ADI - Adelphi Energy

[Agentm]

it bodes well for your region imho jestex, de witt looks good as far as pioneer is concerned and petrohawk are doing their thing in lavaca next door to you..

winn is in you region jestex, but a very small player..

imho once pioneer gets their wells finished in de witt you will see some interest down your way.

crude is $35, so most people in the world are really happy about it,, here in australia we have to use the tapas prices set in singapore, so we have $50 plus prices to contend with, even in the economic crisis we still cant get any relief at the petrol pump!

 

[jestex12]

Agentm,

Price of gas is up here in the states also but not as much as it is in Australia. The economy seems to be in limbo. Just took a look at the UK and Asian markets which are reflecting our dismal day. Unfortunately the greed of the past is catching up.

 

[Lucky_Country]

Well todays announcement was quite a good one.

They have successfully finished Weston and is now waiting to be fraced as is Kowalik and Kennedy.

Also clearly spelled out which zones each well is in stating the natural fractures.

Playing the waiting games for a while now but they have suprised in the past.

 

[jestex12]

Agentm,

Weber Energy submitted a W-1 today in Dewitt County take a look.

http://webapps.rrc.state.tx.us/DP/d...PublicQuery=Y&name=KRAUSE&univDocNo=485486156

 

[Agentm]

jestex.. i saw that the other day.. its location is next to the conocophillips well called hooks. weber took over as operator for geosouthern, and has a kuwaiti oil company as a jvp partner.. great farm in.. becoming more convinced your region may be in consideration one day..


figures for kunde 3 and the baker wells from saf..

interesting that blackbrush is also chasing the play.. they have extensive acrages in karnes county also with plenty of edwards wells and a few chalks wells in the hotshots play.

Blackbrush To Drill Eagleford Horizontal Well In Lasalle County, Texas
BlackBrush Oil & Gas, LP has signed an agreement with its partners to drill an Eagleford horizontal well on the South Texas Syndicate Ranch of LaSalle County.


FOR IMMEDIATE RELEASE
PRLog (Press Release) – Jan 28, 2009 – BlackBrush Oil & Gas, LP has signed an agreement with its partners to drill an Eagleford horizontal well on the South Texas Syndicate Ranch of LaSalle County. BlackBrush, with its partner, shot approximately 34 square miles of high quality 3D seismic data this past summer which has delineated prospects in the Lower Wilcox, Olmos Sands, Eagleford Shale, Edwards Limestone, Pearsall Shale, Sligo and Cotton Valley formations.
The third party operator will spud the Eagleford test before May of 2009.
This block of acreage is approximately 9,416 contiguous acres on the South Texas Syndicate Ranch and is a direct offset to the Petrohawk South Texas Syndicate #241-H, which was placed on production in October 2008 at a rate of 9.1 million cubic feet of gas per day from the Eagleford at a true vertical depth of 11,300 feet.
Petrohawk has reportedly drilled another successful offset well to the east of this acreage, the Donnell #1 in McMullen County and a third well 15 miles west southwest of the #241-H, the Dora Martin #1

 

[jestex12]

Agentm,

Just read your post. Seems like the Aref discovery is starting to play out. Interesting to see what happens in the next year or so. Oh, I will be in the Nordheim/Kennedy region April 8 - April 13 visiting family and relatives. If I have time I'll take some pictures of the area.

 

[Agentm]

the pioneeer well johnson 1h near you is in the chalks, it was drilled in 2006 and completed in 2007/2008... that well is not producing at the moment, just a completion.. and they had only about 2000 feet of well to use, its completion report didnt set the world on fire for pioneer, and i have not too much more detail on it.. they then drilled a well next to it a few miles and tested the eagleford.. and that well is doing very well..

pioneer doesnt discuss the austin chalks much other than to say its also a very extensive resource, and pioneer is looking at the oil in thew eagleford and has cracked it in de witt north of you and is doing more with it in lavaca..

we have 3 completions ready to be tested, a wait for the jvp to get their teeth into it and decide on the best fracs.. so far the wells have been unable to flow on their own at commercial rates (except for that kunde 1!!)

The Austin Chalk and Eagle Ford Shale are Upper Cretaceous deposits that extend across Texas from the northeast to southwest. These formations contain organic carbon enriched mudstones and chalks that were deposited during transgressions of the Cretaceous epeiric sea in North America. Recent workers in petroleum geochemistry have demonstrated that these organic enriched rocks possessed attributes common to oil source rocks. The present study of these Austin Chalk and Eagle Ford Shale rocks is from the perspective of organic petrology, and it augments the earlier geochemical work that documented source variability within units of these formations. As with the earlier work, the results of this study show that both formations contain intervals that are, when mature, capable of generating commercial quantities of liquid hydrocarbons. However, this work further revealed that Eagle Ford rocks not only exhibit greater organic carbon contents, but also have greater quantities of oil-prone kerogen (fluorescent amorphinite and exinite) when compared with rocks from the Austin Chalk. These source rock differences relate to levels or degrees of organic preservation. Dysaerobic to oxic depositional settings seem to be more characteristic of the Austin Chalk than of the Eagle Ford Shale. Such oxic environments do not consistently favor the preservation of organic matter. Usually, well-preserved kerogen forms under more anoxic conditions, such as those that occurred during deposition of some Eagle Ford units. These anoxic conditions suggest that the geographically more extensive Eagle Ford Shale is a more important source for oil than is the Austin Chalk.

 

[jestex12]

Well put Agentm!! Through research and observation of pioneer, weber, txco, etc. I get the same impression that the eagle ford is the rock source for great mineral reserves. The way these players are following the others leads only to believe that they all know how naturally rich this area is.

 

[Agentm]

after 3 untested wells we have the market giving no value to the play in adi, plenty in aut and eka without cash is somehow practically in parity..

strange days indeed..

if tcei can offer some viable and effective frac design on the 3 wells then commercial flow may be attained..

never been riskier an investment in this share than right now, and many are prepared to pay very little for the chance.. high risk reward stocks are not on anyones buy list at all..

its down to the operator and jvp to find a frac solution here.. and we all hope there is one out there that these guys correctly select.

pioneer got in right in the eagleford in dewitt,, we know petrohawk have it nailed, and we understand from txco their jvp operator anadarko has found some solution they are excited about..

obviously conoco has yet to get it right in kunde 3 and the bakers look dismal dont they..

adi is about to sell a yemen asset and may raise some cash and be able to bunker down for the time being, not sure the other jvps have the same luxury.. find the sp differences between partners difficult to read really.. but some must be happy imho..

good luck to all holders.. its up to the results on the 3 untested wells now..

 

[Agentm]

"obviously conoco has yet to get it right in kunde 3 and the bakers look dismal dont they.."

the flow rates look dismal if indeed they are assumed to be a full months flow..

on the other hand if the wells are on test and not on and long term production then higher rates may be a possibility..

 

[queenstown]

So did any of you sign up for the SPP? I have my cheque in hand stil undecided. Averaging down seems the logical thing to do but struggling with a clear understanding of the furture direction with this one.

 

[Agentm]

glad to see someone has some cash on hand..

i hear conoco is putting through a second pipeline in live oak at the moment, this new one is an 8inch pipeline.

pretty sure one of two rigs that conoco just drilled has been released, and also hearing bordovsky well near by in karnes county, is getting a lateral drilled anytime soon.

plenty of activity at the baker 2 well. which can been seen in the recent rrc releases..

 

[queenstown]

Agentm, to be honest I was hoping on a announcement regarding the sale of some/all of Yemen before I committed. In my mind that would have strengthend the SP at 6 cents leaving little doubt the SP would dive further resulting in better value proposition.

I would be very interested to hear from other existing investors on their thoughts on the SPP.

 

[Lucky_Country]

SPP seems to be a fair deal for all concerned.

ADI need the cash, it gives existing shareholders a chance to average down and support their initial investment in the same move.

Prices at the momment are a great dissappointment to all and this saga has gone on longer than I personally anticipated or like.

One must think the next 12 months all will be known on the currewnt wells with fraccing and acid washing to increase flow.

Risk reward seems a good value proposition atm.

 

[queenstown]

It seems Yemen is heating up....

Yemen woos heavyweights

Yemen has received investment offers from major oil players including US-based ExxonMobil and France’s Total, Oil Minister Amir al-Aidarous said in remarks this weekend.

Yemen's Ministry for Oil and Mineral Resources has received eight oil investment bids from international companies, pan-Arab daily al-Hayat quoted Aidarous as saying, four of which were from oil groups seeking direct negotiations with Yemen.

The companies include ExxonMobil, Total, and Uk supermajor BP, the minister said, but did not elaborate on the nature of the investments, a Reuters report said.

Other companies that made bids included Austrian oil and gas group OMV, Canada’s Nexen, and Us independent Occidental, he said.

Aidarous said Yemen, as part of measures to encourage investments in its oil industry, would raise the state's share in production costs. The higher revenue from the increased government participation would offset the decline in oil prices, he said.

Yemen exports about 200,000 barrels of oil per day.

 

[Agentm]

24 February 2009
Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))
Sugarloaf Prospect, ("Sugarloaf"), Block A, Texas USA




* Block A-3 (baker 1) and A-4 (baker 2) wells placed on production to sales

* Combined flow rates from both wells averaged 5.8 million cubic feet of gas per day and 680 barrels of condensate per day for the seven days up to 21st February


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


TCEI JV Block A-3 Well (baker 1)


Empyrean has been advised by Texas Crude Energy Inc ("TCEI") that the TCEI JV Block A-3 (baker 1) well commenced flowing to sales on the 14th February after having a water and surfactant flush treatment.


The well achieved average flow rates for the seven days up to and including 21st February, 2009 of 1.7 million cubic feet of gas per day and 280 barrels of condensate per day.


TCEI JV Block A-4 Well (baker 2)


TCEI also advised that the TCEI JV Block A-4 (baker 2) well commenced flowing to sales on the 14th February after having an acid fracture stimulation performed.


The well achieved average flow rates for the seven days up to and including 21st February, 2009 of 4.1 million cubic feet of gas per day and 400 barrels of condensate per day.


Empyrean has a working interest of 7.5% in both of these wells.


Commenting today Empyrean director Tom Kelly said: "Empyrean is very pleased that these wells have now had production facilities completed and have been connected to the sales pipeline. We now have production from all three horizontal wells on Block A, with two vertical wells undergoing further
testing."


the two wells, baker 1 and 2 sit side by side and we can clearly see the two different completions have delivered 2 distinct results.

what TCEI/conoco have shown in their completions is that a "water and surfactant flush treatment" on 2800 feet of lateral has resulted in a flow of 1.7 million cubic feet of gas per day and 280 barrels of condensate per day. this is a very similar result to the kowalik well, where a flush out has not brought any staggering flow rates.

then we see that TCEI/conoco did a different completion on the baker 1 well, i believe its length is only about 1200 feet going by an earlier report by eme. but in baker 2 they completed the well in a different fashion, they did a an "acid fracture stimulation"

now that small lateral of 1200 feet with that acid frac really brought a very different result to the water and surfactant flush treatment, in terms of flow they announced the rate of 4.1 million cubic feet of gas per day and 400 barrels of condensate per day.. resulting in a much higher gas ratio and lower condensate ratio.

indeed a very interesting announcement. and will give the TCEI operator and the jvp on our acreages a lot of things to contemplate in the way they approach all three laterals..

 

[estseon]

It should be remembered that Baker 1 was never completed.

From the EME 2008 accounts:

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.

The drilling and initial flows of Baker 1:

During the horizontal drilling operation, three sidetracks were made to precisely target high permeability pay zones. The third and final sidetrack spanned 13,230 to 15,100 ft. Significant shows and flares were recorded
while drilling the entire 2,800 ft of open hole. The well continually tried to flow despite the high mud weights being used. This persuaded the operator to stop drilling at 15,100 ft, short of the original 17,800 ft, and attempt a natural open hole test. A plug was set at the base of the 7” casing and the rig released and replaced by a smaller and less expensive workover rig.

On 14 April 2008, Empyrean was finally able to announce the initial test results of a significant gas/condensate discovery. Initial flows through a 12/64” choke were measured at 1.9mmcfgpd with 460 barrels of condensate per day. Based on present day prices for gas and condensate this would be equivalent to 6.6 mmcfepd.

It sounds as though it might have been a bit of a monster had they not blocked it with drilling gear.

There is a reason why the Baker 1 result might not be representative of what might be obtained.

 

[Agentm]

estseon,, i know both baker 1 and baker 2 hit some pretty rough terrain, and during baker 1 they had a massive flare one evening that brought people from their beds and to the well as they thought the well was on fire, the flare was deafening and reported to be higher than the rig itself and there were other issues on the rig itself that caused grave concerns i believe, the baker 1 well had 3 goes at the formation and 2800 was all they could get, they had to get off the hole which took some effort, and then had a snubbing unit there to deal with the repair work. and you dont use one of those if your hole is not throwing back a lot of pressure. anyway after many months the well was repaired, but from what we see after a water treatment, the flow rates are not very much improved. i think the operator may be examining two different techniques for a very good reason myself.. with baker 1 they can easily replicate baker 2 or if weston does something amazing they can replicate a frac that we do or improve on it.. good planning going on here in some respects..

with what happened in both wells its highly likely the mud weights used and techniques employed to save the wells would not have been favorable to the formation.. these completion are extremely interesting ones for everyone.

all imho and dyor..

 

[estseon]

Agentm

The point that I was making was that EME has not reported that the blockage has been removed and the well cased. So, can they actually do an acid fracc on Baker 1 if it is partially blocked and not cased?

But, perhaps they did sort it out - you say that it was repaired. But I don't recall EME making any report of that. However, that may mean very little - EME is not good on follow-up.

Kowalik was pretty lively as well but I'm sure that the JVPs have said that they can get gear down the hole to the end. We might yet see what Baker 1 could have been.

 

[Agentm]

Agentm

The point that I was making was that EME has not reported that the blockage has been removed and the well cased. So, can they actually do an acid fracc on Baker 1 if it is partially blocked and not cased?

But, perhaps they did sort it out - you say that it was repaired. But I don't recall EME making any report of that. However, that may mean very little - EME is not good on follow-up.

Kowalik was pretty lively as well but I'm sure that the JVPs have said that they can get gear down the hole to the end. We might yet see what Baker 1 could have been.

clearly the baker 1 well had an acid frac completed on it.. its in the public statement from EME to their shareholders..

TCEI JV Block A-4 Well (baker 2)


TCEI also advised that the TCEI JV Block A-4 (baker 2) well commenced flowing to sales on the 14th February after having an acid fracture stimulation performed.


The well achieved average flow rates for the seven days up to and including 21st February, 2009 of 4.1 million cubic feet of gas per day and 400 barrels of condensate per day.


the operator, conocophillips has performed an acid frac on the well, this can be done open hole, but there is no detail of what specifics went on with the acid frac, and imho it wont be for obvious reasons.

we know from a previous eme report the well had about 1200 feet of lateral to work with.