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probably farmout of permit with maybe the issue of shares that weren't taken up in rights issue at a guess.
ADI - Adelphi Energy
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Web Posted: 12/16/2008 12:00 CST
Company claims gas find in rural county
By Vicki Vaughan and Anton Caputo - Express-News
A Kuwaiti company said it has discovered a huge natural gas field in DeWitt County, in South Central Texas, that holds reserves equal to 80 percent of the state's annual production.
So far, though, no one has been able to confirm printed reports that the company's claims are true.
Aref Energy Holding, a unit of a Kuwaiti investment firm, said in a statement Sunday that its joint-venture operation in DeWitt County found roughly 19 trillion cubic feet of natural gas, with about 25 percent, or 4.75 trillion cubic feet, that is “recoverable.”
“If it is true, that would be very large,” Texas Railroad Commission spokeswoman Ramona Nye said, but commission officials haven't heard any buzz about a major find in DeWitt County.
Texas produces about 6 trillion cubic feet of natural gas a year and consumes about 4 trillion cubic feet a year, Nye said.
Texas accounts for one-third of the nation's natural gas production.
Aref said its project manager, Houston-based oil-field-services giant Halliburton Co., is taking “preliminary steps” to begin natural gas production, but Halliburton did not respond Monday to requests for comment.
If the reports are accurate, “that's a pretty substantial find ”” no question about it,” said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas.
Officials and business leaders in DeWitt County were unaware of the announcement.
“I simply haven't heard of this,” County Judge Ben Prause said of the possibility of tens of billions of dollars' worth of natural gas being discovered in his largely rural area.
The names Aref Energy and DeWitt Tract Co., the joint venture company, were virtual unknowns to people in Cuero, the county seat. No filings or records could be found for either company at the county appraiser's office, the county clerk's office or the Pecan Valley Groundwater Conservation District.
“Wow ”” I hope it's true,” said Kay Wild, the Groundwater Conservation District's general manager. “This is very interesting, but all drill supply permits come through this office. I don't know of them.”
Other sources close to the oil and gas industry in DeWitt County, who spoke on the condition of anonymity, expressed similar confusion over the announcement and said “major players” in the industry were trying to confirm the news.
DeWitt County has been a hotbed of oil and gas activity in the last few years, a fact that made some in Cuero, 85 miles southeast of San Antonio, speculate that a major player in the industry could have slipped in unknown.
In late 2006, as competition over energy became intense, representatives from oil and gas companies converged on Cuero to lease mineral rights from landowners. The demand for storefronts, office space and hotels rooms for the leasing operations far outstripped the supply, said Kay Lapp, executive director at the Cuero Chamber of Commerce. Oil and gas representatives, known as “land men,” set up tables at the public library or any place they could find space.
The rush has since died down for a simple reason, Lapp said.
“There's probably not a single land lease left in this county,” she said.
SMU's Bullock said any excitement over a big discovery could be dampened by the market for natural gas.
“Prices have been declining,” he said. “The market is somewhat oversupplied to the point that activity is decreasing in the Barnett Shale,” the state's most productive natural gas region that has sparked a lot of activity in the Fort Worth area.
“The fact that you find gas of this size is great ”” but whether you find a market for it at an economic price is another matter,” he said. “Most forecasts that I've seen indicate that natural gas prices will probably decrease in 2009.”
Natural gas prices averaged $9.17 per thousand cubic feet for the first 11 months of 2008, but estimates are that prices will average $6.25 per thousand cubic feet in 2009, according to the Energy Information Agency.
“That's a 30 percent drop,” said Neil Gamson, an analyst with the agency, a part of the Energy Department.
Natural gas prices will decline, he said, because the economy is expected to shrink next year and because demand from key sectors will be weak.
Company claims gas find in rural county
By Vicki Vaughan and Anton Caputo - Express-News
A Kuwaiti company said it has discovered a huge natural gas field in DeWitt County, in South Central Texas, that holds reserves equal to 80 percent of the state's annual production.
So far, though, no one has been able to confirm printed reports that the company's claims are true.
Aref Energy Holding, a unit of a Kuwaiti investment firm, said in a statement Sunday that its joint-venture operation in DeWitt County found roughly 19 trillion cubic feet of natural gas, with about 25 percent, or 4.75 trillion cubic feet, that is “recoverable.”
“If it is true, that would be very large,” Texas Railroad Commission spokeswoman Ramona Nye said, but commission officials haven't heard any buzz about a major find in DeWitt County.
Texas produces about 6 trillion cubic feet of natural gas a year and consumes about 4 trillion cubic feet a year, Nye said.
Texas accounts for one-third of the nation's natural gas production.
Aref said its project manager, Houston-based oil-field-services giant Halliburton Co., is taking “preliminary steps” to begin natural gas production, but Halliburton did not respond Monday to requests for comment.
If the reports are accurate, “that's a pretty substantial find ”” no question about it,” said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas.
Officials and business leaders in DeWitt County were unaware of the announcement.
“I simply haven't heard of this,” County Judge Ben Prause said of the possibility of tens of billions of dollars' worth of natural gas being discovered in his largely rural area.
The names Aref Energy and DeWitt Tract Co., the joint venture company, were virtual unknowns to people in Cuero, the county seat. No filings or records could be found for either company at the county appraiser's office, the county clerk's office or the Pecan Valley Groundwater Conservation District.
“Wow ”” I hope it's true,” said Kay Wild, the Groundwater Conservation District's general manager. “This is very interesting, but all drill supply permits come through this office. I don't know of them.”
Other sources close to the oil and gas industry in DeWitt County, who spoke on the condition of anonymity, expressed similar confusion over the announcement and said “major players” in the industry were trying to confirm the news.
DeWitt County has been a hotbed of oil and gas activity in the last few years, a fact that made some in Cuero, 85 miles southeast of San Antonio, speculate that a major player in the industry could have slipped in unknown.
In late 2006, as competition over energy became intense, representatives from oil and gas companies converged on Cuero to lease mineral rights from landowners. The demand for storefronts, office space and hotels rooms for the leasing operations far outstripped the supply, said Kay Lapp, executive director at the Cuero Chamber of Commerce. Oil and gas representatives, known as “land men,” set up tables at the public library or any place they could find space.
The rush has since died down for a simple reason, Lapp said.
“There's probably not a single land lease left in this county,” she said.
SMU's Bullock said any excitement over a big discovery could be dampened by the market for natural gas.
“Prices have been declining,” he said. “The market is somewhat oversupplied to the point that activity is decreasing in the Barnett Shale,” the state's most productive natural gas region that has sparked a lot of activity in the Fort Worth area.
“The fact that you find gas of this size is great ”” but whether you find a market for it at an economic price is another matter,” he said. “Most forecasts that I've seen indicate that natural gas prices will probably decrease in 2009.”
Natural gas prices averaged $9.17 per thousand cubic feet for the first 11 months of 2008, but estimates are that prices will average $6.25 per thousand cubic feet in 2009, according to the Energy Information Agency.
“That's a 30 percent drop,” said Neil Gamson, an analyst with the agency, a part of the Energy Department.
Natural gas prices will decline, he said, because the economy is expected to shrink next year and because demand from key sectors will be weak.
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comment quote from mySA news
QUOTE
For some reason, the Express did not report some essential facts contained in the press release. First, Aref Energy Holding owns a 50% interest in 75,000 acres under lease in Dewitt County. The balance is held by "U.S. partners". The operator is Weber Energy, a private company based in Dallas, so Aref's name would not be on any of the permits or other filings with the Railroad Commission; that's why no one has heard of them. Halliburton is only a contractor being used by the operator; the release says Schlumberger may also be used. Two wells have been drilled so far. The reserve figures they give are very preliminary and I would not put a lot of stock in them. The release also refers to the Eagleford Shale, which extends over a number of counties in South and Southeast Texas, so presumably their discovery is in this formation. Being impermeable, this formation requires an expensive frac job before it will produce. So the real story is: they have drilled two wells in the Eagleford which appear to be capable of producing gas. That's great for them, but really not a big news story.
UNQUOTE
I don't think I would read too much into this , however the find appears to be close to the Karne's county border
QUOTE
For some reason, the Express did not report some essential facts contained in the press release. First, Aref Energy Holding owns a 50% interest in 75,000 acres under lease in Dewitt County. The balance is held by "U.S. partners". The operator is Weber Energy, a private company based in Dallas, so Aref's name would not be on any of the permits or other filings with the Railroad Commission; that's why no one has heard of them. Halliburton is only a contractor being used by the operator; the release says Schlumberger may also be used. Two wells have been drilled so far. The reserve figures they give are very preliminary and I would not put a lot of stock in them. The release also refers to the Eagleford Shale, which extends over a number of counties in South and Southeast Texas, so presumably their discovery is in this formation. Being impermeable, this formation requires an expensive frac job before it will produce. So the real story is: they have drilled two wells in the Eagleford which appear to be capable of producing gas. That's great for them, but really not a big news story.
UNQUOTE
I don't think I would read too much into this , however the find appears to be close to the Karne's county border
TXCO & Petrohawk employ a 8 - 10 stage frac at Eagleford:-
“On the Eagle Ford play, TXCO currently is rigging up to re-enter and drill a 3,300-foot horizontal lateral on the Briscoe Catarina West 1H (50% WI through completion). The lateral will have a cemented liner and will be fractured in 8-10 stages, as done by other operators developing the Eagle Ford. TXCO’s emerging Eagle Ford play covers 565,800 gross (312,900 net) acres covering 884 gross (489 net) sections, with estimated recoverable gas of 16 to 22 bcf per section. Recently, Petrohawk Energy Corporation completed an Eagle Ford well horizontally using a 10-stage frac that produced 9.1 mmcfde. The well is in LaSalle County, Texas, east of TXCO’s acreage, and is indicative of the Eagle Ford’s high potential.”
http://www.txco.com/news/2008/122208.htm
The eagleford is certainly getting a lot of interest at the moment. Kennedy sits in the eagleford shale and we may be a chance of looking at that more seriously soon.
Conoco may also be looking at the eagleford in both the Kunde 2 and Marlene-Olsen verticals.
If conoco / TCEI can work out how to successful complete and then frac horizontals in the shale it should be possible to revisit Kowalik and Weston and add further horizontals into this new zone.
Very exciting times ahead which ADI should be well positioned to participate in once it consolidates its balance sheet.
Conoco may also be looking at the eagleford in both the Kunde 2 and Marlene-Olsen verticals.
If conoco / TCEI can work out how to successful complete and then frac horizontals in the shale it should be possible to revisit Kowalik and Weston and add further horizontals into this new zone.
Very exciting times ahead which ADI should be well positioned to participate in once it consolidates its balance sheet.
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i agree tomcat
i think seasprite is missing the point of the play a little, it extends far past dewitt as pioneer knows, and conoco has drilled a well past lavaca in the next county. colarado county (this is from memory for the county name)
and we all know apache and petrohawks movements also to the east and west also.
plenty of other players also.
i have seen lots of test wells in all the counties through to polk.. big names in there also..
i agree with the current focus in the upper zones, the chalks..
i will be interested to see if the news on both wells i hear translates to the midweekly..
i think seasprite is missing the point of the play a little, it extends far past dewitt as pioneer knows, and conoco has drilled a well past lavaca in the next county. colarado county (this is from memory for the county name)
and we all know apache and petrohawks movements also to the east and west also.
plenty of other players also.
i have seen lots of test wells in all the counties through to polk.. big names in there also..
i agree with the current focus in the upper zones, the chalks..
i will be interested to see if the news on both wells i hear translates to the midweekly..
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If I was missing the point agent , I would have not bought into AZZ's not yet drilled Yellow Rose permit in McMullen County.
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seasprite, i think you have when you discount the likes of geosouthern that have drilled already two wells in de witt and have farmed in aref and weber and allowed the minor holder weber to be operator and go free carry.
with two wells geosouthern have made it very attractive to other cashed up entities. and they also see the importance of the eagleford as a large resource and the feed to the austin chalks.
just south of the migara, pioneer have already got a lateral into the chalks and have got 7900 psi on the well head and have had that well sitting there for a good year or more, (johnson it think from memory) gravity is 60.. they call the chalks flintstone there.
enduring have put in a modiifed permit as well just there also for thieme gas unit 1, also imho hunting the eagleford and chalks.
pioneer have another permit there for their eagleford experiment.
pioneer have got a lavaca well going into the eagleford.
next to the geosouthern wells migura and buchhorn conoco have on both sides got butler, koopman maraldo and hooks spread across the entire county, they extend past lavaca and back into karnes with bordovsky..
its all part of the same extended play seasprite.
with two wells geosouthern have made it very attractive to other cashed up entities. and they also see the importance of the eagleford as a large resource and the feed to the austin chalks.
just south of the migara, pioneer have already got a lateral into the chalks and have got 7900 psi on the well head and have had that well sitting there for a good year or more, (johnson it think from memory) gravity is 60.. they call the chalks flintstone there.
enduring have put in a modiifed permit as well just there also for thieme gas unit 1, also imho hunting the eagleford and chalks.
pioneer have another permit there for their eagleford experiment.
pioneer have got a lavaca well going into the eagleford.
next to the geosouthern wells migura and buchhorn conoco have on both sides got butler, koopman maraldo and hooks spread across the entire county, they extend past lavaca and back into karnes with bordovsky..
its all part of the same extended play seasprite.
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re read my post agent, especially the bit that says "comment quote from mySA news" . The words between the QUOTE and UNQUOTE marks are not mine.
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my apologies seaprite..
the AZZ well called francis dilworth and has the operator SAN ISIDRO DEVELOPMENT CO, was posted on the rrc in dec 08
many cashed operators besides san isidro are chasing this play.
Submitted 09/15/2003 Approved 09/15/2003 536469 025-33245 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LAWSON, BARBARA ESTATE 1 02 BEE Vertical New Drill - 3600 Approved
Submitted 09/09/2004 Approved 09/09/2004 550753 311-33759 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) GOLANDRIAN 1 01 MCMULLEN Vertical New Drill - 1200 Approved
Submitted 03/18/2005 Approved 03/23/2005 559233 025-33326 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) DIRKS-HATCH 1 02 BEE Vertical New Drill - 4100 Approved
Submitted 06/23/2005 Approved 06/29/2005 602459 249-32480 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FREEBORN 1B 04 JIM WELLS Vertical New Drill - 2300 Approved
Submitted 07/14/2005 Approved 07/15/2005 603471 479-39209 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C.H. RAMIREZ MINERALS, LTD. 1 04 WEBB Vertical New Drill - 7700 Approved
Submitted 03/13/2006 Approved 03/13/2006 615708 479-39453 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C.H. RAMIREZ MINERALS, LTD. 2 04 WEBB Vertical New Drill - 9000 Approved
Submitted 10/09/2006 Approved 10/10/2006 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill - 10000 Approved
Submitted 12/28/2006 Approved 02/07/2007 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill Yes 10600 Approved
Submitted 02/27/2007 Approved 03/30/2007 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill Yes 10600 Approved
Submitted 03/13/2007 Approved 04/11/2007 635106 131-38966 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) DUWEL COMPANY 1 04 DUVAL Vertical New Drill - 3850 Approved
Submitted 03/22/2007 Approved 03/29/2007 635737 249-32504 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ZWERNEMANN NCT 1 04 JIM WELLS Vertical New Drill - 7000 Approved
Submitted 07/20/2007 Approved 07/31/2007 642963 249-32511 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FREEBORN, JEAN H. 1 04 JIM WELLS Vertical New Drill - 16500 Approved
Submitted 08/07/2007 Approved 08/14/2007 644012 479-39907 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C. H. RAMIREZ MINERALS, LTD B 1 04 WEBB Vertical New Drill - 8500 Approved
Submitted 02/13/2008 Approved 02/21/2008 655216 131-39065 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) TAYLOR 1 04 DUVAL Vertical New Drill - 14500 Approved
Submitted 04/10/2008 Approved 04/25/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill - 8000 Approved
Submitted 04/25/2008 Approved 05/14/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill Yes 8000 Approved
Submitted 05/28/2008 Approved 06/17/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill Yes 8400 Approved
Submitted 06/23/2008 Approved 07/09/2008 665137 321-32243 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) WEATHERS 1 03 MATAGORDA Vertical New Drill - 11000 Approved
Submitted 08/19/2008 Approved 09/08/2008 669439 025-33613 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) YOWARD-SCHRAMM GAS UNIT 2 02 BEE Vertical New Drill - 11400 Approved
Submitted 12/02/2008 Approved 12/04/2008 675741 311-34120 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FRANCES DILWORTH 1 01 MCMULLEN Vertical New Drill - 15000 Approved
san isidro has 20 permits to its name and no horizontal experience as an operator.
the AZZ well called francis dilworth and has the operator SAN ISIDRO DEVELOPMENT CO, was posted on the rrc in dec 08
many cashed operators besides san isidro are chasing this play.
Submitted 09/15/2003 Approved 09/15/2003 536469 025-33245 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LAWSON, BARBARA ESTATE 1 02 BEE Vertical New Drill - 3600 Approved
Submitted 09/09/2004 Approved 09/09/2004 550753 311-33759 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) GOLANDRIAN 1 01 MCMULLEN Vertical New Drill - 1200 Approved
Submitted 03/18/2005 Approved 03/23/2005 559233 025-33326 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) DIRKS-HATCH 1 02 BEE Vertical New Drill - 4100 Approved
Submitted 06/23/2005 Approved 06/29/2005 602459 249-32480 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FREEBORN 1B 04 JIM WELLS Vertical New Drill - 2300 Approved
Submitted 07/14/2005 Approved 07/15/2005 603471 479-39209 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C.H. RAMIREZ MINERALS, LTD. 1 04 WEBB Vertical New Drill - 7700 Approved
Submitted 03/13/2006 Approved 03/13/2006 615708 479-39453 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C.H. RAMIREZ MINERALS, LTD. 2 04 WEBB Vertical New Drill - 9000 Approved
Submitted 10/09/2006 Approved 10/10/2006 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill - 10000 Approved
Submitted 12/28/2006 Approved 02/07/2007 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill Yes 10600 Approved
Submitted 02/27/2007 Approved 03/30/2007 627207 249-32499 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) LONESOME DOVE 1 04 JIM WELLS Vertical New Drill Yes 10600 Approved
Submitted 03/13/2007 Approved 04/11/2007 635106 131-38966 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) DUWEL COMPANY 1 04 DUVAL Vertical New Drill - 3850 Approved
Submitted 03/22/2007 Approved 03/29/2007 635737 249-32504 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ZWERNEMANN NCT 1 04 JIM WELLS Vertical New Drill - 7000 Approved
Submitted 07/20/2007 Approved 07/31/2007 642963 249-32511 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FREEBORN, JEAN H. 1 04 JIM WELLS Vertical New Drill - 16500 Approved
Submitted 08/07/2007 Approved 08/14/2007 644012 479-39907 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) C. H. RAMIREZ MINERALS, LTD B 1 04 WEBB Vertical New Drill - 8500 Approved
Submitted 02/13/2008 Approved 02/21/2008 655216 131-39065 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) TAYLOR 1 04 DUVAL Vertical New Drill - 14500 Approved
Submitted 04/10/2008 Approved 04/25/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill - 8000 Approved
Submitted 04/25/2008 Approved 05/14/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill Yes 8000 Approved
Submitted 05/28/2008 Approved 06/17/2008 659365 479-40185 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) ALEXANDER 1 04 WEBB Vertical New Drill Yes 8400 Approved
Submitted 06/23/2008 Approved 07/09/2008 665137 321-32243 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) WEATHERS 1 03 MATAGORDA Vertical New Drill - 11000 Approved
Submitted 08/19/2008 Approved 09/08/2008 669439 025-33613 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) YOWARD-SCHRAMM GAS UNIT 2 02 BEE Vertical New Drill - 11400 Approved
Submitted 12/02/2008 Approved 12/04/2008 675741 311-34120 SAN ISIDRO DEVELOPMENT CO, L. C. (745991) FRANCES DILWORTH 1 01 MCMULLEN Vertical New Drill - 15000 Approved
san isidro has 20 permits to its name and no horizontal experience as an operator.
Sean K
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If ADI can not farm out or sell whatever they need to to remain solvent this quarter, are they in trouble?
I note the halt has turned into suspension, pending an announcement regarding equity financing, so assume they are talking to a bank, or ??
Any of you long termers concerned?
I note the halt has turned into suspension, pending an announcement regarding equity financing, so assume they are talking to a bank, or ??
Any of you long termers concerned?
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UPDATE ON OPERATIONS AT WESTON-1H
Eureka Energy Limited (“Eureka”) is pleased to provide the market with an update on operations at the Weston-1H Well which is within the Sugarloaf AMI and is part of the Sugarkane Gas and Condensate Field.
Weston - 1H
Eureka has been advised by the Operator, Texas Crude Energy Inc (“TCEI”), that at 06:00hrs on 20/01/09 (US CST) the well had reached a depth of 14,978 ft. Gas readings have increased since entering into the chalk with a maximum daily average reading of 3,100 gas units. Minor flares have been observed whilst drilling and circulating.
The well is targeting the upper chalk interval that has produced gas and condensate in three wells in the adjacent acreage and at the Kowalik #1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.
Eureka has a 12.5% working interest in the Sugarloaf AMI. Other ASX listed participants in the Sugarloaf JV, and their respective working interests are:
Aurora Oil & Gas Limited 20%
Adelphi Energy Limited 20%
Eureka Energy Limited (“Eureka”) is pleased to provide the market with an update on operations at the Weston-1H Well which is within the Sugarloaf AMI and is part of the Sugarkane Gas and Condensate Field.
Weston - 1H
Eureka has been advised by the Operator, Texas Crude Energy Inc (“TCEI”), that at 06:00hrs on 20/01/09 (US CST) the well had reached a depth of 14,978 ft. Gas readings have increased since entering into the chalk with a maximum daily average reading of 3,100 gas units. Minor flares have been observed whilst drilling and circulating.
The well is targeting the upper chalk interval that has produced gas and condensate in three wells in the adjacent acreage and at the Kowalik #1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.
Eureka has a 12.5% working interest in the Sugarloaf AMI. Other ASX listed participants in the Sugarloaf JV, and their respective working interests are:
Aurora Oil & Gas Limited 20%
Adelphi Energy Limited 20%
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not concerned on the adi front, since december adi has been announcing its intention to sell assets. as they have not announced their sale of any asset as yet i am of the opinion that near term considerations are being considered.
my outlook remains long term and these events unfolding are part of a proactive stance being taken over some time now.
prawn_86
Mod: Call me Dendrobranchiata
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Obviously it cannot have been planned like this, if they have to sell, then they have to sell, but are any holders worried that the price they will get for their assetts/leases are dramatically lower than 18 months ago?
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who planned for this economic crisis prawn? did rio? did anyone?
cash is king prawn, cash is king.. its no longer possible to raise 10 or 20 mill anymore. so those with the cash can sift through the rubble for he diamonds
who knows what the outcomes are so its speculation to say the prices of assets will be lower than 18 months ago.. dont underestimate the fine assets adi have imho..
imho none of the jvp partners have the options adi have before them, i have not heard adi has changed its plans on selling assets, so i am expecting they may still be taking that course
I dont get your point Prawn.That can be said of a lot of stocks. Look at RIO and its attempt to sell assets, OZL and its problems and I wont start on the property trust sector, the Babcocks, AFG...the list could go on for a long time.
All assets and leases are worth a lot less now than 18 months ago. With the benefit of hindsight a lot of companies would have offloaded assets 18 months ago if they new how bad things were going to be.
Cheers
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OT
as rio paid some 40 billion (is that right?) for the aluminum asset i believe, and they will have to write it down this year, maybe its worth 4 or 8???
imagine if bhp had of taken over rio recently? all bhp and others have to do is watch rio melt down and take their pick in the fire sale.
adi have no debt, so anything it sells is not payiong off anything but is going to be used in exploration. huge difference to other companies with debt..
may be simplistic view perhaps but i think cash is king, and getting cash will be a brilliant thing for adi to see it through imho.
prawn_86
Mod: Call me Dendrobranchiata
- Joined
- 23 May 2007
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I agree with you Blues, however ADI (and other specs) are in a more precipitous position, as if they cannot offload, or only sell for a small amount, then they run the risk of going broke, especially if they dont hit any oil that can be recovered
Hi all, I'm still in, but haven't posted for a long time.
Sorry if I missed someone comment on this earlier, but did anyone notice that the gas readings in the current drill are significantly higher than the ones recorded for kowalik? Bodes well, lets hope the equity raising is not a disaster for current shareholders.
Sorry if I missed someone comment on this earlier, but did anyone notice that the gas readings in the current drill are significantly higher than the ones recorded for kowalik? Bodes well, lets hope the equity raising is not a disaster for current shareholders.
- Joined
- 8 October 2006
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Precipitous - extremely or impassably steep
nice word prawny, I had to look that one up
yep. all we can do is wait and see what the reaising is, and hope we dont get shafted too much. as you said much the same as many speccies.
I also agree that cash is king, but am very surprised those companies with great amount of cash is also getting pummelled. I've been accumulating CFE and AEP lately, and hope PPP will be taken over. (sorry for o/t)
nice word prawny, I had to look that one up
yep. all we can do is wait and see what the reaising is, and hope we dont get shafted too much. as you said much the same as many speccies.
I also agree that cash is king, but am very surprised those companies with great amount of cash is also getting pummelled. I've been accumulating CFE and AEP lately, and hope PPP will be taken over. (sorry for o/t)
