Australian (ASX) Stock Market Forum

ADI - Adelphi Energy

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.

The old saying "No news is good news"
and good news is good news . So I prefer to hear one or the other , not anything in between .
 
Alright, so what's the go?
We sit and wait, all the while the price drops back off.
Doesn't seem to make sense, if anything we'll get marginal results, but we'll still have a great asset and not insignificant flow.

If they then do a frac, we might get better results if they can keep the chalks open and pumping out the condensate.

Let's see something positive!
 
As each day passes I get more convinced that this well is a dead duck :banghead:

This company really needs to take a hard lesson in how to manage their annoucements to the market :banghead:
 
big question is - have they improved the flow?????????

would they have reported if they did? - probably yes, so I guess we just have to wait to see if:

- the well is flowing at the same rate, or has it dropped off?
- the well is flowing at a better rate (if substantially better, would they have anounced?)
- Has Weston hit anything yet???? (is it nearing the zone/in the zone?)
- Are there any plans to frac Kowalik or Kennedy in the near future?

Wish I knew!
 
I see SG Growth Equities Limited have mysteriously vanished off the top 20 list, that probably happened on the 2nd & 3rd of November. At least the price was pushed up when that happened instead of being dumped.
Any news on cleanup Agentm , the kids in the backseat are getting restless.
 
11 November 2008

Empyrean Energy PLC

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

Sugarloaf Prospect, ("Sugarloaf"), Block A, Texas USA

TCEI JV Block A-5 well reaches TD

Electric logs interpret upper, middle and lower pay-zones over 220 feet gross interval

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA provides the following update on operations on Block A which is part of the Sugarkane Gas and Condensate Field:

TCEI JV Block A-5 Well

Empyrean has been advised by Texas Crude Energy Inc ("TCEI") that the TCEI JV Block A-5 well has reached total depth of approximately 12,470 feet. Electric logs and casing have been run. The logs indicate that the well intersected the upper, middle and lower potential pay-zones of the Austin Chalk and possibly the Eagleford Shale.

The operator is presently assessing the well data before deciding upon a completion and testing plan.

Empyrean has a working interest of 7.5% in this well.

Further updates will be provided following developments.
==========================================================

This report has been a long time coming. We have mention of the shale but they do not seem to be prepared to commit to that. They are still referring to 3 pay zones. It seems to be a case of 'watch this space' but they clearly haven't finished with the well yet.
 
Tomorrows's release wil be crucial to both the future short term sp and perception of management IMHO. I am expecting they will announce slightly improved flow and either of 2 things... they are going to flow it to sales or they are going to do a light acid wash or frac to improve flow rates. It is proven this works and if it was my well, this is what i'd be doing. If they don't schedule a PROMPT light acid wash or frac I will be mighty disappointed and I think we will see a sellout and a lot of investors wanting an explanation, which we are well overdue for.

Looking forward to hopefully some more concrete answers rather than vague reports from ADI management tomorrow. I really hope the flow rates are much improved or scheduled to be improved. Wait and see :cautious:
 
you can't really blame ADI , although this is frustrating for all holders . EME jumped the gun too early and let the cat out rather than have a simultaneous release as with what ADI,AUT & EKA do.

People have got excited too early because of this , which has then prematurely pumped the share price up , only to have it fall back to where it started. AWE(ARQ) would know exactly what ADI have ,
and I think once cleaned up , she will be a hummer and the jv's must of known this when they drilled the pilot hole . There obviously needs to be more coordination with press releases so this doesn't turn to s??t again.
 
estseon.

"Electric logs and casing have been run. The logs indicate that the well intersected the upper, middle and lower potential pay-zones of the Austin Chalk and possibly the Eagleford Shale.

The operator is presently assessing the well data before deciding upon a completion and testing plan. "

the announcement of the well not being completed, a fact made very obvious by the lack of permits on marlene olsen for a horizontal, has struck eme hard.

it leaves them with Kunde 3 horizonrtal producing, the extremely expensive baker 1, and baker 2 horizontals not on production, and now two verticals drilled into the lower regions, kunde 2 and marlene olsen, without any short term prospect of those wells having any laterals drilled.

all conoco rigs have left the live oak fields a long long time ago, i have been eaiting for over 3 weeks for the news on marlene olsen, that rig is drilling away in dewitt county on the verticals there.

for the life of me i cannot see how eme can sustain such cash drag on that many expensive completions with no return. but the upside for eme is the prospect of baker 1 and 2 being cleaned up and put on production in december 2008. imho eme will have to reconsider its deal with TCEI.

even with the report on marlene olsen not being taken very well, i believe the marlene olsen was primarily interested in the lower regions and the eagleford

"Electric logs interpret upper, middle and lower pay-zones over 220 feet gross interval"

i think that news is familiar, and i look forward to further announcements on what the jvp may think about the eagleford.. which i have always maintained is what kennedy is producing from. and thats all imho

regions and formations change, some regions can be more chalk than shale and others can be the opposite. nothing is uniform.. and the region has very little data to work off, there are the sturken wells and the mobil well, thats it!

the dynamics of the region is very interesting , kowalik is chasing a trend similar to the kunde wells, and weston is definitely following the baker trend..

i have the impression a lot of news will surface today from the jvp, particularily on kowalik and i am hopeful there will be some indications on the future plans for the region can be indicated in some way.. but early days still..

the kowalik well is showing TCEI the play in the upper regions is active, and until i hear the full analysis about kowalik i am not that concerned at all, i have my own views on kowalik, and see the well as very promising for the future of the acreages, although initial flow results which have been posted already, indicate the well will be completed with results at the lower end of expectations..

with the expectations of vastly improved flowrates for kowalik, i am not convinced that will happen, a clean up will not give you many multiples of the initial flow rate.. i am hearing that further stimulation on kowalik is being discussed by tcei ti the partners, the two stand out candidates would be acid wash to clean up well and clear out blockages in the natural fractures, or a mini fracture stimulation of a section of the well, or the well done entirely..

others see the inital kowalik flow rates as a disaster, but keep in mind the wirelines report has not been released nor any indications on how much of the well may be connected to formation or rock that will flow. once that is released perhaps a different view on the well would be had.. who knows..

for me nothing has changed, i never doubted the sugarkane play was in our acreages, and i remain invested for the duration of what i think will be a development program involving many rigs in 2009. i looked at the presentation AUT did in new york and i think they are as keen to go forward as before.
 
I wonder what the jv's intentions are. Are they going to re visit drilling the final section of the pilot hole in Kowalik to increase surface exposure to the fractures or are they just going to stimulate the last 1500ft . Fairly vague comment open to interpretation.
 
I think the lack of information being provided by the JVP's is becoming concerning. The flow rates arent great. It would be interesting to see a business plan for the jvps and how they are going to pay for the multiple rigs they are talking about for 2009.
 
I'm bitterly disappointed. Once again, nothing concrete about their announcment today and still plenty of information not divulged. Now they are promising the next well will be the winner - where does it end?

It concerns me very much that there are no definite plans to acid wash or frac the well anytime soon and TCEI seem to have total control over us and the future of this well... then presumably the plan would be to farm out or sell to them down the track. Not good and it would seem our JVP have no control.:banghead:
 
We agree with the Operator’s interpretation that whilst approximately 4,600 feet of horizontal section was drilled in this well, it was approximately the last 1,500 feet that was drilled at a specific horizon within the upper chalk which should be pursued in subsequent wells drilled in this area of the field. This particular horizon demonstrated the gas flows and flares during drilling which are an indicator of higher permeability, usually through natural fracturing. Accordingly completion operations have focused on that 1,500 foot section

i think it says it all.

they know where the active chalks are now and how to locate them..

imho kennedy found nothing and ended in the eagleford.

imho kowalik went through different zones and identified and picked up the productive zone later in the well, unfortunately they broke the drill string and had no chance of finishing it off another 2000 feet.

makes weston a real clincher for all the jvp partners..

talk about expensive learning curves..

this will shake the less risk prone out ..

all imho and dyor..
 
I'm starting to worry that this share is going to do my dough.

1. Is management bonkers? :banghead:
2. Why the heck aren't they fraccing this one? :confused:
3. Will they learn, or are they just going to drill and hope? :mad:
4. Can I use all of these emoticons in one post - apparently not, there's a 5 image limit.

Well the current share price has shat itself. I remember a line from Casino Royale - "I'm Bleeding Chips"
 
Why the heck aren't they fraccing this one?
============================================================

quattro on ADFVN has suggested that there's still a lot of KCL solution and mud to clear out. I don't know the volume of the full well but 500 barrels might have been put down there. It's not going to queue up to get out in an orderly fashion either. It's hotter than the boiling point of water at atmospheric pressure down there. So, there could be a lot of back pressure from the remaining fluids. But, maybe they pumped them out. Don't know.

JVPs need to conserve cash for drilling, imo. They can fracc later when they have had some good flows elsewhere. Did they not say that each fracc of Kennedy cost about $1m? Leave it, let it clear up, move on, find the horizon - 6,000ft of it. Maybe 1,000bpd if they do. Maybe more? From initial flows and latest flows the oil/gas ratio is favourable compared to Baker on Block A.
 
anybody care to do a cost analysis for 2009? Can they continue without dilution or trying to borrow funds? The Weston well appears to be paid for. They want to drill 2 more after that. Add to that some fraccing on the existing wells - we really need a nice hit or we'll be out of cash soon. What's the combined revenue from Kennedy and Kowalik on current flow rates?
 
Why the heck aren't they fraccing this one?
============================================================
JVPs need to conserve cash for drilling, imo. They can fracc later when they have had some good flows elsewhere. Did they not say that each fracc of Kennedy cost about $1m? Leave it, let it clear up, move on, find the horizon - 6,000ft of it. Maybe 1,000bpd if they do. Maybe more? From initial flows and latest flows the oil/gas ratio is favourable compared to Baker on Block A.

In my opinion they MUST frac now, fraccing is a lot cheaper then drilling, and the cost benefit, even if it *only* gets to 1000bpd is well worth it. Then the income can help pay off the drilling.
 
anybody care to do a cost analysis for 2009? Can they continue without dilution or trying to borrow funds? The Weston well appears to be paid for. They want to drill 2 more after that. Add to that some fraccing on the existing wells - we really need a nice hit or we'll be out of cash soon. What's the combined revenue from Kennedy and Kowalik on current flow rates?

I spoke with Chris a few months ago when they raised up some cash and he said they had enough money for the next 2 wells - so that leads me to believe that they're in a bit of trouble if weston isn't spewing out oil and gas sales.
 
I'm still trying to decipher the latest drilling report. I have re read all the reports from start to now , and it is still not clear to me if they are talking about the 1,500 ft lateral pilot hole (ie 4600ft to 6000ft) or from around the 14,000 ft measured to 16325 ft measured mark.

at 13,835 ft measured (1000 to 1300 units , 17/9/08)
at 15,239 ft measured (2000 units , 50ft flares , 1/10/08)
at 16,178 ft measured (excess of 2000 units , 8/10/08)
at 16,325 ft measured or 4600ft lateral (2000 units , 15/10/08)

are we talking about the 1,500 ft inside these measured ranges or not.

The comparison to dual 6000 ft laterals only seems to be an indication of how Kowalik is with respect to drilling a shorter lateral and single one at that . What is it ?????
 
If cash became an issue, we'd know about it pretty soon IMO. I wonder if AWE would look at tipping into the Sugarloaf? They have an indirect 32% interest in the project now through ARC and have net cash reserves of $283 million at the
end of the quarter following the merger.
 
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