ADI - Adelphi Energy

please read this for details of the region and what the expectations are from continental..

http://www.continentalenergy.com/?page=bengara

i am pretty impressed with it and i am glad ADI stuck it out and got the bid,

extremely interested in who they partner this one up with..

Agentm,

What was the exact bid ADI was successful with? Can't find any such announcement as yet???

Sunburnt Land said:

Agentm,

What was the exact bid ADI was successful with? Can't find any such announcement as yet???

Click to expand...

they won a bid in indonesia. the location was kept quiet by ADI, buts its an onshore block south of the continental region. link posted above..

i hear the government has not oficially announced it but the department has..

i am not privy to the other partners in the bid and how its all farmed out. i am hoping that can be announced also.



Oil and Gas OA Winners Announced, Chevron Achieves 2 Blocks
Friday, 17 October 2008, 10:35:06 WIB, ( Hits: 78 )

Jakarta,
The Government announced 22 winners of oil and gas operational area offered through joint study, cycle I-2008. Oil and Gas Companies included in The Seven Sisters, such as Chevron Indonesia Ventures, won at 2 operational areas, while ConocoPhillips manages Arafura Sea area.


From the 22 oil and gas operational area, the total investment commitment for the first 3 years is US$ 330 million and signing bonus for US$ 45,5 million.

Director General of Oil and Gas, Evita H. Legowo, when announcing the winners at MEMR Lobby, Friday (17/10), explained that from 25 areas offered last 27th May 2008, only 22 areas fulfilled the requirement.

“The bid participants took 62 documents. From the amount, only 25 documents were returned,” said Evita.

Unreturned participation documents are North Bali II, North Masela and West Papua II areas.

The complete winners of oil and gas operational area cycle I-2008 are:

1. East Seruay : Serica East Seruway BV

2. South CPP : Ranhill Energy Sdn Bhd

3. South West Bukit Barisan: Consortium of PT Radiant Nusa Investama-PC (SKR) International Ltd

4. Lirik II : PT Karya Inti Petroleum

5. West Tungkal : PT. Tiga Musim Mas Jaya

6. South East Tungkal : Konsorsium Gujarat State Petroleum Corp.Ltd-Essar E&P Ltd

7. Lampung III : PT Harpindo Mitra Kharisma

8. East Muriah : Konsorsium Pearl Energy Ltd-Australian Worldwide Exploration Ltd

9. Madura : PT. Sinochem Petroleum E&P

10. North Sumbawa II : Husky Energy International Corporation

11. West Sageri : Konsorsium Kaizan Oil&Gas LLC-Niko Resourches (Overseas II) Ltd

12. South East Ganal I : Konsorsium Kaizan Oil&Gas LLC-Niko Resourches (Overseas III) Ltd

13. South East Sangatta : Konsorsium PT Kutai Timur Resourches-Salamander Energy (SE Sangatta) Ltd

14. South Bengara II : Adelphi Energy Ltd

15. North Bone : PT General Energy Indonesia

16. South Matindok : Konsorsium Kaizan Oil&Gas LLC-Niko Resourches (Overseas IV) Ltd

17. Bone Bay : Konsorsium Kaizan Oil&Gas LLC-Marathon Indonesia New Ventures Ltd

18. Buton I : PT Putindo Bintech

19. Arafura Sea : ConocoPhillips

20. Seram : Konsorsium Biak Petroleum LLC-Niko Reasourches (Overseas VI) Ltd

21. West Papua I : Chevron Indonesia Ventures Ltd

22. West Papua III : Chevron Indonesia Ventures Ltd

South Bengara II sounds promising. Any predictions on who may be partnering ADI in this bid? ADI is already up this morning (albeit on a very low volume). Hoping the official announcement, together with a positive update from Kowalik, will ramp up the share price over the next couple days.

i cant help there, its two international companies that are involved and i am under the impression ADI must remain the operator.

the block was considered a great block from what i have understood of it. There is plenty happening next door with continental, and they say if 1TCF is discovered regionally then a pipeline and plant will be put in to the south..

For there to be two international companies lining up to be in on this i gather its just not ADI who is interested an fairly upbeat about it, continental consider it a medium risk play.

here's another write up

http://www.ogj.com/display_article/343072/7/ONART/none/ExplD/1/Indonesia-expects-E&P-investment-to-reach-$375-million/

Top 20 activity Merrill Lynch (Australia) Nominees Pty Limited have reduced their holdings by 32,500 shares , no other top 20 activity up to 17th Oct 08 . Expect a drilling report today Kowalik-1H , getting close to Total Depth .

overnight another permit for conocophillips in live oak..

this one is called Eskew West 1H, a horizontal well west of the baker wells and south of kunde..

So far Conocophillips has drilled

Kunde 1 (discovery well - on production)

Kunde 2 (twice - first hole lost, second well is on hold pending frac tests Kunde 3)

Kunde 3 (cemented liner - on hold!!! fracced An acid fracc with 5 sets of perforations over only 900' of the 2700' horizontal, produced "spectacular" flows of 2.5mmcf of gas and 950 brls. of concentrate per day from zone)

Baker 1 (open hole completion - on hold!! 2.2mmcf of gas and 560 brls. of concentrate per day. this well was not cleaned up, had to stop drilling due to formation pressure. expections of the well once cleaned up and stimulated to vastly increase flow rates)

Baker 2 (open hole completion. unable to complete lateral due to drill string breakage. well has partial slotted liner, apparently on test right now)


Maerlene Olsen Vertical well (currently drilling away - Target is the deeper zones)


TCEI has drilled

Sugarloaf 1

Kennedy 1H (on production - averaged 0.15 million standard cubic
feet per day and 44 barrels of condensate per day.)

Kowalik 1H (drilling)

I view this as good news...only a few hundred feet in the last 2 weeks, definately tough drilling with high pressure and the well wanting to flow. Glad they have called it in and are getting ready to test.

Imagine the 7-10 day timeframe is conservative coming from the JVP's...it will all depend on how they get on with installing the liner. If that goes in without to many issues then we may be getting a flow rate update early next week...but this is oil and gas so who knows.

Getting very exciting and I am happy that TD has been called, it is still the longest lateral so far so lets see what it can produce!

Does anyone have any experience on how long the flow rates will take to be advised to market? I note they mention 7-10 days which could be as early as next weeks update.

within 14 days according to the annual report..

that formation was extremely hot and overpressurised. it literally is destroying equipment which is at the upper most tollerence levels of what technology can give us currently.

now we get to see what the chalks can deliver.

posted with permission from hartleys:


Hartleys Express Note

Train Leaving the Station

Stock:Adelphi Energy Limited (ADI 23.5cps)

Valuation: 64cps

Recommendation:Speculative Buy

Details and Impact:

Success at Sugarloaf Could Increase Valuation to >200cps -

Adelphi Energy Limited ("Adelphi", "ADI", "Company") has reported that total depth has been called at its Kowalik-1H well in onshore Texas (ADI 20%). The well has continued to report significant gas flares and high gas readings whilst drilling the 4,600 ft horizontal section.

Completion is scheduled to be finalised in 7-10 days before flow testing commences.

Gross flow rates of 5-10 million cubic feet of gas per day with 1,250-2,500 barrels of condensate per day could see our valuation increase to > 200cps.

Even discounting for the current market conditions, a 500% return on investment is not unreasonable if results are as per expectations.

Testing Imminent, Last Chance for Investment -

The next 2-3 weeks represent an opportunity to invest at low prices with significant leverage to a relatively high chance of success. The chance of success is considered to be good due to positive indications observed during
drilling and the success of wells on adjacent acreage, targeting the same play.

We rate Adelphi Energy Limited as a Speculative Buy.

If you have any questions please call.

Dave Wall
Oil and Gas Analyst
Hartleys Ltd

I am very happy to be well (excuse the pun) and truly set for this one before the broker reports and the flow (another pun - some days i just can't help myself) that is, flow of new money. I've been accummulating over the last two weeks and have doubled my holdings and brought my average price down significantly. Bring on the 500%. Thanks Agentm for sharing. All the best for holders.

As usual, the language used in these terse announcements leaves messages open to interpretation:

"...The Joint Venture has elected to call Total Depth at this point and a wiper trip has been carried out in preparation for completion of the well. These operations are expected to take 7 - 10 days before the well will be flow tested...."


I would interpret that as saying that they've done the wiper trip (no small feat) and that they are now preparing to run the liner. They didn't say when they stopped drilling - it could have been some days ago (?). Now they have to move the rig to the new site (stand by for spudding news) and bring in the workover rig - unless that, too, has been done.

I must say that I am greatly relieved. If they have made directional changes during the drilling that is making the task even more difficult (agentm has spoken of 'doglegs' and I don't suppose that he was talking about fossils discovered) far better to line and test than to risk doing as CoP did in Baker 1 (lose a string and block the well).

Besides which, they've drilled about 1,800 feet further than CoP did on the Baker twins - they are learning as they go. The next one may go to design depth.

It's looking good.

agree on a lot there estseon.

the well must have been called TD a few days ago, the wiper trip is quite possibly completed and its likely that the liner could be prepared right now.

pulling down a rig takes a few days, so for the liner to be completed and the rig dismantle i think a week to 10 days is probably easily going to cover that.

imho the processes will be clearer next week in the mid weekly report, but i expect to hear they may be up to testing the well pretty much towards next weekend.

there is no doubt this well is going to produce, hartleys is reminding all what 5 - 10 mcfpd can impact the sp.

in light of how the other wells regionally have come in, i am extremely keen to hear what kowalik is capable of.

i also agree that the next well announcement will be coming through in the near term also estseon..

courtesy the aut annual report

"As further information is gained from new wells, it is
possible to make volumetric assessments of the contingent
resource potential of the Sugarkane field. Aurora believes
that the upper chalk horizon could contain as much as
8 Tcfe across the full 200,000 acres which would equate
to a net figure of 700 bcfe for Aurora across its acreage.
These figures do not consider the middle and lower chalk
horizons within the reservoir, which have already proved
to be hydrocarbon bearing and productive in Kennedy
#1H . Of course at this early stage of appraisal there are
a number of assumptions that must be made to generate
such figures."

Agentm said:

posted with permission from hartleys:



Valuation: 64cps

Recommendation:Speculative Buy

Details and Impact:

Success at Sugarloaf Could Increase Valuation to >200cps -

Gross flow rates of 5-10 million cubic feet of gas per day with 1,250-2,500 barrels of condensate per day could see our valuation increase to > 200cps.

Even discounting for the current market conditions, a 500% return on investment is not unreasonable if results are as per expectations.

Testing Imminent, Last Chance for Investment -

The next 2-3 weeks represent an opportunity to invest at low prices with significant leverage to a relatively high chance of success. The chance of success is considered to be good due to positive indications observed during
drilling and the success of wells on adjacent acreage, targeting the same play.

We rate Adelphi Energy Limited as a Speculative Buy.

If you have any questions please call.

Dave Wall
Oil and Gas Analyst
Hartleys Ltd

Click to expand...

I guess this valuation is based on the pure fact that ADI will be receiving NYMEX prices US$ and with the exchange rate as it is now , makes ADI more favourable to those gas producing in Australia.

This maybe a bit premature pending flow rate results, however here is an extract from Natural Gas Weekly update

"Virtually all natural gas spot trading locations registered price increases on the week. These increases occurred in response to the arrival of cold weather in many areas of the country. Furthermore, significant price increases in the Southwest and in the Rockies likely were the result of numerous pipeline maintenance projects undertaken this week. Additionally, the slow recovery of the production outages in the producing areas of the Gulf of Mexico provided a further boost to natural gas spot prices. According to the Minerals Management Service (MMS), as of October 21, 2.7 billion cubic feet (Bcf) per day remained shut-in the Federal Gulf of Mexico. With another 0.5 Bcf reported shut-in for the onshore and offshore State waters of Louisiana, more than 3 Bcf per day, or greater than 10 percent of U.S. natural gas production, remains unavailable to domestic markets. The cumulative production shut-ins caused by the recent hurricanes are estimated to be roughly 265 Bcf through yesterday (October 22)."

NYMEX Natural gas futures are forecast to increase over coming months
www.nymex.com/ng_fut_cso.aspx

eureka annual report

KOWALIK-1H

The Kowalik-1H appraisal well was spudded on 18 July
2008 with a surface location some 5 km’s north of the
Kennedy-1H well and on trend from producing wells in the
adjacent acreage. This well has been drilled vertically to
approximately 12,000 feet as a pilot hole where it was
logged, plugged back and sidetracked with the intention
being to drill up to a 6,000 foot horizontal section within
the upper horizon of the chalk. The pilot hole encountered
a chalk section correlated to the Sugarloaf-1 well but some
40% thicker. This was anticipated as the seismic data
indicates that the chalk thickens in the northern portion of
the AMI. Whilst horizontal operations are not completed at
the date of this Report, higher gas readings and flares
have been observed whilst drilling which have been further
elevated when activities are undertaken that reduce the
bottom hole pressure in the well. This would suggest that
the reservoir is acting in a favourable manner with
hydrocarbon ingress into the well bore. We are encouraged
by the indications received to date and are looking forward
to well completion and production testing.

40% thicker chalks..

WOW!!!

I with that punter at 27.5c would drop his asking price a few notches. I want to pick up some more today. Actually I want to pick up more most days, but spare cash is hard to find....

Hatchy,

Just buy them at 27.5c and boost the share price for the rest of us

What's 2.5c per share anyway if this well flows like its meant to