ADI - Adelphi Energy

Hi Agentm. You take a lot of interest in this company & do quite a bit of homework on it. Can you explain in a nutshell why you like this company so much or is it just the location they're in? Rather than read thru this whole thread to get an idea as to why could you briefly explain? Cheers Jancha

If you're a potential investor and you want to get a good handle on the activities - you should be reading through the whole thread, the company reports and making up your own mind. Sounds like you want someone else to make your mind up for you?

My 2c.

Agentm

Going back on that report on Weston:

"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. "

Is that a polite way of saying that they felt that they were in danger of losing control of the well, do you think? "Challenges" does not say a lot but juxtaposed with "risks" and knowing something of the pressure surges that they have had when hitting the fractures it suggests that the well was becoming a bit of an animal.

hey estseon

been away for a bit, just got back and saw some comments on the thread.

weston had drilling issues i believe and the jvp was not able to justify the costs of continuing to drill over and above the massive costs it had already expended on this unique underbalanced drilling process that had some initial problems, a less than perfect run really can hurt in drilling.

it did encounter hydrocarbons throughout the lateral with pretty high background readings throughout. kunde 3 did an frac experiment recently where they chose rock that had no natural fractures present and fracced some 1800 feet of lateral. it appears to me that the frac experiment worked and proved the theory that chalks with no fractured zones can be stimulated to flow with high yields of condensate.

despite the excessive secrecy surrounding the TCEI/conocophillips operations and more specifically the excessive secrecy on the wells we have invested in in block B, i remain, as always, convinced the hydrocarbons are down there and also convinced its totally within the capabilities of fracture stimulation technology right now today to not only successfully frac these three wells we have aready completed, but i also believe commercial flow is achievable in these wells and also future wells with greatly reduced costs.

i see TCEI/conocophillips now drilling a completely different completion technique in live oak, and i would not be surprised if the eagleford is now more on their minds and also that those oil pipelines were not built unless they had a clear expectation that the oil will flow at some historic rates not seen in the region before. Reostar had noted they can see a lot of wells are being choked back big time on these shale wells..

all imho


jancha

a lot of info is available in this thread, i like adi on the basis i invest for an outcome, and all my research indicates the outcome adi is after, both by not diluting the sp with excessive cap raising and also by maintaining cash in the company with the sale of yemem, keeps me in the belief that should a jvp farmout be a success adi will be in a very attractive position for the high risk reward investor (should any remain on this planet)

i am looking forward to the next months ahead with interest as the cash value of adi makes it a curious share, unlike its jvp partners, there is next to no value for ADI's share in the sugarkane asset, just a minimal cash value.. will it achieve any gains in the future? will it become attractive to investors? who knows..??

Update on Pioneers Natural Resources Drilling:

http://www.oilvoice.com/n/Pioneer_Natural_Resources_Provides_Drilling_Update/c75551d7.aspx

i see the next well is being drilled by conocophillips.

they just completed the eskew west 1H in 60 days and 5 days ago they spudded the baker 3 h well.

COP is very keen on that area. If the attributes that they are chasing follow a NE trend, that looks good for Weston and Kennedy.

Agent - are they still drilling the chalks, do you know? Or are they now drilling the shales?

estseon, i do think i know what they are drilling but am reluctant to comment.

its been a different type of trading seen on adi lately, instead of massive price fluctuations on $300 worth of shares traded and 20% price drops on the sp, the volumes are appearing at a much higher and perhaps healthier rate.. good volumes are being traded above the .07 range

just after close the 250,000 order was filled.

its imho possible to argue a case of punters getting in early on speculation on the prospect of farm out happening and the cash from yemen coming in also. buyers now may be of the view the pressure on sp may be more on the upside. there must be a limit to how many shares will be available at these prices as the likely scenario is that the bulk of the ones selling could be the ones who bought in at .06 ... to sell now would get you some 16% return.

27 million shares were issued @ .06 of which 40% would be held by the top 20 and seemingly there has been little change there, it may be fair to say that max number of shares available for the current price for those wanting to sell ADI at a profit today would be 13 mill shares. but i doubt if all the new entrants would be selling out completely either.. in this past 16 days alone
this month the volume in ADI has been 6 mill shares traded. i think some 10 million traded in may..

i wonder if the volumes will be infinitely available at .07 or if there may eventually be a trend above it?

just a few observations,, probably nothing

Fair enough, agent.

But Marlene Olson is public information.

It is a vertical.
==========================================================
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.
===========================================================

So COP perforated and fracced 110 feet of Eagleford and it produced initial flows (using EME's conversion rate) of 537 boepd. 76% condensate in line with previous results.

They then added 60 feet in the chalks and flowed it briefly through a choke at a combined 546 boepd.

tcei/conocophillips latest permit in live oak, these lateral are getting closer and
closer to our acreages, the marlene olsen 2h permit is just north of the EME jv
vertical well marlene olsen 1

Looking at the map that you posted on 11th June, they are very busy in that small pocket of their acreage. There is a common orientation of NNW / SSE approx at 90 degrees to the Edwards rift fault. Is the interpretation of this: 1) that is where the strata is thicker / richer in condensate or 2) that is where they expect to find natural fracturing?

estseon said:

Looking at the map that you posted on 11th June, they are very busy in that small pocket of their acreage. There is a common orientation of NNW / SSE approx at 90 degrees to the Edwards rift fault. Is the interpretation of this: 1) that is where the strata is thicker / richer in condensate or 2) that is where they expect to find natural fracturing?

Click to expand...

those two wells there in green, kennedy and weston, they are both sitting inthe thick of it, kennedy in the eagleford and weston a touch higher in the chalks

both untested - well kennedy has been tested on 1 feet of eagleford and flowed.

the answer for adi investors are very much inside those two yet tested wells.

conoco put in very substantial pipelines, two so far, just for the condensate issues.. and what an issue to have hey..

i am not convinced he two untested wells are dry.. infact every indication is completely contrary.

Hello All,

I am new here and greatly appreciate the valuable information that has been posted. I am hearing rumors about a big Eagle Ford oil well in Karnes County Texas by EOG Resources. The well is the EOG #1 Milton Unit (API#42-255-31608) and it has supposedly tested at the rate of 1800 barrels of oil per day. EOG is also planning a large 3D seismic survey of approximately 100 square miles in the vicinity. About 14 miles to the west-southwest of this well Dan Hughes Company is drilling an Ealge Ford test: the 1H Darline well (API#42-255-31612). Another interesting well, apparently an Eagle Ford test, has been permitted 32 miles northeast of the Milton well in Gonzales County. The Modern Exploration #1 Texas Two Step (API#42-177-31979). Anyone else heard anything about the EOG well?

Hey Bubba those are pretty good flow rates and theres definately alot of activity in the area.

ADI and the jvps seem to be stuck in the slow mode waiting for a farmin partner I hope that soon they will make a decision to either go it alone or find a partner.

ADI is waiting for funds from the sale of its Yemen assets which should not be to far away then maybe we will see more activity in the area !!!

hey bubba

the darlene well is being drilled right now and is being monitored closely here by me and there in texas.

the eog well was a wildcat, i was watching it but the completion report i had did not include any indications of what zone they were in and what rates were tested. will ask around and see what comes up.. those flow rates are impressive. do you know what the gas flow rate was?

the gonzales wells have been less on my radar, mainly because of the chalks hotshots field being well developed. i can think of a few more wells there that imho are looking a little deeper.. but i was following the pioneer and conoco and Weber/geosouthern wells closer in dewitt than the gonzales wells

the gonzales county modern texas two step permit is a re completion of an older well


did you ever follow the caskids permit near the centre of kenedy?

API #: 42-255-31605

or the cheyenne petroleum young ruby well that was drilled a half mile north of it?

42-255-31365

Howdy Agentm,

I have not heard any gas rate for the EOG #1 Milton but I have heard the oil rate of 1800 BOPD from several people. You know how these oil rumors work though - they are a lot like fish stories. EOG is said to have an army of landmen out leasing in the area. I believe the Cheyenne and Caskid wells are both Edwards reef tests.

bubba

that eog is a very very impressive outfit, conservative and very experienced in the shale.. i believe they like oil a bit also..!

the landman rumor is 100% correct, they are all over the court house,and following up all over the county

thanks for the fish story! i saw reostar do their fish story on the apache well

"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. "


reostar had to retract that wild claim a week ago publicly, as they got their data from the grapevine, but apache did not publicly state the story was false!

the milton well sits a few miles north of the conocophillips bordovsky well (and if you believe local rumor mill, cop tell everyone they are pulling pipe there!!) but discounting that amazing rumor completely, the COP ops have completed, they cemented the liner, and imho its prepared now for a frac- and the eagleford is my call where that well is going...

a few people i know are getting their ranches surveyed with the 3D seismic.. i think you may find conoco are doing similar numbers on their plan..

Agentm,

I agree with you that EOG is a good company. They could probably use a good oil play because the are pretty heavily weighted towards gas. I saw the announcement and subsequent retraction by Reostar and had a good laugh. Are you following the Pearsall play in South Texas? Not much info yet but it should be interesting to watch.

bubba

your thoughts on the mueller well permit?

looks interesting

Status # 682454
API # 255-31471 OP # 588595 - MORRIS, W. DALE INC.
Approved ,Issued: 06/24/2009 ,Filed: Online MUELLER - Well # 1
02 - KARNES County

Reenter Vertical

Agentm,

The original well was drilled by Petrohunt to a depth of 17,000' in and area of shelf edge reef devlopment in the Edwards and Sligo formations. It looks like the drilled a good spot but the formations must have been tight. I have not seen the electric log from the original well. Morris may be attempting a recompletion (or perhaps a horizontal leg) in the Edwards or Sligo. Or they may be going after the Eagle Ford.

Did you see the announcement by St. Mary on their Briscoe G 1-H well (42-479-40493) in Webb County?
It tested the Eagle Ford at the rate of 4.4 MMCFG/d and 192 barrels of condensate over a 7 day initial flow period. This well was drilled to a depth of approx. 7500' TVD (11,300 MD) and completed with a 3200' lateral and a 10 stage frac.

Bubba