only a few thousand shares, (and yes, no real discount) but about 18 months ago I decided that after a bit of DOI research I bought in, ADI has all the makings of great Oil company and I will continue to ride the wave.
I agree, that ADI does need the money and oil exploration is not a fast investment. Then again, the idea of investment to me implies a long term view, so.....

Goodluck to all holders.

 

[bazollie]

Well holders, I am going to take up the offer, only a few thousand shares, (and yes, no real discount) but about 18 months ago I decided that after a bit of DOI research I bought in, ADI has all the makings of great Oil company and I will continue to ride the wave.
I agree, that ADI does need the money and oil exploration is not a fast investment. Then again, the idea of investment to me implies a long term view, so.....

Goodluck to all holders.

I agree with you Speculator101. At the moment the SP is around the Rights issue price , but the stock available is very thin. With that being the case , and if you are a current holder, it is a great way to add more ADI stock to your portfolio and also , for some of the existing shareholders , a great way to even average down your price without paying brokerage. I am sure that I wouldn't be the only one who has purchased ADI at prices greater than their current price!
If so and you still like the story, and with the current drilling programmes , I see it as an easy way to make some more money.
I am in this stock for the long term and don't trade in and out of it. I continue to accumulate as I believe there is light at the end of the tunnell.

DYOR
and yes I am still holding ADI
Regards
bazollie