ADI - Adelphi Energy

[maverick11]

I am expecting to see ADI management take a pay cut, do other investors think that is a reasonable call?

Times are tough...management have not delivered on one thing in 3yrs...funds are running short...

Would be good to see positive action at kennedy and kowalik and some news from kunde frac. Weston will easily push well into Feb or longer imho.

Hope you all had a good xmas!!

 

[Agentm]

recent presentation from AUT with some huge plans for 2009

Forward Plan – Austin Chalk Assets

Program under way to establish a portfolio of appraisal and development
wells.
Need to build up a statistically meaningful population of well performance.
Further wells in the Sugarloaf AMI are planned and permitted.
It is expected that additional rigs will be introduced in 2009 and drilling
expanded into Aurora’s other AMI’s Longhorn and Ipanema, adjacent to
Sugarloaf.
Strategy over next 2 years is to demonstrate productivity over our wide
acreage position, establish reserve potential and build production.

APPRAISAL DRILLING PLANNED TO ROLL IN TO MULTI RIG
DEVELOPMENT PHASE 2009

AUT - Value Proposition
Large net acreage position on giant multi Tcfe resource
8 old well penetrations help delineate field boundaries. 9 recent well
penetrations in Sugarkane field all observing hydrocarbons –including step
out Kowalik #1H
Appraisal & development now – NOT exploration
Near term producer with imminent growth, wells tied in for immediate
production
Premiums paid on recent transactions for analogous US onshore
unconventional gas plays of similar maturity
THE EXISTENCE OF THE FIELD IS ESTABLISHED.
CURRENT PHASE WILL DEMONSTRATE VALUE POTENTIAL.

with AUT claiming the weston well is 100% appraisal and development and ADI reluctant to say anything othert than exploration, the difference of opinion is vast imho.

from adi presentation

• Prospectivity

o Kowalik was a 10km step-out.......(insert your own conclusion here)

Kowalik 50’ flare while drilling Kowalik Initial production

o Gas & condensate saturation confirmed in chalk zone over a
wide area (~60 sq km)

o Gross 600bcfe potential remains


• Forward Plan

o Take a pause in the multi-well drilling program

o Consolidate technical and Chalk Production from Sugarkane wells in
adjoining area


you have kowalik as adi says burning a 50 foot flare during drilling and initial production (clean up) then nothing!! extremely frustrating imho when there is no explanation given.. but there are many factors that have to be considered and tests done primarily to determine what was the cause of the well bore damage in kowalik. then after the initial agreement is made on the potentially correct diagnosis, a solution needs to be agreed upon and initiated.

Formation Damage and Horizontal Wells - A Productivity Killer?

http://www.hycal.com/old/PDFPapers/Formation Damage/Formation Damage & Horiz Wells.pdf

Mechanism of Formation Damage During Drilling of Horizontal Wells

Mechanisms of fonnation damage which may be operative in
reducing the productvity of horizontal wells have been discussed
in the literature by various authors1,2.

These damage mechanisms can be grouped into several major
categories,

Fines Migration.

Fines migration is the motion of naturally preexisting
particulate matter in the pore system. This may be
induced during the drilling process by high fluid leakoff rates of
water or oil-based mud filtrate into the near wellbore region
caused by elevated hydrostatic overbalance pressures or
excessively high underbalanced pressures

External Drilling/Mud Solids Invasion.

The invasion of artificial mud solids (weighting agents, fluid loss agents or
bridging agents), or naturally generated mud solids produced by
bit-rock interactions and not removed by surface solids control
equipment into the fonnation during overbalanced drilling
conditions.

Phase Trapping.

The loss of both water or oil based drilling
mud filtrate to the fonnation in the near wellbore region due to
leakoff during overbalanced drilling operations, or due to
spontaneous imbibition in some situations during underbalanced
drilling operations, can result in permanent entrapment of a
portion or all of the invading fluid resulting in adverse relative
permeability effects which can reduce oil or gas permeability in
the near wellbore region.

Chemical Incompatibility of Invading Fluids with the In-situ
Rock Matrix

Many formations contain potentially reactive
material in-situ in the matrix, including reactive swelling clays
such as smectite or mixed layer clays, or deflocculatable
materials such as kaolinite or other loosely attached fines.
Expansion or motion of these materials within the pore system,
which may be induced by the invasion of non-equilibrium water
based mud filtrates into the near wellbore region, can cause
considerable reductions in permeability

Fluid-Fluid Incompatibility Effects Between Invading Fluids
and In-Situ Fluids.

Oil or water based mud filtrates invading
into the near wellbore region during overbalanced drilling
processes can react adversely with in-situ hydrocarbons or waters
present in the matrix with detrimental results which may reduce
permeability. Problems would include the fonnation of insoluble
precipitates or scales between incompatible waters, de-asphalting
of the in-situ crude or hydrocarbon based drilling fluid caused by
blending of incompatible oils, or the formation of highly viscous
stable water in oil emulsions due to turbulent blending of invaded
filtrates with either in-situ water or oil.

Near Wellbore Wettabllity Alteration and Surface Adsorption
Effects.

Many drilling fluid additives used for mud rheology,
stability, emulsion control, corrosion inhibition, torque reduction
or lubricity contain polar surfactants or compounds which can be
preferentially adsorbed on the surface of the rock. The physical
adsorption of these compounds can cause reductions in
permeability by the physical occlusion of the pore system, in the
case of high molecular weight long chain polymers, particularly
in low permeability porous media where the small pore throats
may be easily bridged by long chain polymer molecules. Polar
compound adsorption may alter the wetting characteristics of the
matrix in the near wellbore region, generally in most cases to a
preferentially more oil-wet state. This causes a potentially
significant increase in water phase relative permeability in this
region, which may adversely elevate producing water oil ratio for
the well if the completion is in a zone where a mobile water
saturation is present.

Mechanical Near Wellbore Damage Effect.

Mechanical action of the bit, combined with tine cuttings, poor hole cleaning and a poorly centralized drill string may result in the formation of a
thin "glaze" of low permeability surrounding the wellbore. This
problem is believed to be aggravated by straight gas drilling
operations, where a large amount of heat is generated at the rockbit
interface due to the poor heat transfer capacity of the gas
based drilling fluid system in comparison to a conventional
drilling fluid. Open hole completions in low permeability clastic formations
tend to be the most probable candidates for this type
of damage. Glazing will not generally occlude large permeability
features, such as fractures or lugs, and the glaze is usually
readily removable in carbonate based formations with a light acid
wash due to its highly soluble nature.


i recommend reading the whole article, it certainly is far superior to being critical of TCEI or the directors of adi.. this is a greenfields play, its very hard to get any data from anyone to help you when your drilling and each time you drill you get new circumstances and events thrown at you, all which change how and what happens in the well bore..

to rescue or fish out a drill string in kowalik would imho have required a different approach to how to keep the well balanced during that phase.. there are lots of ways to speculate on what happened, but imho kowalik was demonstrating a whole different set of numbers and what it produces today is not anything like what it was likely to have produced should the well bore not be damaged for whatever reason.

all imho and dyor

 

[resourceboom]

agree with what your saying agentm.... however

the JVPS are not telling us any information, why not put more detail into the announcements, rather then have everyone have to ring them to get more info. we are the owners of the business.

lets hope its that last wellbore damage, so it can be nicely cleaned up with an acid wash

 

[Agentm]

with these things they would be doing all sorts of tests on it, like pressure build up tests, and there would be some understandings gleaned from that. its hard to understand waht happened to kowalik, i had a photo fo sunday night flare, there was one during the day that adi posted on their last presentation, they were easily 50 feet on clean up, as were the flares during the last stages of the drilling. what happened afterwards to cause this to stop is unknown. it baffles me still. i mean during drilling you can damage a well, but this one was finished, the well was roaring and spitting out oil and flaring like all hell on clean up, then zip????????????????? wtf????

imho an acid job with coil tubing unit would be the most likely candidate for kowalik, and if its to happen then it would be in the next few months, and we have seen them talk about it sooner than that on some presentations recently.



i hear they are burning something at kowalik, probably just cleaning up the pit, but you never know.. i hear they were planning on putting that well on production recently..

weston is still on the go..

 

[Agentm]

weston..



looks huge out on its own in the middle of nowhere imho..

i post this for the members of the forum who are nice enough to say a kind word here and there. i stay in for the big picture!

happy new year hey!!

if your lucky enough i may post a shed load more of other sites, depends on how hard you lot bite i guess..

 

[sam76]

Thanks Agent.

You can certainly see where all the $$$$$$$$ goes........

Happy new year to you as well

 

[resourceboom]

Thanks agent and for all your research, lets hope it finally rewards you in 09. I'd love to get some great Weston news before EKA's placement is due, but since that is 30 Jan dont think we'll make it.

Happy new year all, bring on 09!!

 

[Agentm]

eka had a massive trading day on volumes and went well up in their sp.

32.4% 1,972,635


good stuff imho..


kowalik.. neat site imho, workers on site atm

 

[Agentm]

31 December 2008
Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online

UPDATE ON OPERATIONS AT THE SUGARLOAF AMI

Adelphi Energy (Adelphi) advises the following update on operations at the Weston -1H well which is located within the Sugarloaf AMI.

Weston -1H

Adelphi has been advised by the Operator Texas Crude Energy Inc (TCEI) that the production casing has now been run and cemented at a depth of 12,250 ft. Preparations are currently underway to commence drilling the final hole section which will be steered horizontally through the Austin Chalk.
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 at the Kowalik - 1H well.

 

[Agentm]

last one for now..

kennedy 1H.. which is in the eagleford and looks kinda lonely out there on its own.

btw the news on weston was a relief in terms of the last three weeks solely dedicated to getting that well fixed.

 

[nioka]

eka had a massive trading day on volumes and went well up in their sp.

32.4% 1,972,635

Finally agentm is human and makes a mistake. I wish EKA had gone up 32.4%. No such luck. It was EME.

However if that is his biggest mistake I'll be happy.

Pictures look great. Looks like some production facilities. Thanks for posting them.

Happy New Year agent and all ADIers and ASFers.

 

[Agentm]

Finally agentm is human and makes a mistake. I wish EKA had gone up 32.4%. No such luck. It was EME.

However if that is his biggest mistake I'll be happy.

Pictures look great. Looks like some production facilities. Thanks for posting them.

Happy New Year agent and all ADIers and ASFers.

thanks for the correction.

it must not have made much sense, so apologies there..

eme did make the meteoric rise yesterday on heavy trade.

usually such events match up with events that occur in texas. be it coincidence or not, then it follows with releases from them about that event anywhere from days/weeks after. so imho there may well be some excellent news to come through from them. as there is no other events surrounding eme that can explain the spike that i have seen or heard of... my own hunch would be events around kunde 3.. but its purely speculation..

 

[estseon]

For the record, trading in EME on New Year's Eve (4 hours to midday) was 1.5million. The closing price spread on 30th December was 12/12.5 and that for 31/12 was 13/11.5, so mid price was 1/8th of a penny less, though this has little meaning as the MMs widened the spread to balance their position before a public holiday (1/2p each way). Broadly speaking, the rise held.

Tomorrow (Jan 2) is a normal trading day but sandwiched between a public holiday and a weekend it would not be a good day to release significant news. That hasn't stopped EME in the past.

If there is anything underlying the spurt of buying other than traders taking a punt, we are more likely to hear next week.

EME has a record of reporting Block A developments very much after the event. The latest example was Kunde 3 fracture stimulation, which was reported in the Interim statement after it had commenced.

A Happy & prosperous New Year to all. We could do with a change in the tide.

 

[estseon]

Friday was uneventful for EME. A small rise of 0.75p and 539k traded. No news release.

Have a good weekend all.

 

[Agentm]

For the record, trading in EME on New Year's Eve (4 hours to midday) was 1.5million. The closing price spread on 30th December was 12/12.5 and that for 31/12 was 13/11.5, so mid price was 1/8th of a penny less, though this has little meaning as the MMs widened the spread to balance their position before a public holiday (1/2p each way). Broadly speaking, the rise held.

Tomorrow (Jan 2) is a normal trading day but sandwiched between a public holiday and a weekend it would not be a good day to release significant news. That hasn't stopped EME in the past.

If there is anything underlying the spurt of buying other than traders taking a punt, we are more likely to hear next week.

EME has a record of reporting Block A developments very much after the event. The latest example was Kunde 3 fracture stimulation, which was reported in the Interim statement after it had commenced.

A Happy & prosperous New Year to all. We could do with a change in the tide.

hey estseon


when you say this i think your right myself

"If there is anything underlying the spurt of buying other than traders taking a punt, we are more likely to hear next week."

there is plenty happening on the ground in live oak, frac operations, flaring on baker wells and on kunde 3..


"EME has a record of reporting Block A developments very much after the event. The latest example was Kunde 3 fracture stimulation, which was reported in the Interim statement after it had commenced."


its apparent to me the new well, baker olsen, has not being reported by EME as a well they are participating in, i wonder if EME will participate in that one or not myself.

with flares being seen subsequent to connections to the pipeline on the two baker wells, as well as flares on kunde 3 after frac operations (perhaps clean up?) last week, its suggesting news must be getting close..

as for those trading spikes, its very clsoe to whats happening out in live oak imho..

imho everyone including the jvp partners will welcome data from all three wells.

baker olsen drilling way and being permitted for a horizontal completion, will mean weston and baker olsen may finish pretty close together.

 

[kirtdog]

this share is cheap... i havent done much research but looking at the charts and reading a little bit about it sounds like it is well worth an educated punt..

 

[seasprite]

Weston -1H
Adelphi has been advised by the Operator Texas Crude Energy Inc (TCEI) that drilling has
now commenced in the final hole section and at 6am Texas time on 6 January 2009 the well
had reached a depth of 12,471 ft. The well trajectory is now being built to horizontal and will
be landed within the Austin Chalk.

That wreaks of confidence this time . they don't seem to be announcing background pressures this time though. what's up

 

[Agentm]

Weston -1H
Adelphi has been advised by the Operator Texas Crude Energy Inc (TCEI) that drilling has
now commenced in the final hole section and at 6am Texas time on 6 January 2009 the well
had reached a depth of 12,471 ft. The well trajectory is now being built to horizontal and will
be landed within the Austin Chalk.

That wreaks of confidence this time . they don't seem to be announcing background pressures this time though. what's up

the background readings will come through once the well enters the chalks zone. so next report will possibly contain what the lateral is getting.

they are very close to the chalks now and can drill ahead unimpeded, most laterals in the chalks take about 3 - 4 weeks to complete, so without any hitches the near future looks like getting us all the results we have been waiting for.

i am of course hoping that the well completes a full 6000 feet of lateral in the zone as i know all holders will be. the 1500 feet in kowalik which finished far short of the planned length due to drill string separation is not a result i want repeated, i would like a proper completion in the zone and to TD..

btw i am not convinced one bit that the kowalik well is not capable of far superior production rates in the future.. that result still perplexes me

 

[Agentm]

this is what it looks like

 

[sam76]

LOL I saw this the other week when having asearch on 'the tube'

it's pretty interesting to watch.

I also believe a US company had a similar visual explanation on it's website as well. I'll see if I can dig it up.