ADI - Adelphi Energy

[bazollie]

New update out now on Kowalik. More of the same news , except well was shut in yesterday to commence the clean up of any muds etc.

Maybe 2 more days then we may have some news ??

Next week should give us an idea if this process will improve the flows,

Regards
bazollie

 

[Agentm]

05 November 2008

Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online

UPDATE ON OPERATIONS AT SUGARLOAF JOINT VENTURE

Adelphi Energy (Adelphi) is pleased to provide the market with an update on operations 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 4 November 2008 that the Kowalik -1H well was flowing at an unstimulated rate to sales. During the 24 hour period prior to this time the well produced 937,000 cubic feet of gas, 321 barrels of oil and 14 barrels of water. The water production is considered to be predominantly drilling and completion fluids. The well was still producing slugs of drilling mud during the period and is not believed to have been fully cleaned up yet.

TCEI is making preparations to flush the well with a mud cleanout treatment to help mobilise any remaining drilling mud and completion fluids. Such treatments have effectively been used many times in the Chalk at analogue and other fields to enhance the flow and clean the formation. The well was shut in on 4 November 2008 in preparation for this operation.

Weston -1H

Adelphi has also been advised by TCEI that the Weston -1H well has reached a depth of 735 feet and has run and cemented the surface casing at this depth. Preparations are currently underway to commence the next hole section.
The well is targeting the upper chalk interval that has been reported to have successfully produced gas and condensate in three wells in the adjacent acreage and gave positive indications while drilling in the Kowalik -1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.

 

[seasprite]

Are the EKA holders reading the same news or not. Interesting to see ADI and AUT are up while EKA is down. I agree with your comment Agentm "It never ceases to amaze me how share prices react to news." Maybe those EKA holders don't see what ADI holders see.

My opinion is the configuration of how TCEI drilled , effectively acts as a "U tube' , where the condensate will be gravity assisted from the 60 degree inclined lateral into the vertical and held there under pressure . So this can only be seen as an excellent means of extraction of condensate. Anyone with other views , I would be very interested.

 

[Agentm]

in case you all missed it

the upper chalks are flowing gas and oil at a pretty amazing ratio..

usually you would expect some high fives and jubilation on news such as this, the chalks are way way thicker at kowalik and the oil ratio looks way higher updip

it unlikely the well is going to produce less after a clean up.. kunde 3 responded in a staggering way to some very simple clean up operations..

Such treatments have effectively been used many times in
the Chalk at analogue and other fields to enhance the flow and clean the formation.

 

[gdaf]

agentm - can you please quote the figure before and after cleanup at the kunde? I know they got some good flow rates, but wasn't sure what they were initially

 

[Agentm]

been done by a few on other boards..


copied from HC

copied from iii.co.uk, posters name "2 tcf"

recap on kunde 3

18.02.08

An attempt to fracture stimulate the first interval has resulted in the frac sand unable to be pumped even with high pressures (12,000 psi). Initial analysis suspects poor contact between the casing holes and the reservoir, as this zone in the reservoir was trying to flow whilst it was being drilled indicating good permeability. The operator is conducting an analysis of this with a possible remedy of bringing in a higher calibre perforating gun to gain better contact with the reservoir.



21.04.08

The TCEI JV Block A-1 well unexpectedly began to flow commercial quantities of gas and condensate during operations to prepare the well for a fracture stimulation and flow testing program. As of the latest report the well was flowing at approximately 0.66 mmcfgpd (million cubic feet gas per day) with approximately 130 bcpd (barrels of condensate per day) and 45 bwpd (barrels of water per day) with a FTP (Flow Tubing Pressure) of around 2300 psi.



30.04.08

Since the last report the TCEI JV Block A-1 well was shut in for a pressure build up test and then subsequently opened to flow. As of the latest report the well was flowing to sales at approximately 0.50 mmcfgpd (million cubic feet gas per day) with approximately 150 bcpd (barrels of condensate per day) and 20 bwpd (barrels of water per day) with a FTP (Flow Tubing Pressure) of around 660 psi.



28.05.08

RNS Number : 3739V Empyrean Energy PLC 28 May 2008

Empyrean Energy PLC

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

Sugarloaf Block A, Texas USA


SPECTACULAR CONDENSATE AND GAS FLOWS FOLLOWING A VERY LIMITED FRACTURE STIMULATION OF THE TCEI JV BLOCK A-1 WELL.

WELL FLOWING AT AN AVERAGE RATE OF OVER 950 BARRELS OF CONDENSATE WITH AN AVERAGE RATE OF OVER 2.5 MILLION CUBIC FEET OF GAS BEING AN EQUIVALENT OF AROUND 12 MILLION CUBIC FEET EQUIVALENT GAS PER DAY.

RATE IS OVER 6 TIMES THE PRE-STIMULATION RATE.
Empyrean, the AIM listed energy company with exploration and production assets in Germany and USA today announces the following initial test results from its TCEI JV Block A-1well on Block A at the Sugarloaf Project in Texas:

Fracture stimulation operations at the TCEI JV Block A-1 well commenced over the weekend using a small acid frac in 5 sets of perforations over approximately 900 feet of the horizontal section of the well. As of the latest report the well was flowing on 14/64" choke at approximately 2.5 mmcfgpd (million cubic feet gas per day) with approximately 950 bcpd (barrels of condensate per day) and nil bwpd (barrels of water per day) with a FTP ("Flow Tubing Pressure") of around 4000 psi.

On the present day prices for condensate and gas whilst converting the condensate to a gas equivalent, recent recorded equivalent gas flow rates approximate (using a 10:1 conversion) 12 mmcfepd (million cubic feet gas equivalent per day). The well flow rates had increased incrementally in the 24 hours to the last report as the well cleaned up and recovered frac fluids.

Commenting today, Empyrean Director - Tom Kelly said "These flow rates are spectacular from an acid frac of only 900 feet of horizontal with only 5 sets of perforations. To be getting such a great condensate flow is also very pleasing given where the oil price is right now. Our shareholders have been patient and it is pleasing to see this being rewarded as the completion methods learnt early on in the project are being successfully implemented by the operator."

Further announcements will be made as significant developments occur

 

[maverick11]

I wonder if they will end up doing a little acid frac at Kowalik. Huge flows in that case could still be weeks away... the story of ADI's life!!!

Either way, sounds like it has the potential to be bigger than Kunde 3, eventually.

 

[Lucky_Country]

Are we ever going to get the long promised results from the jvps this is becoming a joke.
I would be feeling alot happier had they not released initial flow rates especially 48 hours after the event !

 

[maverick11]

Mate, slow game I know. Funny when you look back over the last two+ years and realise it has only been a matter of weeks away. Unfortunately we've had a few misfortunes along the way and Kowalik definately sounds like a change of luck. I think most of the issues have been the operator dicking us around. It was disappointing though to see the aussie JVP releasing old news simply because they were forced after EME's announcement. We investors always seem to be the last ones to know which i think is wrong. Hopefully the cat will be out of the bag shortly..

 

[Lucky_Country]

Mate, slow game I know. Funny when you look back over the last two+ years and realise it has only been a matter of weeks away. Unfortunately we've had a few misfortunes along the way and Kowalik definately sounds like a change of luck. I think most of the issues have been the operator dicking us around. It was disappointing though to see the aussie JVP releasing old news simply because they were forced after EME's announcement. We investors always seem to be the last ones to know which i think is wrong. Hopefully the cat will be out of the bag shortly..

Theres people who do know and are not to worried by this announcement and theres people who dont know like myself that have waited for years and are still left not knowing where the investment is going.

I think I have every right to voice my concerns even as you say it was EME prompting this flow rate announcement not ADI management.

Just unfair and frustrating imo.

 

[estseon]

There seems to be further confusion in the ASX announcements. ADI reported the flows as occurring on the 4th, whereas it was the 3rd. And AUT & EKA thought that it was last month.

The reason for the announcement remains a bit of a mystery because it did not report daily flow rates and was a snapshot taken in the middle of operations.

However, they have reported commercial flow and that may have prompted the release.

There's no telling what the final outcome will be.

 

[Agentm]

with both petrohawk and pioneer going public on the eagleford shale. i have added to their recent slide a lot of extra data to update holders on how the region looks.. with conocophillips drilling far and wide, in colarado county right now and in dewitt as well right now..

cote d'or is significant and many operators are coming across it and seeing it deep in the eagleford and in the upper cretacious chalks region..

kowalik would be cleaning up imho and weston is drilling away.

 

[Sunburnt Land]

That's all good and well, providing the operator is competent enough to get the stuff out of the ground.

 

[tomcat]

I'm sure they are working hard to get it out of the ground...this out on oil barrel:

06.11.2008
Sugarkane Remains The Sweet Spot In The Aurora Oil & Gas Portfolio
These are exciting times for investors in ASX-quoted Aurora Oil & Gas, which is currently cleaning up the Kowalik-1H well on the potentially world-class Sugarkane gas and condensate field in South Texas. The well, which is operated by Texas Crude Energy, is currently producing oil, gas, water and drilling fluids: at the last count, the output was 937,000 cubic feet of gas per day, 321 barrels of oil per day, 14 barrels of water per day plus slugs of drilling mud. The well was shut in on Tuesday to allow the well to be flushed out with a mud cleanout treatment, a procedure that has been successful on similar fields in the area, after which point the company will be able to give a better idea of the sustained production capability of the well and enjoy sales income from the well.

Aurora has a 20 per cent working interest in the well, which is part of the Sugarloaf AMI project area. This is one of three areas of the Sugarkane gas and condensate field in which Aurora has an interest, the others being the Longhorn Area (Aurora 50 per cent) and the Ipanema Area (80 per cent). This is a very interesting project. Sugarkane, which was discovered in 2006 with the Kunde-1 well and is believed to have the potential to hold the equivalent of several trillion cubic feet of gas, is believed to be a unique Austin Chalk formation with the potential to outclass the performance of classic Austin Chalk fields.

The newcomer lies some 20 km to the south of the main Texas Austin Chalk formation, home to classics such as the Giddings and Pearsall fields that have produced over 5 trillion cubic feet of gas and 600 million barrels of oil. Although still in the early stages of appraisal, the Sugarkane field is over pressured, has a higher porosity and a higher condensate-to-gas ratio than the classic Austin Chalk fields. Covering over 200,000 acres with potential gross reserves of more than 3 tcf of gas and 700 million barrels of oil, Sugarkane is possibly one of the largest undeveloped gas and condensate fields in North America – and ASX minnow Aurora has a 20 per cent chunk of over 48,000 acres of the 200,000 acre field.

To date, eight exploration and appraisal wells have been drilled into the targeted Austin Chalk formation since the field’s discovery in 2006, three of which (Sugarloaf-1, Kennedy-1H and Kowalik-1H) lie in Aurora’s areas of interest. This isn’t easy work as operators must drill long horizontal sections through the fractured chalk reservoirs to deliver the best production rates and, as evidenced by the Kowalik-1H well, there often needs to be stimulation and clean-up operations to get the best results. It’s a learning curve to get the technical drilling and completion procedures just right, so every well drilled is valuable in terms of providing more information about what works, what doesn’t and, importantly, just how valuable this resource is shaping up to be.

Certainly companies working up the 200,000 acre field haven’t been slow to push ahead with appraisal work. Aurora is already drilling ahead with the Weston-1H well, which is currently at a depth of more than 735 feet. The well is targeting the upper chalk interval that has successful produced gas and condensate in three wells in the adjacent acreage and which also gave positive indications while drilling in the Kowalik-1H well. Other operators are also busy appraising this potentially world class resource, with the adjacent acreage currently seeing work on one horizontal and one vertical well with a further six wells being permitted for drilling.

These wells can be quickly tied into the local production infrastructure (the discovery well, Kunde-1, has been producing since September 2006 in line with expectations). For Aurora’s account, the Kennedy-1H well is producing 0.15 million cf/d and 44 barrels of condensate per day - this isn’t a huge amount but there remains plenty of untapped potential in the well with over 3,000 ft of horizontal section still to stimulate. More will be known about the Kowalik-1H well’s production capability in the coming weeks. And then there’s the prospect of first drilling on the Longhorn and Ipanema AMI project areas, which is expected to get underway in 2009. This promises plenty of newsflow in the months to come.

http://oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1225936753&feed=oilbarrel_en

 

[Agentm]

learning curves here, kowalik was first chalks well for the jvp, when you consider that kennedy is not even in the chalks at all..

they know what the zone looks like and how to identify it now..and how to stay in the zone throughout

i think the last release was indicating exactly that..

Weston -1H
Adelphi has also been advised by TCEI that the Weston -1H well has reached a depth of 735 feet and has run and cemented the surface casing at this depth. Preparations are currently underway to commence the next hole section.

The well is targeting the upper chalk interval that has been reported to have successfully produced gas and condensate in three wells in the adjacent acreage and gave positive indications while drilling in the Kowalik -1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.

 

[mick z]

learning curves here, kowalik was first chalks well for the jvp, when you consider that kennedy is not even in the chalks at all..

they know what the zone looks like and how to identify it now..and how to stay in the zone throughout

i think the last release was indicating exactly that..

Weston -1H
Adelphi has also been advised by TCEI that the Weston -1H well has reached a depth of 735 feet and has run and cemented the surface casing at this depth. Preparations are currently underway to commence the next hole section.

The well is targeting the upper chalk interval that has been reported to have successfully produced gas and condensate in three wells in the adjacent acreage and gave positive indications while drilling in the Kowalik -1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.

there was no mention of a pilot hole this time, wonder if they are still using this methed, anyone know ?

 

[Agentm]

absolutely, it imperative..


http://library.corporate-ir.net/library/90/909/90959/items/314101/PXD_ThirdQtr08Earnings.pdf

pioneers transcript..

Pioneer Natural Resources Q3 2008 Earnings Call Transcript

5 Nov 2008

“Speaking of Edwards, we are really speaking of South Texas. We have another slide in here that Scott alluded to. Our interests in the Eagle Ford shale and that shown on slide 14. I thought it would make sense to discuss our interest in the Eagle Ford shale, we really have never discussed this before, but in light of the Petrohawk discovery it seems to make sense. We have about 15,000 acres it turns out just north of the Petrohawk discovery, which is in La Salle County, as shown on the slide. But really, the play is a lot more extensive than that and really underlies all of our other Edwards related acreage as you go northeast from their discovery through the entire trend. And of course, we have a lot of data on the trend. We have, of course, 150 wells or so in our 310,000 acre lease position that you can see in the yellow boxes in the slide. This whole acreage of course is spread over the whole Edwards trend, which is six counties and about 150 miles long, and just a few miles wide along the Edwards reef trend. And every one of our wells of course is drilled through the Eagle Ford, because the Eagle Ford directly lies over the Edwards that we're drilling the reef play. And it is the case that as we drill through here, it is frequent that we have to actually flare gas when we are drilling through the Eagle Ford and we have logged all this information in all of our wells
It gives us a lot of encouragement that we have Eagle Ford ubiquitously spread across essentially all of our Edwards acreage. And we know that the Eagle Ford has significant unconventional gas potential across the acreage. We have been gathering the data to be able to progress that, to map it, and to quantify what we think is the potential. And what we believe is, if the Eagle Ford is present across all of our acreage, or at least 100,000 acres we control of that acreage, and based on the sweet spot we think we have identified, it is probably about 30,000 acres that we are going to choose to drill our first initial wells. And the first of which we spud in Dewitt County in the middle part of October. It is about 100 miles north east of Petrohawk’s discovery and the objective is it begins the test the Eagle Ford on our acreage. We have just completed coring this well and are preparing to drill a lateral section and we should be done with that well, say in the next couple of months. We will be drilling the 2,500 foot lateral and be using the typical multistage isolation packer technology. Then we will drill our second well about 5 miles away. So as we get into the latter parts of 2009 or in the middle parts of 2009, we can talk a little bit more about how these wells are performing in the early stages of evaluating what our potential is. But we think looking at early economy and early evaluations that our current estimate of mean recoverable resource potential within that sweet spot is already over 500 Bcfe. The cost of the wells in the Eagle Ford wells would be essentially similar to the Edwards wells we have drilled. They are basically the same depth and will have similar costs. And of course, by the time we get through with all of our infrastructure development, we will have the ability to tie in to some of the Edwards infrastructure we have been waiting on and putting in place for the last couple of years.
We also believe we have Austin Chalk potential that sits immediately above the Eagle Ford shale, and it could be substantial in terms of resource potential, because we believe it to be also gas charged as it overlies the Edwards reef structure and that is frequently fractured. We have also typically got a flare gas when drilling through that Austin Chalk zone, which is typically about 300 feet in our areas. So we know we have some conventional pay within the Austin Chalk that is currently behind 5 and we are really also in the process of looking at the resource potential and seeing where there are attempts to test the Austin Chalk in ‘09. So that is just kind of a recap of a new thing we are looking at and we are pretty excited about it. It turns out that we have the acreage in place that we believe can lead to substantial growth in a new play.”

 

[hashertu]

Agentm.
Do you know how they have completed Kowalik 1H?
For example, any perforation? Over what length?
Fraccing? I assume not because there has been no mention of it.

 

[Agentm]

well was completed open hole then with a slotted liner, usually they put in a production tubing as well, whether they have packer set in the hole will determine how they can circulate or reverse the circulation and how effective they can be with a clean out.

because this is the first real chalks well for them (kennedy imho never stay in the chalks) the well was able to be completed open hole and whatever connectivity they have to the formation would be in the upper chalks on this completion. there was no fracc done on this well.

the current operation is entirely a clean out operation, where you get a few pumpers and pump kcl down there and allow it to return, as it returns the well gets gas into it again, then those gas pockets heat up and your mud and muck will churn around and fly all over the shop..

if there is any concern out there about well damage there has not been any swabbing on this well and i think the well hs shown big signs of cleaning up, there are lot of different reports of flaring and one report of the pit being on fire.. so i am not too worried about the kowalik at all, its proven there is oil and gas, and oil at a very high ratio, and with it fully loaded with kcl fluid the well has demonstrated it has expelled a lot of fluids and water and is definitely in the clean up mode right now.

what TCEI is looking for is stabilised flow, they got massive mud hits after choking it down and flowing it onto the sales pipeline, so the preceedure is to clean it up. imho the well dropped off big time from friday to monday, and if the fractures are considered to be full of mud still and not cleaned out, a further option for kowalik is to consider acid wash, which worked on kunde 3, or fracture stimulation to increase connectivity and flow rates

 

[Lucky_Country]

Doubt we will hear anything from the jvps today after such a shocking 2 days on the bourse.

Patience is required by all concerned as long as we get the results we are all after and no damage is done to the well.

Flow rates will be interesting to see after the initial release of results am hoping for a much improved rate.

A few extra days doing the right thing may reap the rewards on the results hopefully early next week.