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i know COP have a lot in mind for Cote d'or, but 100MM?? that will last about 4 months! somehow the numbers dont add up imho.. maybe add a few more zeros.
ADI - Adelphi Energy
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That was the level of capital budget for Meridian's drilling (in each of the last 2 years, I think).
Perhaps it's the residue of the 2008 budget?
If the budget for each well (single 6,000ft lateral) is $8m and they can complete 4 in a year they could absorb that budget using 3 rigs.
Besides which, will they have an authorised budget for 2009 at this stage in 2008? Seems a bit early.
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thanks for that estseon
i was thinking 2009 and it didnt add up,, but in 2008, this year they can easily spend that on the current wells and a few to come.. and leases,, then some more imho...
your right, 2009 budget will be astronomical in comparison..
2009 would be their financial year commencing january 2009 is it not?
cheers
i was thinking 2009 and it didnt add up,, but in 2008, this year they can easily spend that on the current wells and a few to come.. and leases,, then some more imho...
your right, 2009 budget will be astronomical in comparison..
2009 would be their financial year commencing january 2009 is it not?
cheers
Yep. They seem to report on a calendar year basis.
The regional managers / directors will be putting together their budgets for 2009 over the next couple of months (might have done it). I don't know how the process in CoP works but they will be bidding for a limited resource (money) against other regions. They will have to justify their bid and it would be helpful for their case if they could produce some attractive test results, plans and projections. I don't know how many tiers of management board would have to authorise but, working down, there will be a global budget, a country budget and, for the US, doubtless a regional budget. That would be my guess. Then the projects in the region will compete. That all will take time and lots of pretty presentations. All in my honest speculation. It's a bit different at EME: Frank & Tom sitting around a table with a plate of biscuits (to time the meeting) and a pot of coffee, a few sheets of photocopier paper and a couple of pencils. Maybe a cash projection also and a few "what-if" projections showing variances.
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a short little interview with eme by an recently started internet investment magazine..
thanks saf for posting it.. i have edited to fit...
From Aimzine. Written by Michael Crockett. Includes an interview with Tom.
"Empyrean Energy
If you are looking for an exciting investment you need look no further than the Oil & Gas exploration companies listed on AIM. However, with nearly 100 of these companies listed, there are quite a few to choose from.We have selected Empyrean Energy for our analysis this month. We believe that the company is particularly worthy of further investigation for a number of reasons - not least of which is the company's Sugarloaf project.
If you are looking for an exciting investment you need look no further than the Oil & Gas exploration companies listed on AIM. However, with nearly 100 of these companies listed, there are quite a few to choose from.
We have selected Empyrean Energy for our analysis this month. We believe that the company is particularly worthy of further investigation for a number of reasons:-
• The company is having significant drilling success at their Sugarloaf project
• There will be a steady flow of news to interest investors for months and years to come
• All of Empyrean’s four major projects are in politically stable countries (3 in the USA and 1 in Germany)
• ...and all four are onshore
I spoke to Tom Kelly, Director and Co-Founder of Empyrean, by telephone - Tom was in Perth, Western Australia. We discussed Empyrean’s projects and their prospects. In our conversation I learned just how key Empyrean’s Sugarloaf project could be for the company and its shareholders. Unlike some projects Sugarloaf is not a short term thing. Forecasts are indicating the potential for over 40 years of production here. Before I expand on the Sugarloaf project I will firstly say a little about the company’s brief history.
Change of Focus
Empyrean (meaning: The highest heaven, where the pure element of fire was supposed by the ancients to subsist) was first listed on AIM just over 3 years ago. At that time the company raised £2.1 million in a placing at 35p per share. These funds were raised to progress the company’s German gas project located near Frankfurt. As can be seen from the graph below, the shares have had a number of upward spikes. They even reached £1.60 within their first year of trading but today the shares are not far from the price of the initial placing
Empyrean’s focus has subsequently switched to the USA and it is one of the three US projects, namely Sugarloaf, where the current excitement around Empyrean lies. Sugarloaf is an oil and gas project in the Gulf Coast Basin of Texas.
Sugarloaf
The company refer to Sugarloaf as a multi Trillion cubic feet gas prospect and that is an awful lot of gas. To date, all 7 of the wells that have been drilled have encountered gas in varying quantities. Most of the wells have been fracture stimulated (what’s that? – see here) with varying results. As yet, very little gas is being produced, but some of the wells are likely to be significant producers. Sugarloaf has the advantage of a nearby gas pipeline infrastructure so it will be easy to sell the gas once the wells are producing.
Empyrean has a working interest in a 16 well program that commenced in 2007. Empyrean’s actual interest ranges from 7.5% to 18% - see the RNS here from May 2007 for more details of Empyrean’s interest in this area. This RNS is also useful in understanding the split of Sugarloaf into 2 Blocks (A & B) with differing operators. One of the operators is a major international oil and gas company whose name is ‘undisclosed for confidentiality purposes and to preserve and protect competitive advantage’ – the company is named on numerous different bulletin boards worldwide and as such is not the world’s best-kept secret.
Although Empyrean’s interest is small in percentage terms, the potential rewards are considerable for a small company (market cap £20m at 34p) . It is almost exactly 2 years ago since the company reported the ‘encouraging gas shows’ from a 92 feet gas pay in the first Sugarloaf well. To see a current status of the 7 wells drilled to date we would recommend the ADVFN ‘Long Term Investors Thread’ bulletin board – see here (if you are not already registered for advfn, click the link anyway and then select ‘cancel’ – you will then be able to register for advfn for free).
The vertical wells drilled at Sugarloaf have encountered 3 potential pay zones – referred to as the upper, middle and lower zones. To date, results from the upper zone have been by far the most encouraging. However, the company is hopeful that the lower zones will eventually prove to be commercial.
In a broker’s note dated 23 May 2008, Hoodless Brennan placed an estimated value on Sugarloaf at 74p per share. They say that the figure is based on conservative estimates and is in line with Empyrean’s internal Net Present Value estimate. At this stage, estimates are extremely ‘early stage’. Not only do we not know how much oil and gas is down there, the volatility of the dollar as well as oil and gas prices make long term forecasting even less reliable than usual. Tom Kelly indicated that their new brokers, Blue Oar, are currently working on a new detailed research note.
Prospects at Sugarloaf
The immediate interest at Sugarloaf is the on-going drilling of the Kowalik 1 Horizontal Well. This well is drilling horizontally through a 6000 foot of the upper pay zone. The company reported on September 24 that the well had drilled 'approximately 2,500 ft of the planned 6,000 ft of horizontal section within the Austin Chalk’. The company also reported sustained gas flaring during drilling. However the company cautioned that: ‘whilst encouraging, the commercial significance of these gas shows and flares will not be known until the well has been flow tested’. To read the 24 September RNS statement click here. We shall be looking out for the flow test results in a few weeks time. This well is particularly important for Empyrean as they have an 18% interest in the well.
I asked Tom Kelly when we would see production begin in earnest at Sugarloaf. Tom was unable to give an exact timetable as there are too many variables, but he indicated that the operator is working as quickly as possible to get the first two Block A wells into production. Tom explained that Empyrean are fortunate that wells at Sugarloaf have produced a good deal of gas condensate (what’s that? – read about condensate on Wikipedia). The advantage of condensate is that it will be financially rewarding with its price being close to that of oil. Also, condensate is easy to store and transport by truck. Permanent production facilities for gas/condensate separation are currently being built.
As yet the middle and lower pay zones have not been proved to be commercial. However, Tom believes that there is ‘tremendous potential for the middle and lower pay zones to produce at commercially attractive flow rates’ and he suspects that it will not be long before ‘further work will be undertaken in this regard’.
Other Projects
Sugarloaf has been taking centre stage over recent months, but Empyrean's three remaining projects have all got potential:-
1. Glantal, Germany
2. Eagle Project, California .
3. Margarita, Texas -
Aimzine will provide updates on Empyrean over the coming months."
http://www.aimzine.co.uk/aimzine/1008/1008_b3/1008_b3.htm
thanks saf for posting it.. i have edited to fit...
From Aimzine. Written by Michael Crockett. Includes an interview with Tom.
"Empyrean Energy
If you are looking for an exciting investment you need look no further than the Oil & Gas exploration companies listed on AIM. However, with nearly 100 of these companies listed, there are quite a few to choose from.We have selected Empyrean Energy for our analysis this month. We believe that the company is particularly worthy of further investigation for a number of reasons - not least of which is the company's Sugarloaf project.
If you are looking for an exciting investment you need look no further than the Oil & Gas exploration companies listed on AIM. However, with nearly 100 of these companies listed, there are quite a few to choose from.
We have selected Empyrean Energy for our analysis this month. We believe that the company is particularly worthy of further investigation for a number of reasons:-
• The company is having significant drilling success at their Sugarloaf project
• There will be a steady flow of news to interest investors for months and years to come
• All of Empyrean’s four major projects are in politically stable countries (3 in the USA and 1 in Germany)
• ...and all four are onshore
I spoke to Tom Kelly, Director and Co-Founder of Empyrean, by telephone - Tom was in Perth, Western Australia. We discussed Empyrean’s projects and their prospects. In our conversation I learned just how key Empyrean’s Sugarloaf project could be for the company and its shareholders. Unlike some projects Sugarloaf is not a short term thing. Forecasts are indicating the potential for over 40 years of production here. Before I expand on the Sugarloaf project I will firstly say a little about the company’s brief history.
Change of Focus
Empyrean (meaning: The highest heaven, where the pure element of fire was supposed by the ancients to subsist) was first listed on AIM just over 3 years ago. At that time the company raised £2.1 million in a placing at 35p per share. These funds were raised to progress the company’s German gas project located near Frankfurt. As can be seen from the graph below, the shares have had a number of upward spikes. They even reached £1.60 within their first year of trading but today the shares are not far from the price of the initial placing
Empyrean’s focus has subsequently switched to the USA and it is one of the three US projects, namely Sugarloaf, where the current excitement around Empyrean lies. Sugarloaf is an oil and gas project in the Gulf Coast Basin of Texas.
Sugarloaf
The company refer to Sugarloaf as a multi Trillion cubic feet gas prospect and that is an awful lot of gas. To date, all 7 of the wells that have been drilled have encountered gas in varying quantities. Most of the wells have been fracture stimulated (what’s that? – see here) with varying results. As yet, very little gas is being produced, but some of the wells are likely to be significant producers. Sugarloaf has the advantage of a nearby gas pipeline infrastructure so it will be easy to sell the gas once the wells are producing.
Empyrean has a working interest in a 16 well program that commenced in 2007. Empyrean’s actual interest ranges from 7.5% to 18% - see the RNS here from May 2007 for more details of Empyrean’s interest in this area. This RNS is also useful in understanding the split of Sugarloaf into 2 Blocks (A & B) with differing operators. One of the operators is a major international oil and gas company whose name is ‘undisclosed for confidentiality purposes and to preserve and protect competitive advantage’ – the company is named on numerous different bulletin boards worldwide and as such is not the world’s best-kept secret.
Although Empyrean’s interest is small in percentage terms, the potential rewards are considerable for a small company (market cap £20m at 34p) . It is almost exactly 2 years ago since the company reported the ‘encouraging gas shows’ from a 92 feet gas pay in the first Sugarloaf well. To see a current status of the 7 wells drilled to date we would recommend the ADVFN ‘Long Term Investors Thread’ bulletin board – see here (if you are not already registered for advfn, click the link anyway and then select ‘cancel’ – you will then be able to register for advfn for free).
The vertical wells drilled at Sugarloaf have encountered 3 potential pay zones – referred to as the upper, middle and lower zones. To date, results from the upper zone have been by far the most encouraging. However, the company is hopeful that the lower zones will eventually prove to be commercial.
In a broker’s note dated 23 May 2008, Hoodless Brennan placed an estimated value on Sugarloaf at 74p per share. They say that the figure is based on conservative estimates and is in line with Empyrean’s internal Net Present Value estimate. At this stage, estimates are extremely ‘early stage’. Not only do we not know how much oil and gas is down there, the volatility of the dollar as well as oil and gas prices make long term forecasting even less reliable than usual. Tom Kelly indicated that their new brokers, Blue Oar, are currently working on a new detailed research note.
Prospects at Sugarloaf
The immediate interest at Sugarloaf is the on-going drilling of the Kowalik 1 Horizontal Well. This well is drilling horizontally through a 6000 foot of the upper pay zone. The company reported on September 24 that the well had drilled 'approximately 2,500 ft of the planned 6,000 ft of horizontal section within the Austin Chalk’. The company also reported sustained gas flaring during drilling. However the company cautioned that: ‘whilst encouraging, the commercial significance of these gas shows and flares will not be known until the well has been flow tested’. To read the 24 September RNS statement click here. We shall be looking out for the flow test results in a few weeks time. This well is particularly important for Empyrean as they have an 18% interest in the well.
I asked Tom Kelly when we would see production begin in earnest at Sugarloaf. Tom was unable to give an exact timetable as there are too many variables, but he indicated that the operator is working as quickly as possible to get the first two Block A wells into production. Tom explained that Empyrean are fortunate that wells at Sugarloaf have produced a good deal of gas condensate (what’s that? – read about condensate on Wikipedia). The advantage of condensate is that it will be financially rewarding with its price being close to that of oil. Also, condensate is easy to store and transport by truck. Permanent production facilities for gas/condensate separation are currently being built.
As yet the middle and lower pay zones have not been proved to be commercial. However, Tom believes that there is ‘tremendous potential for the middle and lower pay zones to produce at commercially attractive flow rates’ and he suspects that it will not be long before ‘further work will be undertaken in this regard’.
Other Projects
Sugarloaf has been taking centre stage over recent months, but Empyrean's three remaining projects have all got potential:-
1. Glantal, Germany
2. Eagle Project, California .
3. Margarita, Texas -
Aimzine will provide updates on Empyrean over the coming months."
http://www.aimzine.co.uk/aimzine/1008/1008_b3/1008_b3.htm
"...As yet the middle and lower pay zones have not been proved to be commercial..."
Apart from stating the obvious (because they haven't actually done all that much work on those zones that we know of) it suggests that the feeling is that they are (exploitable commercially) but that they've not managed to prove it yet. The comment attributed to TK confirms that. TK must have said something interesting for that paragraph of non-news to be included.
Apart from stating the obvious (because they haven't actually done all that much work on those zones that we know of) it suggests that the feeling is that they are (exploitable commercially) but that they've not managed to prove it yet. The comment attributed to TK confirms that. TK must have said something interesting for that paragraph of non-news to be included.
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next permit to appear for conocophilips is the Eskew East 1H
its a short lateral well, but unlike the other laterals its not following the same course as all the chalks wells, this one is at nearly 90 degrees to the baker wells which are about 800 feet to the east of Eskew 1H
interesting to note that all edwards wells follow this laterals direction.. whether its a chalks well or not is conjecture, but its not listed as a sugarkane cretacious well like all the others, its listed as a wildcat..
its about 1.6 miles south east of the Albert HE permit that TCEI has put in south of the sugarlaof 1 vetical
interesting.. COP is coming right up to the edge of our permits now..
its a short lateral well, but unlike the other laterals its not following the same course as all the chalks wells, this one is at nearly 90 degrees to the baker wells which are about 800 feet to the east of Eskew 1H
interesting to note that all edwards wells follow this laterals direction.. whether its a chalks well or not is conjecture, but its not listed as a sugarkane cretacious well like all the others, its listed as a wildcat..
its about 1.6 miles south east of the Albert HE permit that TCEI has put in south of the sugarlaof 1 vetical
interesting.. COP is coming right up to the edge of our permits now..
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another site has this guy called moto, he has been posting all th well locations on google earth.. including his best guess at the acreages of our sugarloaf AMI and the AUT acreages which i think is inaccurate.. but a good effort none the less.
Motos maps
http://bbs.keyhole.com/ubb/showflat...Words=+motoben&topic=&Search=true#Post1029194
i will post a map of recent permits shortly.
Motos maps
http://bbs.keyhole.com/ubb/showflat...Words=+motoben&topic=&Search=true#Post1029194
i will post a map of recent permits shortly.
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I just plugged that guy's info into google earth and it's great.
Agent - do you use google earth also?
Perhaps you could let us have your co-ordinates if moto's aren't up to scratch.
Agent - do you use google earth also?
Perhaps you could let us have your co-ordinates if moto's aren't up to scratch.
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hatchy
motos well locations are spot on, its the acreages i dont agree with nor the AUT extra acreages.. The mapping i post is absolutely accurate, i use google earth to find roads and references sometimes..
motos well locations are spot on, its the acreages i dont agree with nor the AUT extra acreages.. The mapping i post is absolutely accurate, i use google earth to find roads and references sometimes..
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the ariel view is ok, i hear a few days ago a Gulfstream G3 was flying tight circles over kowalik (which i hear is seen to be flaring still by locals), andthen moved over to baker and then kunde for quite some time and then another location..
obviously nothing
obviously nothing
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the reports keep getting better
UPDATE ON OPERATIONS AT KOWALIK-1H
Adelphi Exploration Limited (Adelphi) is pleased to provide the market with an update on operations at the Kowalik -1H well within the Sugarloaf AMI.
Kowalik-1H
Adelphi has been advised by the operator, Texas Crude Energy Inc (TCEI), that at 6am Texas time on the 30 September, 2008 the well had reached a measured depth of 15,239 feet, which equates to approximately 3,500 feet of horizontal section within the Austin Chalk. The current operation is pulling out of hole to assess the drilling assembly.
Since the last report the well has continued to produce gas intermittently while drilling, with larger flares observed following periods of shut in when tripping to change components of the drilling assembly. The surface gas readings have averaged 2,000 units during this section. More significant gas flares including a 50 foot flare were observed while drilling the horizontal section prior to pulling out of hole.
UPDATE ON OPERATIONS AT KOWALIK-1H
Adelphi Exploration Limited (Adelphi) is pleased to provide the market with an update on operations at the Kowalik -1H well within the Sugarloaf AMI.
Kowalik-1H
Adelphi has been advised by the operator, Texas Crude Energy Inc (TCEI), that at 6am Texas time on the 30 September, 2008 the well had reached a measured depth of 15,239 feet, which equates to approximately 3,500 feet of horizontal section within the Austin Chalk. The current operation is pulling out of hole to assess the drilling assembly.
Since the last report the well has continued to produce gas intermittently while drilling, with larger flares observed following periods of shut in when tripping to change components of the drilling assembly. The surface gas readings have averaged 2,000 units during this section. More significant gas flares including a 50 foot flare were observed while drilling the horizontal section prior to pulling out of hole.
Great stuff...
So they managed to drill around 1000 feet since last announcement and they say that over this 1000 feet:
The surface gas readings have averaged 2,000
units during this section.
Wow!!
50 foot flare...has there been any bigger Agent?
So maybe another week or so of good drilling and we are closing in on TD...I would be happy to see them call TD and get this monster producing!!
So they managed to drill around 1000 feet since last announcement and they say that over this 1000 feet:
The surface gas readings have averaged 2,000
units during this section.
Wow!!
50 foot flare...has there been any bigger Agent?
So maybe another week or so of good drilling and we are closing in on TD...I would be happy to see them call TD and get this monster producing!!
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I'm still holding tight to every single share. Another great announcement today. Hmm, will be interesting to see if they even bother to continue drilling or put this baby straight on production.
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It's great news, but why do they keep adding - "the commercial significance of these flares will not be know.. blah blah"
Anyone read the end of year report - makes great bedtime reading, but one thing worth noting - Chris Hodge only has a bit over 200K shares - why is that?
Anyone read the end of year report - makes great bedtime reading, but one thing worth noting - Chris Hodge only has a bit over 200K shares - why is that?
Have a look at his options Hatchy!! He will be very keen to see ADI go through the roof.
The reports on Kowalik show we are in a sweet spot...perhaps as long as they stay in zone 1 it is all a sweet spot
Be interested to see what happens when they finally get around to fully testing the other zones but I think we will have a lot to be happy about with zone 1
The reports on Kowalik show we are in a sweet spot...perhaps as long as they stay in zone 1 it is all a sweet spot
Be interested to see what happens when they finally get around to fully testing the other zones but I think we will have a lot to be happy about with zone 1
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Because they can't speculate and must only state the facts. Although the news is definately positive, it is not yet definitive until they test and flow.
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Right, yeah I thought they were covering their butts.
Sure he's got a lot of options, exercisable at 90 or so...
Have to wait and see what happens - we could be a ways off 90cps if these markets don't settle down.
Sure he's got a lot of options, exercisable at 90 or so...
Have to wait and see what happens - we could be a ways off 90cps if these markets don't settle down.
