ADI - Adelphi Energy

[Agentm]

http://www.morningstar.ca/globalhome/industry/news.asp?articleid=290769

Anadarko Announces 1Q Results



Anadarko APC announced first-quarter results after the close on Wednesday. First-quarter production came in at 600,000 barrels of oil equivalent per day (mboed), which is higher than our expectations and the company's forecast. For the year, the company is still projecting toward 575 mboed. Our 2009 production forecast currently exceeds the top end of the firm's range, but we anticipate adjusting that downward based on reduction in our natural gas production growth estimate.


...........


Preliminary results from the Eagle Ford and Pearshall Shales in the Maverick Basin look promising, but the firm still needs sufficient well control data before releasing per-well reserve estimates. Management also stated they still need to drive down well costs and delineate the play. Anadarko is adding another rig to drill additional wells in the play.

 

[Agentm]

anadarko has mr fluor as a director, the director of TCEI also in our jvp, its a big player in the shale and likes the eagleford..

Anadarko Petroleum Corporation Q1 2009 Earnings Call Transcript

James Hackett – Chairman, President and CEO

We continue to gather information to gain insight into the performance of this reservoir. In the Maverick Basin in south Texas, we had some good success in the first quarter with our third horizontal well in the Eagle Ford shale that tested rates as high as six million cubic feet equivalent per day with a significant liquid component.

Operator

(Operator instructions). Your first question comes from the line of Tom Gardner of Simmons and Company. Please proceed.
Simmons and Company

Hey, Jim, some operators have been touting multi TCF potential in the Pearsall and Eagle Ford shales in the Maverick Basin. I just wanted to see if this was consistent with Anadarko's view. I know it's early but could you give us a view on your economics in these eme
Tom Gardner –rging plays?

Jim Hackett

Tom, I appreciate the question. I might ask Bob Daniels to give us his thoughts on that.

Bob Daniels

Sure. Tom, I think that clearly the multi TCF number from a gas and place number is there without a doubt. I think the key question we're trying to answer is the economics out there. Our drill costs need to come down from where they are, but we're making good progress on that. And then we need to monitor how the wells are going to perform. We've got a couple of Eagle Ford wells online right now and we're bringing on 10 million a day Pearsall well here shortly. And then we'll watch and see how those perform. Meanwhile, we're out there moving a rig in to drill some more wells and some get more data because we do like what we're seeing and we recognize there is a huge resource potential there. Now, it's making it all work.

Jim Hackett

Tom, I think the fact that you got gas prices where they're at kind of foreshadows why Bob is making a comment about drilling costs. I think where you're in a Eagle Ford with little higher liquid content, there is obviously an advantage there today and that revenue stream.


Doug Leggate – Howard Weil

Great. Final one for me is I don't know if you can answer this or not but the Eagle Ford, some of the issues your partner has done there is facing right now, what are the things shaking out for you done there? Has there been any disruption to partner participation funding or that kind of stuff. Is it a possibility you might be able to, would you want to increase your position in that area? That's it for me.

Charles Meloy

Well, our partners continue to execute the program. They are in a bit of financial trouble but they continue to execute this program. I think they view this as their star asset in their portfolio and have continued to progress the program and as Bob mentioned earlier, with the recent results, I think they have a lot of enthusiasm for this area and with both the Pearsall, IPT that we saw over ten million a day and the results in the Eagle Ford that has been out there, I think you'll continue to see them say this is one of their star assets and execute to what their capacity is.

Doug Leggate – Howard Weil

Okay. So no prospect of you increasing your position down there?

Al Walker

Well, this is Al Walker, I think you might see us whether it's via any particular issues coming out of TXCO and what they do or don't do, that would be a little difficult for us to speculate on. We have a very large acreage position as it currently stands and we think a pretty good area. But opportunistically, we could add some leases in that area, in places that we currently see being equal to or better than the acreage position that we currently have.

 

[Agentm]

Petrohawk Energy Q1 2009 Earnings Call Transcript May 6, 2009

“Floyd C. Wilson

And the news is all good down at Hawk Field in South Texas as well. We have two operated rigs running there and one non-operated rig. This is in our Eagle Ford Shale play. Five wells are on production, our latest well the Henderson, the Nessell (ph), is our best well to-date and the least expensive as well.
Down here we are targeting about 20 days. We're adding small bits of strategic acreage in Hawk Field Services is on the job preparing infrastructure for the expected surge in production”

“Ron Mills - Johnson Rice & Company LLC

Good morning Floyd. Can you discuss a little bit about, hey I think you mentioned another well in the Eagle Ford, curious just in terms of relative to the other wells where it was located. It sounds like it was -- at one of the better rates and just any more details on that well?

Floyd Wilson

Yeah, I'll let him talk to you a little bit about the location of the well. The point of bringing that well out was it is our best well to date. But the ideas of the programs going quite well, improving in terms of efficiencies in cost and the series (ph) behind is design a frac jobs and so on.

Mark Mize

Yeah, that well is located in the Southwestern part of the field in the dry gas area. As Floyd mentioned we have two rigs running, its river kind of dissects the field. We got one rig running on the southwest side of that river, one rig on the northeast side. So we're going to have kind of a spread of results about the field as the year goes on”



“Ron Mills - Johnson Rice & Company LLC

Subash just asked one, the other question just in terms of Eagle Ford since you're still early in that play. Any tweak that you can discuss in terms of how you all are completing the wells out there to this point and is there a depreciable difference whether you're in the gas (ph) and versus the oil wind go into completions.

Floyd Wilson

No Ron the huge tweak has been that the, I think the first well took us 75 days to drill or more and this last wells is 20 or 22 days or something. Cost have come down from 12 or 12 plus million down to I think the last AFE I have signed was under 5 million so, those are some significant tweaks.
Its early days to say that much. We can't say that so far, wells are exhibiting the slightly more shallow decline, didn't say Haynesville. And far as the completion, it looks to me like that we completing about the same whether they are in the dry gas area or the high Btu or liquid, high liquid content areas. Their made to completions are identical”


http://seekingalpha.com/article/135887-petrohawk-energy-q1-2009-earnings-call-transcript

 

[Agentm]

Pioneer Natural Resources Company Q1 2009 Earnings Call Transcript May 6 , 2009

“Chris will talk a lot more detail about the Eagle Ford Shale. Obviously, we are in the process of frac-ing this week, next week our first Eagle Ford Shale well in South Texas. Also we will be starting a second well horizontal well in the third quarter”

“Turning to page nine, I am going to pass the call over to Chris, as Scott already mentioned, the Eagle Ford Shale has generated a lot of attention and we thought it would be a good idea to have him discuss all of our South Texas operations with the focus also on the Eagle Ford.

Chris Cheatwood

All right. Thanks, Tim. As Tim said, in most of comments I will be talking about the Eagle Ford this morning. But I think it’s important that we not overlook what we have accomplished in the Edwards reef trend that directly underlies with Eagle. Also, I will provide this low historical perspective the database that we have in the Eagle Ford.

From 1997 through 2005, we drilled around 80 horizontal wells in Pawnee field that produces from the Edwards. We more than doubled the reserves in the field during that time and grew production from under 10 million cubic feet per day to over 50 million cubic feet per day. Because of our results and what we learned upon, we began taking up trend acreage in mid-2005 along the Edwards reef play and acquired over 300,000 acres that we still hold today.

In 2006 through 2008, we shut over 900 square miles of 3-D seismic, drilled around 75 wells mostly horizontals and grew production in Edwards outside Pawnee during this time from the previously mentioned 15 million cubic feet per day to over 120 million cubic feet per day. These are gross numbers that I am quoting here. As shown on the slide, that resulted in Q1 ’08 to Q1 ’09 production growth of 28%. Also because of this drilling campaign, we currently have an inventory of over 200 Edwards’ locations to drill. As we were drilling the wells in the Edwards play, we regularly had to flare gas as we drill to the Austin Chalk and the Eagle Ford formations.

We became very interested in the shale formation and gathered information on them as we drilled our Edwards wells. Combining data from the lots and coursing these wells with our expensive 3-D seismic has given us a very good picture of their potential overall acreage. In late 2008, we drilled our first well that has the Eagle Ford formation in Dewitt County. We got a 180 fleet of lower Eagle Ford in the vertical well, and then drilled a 3,000 foot lateral. Completion of the lateral was deferred, so we could incorporate the rock property data from the core. The completion should be done in the next couple of weeks. We will be drilling an 8-stage frac over that 3,000 foot lateral.

We are planning to drill a second horizontal well with Eagle Ford on our acreage in the third quarter. This well will be approximately 75 miles south of the first well. The distance between these wells I think gives you an idea of the scale display across our acreage position. We had plans for a larger drilling campaign, but the world has changed significantly in the last year and accordingly as you heard us discuss before, we reduced our capital expenditures across the company. Because of this, production from our South Texas assets is expected to decline in 2009 about 5% relative to ’08.

Turning to slide 10, I will now talk about Eagle Ford play specifics. The Eagle Ford is a calcareous organic rich shale that overlies our Edwards reef play over our entire 300,000 plus acreage position as shown on the map. It ranges in depth from around 10,000 feet in the Southwest to around 14,000 feet in the Northeast. The thickness ranges from 120 feet wet to 250 feet wet. The good average thickness to use and calculate volume metrics is around 200 feet. The effective porosity averages consistently across the area of around 10%. The formation is slightly overpressured with the pressure radiant on 0.65 to 0.7 psi per foot.

One of the most intriguing features across our acreage is the fracturing of the Shale Ford – Eagle Ford in Austin Chalk formations, because we essentially have total 3-D seismic coverage on our acreage, can see fracturing in shallower Eagle Ford and Austin Chalk formations, both on raw seismic data and especially from coherency process. Most of our previously drilled Edwards well had strong mud log shows which frequently require gas while drilling throughout the lower Austin Chalk and Eagle Ford formations. This extends our gas column in many instances throughout the Edwards, Eagle Ford and lower Austin Chalk. The magnitude is a natural fracturing of individual well production that recovers, it is difficult to predict until we get multiple test, but it is well known in these types of plays that mother nature's contribution can be far greater than man made horsepower. This could be a great benefit to us both from well performance and reduced in completion cost.

As stated earlier, we have drilled around 150 horizontal wells since 1997. Because of this, we feel comfortable that drilling and completion cost in the long run will average around $6 million. Wells during the initial phase have planned additional cost for science and will probably over designed the completions on the first few wells, but I am confident in our process long term. Most of the questions we feel that today as Frank alluded to earlier would sense how Eagle Ford on our acreage compares to the new discovery by Petrohawk in La Salle County. You can see the location of their acreage on the map relative to our. Their play is slightly different and it is concentrated basically of the Edwards reef trend. They have completed four wells to date and are drilling two more at this time.

On the next slide, I am going to show you well (inaudible). My comments will be brief and you can draw your own conclusions because I think the data speaks for itself. A cross-section on slide 11 shows Petrohawk’s Dora Martin well and La Salle County on the left. This well is a strong producer in the Eagle Ford and next to it are two wells on our acreage. The well named Pioneer 1 on the right is a vertical log on the well where we drilled our 3,000 foot lateral and that well is currently complete. It's important to note that this well is located over 125 miles northeast of the Dora Martin.

The well Pioneer 2 in the center is a vertical log near the location where we will drill our second well later this year. It is located over 50 miles from the Dora Martin well. All three lags, on all three lags the curve on the left is (inaudible), the center curve is the decreased activity and the right curve is density porosity with density porosity greater than 9% highlighted in pink. I am not sure on the mud loss because I don’t have one on the Dora Martin, but there were very strong gas shows throughout the Eagle Ford in both of our wells and I am sure on merits as well. Also shown is the location of the core taken in our first well.

On the right is a table comparing published data by Petrohawk combined with lag calculated and core data to compare the three wells in areas. I think the data from both the lag and new tables showed all three to be very similar. So I hope this gives you a relative comparison, the one you’ve been looking for. Our next step of course is to confirm this with a couple of well test. So to conclude today, I would say our South Texas acreage is fulfilling our expectations in the Edwards reef play and the Eagle Ford Shale looks very promising. All of our data supports what you’ve heard from us so far about the new play. Also, it indicates our wells to perform similar to the current producers in La Salle County. I look forward to discussing this again with you in the future when we have some shale test results and some higher gas prices.

I will turn it back now to Tim to talk about Alaska.”


http://seekingalpha.com/article/135...pany-q1-2009-earnings-call-transcript?page=-1

 

[Agentm]

volumes on the rise..




http://www.murphyoilcorp.com/ir/presentations/expro2009/expro.pdf

murphy decided to come clean and announce its acreages, and presented a few slides that are interesting

 

[jestex12]

Agentm,

Nice post on Murphy's acreage! You know my acreage. Interesting to see what develops around Dewitt. Thanks for the post.

 

[YOUNG_TRADER]

Volumes cetainly are on the rise Agentm but I really expected more of a movement once it convincingly broke 6c

No doubt it needs a catalyst to really get it moving, perhaps confirmation of the Yemen sale proceeds being recieved or update on forward operations

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]

hey jestex

your ranch is right on the sligo trend, yet is only a few miles from the pioneer eagleford well. so it makes your acreages interesting alright..


youngtrader..

i hear that the olsen baker well test was outstanding, and if my regional information is up to speed, then these new wells that TCEI/Conocophillips just drilled are paid off in just 60 days. based on $6mill completion costs.

i am adding right now as i consider the next farm in partner to be getting involved into a play with considerable local and regional information available to it. Surely its seriously going to be impossible for TCEI to not be pushing for the next wells to be drilled other than in a very similar way to the ones they just drilled with conocophillips.

my own view is that right now, regionally in the eagleford, it would be a requirement to be making more than 5.5 mmcfpd and say 1700 bopd to take the award for best well in the eagleford. at a guess

if only folk understood how close in feet that well sits to our acreages..

 

[Agentm]

pioneer have been presenting their progress in the eagleford.. this last presentation from yesterday demonstrates their continued interest

one well is being fracture stimulated, the other is planned Q3

austin chalks gas column is mentioned.

 

[mattyhammer]

Not a bad little break up this morning, ADI supporters. The share price looks like it's getting a bit of an upward trend forming which is only a good thing. Some good volume over the past couple of days. Lets hope it can hold its strength and move on to bigger and better things.

 

[Agentm]

hey mattyhammer its a strange week, volumes went ballistic then dead stop.

north of kowalik, some 11 miles, dan A hughes, a smaller operator who works out of beeville in bee county, and who does a lot of drilling in the area has put in a permit for a 4500 foot chalks well

closer to kowalik, and i am talking within 2 miles, 3 d seismic is being shot right this minute

 

[YOUNG_TRADER]

Agentm you follow this like a hawk, thanks for all the info, research & hardwork

Buy depth strengthening, still be nice to see it go on a little trot

 

[Agentm]

Agentm you follow this like a hawk, thanks for all the info, research & hardwork

Buy depth strengthening, still be nice to see it go on a little trot

it sure has got strength in the buy side

i have been posting this updated map of the local wells. Conocophillips is pushing ahead both with the new oil pipelines and with the permits still left to drill. each completion they are learning more and more on the chalks and marlene olsen vertical well is flowing from the eagleford

it makes the eagleford a very prospective target, as ADI has eagleford production from a 600 foot feather duster mini frac in kennedy 1h.

my understanding is that all these oil pipelines conoco are laying are in expectation of some impressive flow of condensate not only from the extremely high rates seen in the chalks, but the eagleford is reportedly very very oily..

its evident that eagleford wells are now all commercial once a multi stage frac is utilised in them. very much looking forward to any progress in the kennedy well myself.

all valuations on potential reserves have been primarily based on chalks calculations. from what i understand the eagleford offers many times more potential. with demonstrated flow from both the eagleford and chalks in adi acreages, i am eager for them to move forward myself.

 

[Agentm]

a fairly impressive 3d seismic is being shot right now, as i mentioned earlier

dawsons are a very well respect company that is doing a very substantial shoot right now.. from dawsons annual report:

As we enter the new year, the landscape for seismic
services remains solid. Exploration and production
companies continue to strive to increase reserves and
production at low costs. Ongoing exploration efforts in
shale plays across the lower 48 are driving even greater
opportunities. As a result, our order book reflects
continued commitments to sustain full operations of
all 16 crews into 2009.

dawsons employs over 1400 staff,, right now some 210 are on this job which i understand is some 102 square miles on the immediate primary project.

its quite an impressive show with many crews working extremely hard to finish off this job in quick fashion.

conocophillips builds oil pipelines, seismic being shot, and adi remains cash value..

interesting that not even the chalks play on its own can attract any value to adi yet conocophillips is doing a major operation 3 miles away.. i am not aware of any fault, or dramatic change in the geology in the region that differentiates our acreages from the conocophillips wells a few miles west..

perhaps there is something in the chalks and eagleford after all and the market has got it wrong! maybe there will be a reward for holding and one day adi wont be at cash value

just a thought

 

[Agentm]

Operational Review

BLOCK A


(KUNDE 3)

The TCEI JV Block A-1 well (KUNDE 3) was shut in for pressure build-up measurement during the period 28 May 2008 to 21 November 2008, interspersed with several brief periods of production. The first production to sales was announced on 13 November 2008 when an initial seven day average rate of 2.6 million cubic feet of gas equivalent per day ("mmcfgepd") was produced from the lateral interval 13,521ft - 14,404ft. (883 feet)

A second stage of perforations was then carried out over the interval 1,805ft - 13,305ft accompanied by acid fraccing of the Austin Chalk.

The well is now flowing from a combined interval of 2,600ft and the latest production figures released to the Texas Railroad Commission showed 5,687 barrels of oil and 18.205 million cubic feet ("mmcf") of gas produced for the month of March 2009.

(KUNDE 2)

The TCEI JV Block A-2 well (KUNDE 2) was up until 21 December 2008 used or microseismic monitoring purposes during the fraccing and testing operations of the A-1 well which is located 1.5km to the south.

Operations pertinent to TCEI JV A-2(KUNDE 2) resumed on 21 December 2008 and perforations were made over six separate intervals between 1,865ft and 11,980ft in the formation underlying the classic Austin Chalk. An acid fracc was then carried out through the perforated intervals, followed by a shut in period of three months for the purpose of measuring reservoir pressure build up.

The well was re-opened on 2 April 2009 to allow 'well intervention operations' including swabbing and flow back.

This is a vertical well which exhibited encouraging hydrocarbon shows during drilling.

(BAKER 1)

The well was spudded on 24 October 2007 and had significant shows and flares recorded for the entire 2,800ft open hole interval. It had been trying to flow while drilling, despite the fairly high mud weights, to such a degree that it was decided to test the flow potential even before reaching the proposed total measured depth of 17,800ft.

On 14 April 2008 Empyrean was able to announce the initial test results of a significant gas-condensate discovery. Initial flows through a 12/64" choke were measured at 1.9 million cubic feet of gas per day ("mmcfgpd") with 460 barrels of condensate per day. Based on present day prices for gas and condensate this would be equivalent to 6.6 mmcfgepd. This open hole test was conducted without stimulation.

The well was then "shut in" as part of the normal reservoir and production engineering procedure. During the "shut in "period the operator has been finalising the design (based on TCEI JV Block A-1 (KUNDE 3)) and construction of production facilities and pipeline connection.

Operations resumed on 4 February 2009 and the well was again opened to flow following a water and surfactant flush of the open hole interval 12,276ft - 15,100ft. On 24 February 2009 Empyrean announced that the A-3 (BAKER 1) well had commenced flowing to sales, with average flow rates for the 7 days up to and including 21 February 2009 being 4.101 mmcfgpd and 408 barrels of condensate per day.


The latest production figures released to the Texas Railroad Commission showed 3,862 barrels of oil and 42.95 mmcf of gas produced for the month of March 2009.

(BAKER 2)

TCEI JV Block A-4 (BAKER 2) is the fifth well in the original 16 well programme and the fourth drilled well located in Block A and is designed to test the same "Upper" zone of the Austin Chalk as the producing Block A wells TCEI JV A-1 and TCEI JV A-3 (KUNDE 3 & BAKER 1)


The well was spudded on 4 July 2008 and reached total depth of 12,756ft in the vertical pilot hole on 26 July 2008. At least 300ft of gas shows were
encountered during this phase of drilling and backround readings of 50 units
rose to a maximum of 1325 units in some instances (sounds familiar!!).


The horizontal phase terminated at 15,084ft (measured depth) on 7 September 2008. More than 1500ft of gas-condensate pay had been intercepted in the Austin Chalk reservoir and this was considered by the operator to be sufficient to provide a good commercial outcome.


Preparations for production testing commenced at the beginning of October 2008, and on 31 October 2008 it was announced that TCEI JV Block A-4 (BAKER 2) had flowed initial rates as high as 2.5 mmcfgpd and 260 barrels of condensate per day, equating to approximately 5.1 mmcfgepd.


The sales pipeline connection and production facilities were completed, and on 14 February 2009 the well commenced flowing to sales after having been stimulated by an acid fracc. At the time the well achieved average flow rates for the 7 days up to and including 21 February 2009 of 4.101 mmcfgpd and 408 barrels of condensate per day.


The latest production figures released to the Texas Railroad Commission showed 5,372 barrels of oil and 49.907 mmcf of gas produced for the month of March 2009.


*************(MARLENE OLSEN)**********

This vertical well was spudded on 29 September 2008 and reached a total depth of 12,469ft on 27 October 2008. Hydrocarbon shows were encountered during drilling in the traditional Austin Chalk and the underlying fractured Eagleford Shale.


The completion operations consisted of 2 phases. In Phase 1 the Eagleford Shale was perforated over the interval 12,190ft - 12,300ft, fracced and allowed to flow briefly. Initial rates recorded were 1.293 mmcfgpd and 408 barrels of condensate per day before the well was shut in for 38 days.

In Phase 2 the overlying Austin Chalk reservoir was perforated over the interval 12,100ft - 12,160ft and acid fracced on 12 February 2009. The well was briefly allowed to flow recording 1.430 mmcfgpd and 403 barrels of condensate through a 12/64" choke.


Production tubing has since been run and the well is now completed in both the Austin Chalk and the Eagleford Shale with open ended tubing (no packer) at 12,079ft.


The latest production figures released to the Texas Railroad Commission showed 700 barrels of oil and 2.631 mmcf of gas produced for the month of March 2009.

 

[Agentm]

BLOCK B

Kennedy-1H (Empyrean Interest: 18%)

Kennedy-1H is located 8km to the east of the Sugarkane Field discovery and contains the same primary target, the Austin Chalk.

The well spudded on 17 September 2007 and after "kicking off" from the vertical at 11,845ft, the total depth of 16,750ft (measured depth) was reached on 12 November 2007, being 820ft short of the original proposed measured depth of 17,570ft.


A fraccing operation was carried out on 14 May 2008. A total of 95,000 lbs of sand and 5,182 barrels of fluid were injected under pressure into 4 sets of perforations over an approximate 600ft horizontal interval. Initial flow results of gas condensate and fracc fluid recovery were announced on 25 May 2008.

A second fraccing operation was performed on 3 July 2008. An additional 3 sets of perforation intervals, each 3ft long, were interspersed between the original 600ft perforated interval prior to the introduction of 100,000lbs of high strength proppant. The fraccing operation was terminated prematurely due to the high pumping pressures encountered and only 50% of the proppant entered the formation.


After cleanup operations, testing of the well resumed on 15 July 2008. The initial, unstabilised rates of 425,000 cubic feet of gas per day ("cfgpd") and 106 barrels of condensate per day reduced, after intermittent slugging, to 200-300 cfgpd and 46-107 barrels of condensate per day.


Since at least 5,000 barrels of fluid had not been recovered after the fraccing operation, a coil tubing unit was mobilised on 18 July 2008 to displace the fluid. Some additional fluid was recovered but the flow rates remained the same.

It has been estimated by the operator that the production originated from only 17ft of perforations in the bottom section of the 600ft horizontal section.


On 31 August 2008 it was announced that Kennedy-1H was being shut- in while production and tie-in facilities were completed for eventual connection with the nearby transmission line. Production recommenced on 2 October at a rate of 20,000 cfgpd and 60 barrels of condensate per day.


This is the first time production has originated from the "middle" pay zone of the Austin Chalk (which is still referred to as the upper part of Eagleford Shale by some authors), and therefore augurs well for recoverable reserve considerations. A decision whether or not to perforate and fracture stimulate the remaining 3,000ft of horizontal section will be made following the analysis of production performance from other wells in the area.


Kowalik-1H (Empyrean Interest: 18%)


Kowalik-1H is the third well drilled in Block B and the sixth well of the original 16 well programme. It was spudded on 4 July 2008 and was designed to test the so-called "Upper" pay zone of the Austin Chalk over a 6,000ft horizontal interval. It is located 5 km north of Kennedy-1H and is on trend with the producing wells A-1 and A-3 of Block A. (KUNDE 3 & BAKER 1)

The vertical pilot hole reached a total depth of 11,970ft on 11 August 2008. the horizontal phase was successfully completed on 22 October 2008 when it was announced that the well had reached a final measured depth 16,483ft (equivalent to approximately 4,600ft of horizontal section). Although the original plan was to penetrate a 6,000ft horizontal section, it was considered technically prudent to stop at this depth. There had been significant gas shows throughout the section, often reading more than 2,000 units with attendant flares on surface.


Testing operations commenced on 3 November 2008. Initial flows measured 937,000 cfgpd and 321 barrels of condensate per day. Interpretations indicate that most of this production comes from approximately 1800ft of the horizontal well through an uncemented, 3 ½"slotted liner.


Weston-1H (Empyrean Interest: 6%)


Weston-1H is the fourth well to be drilled in Block B and is located approximately 1.5 km to the east of the Kennedy-1H well. It was designed to test approximately 6,000 ft horizontally the upper part of the Austin Chalk interval.

The well spudded on 2 November 2008. It kicked off as planned at 11,916ft and had 7" casing set at 12,250 ft measured depth on 28 December 2008. Gas readings increased dramatically on entering the Austin Chalk and maximum daily average readings of 3100 units were reported with flares of up to 60 ft in length.

Total depth of 15,797ft was reached on 13 February 2009, after which a 4 ½" liner was cemented to total depth. The original plan was to drill to 18,405ft measured depth and drilling was cut short to reduce risks as several challenges were encountered whilst drilling. This premature termination still meant that approximately 3000ft of horizontal hole lay within the target zone of the Upper Austin Chalk.

The Weston -1H well remains suspended for completion with those operations likely to be a priority part of any farm-out deal concluded.

 

[jestex12]

Agentm,

Enjoyed your last few post's. Seems like things are in full swing especially in your area!! Looks like the entire Edwards/Sligo trend is producing the same results...Impressive results!! Hopefully the same will transpire in my area.

FYI-Barcelona 2 Man United 0 in the Championship Final!!

 

[Agentm]

jestex

i think the region is proving to be very attractive, we see pioneer completely stopping a edwards gas expansion and changing tactics and only drilling exploration wells into the eagleford/chalks

i have a map of the region that details the wells progress so far for TCEI and their partnership with conocophillips

imho adi is way undervalued at $9 mill market cap..

jestex just north of your ranch, inb dewitt county geosouthern jvp did extensive tests in the migura and buchhorn eagleford wells. they hold 77,000 acres in dewitt county. this is what one jvp partner who owns 50% says about their acreages

“Kuwait Aref Energy Completes Texas Gas Reserve Analysis-Report
Zawya Dow Jones Newswires

Tuesday, May 12, 2009

BEIRUT (Zawya Dow Jones)--Kuwait's Aref Energy Holding Co. has completed the technical analysis to evaluate the volume of actual production in a natural gas reserve recently discovered in Texas, Kuwait-based Al Watan daily reports Tuesday.

Aref will announce Tuesday the outcome of the analysis, the paper reports citing people familiar with the matter.

The quantities discovered in the reserve amount to about 25 trillion cubic feet of hydrocarbon contents, and 19 trillion cubic feet of non-associated gas while the volume of gas viable for production is estimated at 4.7 trillion cubic feet, Al Watan reports."


http://www.zawya.com/printstory.cfm?storyid=ZW20090512000006&l=050206090512

 

[Lucky_Country]

Sorry about the stock tipping AgentM hopefully a new tipster will get the shareprice moving.

Looks like the shareprice is on a slow upward climb but the lack on news is holding us back.

A drop in the US$ will be most welcome as cost come down activity should resume.

 

[Agentm]

deals are still being done in texas on the eagleford

FORT WORTH, TX -- (Marketwire) -- 05/27/09 -- ReoStar Energy Corporation (OTCBB: REOS), an oil and gas company engaged in the acquisition, development and production of natural gas and oil properties with operations primarily focused on developmental resource plays and enhanced oil recovery projects, today announced that it has entered into a definitive contract to acquire 13,000 acres of Eagle Ford Shale leasehold in the Gulf Coast region of South Texas for $5.5 million.

The Company will receive a 75% net mineral interest in 13,000 acres of leases covering all depths for three-year terms. The transaction also grants ReoStar the right to acquire an additional 30,000 acres of surrounding mineral leasehold within an Area of Mutual Interest (AMI) known as the Hackberry Prospect and includes access to 44 miles of seismic data covering the same.

The Eagle Ford Shale, which is located in Gulf Coast region of South Texas near the State's border with Mexico, is an upper-cretaceous deposit that is approximately 100 million years old and ranges from 4,000 to 14,000 feet in depth, with thicknesses of 50 to 500 feet. Prospective target zones in the newly acquired block include the Wilcox, Edwards, Buda and Eagle Ford Shale.

The Company estimates potential reserves of 500 billion cubic feet equivalent (BCFE) in the initial 13,000-acre leasehold block, with individual well bore reserves ranging from 6 to 11 BCFE depending on the zone. Test wells will be drilled in both the Eagle Ford Shale and Edwards zones and estimated drilling and completion costs range from $5.5 million to $4.5 million per well, respectively.

A large, independent oil and gas company is actively drilling its very sizable leasehold block and recently completed its #1-H Butaud into the Eagle Ford Shale, which initially tested at 17.5 million cubic feet per day (MMCFD) and 2,500 bbls of condensate per day (BCD). Other operators in the area have reported initial production rates ranging from 5 to 9 MMCF and several hundred BCD per well, all of which are stated to be choked back to regulate production.

Mark Zouvas, CEO of ReoStar, stated, "We are very pleased to announce our entering into a definitive agreement to acquire the Eagle Ford shale assets, an area which has seen tremendous activity recently and is turning out to be one of the more rewarding unconventional gas plays in the US. This opportunity gives the Company low-cost access to this reserve-rich play and allows us to continue with the operational success we achieved in the Barnett Shale, where we have successfully drilled and completed over 70 deep (9,000') shale gas wells. An important part of this transaction is our affiliation with ZaZa Energy, LLC and our ability to leverage the talent and experience of its staff in developing this acreage. We will draw on ZaZa's vast knowledge of the area and bolster our own technical capabilities at the same time. This acquisition has the ability to launch the Company's reserves and profitability to significantly greater heights."

In connection with the transaction, the Company has acquired the services of ZaZa Energy, LLC under the terms of an executed Exploration and Development Agreement, which includes tenured oil and gas staff experienced in geology, engineering and land acquisition. The terms of the transaction include the issuance of 12 million shares of ReoStar's common stock.