ADI - Adelphi Energy

[Agentm]

i cant get my orders completed, so i will have to buy in the rights issue..

plenty of upside on wisteria and kowalik and kennedy is due to be reported any day now..

Overview of Key Assets

Sugarloaf Project, Texas Gulf Coast (20%)

• commenced drilling the first of up to 4 horizontal wells aimed at
developing a play that has mean potential of 600bcfe

Wisteria Prospect, Timor Sea (10%)

• drilling to start early August targeting reserve potential of
200mmbo with Coogee Resources and where Adelphi is close to
free carried

Blocks 7 & 74, Yemen (8.5%)

• a 3D seismic programme is currently ~90% complete, and 2-3
wells are scheduled for 2009; with Oil Search and Kuwait co’s
Indonesia (50%)

• first right of refusal on a gazettal block and negotiated a farm-out
for a free carry on a significant work programme


Sugarloaf Conclusions
• The Sugarkane production and test results 6km SW of our Sugarloaf
Project on the same trend are encouraging and confirm the
presence of a new Austin Chalk play
• This play highly likely to extend into our Sugarloaf area
• Kennedy test results confirm the presence of condensate and gas
saturated rock mid to lower chalk
• The highly productive upper chalk productive zone has yet to be
tested in the Sugarloaf area. This highly productive zone is the
target for Kowalik
• Kowalik has now spudded – the first of up to 4 back to back
horizontal wells using optimal drilling and completion techniques
• 600 BCFe gross mean potential – 120 BCFe to Adelphi


Yemen – Block 7 (8.5%)
10 km from Uqlah field
276 sq km 3D seismic survey in SW of Block 7
• 3D seismic survey detailing prospects similar to the Al Uqlah field
• World class prospectivity
• Oil Search retained this area / divested other areas
• Partners
- Oil Search (operator) 34%
- KUFPEC 21.25%
- ARC 21.25%
- The Yemen Company 15%
- Adelphi 8.5%

The 110mmbbls Al Uqlah field 10km west of Block 7 Block 7 Prospect



Wisteria Prospect (ADI 10% near fully carried)
• Three targets in a single well
• Amplitude and HRDZ supported
Puffin stratigraphic trap
• Simple Jurassic structural trap
• 200mmbbls gross potential
• Early August 2008 drilling
• Surrounding production &
developments
• Partnered with Basin’s most
successful operator - Coogee
Resources


New Ventures – Southeast Asia
• Adelphi is pursuing a number of oil and gas opportunities
throughout Southeast Asia with a focus on oily, underexplored
areas with potential for large discoveries
• In Indonesia, our Joint Study with Government is completed and
Adelphi has first right of refusal on a block which was recently
gazetted
• Adelphi has negotiated a farm out in respect of this right in return
to be carried on a significant work program
• Bids close mid-August





Conclusions
• Activity / Leverage / Diversity
• Sugarloaf – Chalk play in area is proven, $2.55 cps success case
value
• Kennedy-1H oil saturation proved; test still in progress
• Kowalik -1H spudded - the first of up to 4 consecutive horizontal wells
• Wisteria-1 – Multi-target high impact near fully carried well. Early
August spud; $2.61 cps success case value
• Yemen – 3D seismic 90% complete. Block 7 is Oil Search operated;
world class with a 110mmbbls discovery within 10km of block
• Indonesia – Well positioned to win a block in the upcoming bid
round with pre-bid farmout already secured for a significant work
program
………a very exciting year ahead.

 

[Agentm]

http://pubs.usgs.gov/dds/dds-069/dds-069-h/REPORTS/69_H_CH_2.pdf

Reservoir Rocks


Austin Chalk

As described previously under the heading Hydrocar-bon Source Rocks, the Austin Chalk is that part of the Austin Group consisting of an argillaceous, compacted, foraminiferal biomicrite (Dawson and others, 1995). Overall, its reservoir properties vary greatly with geographic location and depth of burial, but the strata are considered tight in most areas. On the San Marcos arch, for example, porosity averages between 15 and 30 percent, and permeabilities are between 0.5 and 5.0 mD (Scholle and Cloud, 1977); off the structure, however, porosity and permeability decrease to 10 percent or less and 0.5 mD or less, respectively (Snyder and Craft, 1977; Hinds and Berg, 1990). The causes of the reduction in porosity and permeability are carbonate recrystallization, which resulted from compaction and pressure solution, and crystallization of secondary ferroan calcite as cement (Dravis, 1981). The Aus-tin is extensively fractured, containing both tectonic fractures and microfractures, the latter resulting from hydrocarbon gen-eration (Snyder and Craft, 1977; Berg and Gangi, 1999). For our study, the Austin Chalk was considered as a reservoir only in limited areas where the unit has been further fractured by extrusion of and structural adjustments over volcanic mounds (fig. 8). The databases we used (IHS Energy Group, 2003a, 2003b) showed Austin production in association with volcanic mounds in about 50 leases (out of a total of more than 22,600 whose wells reach the Austin). In our study, we considered the Austin to be more important as a source rock than as a reservoir.

 

[Agentm]

this is a report from baker 2

3 miles west of kennedy it sits right next to baker 1 had significant gas and condensate flows and could only complete 2800 feet of horizontal and had to discontinue drilling due to the overpressurized formation..

1st August 2008
Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))
Sugarloaf Block A, Texas USA
* TCEI JV Block A ž 4 well reaches total depth in the pilot hole section
* Encouraging gas shows over approximately 300 feet
* Horizontal drilling about to commence along the gaseous interval

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA provides the following update on operations:

Empyrean has been advised by Texas Crude Energy Inc that the TCEI JV Block A ž4 well has reached a total depth in the pilot hole section of 12,756 feet. Electric logs have been run. Current operations are the setting of cement plugs in order to kick off and commence the horizontal drilling for approximately 6000 ft.

The electric logs show an interval of approximately 300 feet of gas shows between 12,400 and 12,700 feet. This interval is encouraging and the horizontal portion of the well is designed to drill laterally along a portion of this
interval.

Maximum gas readings reached 1325 units against an average background level of approximately 50 units.


Further updates will be provided as significant developments occur.

 

[eopiela]

I was alerted to this forum by a fellow Karnes County resident; I'd like to share some on-the-ground knowledge re: the Kowalik well. We own the property immediately adjacent to the drill site and included in the pooled acreage since it is over the horizontal run. I've attached a photo of the rig taken last week. We received a call from Texas Crude yesterday wanting to negotiate a pipeline easement across our property "by the end of the week." They sent out surveyors today and should have a plat back to us tomorrow. Texas Crude is working quickly to get a pipeline laid to connect the well into the Houston Pipeline (high pressure gas) approximately a mile away.

 

[sam76]

Hey mate, thanks a lot for posting this!

I'm sure agent m will have something more to say about this!

 

[Agentm]

thanks for the update eopiela, nice post..

the well would be about 10,800 feet by now, and should be finishing the pilot hole by saturday our time..

i think your getting the benifit of a lot of research on the kowalik well, its going to completed open hole with a slotted liner.. and if the TCEI operator can keep it in the upper chalks, you stand a good chance of becoming a wealthy landowner in the future..

We have been told the well will be connected as soon as its completed, so what your saying about TCEI wantingto run a pipeline makes perfect sense.

good luck to you and to all investors.. have you thought of investing in the JVP by any chance, i hear a lot of your neighbours have..

 

[Mad Punter]

Thanks for the post eopiela, good to hear from the other side of the world.. If you see dirty big flares roaring from there make sure you get a shot and send it down to the believers........

 

[buzzbuzz100]

Eopiele

Thanks for the picture. Any chance you could go and take another couple of photos? Perhaps enlarge the roadside notice/sign, or other notices of interest so we can have proof of the location.

 

[Agentm]

buzz, eopiela has not got to prove his credentials, the photo is genuine and there has been a savage attack on his privacy by some UK people in the last hours i have been told, the mods have taken care of it, and i recommend everyone steer clear of fflintoff.. i ask the uk people to back off big time!!


eopiela

well i hear that people have been trying to place severe pressure on you, and i have the impression this person is a guy from the UK.. i cant say how disgusted i am in that person doing this, and i absolutely encourage you to not be too offended by the absolute determination by people to invade your privacy..


i cant apologise on behalf of anyone, but i am deeply upset, disgusted and dissappointed in the way people have acted towards you, i assure you that we here are very interested in you input and we share your excitement of the kowalik well and the TCEI operations,,

i doubt if you will be keen to share anything in light of what happened, and i hope you can understand there are always very unstable people on internet, and your experience was certainly extreme and alarming. the mods here have acted swiftly and i applaud them for their actions..

flintoff, i have no idea what your about, and why you would possibly behave this way towards someone, but i have no respect for your disregard, and the invasion of privacy and the deep disrespect you have shown on this forum...

 

[nioka]

I agree with agentm. As a person who is prepared to criticise at times I hope that when I do that it is done fairly. Unjust personal criticism as we saw here is uncalled for and I agree with it's removal by the mods. My criticism of ADI is purely along the lines of "when will groundhog day be in the past". No contributor to this forum can answer that question or be responsible for the groundhog.

 

[Agentm]

you have been as frustrated with the TCEI operations "groundhog days" as we all have. and we are all aware, as its been very very clearly said throughout the road show and to all investors through the presentation, the groundhog days are gone.. its now getting to the business of 7 wells in 10 months..

i appreciate your input more than anyones nioka, you have shown us all how to trade between the two shares. ADI and AUT, and come out in front with huge gains in the number of shares.. i admire your very perceptive and clever trading style..

ADI has no other ambition but to give its long term shareholders, and those that support the rights issue, a steady stream of wells that will reward them immediately in texas.. imho we can say that the long wait is over, kowalik will be horizontal in a week, and imho they will be at 11400 today, and in the chalks tomorrow..

looking forward to the updates next week..

 

[solomon]

We received a call from Texas Crude yesterday wanting to negotiate a pipeline easement across our property "by the end of the week." They sent out surveyors today and should have a plat back to us tomorrow. Texas Crude is working quickly to get a pipeline laid to connect the well into the Houston Pipeline (high pressure gas) approximately a mile away.

This rings a note of confidence on behalf of the operator. Why else would there be so much urgency to get a pipeline laid. If I was uncertain about the outcome of the well I wouldn't be negotiating contracts and employing surveyors to build a pipeline.

 

[Broadside]

Thanks for the news on the ground eopiela, it's appreciated. I am very sorry if some people have invaded your privacy but hope it doesn't dissuade you in future. All the best regardless.

 

[Agentm]

This rings a note of confidence on behalf of the operator. Why else would there be so much urgency to get a pipeline laid. If I was uncertain about the outcome of the well I wouldn't be negotiating contracts and employing surveyors to build a pipeline.

i share that sentiment also, there is a lot of confidence that should this rig drill the well into the upper chalks and intersect the natural fracturing rock in the region, then its going to need to put what comes back at it somewhere.. a pipeline is definately needed in the case of drilling these chalks wells..

the reasoning for the pipeline hook up is twofold imho, they cant flare for more than 7 days i believe, but importantly, if your going to flare off 2500 bbls per day i think a pipeline would be a far more profitable alternative..

 

[buzzbuzz100]

Agent & Eopiela

I accept that all posters on any board should remain anonymous. We should respect their privacy. However I would expect anything posted to have 'proof', especially when its effect can have financial consequences. The photo posted by Eopiela was welcome but it could be any rig anywhere.
I did copy and paste to try maximising the photo. I attempted to read the notice at the road side or read if it was a Texan number plate on the truck. Neither could be proven. Many of you will have done similar but found the photo insufficient to give a quality that could be dramatically enlarged. [The camera I use would certainly have given sufficient definition to read the small print]
Eopiela tells us he lives local to the drilling site and anticipate pipelines etc. Obviously he is interested in the activities. What I would hope to see is clarification. I would hope Eopiela would find time to revisit the drilling site and take a few photos to prove the location. What is written on the notice board? There must be some detail of a drilling license etc. Let us see proof.

PS ... I recollect we had a similar 'spy' at Glantal. That photo included proof ... it showed the location, license and operators name at the gate!

 

[fflintoff]

Re: Agent & Eopiela

I accept that all posters on any board should remain anonymous. We should respect their privacy. However I would expect anything posted to have 'proof', especially when its effect can have financial consequences. The photo posted by Eopiela was welcome but it could be any rig anywhere.
I did copy and paste to try maximising the photo. I attempted to read the notice at the road side or read if it was a Texan number plate on the truck. Neither could be proven. Many of you will have done similar but found the photo insufficient to give a quality that could be dramatically enlarged. [The camera I use would certainly have given sufficient definition to read the small print]
Eopiela tells us he lives local to the drilling site and anticipate pipelines etc. Obviously he is interested in the activities. What I would hope to see is clarification. I would hope Eopiela would find time to revisit the drilling site and take a few photos to prove the location. What is written on the notice board? There must be some detail of a drilling license etc. Let us see proof.

PS ... I recollect we had a similar 'spy' at Glantal. That photo included proof ... it showed the location, license and operators name at the gate!

buzz,
It is very important to check the credentials of those that purport to be landowners on this thread in view of the vested interests of certain investors. If they are genuine then they have nothing to hide as they freely chose to post here & to make declarations of land ownership & laying of pipe.
Always be wary of those that champion causes far too freely.

 

[eopiela]

Re: Agent & Eopiela

buzz,
It is very important to check the credentials of those that purport to be landowners on this thread in view of the vested interests of certain investors. If they are genuine then they have nothing to hide as they freely chose to post here & to make declarations of land ownership & laying of pipe.
Always be wary of those that champion causes far too freely.

I have attached the survey of the site (publically available at the Texas Railroad Commission site http://www.rrc.state.tx.us), clearly showing my name as the landowner of record in the land immediately to the South of the drill site. Any questions?

 

[Dukey]

Re: Agent & Eopiela

I have attached the survey of the site (publically available at the Texas Railroad Commission site http://www.rrc.state.tx.us), clearly showing my name as the landowner of record in the land immediately to the South of the drill site. Any questions?

Eopiela - as others have said - I'd like to add my thanks for sharing your local info & adding some more certainty for us 'remote' holders. & The evidence you've just posted should more than satisfy anyones doubts as far as I'm concerned.

-------------------
PS .. guys.. I thought I had posted a +ve comment thursday night... but it seems to have been removed in the fracas that i've obviously missed. but I've had no notification from anyone that my post was removed.... can anyone confirm that a post of mine was removed... and/or suggest why? I seem to recall it was fairly innoquous.

... then again maybe I just pressed the wrong button.. it was late.
-------

Good luck all holders - D

 

[Agentm]

eopiela

you dont need to post details to prove your credentials, i think there is nothing that you can post here that i wouldnt believe as genuine.. i think a photo of kowalik is not going to do anything to the share price, but i can assure you that if you report flares on the forum, that it would cause a lot of speculation on the adi share, and be information that is not declared by the ADI management.. so it would be very interesting to see what sort of impact any pictures or reports from you of any flares during the horizontal completion will be percieved and impact the adi share price, imho this site will be heavily monitored!!

i have been told TCEI would not like the rig number on the patterson rig at kowalik to be released, but it is public knowledge and i know as you do its the patterson 160, which has finished recently completing the geosouthern migura and buchhorn dual lateral horizontals in de witt county.. if they use the same crew then at least there will be some chalks experience on the site..

you would be aware that the site info goes to TCEI in houston then to the jvp partners for consideration daily.. your reports would be faster than the info they would get.. that makes for interesting days ahead imho..

as your aware there has been a lot of wells drilled not only by texas crude, but also by conocophillips and also geosouthern in live oak, karnes and de witt county..

i doubt if you know too much around the area, but i will ask anyway if you dont mind..

i would like to know if you have heard anywhere how bordovsky went? we know its completed, but have you been able to understand what conocophillips found in the chalks there? i gather you would have spoken to the bordovskys?

it appears that conocophillips has yet to complete a horizontal well and place it on long term production test, we can see kunde 3 has been put on production for a while but i also appears to be on pressure build up tests also. you would have noticed the large number of tanks on the kunde 3 site recently for their condensate separation, which indicates they are possibly looking to do some further work on the well or perhaps look at putting it on production for longer term..

i am hearing for over a year that the baker well region is being looked at for a processing plant being put in there, seperators and pipeline connection tie in, but i have yet to see that eventuate, have you been seeing or hearing what the conocophillps operator has planned there?

i gather kowalik is close to being completing its vertical pilot hole, you wouldnt be getting any insights into that, but you may notice when they wireline..

so if you have any insights on these questions i would be interested to know.. btw you are welcome to use the private mail feature if you dont feel comfortable answering the questions in the forum..

 

[jackohelp]

Re: Agent & Eopiela

Eopiela - as others have said - I'd like to add my thanks for sharing your local info & adding some more certainty for us 'remote' holders. & The evidence you've just posted should more than satisfy anyones doubts as far as I'm concerned.

-------------------
PS .. guys.. I thought I had posted a +ve comment thursday night... but it seems to have been removed in the fracas that i've obviously missed. but I've had no notification from anyone that my post was removed.... can anyone confirm that a post of mine was removed... and/or suggest why? I seem to recall it was fairly innoquous.

... then again maybe I just pressed the wrong button.. it was late.
-------

Good luck all holders - D

well done eopiela. I personally don't think you have to prove your identity but it all helps. There has been so much secrecy for the last two or more years, especially for the uk investors, anything you add is more than welcome.

good luck.