ADI - Adelphi Energy

[martyfar]

i was looking at the eka announcement before, one holder has shown purchases of 5,499,000 this year, and in total holds 5,999,000 including dec figures..

doesnt match up with the trading volumes for the share ( 3,316,158 shares traded for $116,898 in value) so i gather its off market tranfers in this also??

appears to be some other risk adverse investors coming into the jvp..

Hi agent

I watch with interest all the developments associated with the various JVP's. I hear there's a possibilty that EKA may be contemplating a farmout relationship with Conocophilips ?? there certainly apears to be some change in "sentiment" (in a positive terms) relatd to this pay in recent times as evidenced by the increase in the volume of shares traded and SP

 

[mjam]

Long term holder of ADI stock - don't post a lot but appreciate your views. I have not been keeping up to date with other JVP's , but overall the performance of this company over the last 12 months has been poor (to say the least).

Reviewed the last quarterly and in summary :

1) Sugarloaf - seams to be on hold - quote from qtrly " the timing and type of further operations in the sugarloaf area remains dependent upon the detailed design by the operator and agreement of the joint venture partners"

how long and when ??????


2) Yemen- Block 7 - the company needs this deal (US$4m) to come to fruition otherwise it is very weak from a cash flow perspective.

3) Yemen - Block 74 - 3d seismic to be carried out late in 2009 - will they have the cash by then to manage this and Sugar ?

4) Indonesia - Fail

5) AC/P32 timor - Fail

Overall - not a good report card over the last 12 months.

Cashflow - ~$2m in bank and with admin costs of ~$0.5m per qtr and exploration costs of ? - it does not look pretty.

When are management go to make it happen or at least up the ante on sugar ?

 

[Agentm]

Long term holder of ADI stock - don't post a lot but appreciate your views. I have not been keeping up to date with other JVP's , but overall the performance of this company over the last 12 months has been poor (to say the least).

Reviewed the last quarterly and in summary :

1) Sugarloaf - seams to be on hold - quote from qtrly " the timing and type of further operations in the sugarloaf area remains dependent upon the detailed design by the operator and agreement of the joint venture partners"

how long and when ??????


2) Yemen- Block 7 - the company needs this deal (US$4m) to come to fruition otherwise it is very weak from a cash flow perspective.

3) Yemen - Block 74 - 3d seismic to be carried out late in 2009 - will they have the cash by then to manage this and Sugar ?

4) Indonesia - Fail

5) AC/P32 timor - Fail

Overall - not a good report card over the last 12 months.

Cashflow - ~$2m in bank and with admin costs of ~$0.5m per qtr and exploration costs of ? - it does not look pretty.

When are management go to make it happen or at least up the ante on sugar ?

i agree on some your sentiments, its all very long winded in terms of timings, but do the adi management have the control of external factors relating to the severe financial constrains on the jvp partners? i think not.

re the free carried well in timor sea, yes it was a dry hole but it was free carried there.

re indonesia, a complete disaster.. external factors at play there, imho its not easy to conclude it was directly an adi management issue.

yemen deal was outstanding. so i conclude differently to you there, imho adi would be in a vastly different place if it had the cash reserves of say $370k like eka..

i think the sudden turnaround announced by AUT and TCEI and the release a day later by EKA to follow suit has revealed the forward plan.. i suggest reading those reports and draw your own conclusions.

 

[Agentm]

st marys put forward some info about their eagleford operations overnight



In the Maverick Basin in South Texas, the Company is presently drilling in the horizontal lateral of its first operated well targeting the Eagle Ford shale. The Eagle Ford section was cored prior to plugging back and kicking off the lateral and St. Mary intends to conduct a micro-seismic study during fracture stimulation of the well. Three additional horizontal Eagle Ford wells are currently planned for the remainder of 2009. The Company also intends to continue participating in the joint venture targeting the Pearsall and Eagle Ford shales with TXCO Resources and Anadarko Petroleum.

 

[Agentm]

5 May 2009
Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online

FARMOUT OF SUGARLOAF AMI

Adelphi Energy Limited is pleased to advise that it has entered into arrangements with Texas Crude Energy Inc. (TCEI) to seek a farmout of up to half of Adelphi's 20% interest in the Sugarloaf AMI. TCEI is the Operator of the Sugarloaf AMI and will lead the farmout effort which will involve the assistance of Jefferies, Randall & Dewey, a leading US oil and gas advisor.

Adelphi will now join some of the other joint venture partners in the Sugarloaf AMI to contribute equity to this joint farmout effort which will result in sufficient equity being available to attract a significant E&P company or investor. It is envisaged that the incoming party will earn equity by carrying the farmout parties including Adelphi through a drilling and well stimulation work program in a fixed time-frame. Details of the terms of any farmout will be
advised at the time they are concluded.

Pending finalisation of the farmout arrangements, it is expected that field operations within the Sugarloaf AMI will be limited.

From a strategic perspective, a successful farmout will result in Adelphi retaining meaningful equity in a valuable resource project and be carried through a significant work program with little or no funding by Adelphi. This preservation of capital for Adelphi during the current difficult financial environment is an appropriate strategy at this stage of the development of
the Austin Chalk and Eagle Ford plays in the Sugarloaf area. These promising resources must be developed using state of the art horizontal drilling technology and fracture stimulation which have proven to be highly capital intensive during this current early stage of field appraisal and development.
A successful farmout and subsequent aggressive work program will generate significant momentum for the project, as well as allow the leasehold acreage position to be managed proactively.

A farmout of Adelphi's Sugarloaf interest is consistent with the corporate strategy adopted by the Board in late 2008 in light of the deteriorating global capital market conditions - namely to achieve financial security and to create a solid platform for growth once financial conditions improve. The proposed farmout of Sugarloaf in conjunction with the recent agreement to sell Adelphi's Block 7 interest in Yemen for a considerable cash consideration
will place Adelphi in a much stronger financial position, without the need to obtain further equity funding for its current projects. Importantly, Adelphi is expected to retain a meaningful equity interest and hence leverage to shareholders in the large Sugarloaf resource play.

 

[Lucky_Country]

Bye Bye Sugarloaf !!!

Well my hopes of ADI being sucessful in producing from the SL with a 20% stake are officially over.

The key now is what are the terms of this deal one would hope some substantial free carried works in the area.

 

[nioka]

Bye Bye Sugarloaf !!!

Well my hopes of ADI being sucessful in producing from the SL with a 20% stake are officially over.

The key now is what are the terms of this deal one would hope some substantial free carried works in the area.

Look at it this way,without a farmin partner it may well have been Bye Bye or another capital raising that would have massively diluted the shareholding. Now it should be a free carry. Half a loaf is better than no bread. I'll settle for it.

(At the current SP you can double your holding cheaply and still have the same equity.)

 

[solomon]

I'm out.

It wasn't entirely due to negativity on ADI though. I need to raise some cash and ADI looks to be the most vulnerable to further downside in my portfolio, so I've taken the loss over the last few days (starting before the announcement).

I wish all holders a quadzillion percent return from here.

 

[seasprite]

I'm out.

It wasn't entirely due to negativity on ADI though. I need to raise some cash and ADI looks to be the most vulnerable to further downside in my portfolio, so I've taken the loss over the last few days (starting before the announcement).

I wish all holders a quadzillion percent return from here.

I was glad to sell the majority of my holdings when Meryl Lynch pumped the share price up to the mid 30's which allowed me to sell mine before they dumped . Remaining sharees are considered to be free .
One top 20 shareholders activity was becoming a concern to me and maybe in a bull market their selling technique may have worked of dumping shares on good news , however it didn't and it led lead to a mass exodus and wealth destruction of a few including themselves . I won't name them , however caution remaining holders this holder has taken up the SPP and is in the lower 10 of the top 20 as of today http://www.adelphienergy.com.au/investors/shareholders.php

Once ADI receive some cash from block 7 , a good farmout agreement and management stop B***S****ing themselves they will move forward.

 

[Agentm]

http://seekingalpha.com/article/135...-earnings-call-transcript?source=bnet&page=-1

st marys conference call is very interesting


pioneer also did one

 

[Agentm]

RNS Number : 7454R
Empyrean Energy PLC
06 May 2009

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


* Combined total production from Block-A for the month of March 2009 was reported to the Texas Rail Road Commission ("TRRC") as 15,621 barrels of oil and 113,693,000 cubic feet of gas.

* Empyrean has a 7.5% working interest (5.25% net interest after royalties) in the 5 Block-A wells that it has participated in.



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:


The operator of Block A, Conoco Phillips, has reported production figures for the month of March 2009 to the TRRC. The production figures show production from the Block A-1 Well (Kunde 3), Block A-3 Well (Baker Trust 1), Block A-4 Well (Baker Trust 2) and the Block A-5 Well (Marlene Olsen). It is believed that the fifth well, the Block A-2 Well (Kunde 2) is presently awaiting production facilities. It is not known how many days production this represents for each well. The following table shows the production summary for the individual wells:


+------------------+-------------------------------+------------------------------------+
| Well Name | Oil Production (Barrels) | Gas Production (Cubic Feet) |
+------------------+-------------------------------+------------------------------------+
| A-1 | 5,687 | 18,205,000 |
+------------------+-------------------------------+------------------------------------+
| A-2 | Awaiting facility | Awaiting facility |
+------------------+-------------------------------+------------------------------------+
| A-3 | 3,862 | 42,950,000 |
+------------------+-------------------------------+------------------------------------+
| A-4 | 5,372 | 49,907,000 |
+------------------+-------------------------------+------------------------------------+
| A-5 | 700 | 2,631,000 |
+------------------+-------------------------------+------------------------------------+
| TOTALS | 15,621 | 113,693,000 |
+------------------+-------------------------------+------------------------------------+


Empyrean advises that following drilling and completion operations the daily reporting of operations by the operator ceases once wells move to production status. The general regime for the reporting of production in the USA is that the operator will file monthly production figures to the RRC. This is usually accompanied by a subsequent notification of that filing to any partners.


Revenue notifications and accompanying monthly revenue cheques are received approximately 1.5 months following the production for oil and 2.5 months following the production for gas.


Commenting today Empyrean Executive Director, Tom Kelly said - "We are pleased with the early production, in particular from the horizontal wells A-1, A-3 and A-4. With the A-2 vertical well to come on to production and further work likely on A-5 vertical well, we expect that production will increase. We are also finally able to confirm that Conoco Phillips is the operator of the Block A wells and having a company of their caliber operating really speaks for itself."

 

[estseon]

3 points concerning the RNS

1. Note that EME suggests that some of the wells may have been shut in for part of the month. I don't personally feel that we can get a proper view on flow rates until we see the May or June flows.

2. Though not of interest to ADI holders (yet), it has still to be clarified whether revenues are shared in the cost sharing ratio for each well until full recapture of costs for that well.

3. Of interest to ADI holders, it has still to be clarified whether royalties only become payable for the production from a well after the costs of that well have been fully recovered out of production income.

Factors 2 & 3 make considerable difference to initial cash in-flows

Factor 2 might mean that the new JVP will recover his costs out of production income before the existing JVPs start to receive their proportionate shares (although the farm-out agreement might not have the same terms).

 

[Agentm]

estson

i note that the following flow rates for feb 09 for kunde 3

734.39 mcfpd 254.61bopd..

that well has consistently produced 30% more than the 250 bo per 1mmcfpd ratio the jvp tout for the region.

baker 2.. feb 09

323.14 mcfpd 113.75 bopd

baker 1

507.39 mcfpd 100.21 bopd

marlene olsen (vertical well)

71.64 mcfpd 24.50 bopd


kunde 1 discovery well (vertical)

167.18 mcfpd 34.14 bopd


in karnes county adi has one open hole damaged well producing, thats kowalik, and only 900 foot of kennedy opened up with a frac..



kennedy

68.25 mcfpd 14.07 bopd

kowalik

312.39 mcfpd 74.14 bopd

 

[estseon]

agent,

The Bakers were worked on in February and fracturing seems to temporarily increase the gas/condensate proportion. Kunde 3 and Kowalik are probably a better guide. Kowalik was about 320 barrels per 1mmcfg and Kunde 3 (worked on end of December and beginning of Jan) seems to be comparable. Kennedy flows are low (only 600ft of incorrectly designed fracturing), so I'm not too sure that much can be learned. They have oscillated more recently around about 290. Kunde 3 bottom 900ft is now connected so April & May figures might give a better idea but the condensate production seems to be 20% better than the 250 per 1mmcfg produced in the western fields.

 

[YOUNG_TRADER]

ADI

Recently did a cap raising at 6c which was taken up aby ARQ/AWE and by the directors

"During the quarter the Company issued a total of some 27.3 million shares by way of share placement and a Share Purchase Plan at an issue price of 6 cents per share to raise a total of approximately $1.6 million before costs. The share placement was taken up by professional investors, ARC Energy Limited (a wholly owned subsidiary of AWE Limited) and by Directors of the Company."


The Company’s current cash position of some $2 million will be considerably strengthened upon settlement of the
sale transaction with Mitsui in relation to Yemen Block 7, with expected net cash backing of some 5 cents per issued Adelphi share following settlement.



So 5c per share cash backing, placements taken up by ARQ and directors at 6c and some projects still on the go


One to watch, sell side non existant and given the recovery runs on ADX AZZ and SEA I think its about time this hammered oiler got up and galloped

 

[Agentm]

ADI

Recently did a cap raising at 6c which was taken up aby ARQ/AWE and by the directors

"During the quarter the Company issued a total of some 27.3 million shares by way of share placement and a Share Purchase Plan at an issue price of 6 cents per share to raise a total of approximately $1.6 million before costs. The share placement was taken up by professional investors, ARC Energy Limited (a wholly owned subsidiary of AWE Limited) and by Directors of the Company."


The Company’s current cash position of some $2 million will be considerably strengthened upon settlement of the
sale transaction with Mitsui in relation to Yemen Block 7, with expected net cash backing of some 5 cents per issued Adelphi share following settlement.



So 5c per share cash backing, placements taken up by ARQ and directors at 6c and some projects still on the go


One to watch, sell side non existant and given the recovery runs on ADX AZZ and SEA I think its about time this hammered oiler got up and galloped

young trader

pretty well spot on imho

adi has a very low market cap and will be sitting on a load of cash.. and its very obvious that the farm out on the eagleford will be designed to get many more completions happening and the 3 laterals can be worked over in no time.
plenty of permits all ready set up and can be drilled immediately.


the second yemen block would also be a very handy item in the future to sell.

Market Cap: 9,572,640
Issued Shares: 119,998,061

no need for adi to capital raise at all in the eagleford,

pleny of reasons to think the company is worth more than cash value..

 

[philly]

Young Trader & agentm I agree with you. The current SP barely reflects the cash value of ADI. The SP fails to factor in its acreage in the USA and the potential of Sugarloaf. ADI seems friendless in the market. It is up to the directors to get things moving and moving soon. IMHO there is plenty of upside but how long can one wait?

 

[jestex12]

From Associated Press Re: Oil/Gas:



Goldman Sachs analyst Brian Singer on Monday upgraded a litany of companies in the oil and gas sector based on expectations of oil price recovery and shale gas growth over the next three to six months.

Singer raised his rating for Devon Energy Corp. as he believes its stock has room to rise and will benefit from a rebound in commodity prices. He added that the company shows potential in its key shale plays, oil sands and deep water Gulf of Mexico. Singer upgraded Devon to "Conviction List-Buy" from "Neutral," and raised his price target for the stock to $80 from $67.

Devon shares fell $1 to $62.81 in afternoon trading.

Singer upgraded Anadarko Petroleum Corp. to "Neutral" from "Sell" due to improved shale exposure and upside from exploration and commodity prices. Shares of the company slid $3.30, or 6.4 percent, to $48.66.

Stocks likely to benefit the most from oil price recovery are Pioneer Natural Resources, Encore Acquisition Co., Devon and Newfield Exploration Co., Singer said, raising the price target of Pioneer to $37 from $35, Encore to $38 from $35 and Newfield to $45 from $37.

Shares of Pioneer slid $2.19, or 7.3 percent, to $27.68. Encore shares dropped $1.86, or 5.2 percent, to $34.18. Newfield shares fell $2.13, or 5.9 percent, to $33.88.

Among companies with shale gas exposure, Singer listed as "best stock ideas" Chesapeake Energy Corp., Encore, Newfield, Devon and Cabot Oil & Gas Corp. Chesapeake shares dropped $1.38, or 5.8 percent, to $22.47. Shares of Cabot dropped $1.48, or 4.3 percent, to $33.09

 

[Agentm]

we have seen all the regional participants give their first quarter speeches, and all speak of the eagleford as part of their forward plans, 12 months ago it was barely mentioned by most.



Swift Energy Q1 2009 Earnings Call Transcript May 8 , 2009

“We continued to annualize the potentials that all of our South Texas acreage has for both the Eagleford Shale formation and other emerging place. Bob will discuss our land position in greater detail. But I am pleased with the work our folks have done to grow our Olmos and Eagleford positions at a very attractive price. We're planning to drill at least one well in 2009 to test the Eagleford Shale formation on our acreage”

“We also continued to evaluate our exposure to the Eagleford Shale on our acreage. This is an exciting new play and we are optimistic about its potentials, but cautious about making predictions until we have data to support them.
Our AWP field is where we will focus our evaluation of this play in 2009. We have approximately 60,000 acres on Eagleford rights and in around AWP field, most of which we believe to be on trend with current competitor activity in the area.
We are currently forming a strategy to accelerate the development of our Eagleford rights which will consider all options available to us including the addition of potential joint venture partners. Swift energy plans to drill a well to test the potential of Eagleford Shale formation during the second half of this year.
We continued to evaluate and acquire acreage prospective for both Olmos and the Eagleford Shale across our entire South Texas core area. Our current acreage position has approximately 97,000 acres with new Olmos potential and 82,000 acres with Eagleford potential.
Thanks for your attention this morning. And I'll turn it back to Terry now to recap”


“Ken Carroll - Johnson Rice & Company
Good, good. Just in certainly back to the Eagleford, you're talking about most of your focus these drill on will on be laid up in peak and going back through kind of presentations, you show Sun TSH and Fasken and Briscoe having potential lot in that area. Of the 82,000 you got acres that you've identified, I assume most of that related to AP with some at TSH, is that correct?

Terry Swift

That is correct.
Robert Banks

60,000 is around... in an around AWP and we have a total of about 82,000. So --
Bruce Vincent
82,000 that undeveloped.

Robert Banks

Undeveloped that's out between AWP and the other areas.

Ken Carroll - Johnson Rice & Company

Now, when you say other areas, is that scattered between Briscoe and Fasken as well or based on --

Robert Banks

Briscoe, Fasken and Sun TSH.

Ken Carroll - Johnson Rice & Company

Got you. So there is... we wouldn't look for a meaningful increase in that acreage number as you evaluate that you have there been? Got you. Okay. I appreciate it. Thank you.”



“Jeffrey Robertson - Barclays Capital
Thanks Bob. At AWP, have you all actually... have you all penetrated the Eagleford with any other wells to have any idea of what the fitness or what any of the rock characteristics are?

Robert Banks

As you may we aware, we actually purchased our regional position out AWP from Shell and certain of the wells of Shell drilled that actually all going all the way down to the Edwards which did in fact then give us a look at the Eagleford though there weren't any specific tests in those vertical wells.
In and about the field at Shasta, there are enough controlled points around us that we can tie into a very extensive 2D seismic database that we that have in and by extensive. I mean we got that thing covered over which way with 2D. And then to the north, we've actually got 3D in the area.
So, well we are very confident that we understand the Eagleford. We will also been able to tied on strike with some of the activity that the competitors doing out there. We know this owns underneath our acreage and obviously it's in our developing play status and certainly not a mature play. But we have every reason to believe we've got a really excellent Eagleford position.

Jeffrey Robertson - Barclays Capital

Terry, can you tell much about the factoring under AWP from what you've... from the data that you do have?

Terry Swift

Factoring in terms of the Eagleford itself?

Jeffrey Robertson - Barclays Capital
Yes.

Robert Banks

Natural fracturing?
Terry Swift

The natural fracturing itself while it's a component out there, we actually have a lot of fall prices up in the... through the Olmos sand, we know where the falls moves extensively through that zone and I think the Eagleford is really only, how many feet below that has gone down, roughly a 1000. So we've got a real good handle on the debt structure, the rate of change in depth in the area. And I think we know as well as anybody what kind of fraction to expect there.

Jeffrey Robertson - Barclays Capital

And then your drilling plans in the second half of the year, do you just plan the one wells in 2009 or would you try to ... will it be drilled early enough in the second half to benefits works the way you hope it does, you'd be able to fit in another well?

Robert Banks

Well, there is a lot of what ifs there. We definitely want to get to well in and get it in soon enough that we've got an evaluation on this year and you can make plans for 2010. That's the reason we get that well.
Now we're also looking at as we noted in our call, we're looking at brining in a partner and should we bring in a partner into the Eagleford activity, the whole purpose of that would be to accelerate, to get more than one well, get a much better mileage and get some momentum into 2010.

Jeffrey Robertson - Barclays Capital

Thank you”

http://seekingalpha.com/article/136...nings-call-transcript?page=-1&find=Eagle+ford

 

[Agentm]

other players talikng up the eagleford

New entrant to the Eagle Ford shale.

Murphy Oil Corporation Q1 2009 Earnings Call Transcript David M. Wood May 7 , 2009

“Our business development group has been very engaged looking at many different opportunities. One of our aims has been to replicate the position in the Montney formation previously mentioned at Tupper. To date we have entered and successfully accumulated well over 100,000 acres in the Eagle Ford play in southwest Texas. We are early in the process, have much work to do but are very pleased to add this caliber of potential resources to our portfolio. It will be exciting to watch this natural gas play evolve”

“Mark Gilman – The Benchmark Company

On the Eagle Ford transaction, what did the acreage cost you?

David M. Wood

You know Mark, we’re still actively leasing so I hate to hamper our guys’ effort there. We’re targeting really focus area on two counties although we’ve got acreage in other places La Salle and McMullen and we’ve been doing it for a while here but I’m a little loath to say what the acreage costs are because it’s still active work.

Mark Gilman – The Benchmark Company

When do you plan to drill?

David M. Wood

We have a location set now but I doubt that we’ll start drilling before the fourth quarter. I’d like to drill multiple wells so we can get a sense of the acreage. As you know most of those types of plays have variability to them and so we see what other people are doing, they are near where we are or we’re near where they are but we’re going to have to drill our own acreage. So, we’re going to put together our own appraisal program including coring, etc. and kick that off in the fourth quarter.”

David M. Wood

“But, I would say for new types of business that we’re looking to do the Eagle Ford being one, if I look at rig prices today for that play versus what it was nine months ago they’re 40% plus down. So, I think the industry is moving that way and I think costs are going to help us, they’re going to help everybody and I still think there’s a little way to go”

“David M. Wood

It’s a picture that has many moving parts and a lot of the people that are playing it have hedges in which allow them some flexibility that’s independent of where prices are currently. So, I still thing that the bid/ask spread is wide. What we’ve been doing in the Eagle Ford is actually going and buying the leases. So, that’s a different approach, we’ve not been buying companies to get the acreage position. So, I’m very happy with the entry costs, I’m very happy with the quality of the play below ground and I’m comfortable that above ground that I don’t think we’ll see any untoward issues.
Buying things is fine, I have no issue. Our business development group is very good at drumming up opportunities but as I said earlier in my comments, I think you’ve got to have things that work at $4 or less or you’re just going to be disadvantaged. So, I’m open to any mechanism that lets us get to that point.

Mark Caruso – Millennium Partners

One follow up Eagle Ford question, I know you’re hesitant to give too much info and it sounds like the drilling program is more backend loaded but can you give us a sense of where you are in relation to some of your peers who have already announced their acreage positions?

David M. Wood

We’re right in the heart of the plays is the way I’d look at it and I’d qualify that by saying that we haven’t drilled any wells yet but other people have and so we’re in that game. So, we’re in McMullen and La Salle counties primarily and we’ve got some acreage spread across there, we’ve got over 100,000 acres net and we’re growing. So, I think we’re in the play”

http://seekingalpha.com/article/136...nings-call-transcript?page=-1&find=Eagle+Ford