ADI - Adelphi Energy

[Lucky_Country]

this is what it looks like

Interesting video to watch you can see why its such a tricky operation.

Well after Im feeling a bit more positive on the whole area yesterdays announcement was quite a decisive statement about drilling into the chalks so management seem far more confident and are expressing that view.

Patience has been stretched of late but Im sure we will be rewarded.

 

[Agentm]

i saw that weber (where the youtube thing is posted also) took over the geosouthern site in dewitt county, they have put in a new permit for the same site, a single lateral.

so they have taken over the goesouthern migura 1

http://webapps.rrc.state.tx.us/DP/d...PublicQuery=Y&name=MIGURA&univDocNo=485432365

also interesting is that weber claim to be one of the first companies to drill horizontal wells, so they started in the chalks, and also did extensive work in the barnett shale..

to see them come through as specialists in the middle of what conocophillips is buying up big time is very interesting indeed.

everyone likes this eagleford/chalks play alright.

this is worth a look

http://www.weberenergy.com/TxOilGas/Tx-Oil-Gas-1.html


this too

http://au.youtube.com/watch?v=cEmadgNz9vI

 

[Agentm]

top 10 barnett shale producers in 2007 (RRC)

interesting to see burlington there and makes sense to have them chase the shale (eagleford) further.. note burlington is second highest on oil.. they like the condensate it seems..

 

[estseon]

As foreshadowed in its interim statement, EME has withdrawn from further participation in the special 16 well arrangement with TCEI. The withdrawal has effect in relation to Weston but not in relation to the 7 wells already drilled (Kennedy, Kowalik and the 5 on Block A of which 3 are confirmed as coming on stream producing revenues).

To be confirmed: it would appear that EME's cost contribution rate for Weston (from now) and for future wells in the AMI will be equal to its gross WI rate of 6%, which is a reduction from the original 7.5% for SL-1. It is not clear whether the 6% would apply to further development of SL-1 but I don't suppose that to be on anyone's agenda for some time to come.

EME emphasised that its withdrawal from the special deal would have little significance on its overall interest in the AMI when fully developed and it mentioned the 140 wells for full development mentioned by the other JVPs at various times. This is significant in that it appears to confirm EME's continued confidence in the project. It appears to confirm that EME's decision has been taken because the financial burden of a 27.5% contribution rate for AMI wells and 12.5% for Block A wells was just too much for it in the present market conditions.

It should be noted also that EME has other projects including, in particular, a coal bed methane project in Germany, which has a licence expiring in December of this year. That licence has been extended once already and it is likely that the company is under pressure to do a bit more than just shoot seismic in order to secure a continuation of its rights beyond 2009.

EME's action should NOT be seen as a vote of no confidence in the Sugarloaf project. There are plenty of reasons for the action that it has taken.

 

[estseon]

Kunde 3 flow results (new frac) now out.

Formerly producing zone of 900 ft length temporarily plugged to test new zone of 1,800 ft.

24 hr test produced 1.5mm cu ft gas + 270 barrels of condensate.

That is 420 boepd at their standard 10:1 conversion for gas.

The original 900 ft was last reported as producing 260 boepd.

That gives an average of 25 boepd / 100 ft completed.

This compares to the Baker twins (natural fractures) that seem to have been producing at the rate of 34 boepd / 100 ft completed based on last reports.

This suggests that a mixed completion of natural + stimulated might produce 30 boepd / 100 ft, or 1,800 boepd for a standard 6,000 ft lateral.

Kowalik, producing 280 boepd from 1,500 ft, is clearly out of line as previously suggested by agentm. Based on Block A production rates for natural fractures, it should be in the region of 500 boepd. If the remaining 3,000 ft can be made to produce at the Kunde 3 rate, that would add some 750 boepd, but that is speculative because it was drilled "in the wrong horizon".

 

[Agentm]

at last conocophillips has cracked the fracture stimulation problem!!!!!!

well done imho.. fantastic news really..



Sugarloaf Block A Update (Empyrean Energy)

RNS Number : 4524L
Empyrean Energy PLC
12 January 2009


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


* Further 1800 feet of perforations added to the well
* This 1800 feet of perforations has been separately fracture stimulated
* Production to sales for the 24 hours to 1600 hours Texas time 7th January 2009 averaged approximately 1.5 million cubic feet of gas per day and 270 barrels of condensate per day



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-1 Well (Kunde 3H)


Empyrean has been advised by Texas Crude Energy Inc ("TCEI") that the TCEI JV Block A-1 (kunde 3) well is flowing to sales after having had 1800
feet of new perforations added during December.

The well is flowing to sales from a new 1800 feet interval that has been fracture stimulated in late December. The original 900 feet of perforations has been plugged off during this new production test. It is the intention of the operator to couple the original 900 feet of perforations with this additional 1800 feet interval following further flow testing.

Empyrean has a working interest of 7.5% in this well. Further updates will be provided following developments.

Commenting today Empyrean director Tom Kelly stated "It is great to see production to sales from this well on Block A after a successful fracture stimulation program on a new interval. This is the first of a number of Block A wells that were having work commencing in December to be brought back on to production."


again its worth contemplating what tom kelly is saying, for the first time the conocophillips operator has been able to counter the massive pressure issues faced in previous frac exercises and get a fracture stimulation of the well successfully completed.. a huge breakthrough imho.

each well is improving on the previous well by using the data from the previous, we have seen changes in how to deal with the drilling thus far, from experiments in underbalanced and cemented liner (kunde 3) to overbalanced and cemented liner (kennedy) and underbalanced open hole with kowalik.

eme has indicated there are a number of block A wells in live oak that had work done in december, which confirms what i have heard, so plenty of good data to come back from eme in the near term still.

the fracture stimulation success in kunde 3 could also have implications on how they look at kowalik.


all in all a brilliant result for the jvp in terms of having devised a frac that will deal with the massive pressure problems thus far experienced in all wells.

 

[estseon]

"This is the first of a number of Block A wells that were having work commencing in December to be brought back on to production".
============================================================

Only 3 wells have been on production ("...brought back on to..."): Kunde 3 (which is what the RNS was about), Baker 1 and Baker 2.

Taking Kelly's words at face value, he appears to be saying that the Baker twins have also had "work" done to them. Previously, we had been informed that they were being hooked up to the new infrastructure. But Kelly has mentioned "work" in the context of the "work" done to Kunde 3, which was fracture stimulation. So, does he mean to say that the Baker twins have been fracture stimulated also? Or have they just been cleaned up after being shut in?

The reason for labouring this point is that Baker 2 was completed with a slotted liner, as Kowalik, so a successful fracture stimulation operation will be of considerable interest and Baker 1 may not have been completed at all:

"...Workover operations commenced on 29 January 2008. The operator was forced to leave in the open hole a fish made up of a length of 2 7/8” tubing and a 5 7/8” rock bit. It is permanently lodged in the horizontal part
of the open hole in the interval 12,676 ft to 13,097 ft...." (EME Report for y/e 31 March 2008).

The latest RNS also only reported the new fracture stimulation of the 1.800ft not previously stimulated.

quattro44, who appears to have drilling experience, had this to say about the 900 ft previously fracture stimulated:
===========================================================

"quattro44 - 13 Nov'08 - 20:38 - 44775 of 44793

Jacko. In may they only did a small acid frac over 5 small intervals of perforations (Maybe 10 feet each or so) along a 900 foot section. This would only have the effect of literally cleaning up the formation in the area of the perforations. i.e. not really a frac at all but more like a high pressure acid job. Now, they are obviously proposing to perforate a much larger section and hydraulically frac the lot. Serious stuff. look out!
q44"
===========================================================

Going back to the EME 2008 report:

==========================================================
"Gas shows were encountered over the whole horizontal length of approximately 2,500 ft. Multiple gas flares measuring up to 65’ were recorded over approximately a 1,000 ft horizontal length, including an interval of about 600 ft that produced a constant gas flare..."
==========================================================

So, was the 900ft section chosen for the acid treatment that initially produced "...an average gas flow of 2.5mmcfgpd accompanied by 950 bcpd and no water through a 14/64” choke..." that 1,000 ft section that produced multiple flares?

The reason for labouring this point is that Kowalik was reported as having similar flaring over at least part of the 1,500 ft or so 'drilled in the right horizon'. If Burlington has re-worked that 900 ft of Kunde 3 and if it is now
producing as it did before immediately after the acid clean up, that could have implications for the potential for Kowalik.

This is all speculation until EME reports the full flow results for the 3 wells and provides further information on the "work" done.

 

[Agentm]

conocophillips have now got two step out development wells next to kunde 1, 2 & 3 ..

the latest is a 6294 foot horizontal called Lasca Butler Searcy 1H

imho the three wells are demonstrating the interest in the formation is not waining at all

 

[maverick11]

Some encouraging news today

They have cleaned up Kowalik and are now preparing for an acid frac. They must be hopeful of a positive outcome imho to throw funds at in now before they finish Weston.

As for Weston, it sounds like they have really nailed out how to drill these chalks.

 

[queenstown]

Any idea how long it will take to complete the Horizontal section (assuming TD of 6000ft).....................

 

[basilio]

This is all very fascinating... I have no doubt that Agentm has an excellent technical understanding of all the ins and outs of drilling for oil. Great.

Trouble is I remember back in November 08 when it seemed that there was going to be a real gusher, this was the one and so on. The shares surged to 36cents.... and then it all went pear shaped. Now sitting at 12 cents with no doubt many bruised pockets wondering exactly what went wrong.

And now it seems that "the problems have been fixed' . I feel however that the singed specs will want to see some very real results before biting and being bitten again. Any thoughts?

 

[Agentm]

a few points.. i am no expert in he ins and outs in of driling for oil and gas and its only your opinion that i have excellent technical understandings not mine..


conocophillips has put in all the dollars on finding a solution to whatever formation that the kunde 3 well sits in. so far its been declared that the well is in the upper chalks.

the "problem" that was "fixed" that i referred to was how to properly fracture stimulate against the intense and massive pressure that had previously caused the screen outs in kunde 3. nothing to do with the ADI operations at all ..

now if your point is that your saying that i am saying kowlik is fixed,, it is in no way fixed and the remedial works done so far have simply allowed the operator to clear the blockages found, and also gives the operator confidence to be able to get to the toe of the well and do a further acid wash if needed.

currently the well is cleaning up after a second (and also previously unannounced) washout of the kowalik well with a coiled tubing unit.

please dont put words in my mouth regarding kowalik being fixed basilo.. also this is the one and its a gusher never came from me.. cheers..

the status of wells adi are involved in are to the best of my knowledge as follows..

kennedy 1h, 2 fracs attempted on the eagleford shale, one screen out and one partial screen out, well shut in i believe

kowalik.. 1500 of formation is in open hole, well has a slotted liner, 2 clean ups attempted thus far, the second with a coiled tubing unit. well is flowing back as reported today.

Weston .. well is according to the recent announcement now drilling away into the formation with elevated background reaading happening from 50 - 250

cheers

 

[seasprite]

latest quarterly report for ADI can be found at http://www.adelphienergy.com.au/news/runner.php?section=asx

A$0.5m cost over run at Weston is not good , surely they could find a turnkey contractor that drills at a fixed cost basis , especially now.

 

[blues]

Will be interesting to see what assets are sold or what they farm down? There isnt to much to choose from!

 

[Agentm]

i dont believe there are any other operators other than nabors and pattersons..


lasca butler searcy in live oak put in a report yesterday they were at 6000 feet, thats where weston was on the 12 dec according to their reports to the rrc. there is marlene olsen being drilled also by conocophillips.

conocophillips is using nabors have not done any good at all, only one lateral over about 2000 feet so far and that was with 3 attempts in kunde 3, in baker 2 they tried 3 times and came up short also.

the current rig did one pass with kenney, one pass with kowalik and we know is now drilling through the chalks zone this minute.

 

[estseon]

I posted the following summary on ADFVN. Note that we are currently awaiting updated figures for Kunde 3 (original 900 ft), Baker 1 (have they managed to remove the abandoned drill bit and complete the well?) and Baker 2. The JVPs appear to admit now that Kowalik is damaged and I do not suppose that the JVPs will do anything with Kennedy until CoP has worked out a successful fracture design for Marlene Olsen (although the lowest of the zones encountered might be Edwards and we might have to wait for them to move up to the Eagleford).

Kunde 3 900 ft (natural fractures) 29 boepd / 100ft
Kunde 3 1,800 ft (artificial fractures) 23 boepd / 100 ft
Baker 1 (natural fractures but blocked) 23 boepd / 100ft
Baker 2 (natural fractures) 34 boepd / 100
Kennedy (shale) 10 boepd / 100 ft
Kowalik 1,500 ft (natural fractures) – damaged – 13 boepd / 100ft
Kowalik initially – 28 boepd / 100 ft

natural fractures in the chalks might produce flows in the region of 30 - 35 boepd / 100ft (up to 2,100 boepd for a 6,000 ft lateral)

artificial fracturing of the chalk might produce flows in the region of 20 - 25 boepd / 100ft (minimum of 1,200 boepd for a 6,000 ft lateral)

Gas has been counted at 10,000 cuft = 1 barrel, the conversion used by EME.

The condensate / gas mix across the wells is fairly consistent at about 70% + or - 5% (even Kennedy). Baker 1 is a bit odd (50%) but it has a drill bit lodged in the well bore blocking flow.

 

[Lucky_Country]

Weston will prove to be a critical well for the jvp's as by now one would hope they know exactly what is going on and their recent statements seem to echo those feeling with the confidence in drilling the chalks.

ADI are obviously looking to sell down asstes is Texas one of them ? Is it turning out trickier than first expected and with great potential yet to be realised maybe a sell down would suit.

Yemen strikes me as being the jewel in the crown and now all looking set for a drilling campaign.

Indonesia the less said the better ADI have been seriously let down there imo.

 

[Agentm]

did someone say 4.75 tcf??????????????


geosouthern have farmed in expert drillers and some good cash backed oilmen..

nice.......


AREF Energy Holding announces the discovery of natural gas quantities in DeWitt County - Texas

AREF Energy Holding announces the discovery of natural gas quantities in DeWitt County - Texas, within the project that is 50% owned by AREF energy and the balance by U.S. partners "WEBER ENERGY & GEO SOUTHERN".

It should be noted that "Halliburton" was selected by the partners to carry the initial drilling activities, and coring. "Core Labs" which is a company listed in the stock market and one of the most renowned laboratories in upstream field- analyzed core samples from exploratory wells and reported the discovery of hydrocarbons in the cores.

The Corelabs report showed an estimated natural gas reserve of nearly 19 trillion cubic feet. When taking into consideration a recovery factor of 25%, the volume of gas available for production might be estimated at 4.75 trillion cubic feet, If fully developed and produced.

Weber Energy is currently taking preliminary steps to commence gas production operations from the first two wells and will use Halliburton or Shlumberger expertise for the fracturing process. Accordingly, actual production is expected to begin in the first quarter of 2009. Within the same concession, other layers are being evaluated for possible containment of gas reserves are also evaluating other layers containing for gas reserves.

It's worth mentioning that on 21 October 2008, PETROHAWK Energy CP (NYSE: HK) announced the start-up of actual daily production of 9 million cubic feet of free gas from their first well out of "Eagle Ford Shale" geological layer, and 13 Million Cubic feet of daily production from their second well. Such announcement would reinforce our positive outlook on our gas project which would have similar characteristics.

Such achievements will have positive and significant contribution on AREF Energy financial results for the coming years.

 

[Agentm]

that right 4.75 tcf!!!


and the bigger picture...

19 tcf

hello?? anyone home here, anyone following this??

i believe they have about 75,000 acres

The Corelabs report showed an estimated natural gas reserve of nearly 19 trillion cubic feet. When taking into consideration a recovery factor of 25%, the volume of gas available for production might be estimated at 4.75 trillion cubic feet, If fully developed and produced.

 

[Sith1s]

Just noticed a trading halt announced today. Which should hopefully be resolved by Wednesday. Cause for concern perhaps??