ADI - Adelphi Energy

bubba

i saw the st marys announcement and also the blackbrush one, they have extensive acreages in karnes county also..

Tuesday, June 30, 2009
BlackBrush Oil selling off bulk of its producing assets


San Antonio-based BlackBrush Oil & Gas LP will sell 70 percent of its producing properties in order to focus on its Eagleford shale position. The sale of the properties will result in a consolidation of the company’s offices and, as a result, a 27 percent reduction in workforce will be implemented.

The sale of the properties will allow BlackBrush to pay off 100 percent of its existing bank debt and emerge as a stronger and leaner operation, according to company officials.

“We’re confident that by taking this action, we will be better able to provide improved operating and financial results than we could have done under the current operation,” BlackBrush CEO Scott Martin says. BlackBrush retains an interest in over 100,000 acres of land in South Texas for development.

Martin adds, “In addition, we will be in a great position to redouble our efforts on the midstream side by focusing our attention to projects in Dimmit County, Frio County and Karnes County.”

But Martin says the big opportunity for BlackBrush is in the Eagleford.

“Twelve to 15 Eagleford tests in the last few months all came in meeting or exceeding expectations,” says Martin. “The area is more condensate rich than other shale plays and is more attractive in this oil price environment.”

While the scope of its operations will decrease, BlackBrush and all of its affiliated companies will continue to operate, Martin says.



bubba.. are you familiar with all the COP eagleford wells thus far drilled and tested? are you aware of the reported flow rates in them?

Agnetm,

It appears to me COP is playing it pretty close to the vest. Most of what I have learned about their wells is from your valuable posts. One of their executives did refer to the Eagle Ford as "the big E" in one of the company conference calls. I am hearing they are encouraged by their preliminary results but are having some problems drilling the laterals as long as they would hope and battling other technical issues.

B

Bubba Oil said:

One of their executives did refer to the Eagle Ford as "the big E" in one of the company conference calls.
B

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Bubba if you reread the Conoco transcript you will see the the term "Big E Portfolio" refers to Big Exploration Portfolio, not Big Eagleford Portfolio.

choppy said:

Bubba if you reread the Conoco transcript you will see the the term "Big E Portfolio" refers to Big Exploration Portfolio, not Big Eagleford Portfolio.

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Oops! I listened to their presentation while I was doing something else - guess I better pay better attention. Thanks for pointing that our Choppy.

Murphy has permitted an interesting Eagle Ford test in McMullen County, Texas. This well (Murphy 1H George Miles 42-311-34139) is significantly downdip of the existing Eagle Ford wells and would stretch the play to the south.

Bubba,

This would make sense why StrandEnergy was approved a permit 10.19 miles SW of Cuero. Everything seemed to be going north in McMullen and north of Kennedy in Karnes and Cuero in Dewitt. But Murphy's along with Strand's recent permits seems to be indicating that the play goes further south than what was initially thought.

StrandEnergy permit approved 7/3/09:

http://webapps.rrc.state.tx.us/DP/d...PublicQuery=Y&name=BRANDT&univDocNo=485656331

bubba and jestex -good to see the usa crowd take over this thread

re the murphy permit, pioneer will drill their second eagleford well about 5 - 7 miles or so west of that well..

i have seen a photo of the 3d map that conoco is undertaking in live oak, i will ask the person who took it if i can post it up on this site

the 3d covers all of the north of live oak county from mcmullen to karnes and covers a portion of the adi region as well..

all the blackbrush and eog completions in karnes are now being listed as oil completions, they see their play as an oil field.

eskew west 1h, the conocophillips well in live oak was completed in the eagleford and produced about 5mmcfpd and 500 bopd from the reports i get.

the big conocophillips bordovsky well in karnes county is in the eagleford and is about to be fracced, i have been told anywhere from 140 - 240 tankers were on site on the weekend. an impressive multistage frac to occur there.

this is the 3d map that is being done in live oak..

very extensive 3d and imho the cococophillips operator must be extremely interested in the eagleford for them to undertake this



our sugarloaf 1 well sits just right of the white blank region there on the map.

Agentm,

Nice work procuring the outline of the COP 3D in Live Oak County. EOG has a large 3D shoot in the works in Karnes County and St. Mary has recently completed a 3D survey in Webb County. Petrohawk has a new presentation up on their website with some good Eagle Ford information (IPAA/TIPRO Leaders in the Industry Luncheon 7-8-09). I have included one slide from their presentation showing the wells they have drilled to date.

Bubba

bubba, i saw that one and posted it up on other sites also..

for those who understand how big a multi stage frac can get, this is bordovsky setting up.. i hear some 240 tanks were on site,, i dont know the exact number.. if you look close you can see there are 2 rows there..

the frac operation is certainly attracting a lot of interest

looks like some nitrogen tankers maybe in the foreground perhaps,, COP like using that..

Hi AGENTM & BUBBA OIL thank you for your informative posts. Whilst I am a long term holder of ADI the coy has failed to do anything for quite a while. It seems that ADI is trading simply on the basis that it has wells located in what seems to be a prospective zone. By all reports other coys are very active in the zone whilst ADI seems very idle. What do you think ADI will do and what are the time frames. Your views appreciated

The rumors I have heard around South Texas are that Texas Crude is trying to sell their acreage position. I assume this would include all partners as well but it might not. In my opinion their acreage position would be worth alot more with a few good wells producing on it, but I don't think they want to spend any more money in this commodity pricing environment.

These small companies just don't have the long term staying power like COP. If something doesn't work right away and start producing cash flow, they have to bail out of the play, usually too early on. Read up on the history of the Barnett Shale in DFW area and you will see that it took lots of perseverance to make that play work.

I wouldn't be surprised if some other midsized independent who wanted in the Eagleford play didn't buy out TCEI. Like Chesapeake or a similiar sized company who needs to add some liquids to their portfolio.

Agentm - That is an awesome picture of the Bordovsky frac operation. Do you know the parameters of the fracture treatment? My guess is roughly a 10 stage frac with 300,000 pounds of proppent per stage.

Choppy - I totally agree with you regarding small companies in the Eagle Ford play. I think the small companies will be bought out by independents and the independents will be bought out by larger independents or majors. It is like the cartoon where the small fish gets swallowed by a larger fish who in turn is swallowed by the big fish. Ultimately this play could be developed on 80 to 100 acre spacing. When you consider the broad extent of the play that is a lot of wells and money!

Bubba

philly said:

Hi AGENTM & BUBBA OIL thank you for your informative posts. Whilst I am a long term holder of ADI the coy has failed to do anything for quite a while. It seems that ADI is trading simply on the basis that it has wells located in what seems to be a prospective zone. By all reports other coys are very active in the zone whilst ADI seems very idle. What do you think ADI will do and what are the time frames. Your views appreciated

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philly

adi announced its intentions a while back. it really has not failed to anything as you term it, but it has succeeded in seemingly not doing anything, which is its plan.

adi is not trading simply on the basis this it has well located in a prospective zone, its trading with a plan in mind which it still follows.

adi is idle in the region as they have clearly said they would be..

the january road show presentation states its intentions

http://www.adelphienergy.com.au/files/presentations/January-Roadshow-Presentation.pdf

Sugarloaf AMI (20% before royalties)
• Adelphi and partners acquired 23,000 gross acres (Sugarloaf) of Austin
Chalk between 2006 and 2008 on basis of nearby 2006 Kunde-1 discovery
which opened up a significant new trend
• Hydrocarbon indicators in old wells drilled through the Chalk confirmed the
trend and guided the Sugarloaf AMI acreage acquisition
• Since then, the trend (>350,000 surrounding acres) has been near fully
leased by other companies – including majors
• All recent wells in the Sugarloaf and adjacent Sugarkane area (7), have
recovered gas with high oil ratios
• Current focus is on better understanding the play – with emphasis
on economics and improving production rates


Sugarloaf Forward Plan
• Weston -1H: finish drilling up to 6,000 ft lateral - then
production test (Kowalik 50’ flare while drilling
if appropriate)
• Kowalik -1H: Further flow testing and well intervention
operations to attempt to increase well productivity
• Kennedy –1H: Consider stimulation of remaining 3,200
lateral
• Multi-well drilling program: Take a pause. Adelphi has no
commitment for further wells and will not commit until
risked economics are robust
Initial production
• Technical Review: Consolidate all geological, reservoir,
analogue, drilling and completion information plus
competitor activity
Kowalik • Take heed of economic conditions: Await reduction in well
costs (already ~20% down) and recovery in oil price outlook


shortly after that presentation AUT announced it could no longer fund its commitments to the 2 wells needed for it to keep the extended acreages they held, they went to TCEI and asked to save the situation, and announced a farm out with TCEI.. ADi having no choice and realising the partners they had in the jvp were basically broke, joined in the deal.. my view is that its way to premature to be farming out, and its a real shame the partners in this had no further funds..

ADI sold one yemen asset and is basically waiting for the jvp farmout to happen. should it not, they are funded with the yemen capital to undertake further works on the 3 wells so far drilled.

choppy said:

The rumors I have heard around South Texas are that Texas Crude is trying to sell their acreage position. I assume this would include all partners as well but it might not. In my opinion their acreage position would be worth alot more with a few good wells producing on it, but I don't think they want to spend any more money in this commodity pricing environment.

These small companies just don't have the long term staying power like COP. If something doesn't work right away and start producing cash flow, they have to bail out of the play, usually too early on. Read up on the history of the Barnett Shale in DFW area and you will see that it took lots of perseverance to make that play work.

I wouldn't be surprised if some other midsized independent who wanted in the Eagleford play didn't buy out TCEI. Like Chesapeake or a similiar sized company who needs to add some liquids to their portfolio.

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choppy adi and TCEI have a deal to farm out the region and i believe to still keep a (50%???) stake in it as a group. so the rumor of TCEI selling out is not one that relates to the 23,000 acres adi are in a jvp with tcei in..

Bubba Oil said:

Agentm - That is an awesome picture of the Bordovsky frac operation. Do you know the parameters of the fracture treatment? My guess is roughly a 10 stage frac with 300,000 pounds of proppent per stage.

Choppy - I totally agree with you regarding small companies in the Eagle Ford play. I think the small companies will be bought out by independents and the independents will be bought out by larger independents or majors. It is like the cartoon where the small fish gets swallowed by a larger fish who in turn is swallowed by the big fish. Ultimately this play could be developed on 80 to 100 acre spacing. When you consider the broad extent of the play that is a lot of wells and money!

Bubba

Click to expand...

bubba, that was a very early photo, the tanks were just arriving, so plenty more were coming all day long.. 12 stage multi frac at least.. its a 6000 foot lateral, on of the longest i have seen in the eagleford..

most of the regional eagleford competitors have 3000 odd feet generally

re big fish,, the idea is to be the most attractive and expensive little fish to eat out there in the pond

Friday, July 10, 2009
A tale of two shale plays
Natural gas prospects pick up in Haynesville, heat up in Eagle Ford

With natural gas prices hovering just below $4 per million British thermal units, two Texas shale plays ”” one evolving, the other emerging ”” are attracting attention from companies looking to expand exploration and production.

In the evolving Haynesville play, smaller companies are starting to establish a presence on the fringes of the honey holes controlled by bigger drillers in a section spanning the northern Texas-Louisiana border.

In South Texas, near the Mexican border, the emerging Eagle Ford Shale is drawing interest from major players as a cost-effective alternative to Haynesville.

http://houston.bizjournals.com/houston/stories/2009/07/13/story1.html

FYI- From Petrohawks VP re: Eagleford

http://www.oilandgasinvestor.com/Headlines/2009/WebJuly/item42282.php

jestex12 said:

FYI- From Petrohawks VP re: Eagleford

http://www.oilandgasinvestor.com/Headlines/2009/WebJuly/item42282.php

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love it jestex

this bit is very upbeat..

One anomaly within the play is wells on the northeastern end of the field tend to flow about 100 barrels of condensate per million cubic feet of gas, while wells on the southwestern end are dry gas, likely due to an uplift. Stoneburner says that because of the difference between prices of gas and liquids, a well flowing at a lower volume of gas can be more economical than one with a higher rate due to the liquids it produces.

“It’s a great economic benefit to have a liquid component to it.”

When comparing the Eagle Ford to the Haynesville, “as you go down the list there are a lot of ties””all in all you’ve got two really good shales.”

One difference, however, is that the Haynesville has recoverable reserves of 7.5 Bcfe per well, while the Eagle Ford has 5.5 Bcfe. Why is that if the Eagle Ford has more gas in place?

“We don’t see any natural fracturing in the Eagle Ford while we see extensive natural fracturing in the Haynesville.” When the Haynesville is fracture-stimulated, the frac is effective and thorough, while an Eagle Ford frac does not penetrate as thoroughly. “We’re not draining as big an area.”

But, he adds, 5.5 Bcfe for $5 million is nothing to complain about. “You can do the math on the F&D (finding and development costs) and it’s in the low $1s.”

Completion costs came down significantly after the first quarter when the inventory of frac jobs depleted and service companies were scrambling to keep crews busy and trucks working. “An amazing drop in stimulation costs occurred almost overnight. Our $3-million frac went down to $700,000.”

The Eagle Ford is “a cool story” that came about in a short period. “We want to be in the best rock. It’s ben a great run to develop such a fun play.”

Agentm said:

The Eagle Ford is “a cool story” that came about in a short period. “We want to be in the best rock. It’s been a great run to develop such a fun play.”

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I'm looking forward to some of the 'fun' heading ADI holder's way...

the longer we wait the better the story turns out

Agent M
What's up with the COP wells in Dewitt County? They drilled two wells (Koopman and Marlado) . Both have been just sitting there with no activity for a few months. My families land is located between the two wells (which is leased by GeoSouthern) and we are interested in what ever info you have.

Thanks

hey travis

koopman and maraldo were part of an 4 well exploration program in dewitt. on top of that they drilled 2 more wells hooks and butler.

the koopman and maraldo wells are vertical pilot holes, which would have had some initial testing completed on the rock. once they put through a further permit then you can expect laterals on those wells.

you would be aware the butler well has had a further lateral added in the last months, as i believe hooks a while ago

these wells you need to keep a track of, one chalks well and the rest are eagleford

42-123-32122 PIONEER NATURAL RES. USA, INC. JOHNSON GAS UNIT 1 Dewitt 14740 gas well G 10/5/2006
42-123-32192 WEBER ENERGY CORPORATION BUCHHORN 1 Dewitt 17684 oil well O 12/30/2007
42-123-32193 BURLINGTON RESOURCES O & G CO LP HOOKS 1 Dewitt 13313 gas well G 1/16/2008
42-123-32202 GEOSOUTHERN ENERGY CORPORATION MIGURA 1 Dewitt 16798 gas well G 4/4/2008
42-123-32208 BURLINGTON RESOURCES O & G CO LP BUTLER A304 1 Dewitt 13573 gas well G 6/2/2008
42-123-32231 BURLINGTON RESOURCES O & G CO LP KOOPMANN A274 1 Dewitt 16000 gas well G 11/16/2008
42-123-32252 BURLINGTON RESOURCES O & G CO LP MARALDO A403 1 Dewitt 16000 gas well G 11/20/2008
42-123-32255 PIONEER NATURAL RES. USA, INC. FRIEDRICHS GAS UNIT 1 Dewitt 16823 gas well G 10/17/2008
42-123-32284 WEBER ENERGY CORPORATION KRAUSE 1 Dewitt 14000 drilling in progress AP 2/26/2009


i have added a map of the chalks and eagleford wells pioneer have drilled and are producing from, and we see pioneer also have filed the eagleford well as an oil completion like weber and eog have