ADI - Adelphi Energy

[Lucky_Country]

Well congratulations to AgentM for the July stock tipping competition now all ADI holders must hope he can make it 2 on the trot !

As for ADI well the quarterly seemed quite open and gives shareholders the best insight to whats happening behind the scenes for some time.

Flow rates, reserve estimates, Petrohawks activities were all mentioned its just a matter of time before we see some more onsite action how long tho thats the real question.

 

[Agentm]

i put adi in the stock tip comp on the basis they would farm out and get the yemen cash.

those factors are still to be finalised so i anticipate much of the same with adi, with trojan possibly selling down more at the .065 region and groundhog days continuing until a farmout deal is completed.

from the adi quarterly

Sugarloaf prospectivity can be summarized as follows:

• It is prospective for both the Chalk and Eagle Ford. Future completions may involve drilling horizontally in the Eagle Ford, then fracture stimulating to draw hydrocarbons via induced fractures from both the Eagle Ford shale and the Austin Chalk.

• It has very high liquids yield (250 barrels of oil per million cubic feet of gas – higher than the 50 to 100 barrels of oil per million cubic feet of gas reported in Petrohawk areas)

• The Kennedy well is believed capable of producing at rates comparable to the Petrohawk wells when fracture stimulated over the whole lateral (currently only 600’ has been lightly fracture stimulated and ~3,000’ remains to be multi-stage fracced)

• Sugarloaf has similar geological attributes to the Petrohawk areas and if Petrohawk measured gas in place estimates of 180 – 210 BCF per 640 acres are applied to the entire 23,000 acre Sugarloaf area, the Sugarloaf in-place resource size could be in the order of 7 TCF equivalent[/B]

adi have now give some clue on how they may approach both the formations. by fraccing both formations at once. perhaps this is what conoco are currently doing..








from AUT presentation

When Aurora first reported on the discovery at Sugarkane, as well as the over pressured Austin Chalk, reference was made to an underlying formation that also portrayed reservoir quality as well as having a high organic content. At the time we referred to this zone as being the ‘New Chalk’ because of the calcareous chalk inter-bedded with the organic shales that was seen in core and on electric logs taken whilst drilling.

Following this discovery we undertook significant land acquisition programs in adjacent contiguous areas. During Q4 of 2008 a number of large US companies made announcements of a new shale play within which they too had made substantial land investments. This shale play trend has been named the Eagle Ford Shale and Sugarkane is located centrally within it.
Recent information continues to support the geological model of the Sugarkane Gas and Condensate field consisting of a localised pool of over pressured Austin Chalk directly above a regionally extensive Eagle Ford organic shale that is also over pressured with a now well established common pressure gradient of 0.8 psi/ft. This can be compared to a ‘normal’ pressure gradient of 0.45 psi/ft, meaning that the reservoir pressure is almost double a ‘normal’ gradient. Gross reservoir thickness across the Sugarkane field is between 180 – 250 ft, which is controlled by at least 8 fully logged historical wells (plus a large number of wells with less than full log suites available), 14 wells drilled in the last 4 years, 2D seismic and partial coverage by a 3D seismic survey. Whilst we make a distinction between the two horizons, they act as a single reservoir and have many similarities including lithology with calcareous (Chalk) interbedding being evident down through the Eagle Ford reservoir, hence the earlier designation of a ‘New Chalk’. Production from the Sugarkane Field has been fairly consistent across all of the recently producing wells. Gas being produced is very rich with 1250 British Thermal Units per cubic feet of gas (“BTU/scf”) and a significant condensate ratio of 150 – 300 barrels per million cubic feet of gas (“bbls/mmscf”).

These factors are important as they distinguish our production from elsewhere within the trend and from other ‘dry’ gas shales with ~1000 BTU/scf gas being produced only. This has a substantial impact on the commerciality of the play with higher BTU gas priced higher than low BTU gas and liquids being considerably more valuable than gas. Using current prices and the condensate ratios observed to date, liquids should account for over 60% of the value of the produced hydrocarbons from the field.


i will post an update on driling. conocophillips is drilling the marlene olsen 2 well right now

Eskew West started on the 1st April
Baker 3 started on the 5th May
Marlene Olsen 2H started on 28th July

same rig on each so the precision 550 rig is drilling a completion within 60 days

 

[Agentm]

petrohawk very upbeat on the shale, and have plans to acquire more acreages


Petrohawk Announces Second Quarter 2009 Financial and Operating Results




Production Averages 483 Mmcfe/d; Grows 17% Quarter Over Quarter; 2009 Production Guidance Raised to 58% Year Over Year Growth

Haynesville Shale Position Now Approximately 325,000 Acres; Eagle Ford Shale Holdings Reach Approximately 210,000 Acres

HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) today announced its second quarter 2009 financial and operating results, including record production, drilling cost reductions in the Haynesville Shale and Eagle Ford Shale plays, and increased production guidance for 2009. The Company also issued guidance for 2010 capital expenditures and production.

Petrohawk achieved continued improvements in drilling results and notable operational efficiencies during the quarter, contributing to above-plan production rates in the Haynesville Shale and Eagle Ford Shale. In addition, better than expected results from non-operated drilling contributed to production growth in the Fayetteville Shale. The Company's production for the second quarter averaged 483 million cubic feet equivalent per day (Mmcfe/d), a 17% increase over first quarter 2009 and a 200 Mmcfe/d (71%) increase over the same period one year ago. Total production for the second quarter was 43.9 billion cubic feet of natural gas equivalent (Bcfe), 94% of which was natural gas. This marks the fourth consecutive quarter in which Petrohawk has achieved double-digit quarter-over-quarter production growth.

"This quarter, our operations in two prominent U.S. shale plays, the Haynesville and Eagle Ford Shales, made key strides in further establishing productive areas and achieving operational efficiencies. Operational improvements have resulted in lower average costs per well and higher initial production rates which we believe will lead to increased returns on investment," said Floyd C. Wilson, Chairman, President and Chief Executive Officer. "Petrohawk's operating staff has achieved these efficiencies early in the development of these plays with great success. Additionally, we are keeping pace with infrastructure requirements as we continue to work marketing channels to sell gas at the best available prices.

"We continue to be fiscally conservative, expanding our portfolio of hedges into 2011. Based on the combined effect of strong quarterly performance and positive hedge positions, we stand in an excellent position to continue our exciting pace of production and reserve growth."


Acquisition of Additional Acreage in Haynesville Shale and Eagle Ford Shale

Through August 1, 2009, Petrohawk has acquired or committed to acquire additional acreage in key areas of the Haynesville Shale including a prospective area in East Texas (Shelby and Nacogdoches Counties) and under an expanded AMI with EOG Resources in this region. In South Texas, additional leases were acquired in both the Hawkville Field and undisclosed areas outside of Hawkville Field that are prospective for the Eagle Ford Shale. In Northwest Louisiana, the Company has drilled or is in the process of drilling twenty-five wells within sections where acreage has recently been acquired. By year end 2009, Petrohawk expects that it will have drilled wells on approximately 40% of the sections in Northwest Louisiana within which the Company has acquired new acreage in 2009.

Operational Update

During the three months ended June 30, 2009, the Company expended $327 million on drilling, completions, seismic and infrastructure. Expenditures for land were $55 million. The Company participated in the drilling of 30 operated and 102 non-operated wells during the quarter with a success rate of 100%.


Haynesville Shale

During the quarter, the Company drilled a total of 13 operated and 19 non-operated wells in the Haynesville Shale.

................

Petrohawk continues to experience drilling efficiencies in the play. In the first half of 2009 the spud-to-rig release time averaged 55 days, down from 59 days in the second half of 2008. The second quarter average drilling days, excluding two wells that encountered unusually difficult drilling conditions, was just over 46 days. Days from rig release to first sales decreased from approximately 31 days in the fourth quarter 2008 to approximately 16 days in the second quarter 2009. With the ongoing benefit of the decrease in drilling days, the various operational efficiencies being achieved, and the continued effect of service cost reductions, the forecast for drilling and completion costs in the second half 2009 ranges between $8.5-$9.5 million per well.

The Company is constantly working to improve its drilling and completion operations and efficiencies. Petrohawk is currently evaluating 1) increasing the length of each frac stage and the number of perforation clusters/stage while keeping the number of perforations constant; 2) increasing the volume of proppant per foot of lateral; 3) utilizing various proportions of 40/70 Ottawa sand along with 40/70 Premium Resin Coated sand, 4) using 40/80 Hydroprop on an increasing number of wells and 5) increasing proppant concentration. While some time will be required to ascertain results, early data points to opportunities to improve both cost and performance, as well as to modifications that could potentially result in an even more effective completion procedure for Haynesville Shale wells.



Eagle Ford Shale

During the second quarter, Petrohawk drilled six operated wells and participated in the drilling of one non-operated well on the Company's Eagle Ford Shale position, known as Hawkville Field, in South Texas. Initial production rates from the three operated wells completed during the second quarter of 2009 averaged 9.3 Mmcfe/d. The average initial production rate for all eight operated wells completed to date in the Eagle Ford Shale is 8.6 Mmcfe/d with a 6:1 gas to oil and natural gas liquids equivalency ratio, which corresponds to an effective 10.6 Mmcfe/d on an 18:1 equivalency ratio, taking into account the Btu content of the natural gas and natural gas liquids. Production rates have averaged 6.0 Mmcfe/d over the first 30 days of production for the seven wells with at least 30 days of production history, or an effective 6.9 Mmcfe/d on an 18:1 Btu adjusted revenue equivalency ratio. Two of the wells experienced modest curtailments during the first 30 days of production, and after normalizing those wells to their estimated unrestricted production rates, the 30 day averages are estimated to be 6.6 and 7.6 Mmcfe/d, respectively.

During the second quarter, Petrohawk operated two horizontal rigs in the field and recently added a third. The following wells were completed during the quarter:

* Henderson-Cenizo 874 #1H was completed on April 27th at a rate of 9.1 Mmcf/d on a 25/64" choke with 4,012 psi flowing casing pressure.
* Dora Martin 1716 #1H was completed on May 26(th) at a rate of 9.7 Mmcf/d on a 24/64" choke with 4,215 psi flowing casing pressure
* STS-Palmert 944 #1-H was completed on June 17th at a rate of 9.1 Mmcf/d, on a 24/64" choke with 4,350 psi flowing casing pressure.

In addition to the above, the J.C. Martin 1850 #1H was completed on July 17(th) at a rate of 8.8 Mmcf/d and 50 Bc/d (9.1 Mmcfe/d) on a 24/64" choke with 3,710 psi flowing casing pressure.

Petrohawk has achieved both improved production performance and drilling efficiencies in the field. The first three wells drilled, which included pilot holes with extensive technical data gathering as well as setting intermediate casing, averaged 53 days spud to total depth. The Company has now drilled a total of six wells without setting intermediate casing and without drilling a pilot hole, and these six wells reached total depth of approximately 16,000' in an average of 18 days. As a result of this decrease in drilling days, as well as significant decreases in service sector costs, drilling and completion costs have been reduced from approximately $12.0 million to approximately $5.0 million per well. These cost reductions have occurred while the average lateral length has increased. The first three wells averaged 3,620' with 10.7 frac stages while the last six wells averaged 3,990' with 13.3 frac stages. The last well completed, the J.C. Martin 1850 #1H, utilized 18 frac stages. Petrohawk is using a similar approach in the Eagle Ford Shale to that in the Haynesville Shale, where the Company is making controlled changes to the original completion technique in an attempt to optimize completions. Although early in the field's development, Petrohawk is encouraged by these recent developments and believes additional efficiencies remain to be gained.

The very rapid success of the Hawkville Field within the Eagle Ford Shale trend has enabled Petrohawk to obtain a significant amount of geologic data pertinent to the reservoir, allowing the Company to expand into other areas of the trend where it believes the rock quality could compare favorably to Hawkville Field. While building on its acreage position in the area of the field that Petrohawk believes to be commercially productive, the Company has also acquired acreage in other areas, both along strike and updip to the shale formation in the Hawkville Field. Petrohawk currently owns or has contractual commitments to acquire approximately 210,000 net acres in the trend. The Company expects to drill several exploratory wells in the second half of 2009 to evaluate its new acreage.



http://news.prnewswire.com/DisplayR...STORY=/www/story/08-04-2009/0005071797&EDATE=

 

[Bilja]

Hey all,

I am a long time follower of this thread and think the information that you all provide is excellent.

I have a little holding in ADI (purley speculative) and wondering, when and if there will be some positive moves in the sp? Also, on a best case scenario how high could the SP get?

Thanks

 

[estseon]

Bilja,

News awaited for ADI is receipt of Yemen monies and of farm out of Sugarloaf.

Farmout was expected to be done within 6 months starting from May.

Both could give a little boost to the SP. Further boost could be gained from market approval of new partner and the operations plan. Re-rating could happen following successful completion of Kowalik/Kennedy and Weston depending upon production flows achieved. Re-rating will then continue with additional successful completions. Market will be looking at flow rates achieved, well costs and drilling times (Petrohawk have said that they can drill a 16,000 ft well in 18 days but in geology that is not necessarily the same).

Target SP depends upon a few variables that cannot be quantified at the current time. It's a case of doing your own calculations.

AMI is about 23,100 acres
ADI has suggested 7 TCFGE in place for the Eagleford
EME has suggested that the Eagleford contains reserves = 150% of the Austin chalks so possibly add 2/3rds to the Eagleford shales
Recovery rate: agentm has produced some evidence for a 25% assumption
Oil/gas production ratio 250 barrels to 1 million CFG
ADI's diluted interest in the AMI should not be less than 10%
ADI has about 140 million shares in issue
You will need to speculate on oil and gas prices

 

[Agentm]

extracts from the pioneer earnings and conference call

less on the eagleford as they are still in early appraisal of the eagleford. with gas prices as they are they are staying low and keeping the cashflow on exploration tight.



http://seekingalpha.com/article/154...s-co-q2-2009-earnings-call-transcript?page=-1

Scott Sheffield - Chairman and CEO

We are going to deliver free cash flow in 2009 and beyond, continuing to improve the balance sheet and our financial flexibility. It is important for us with our large acreage position of over 300,000 acres to find out the true potential of our Eagle Ford Shale resource potential and we should know that over the next six to nine months.



Tim Dove

Slide 10 a review of our South Texas drilling. Of course, we are not doing much drilling now other than for an Eagle Ford program, that Scott has alluded to. Our production was up in the first of this year compared to the first half of last year. That's because we had an excellent Edwards drilling campaign in 2008. Of course, we shut that down, due to the fact that gas prices were not cooperative during the time period. It goes to show you if we were drilling in the Edwards, we would have a substantial ability to ramp up production as we look forward.

A lot of that's coming from the fact we have completed the interpretation of our seismic across this wide swath of acreage and from all of the wells that we have drilled, some 150 plus wells. That has allowed us looking forward to identify about 200 optimized Edwards drilling locations for future drilling and those will be drilled of course when gas prices improve in order to meet our internal hurdle rates.

Importantly, as we drill through all those 150 wells, we drilled right through the Eagle Ford Shale sitting above the Edwards and we are just in the process of ramping up an Eagle Ford Shale a campaign as we speak.

Our first well that we reported on in the past incurred mechanical problems. We had a casing failure. We had a sidetrack. The combination of those altered the well trajectory, such that we only have a limited amount of the hole section in the bottom half of the Eagle Ford Shale, which is the more brittle and therefore more able to take a frac.

The result was out of eight planned frac stages, we have only got two we put away properly. We were encouraged with the fact that even with that mechanical issue that we have with this well, the fact that we have 3.7 million cubic feet a day equivalent was encouraging.

The program as we look forward right now will be a series of wells. The current thinking is we would drill a series of five wells back-to-back starting late August, testing various areas of this extensive acreage position we have, and all of those locations are currently picked. So we are ready to get after a substantial drilling campaign to prove up this resource base across Pioneer's extensive acreage.

Overall, the South Texas area is on decline as we are not drilling today, and of course that decline can be stemmed immediately upon putting the rigs back to work when gas prices cooperate.


............

Leo Mariani - RBC

Question on Eagle Ford. Obviously you've got that well that you drilled a little while ago. Just curious if that well went right to production and kind of how that's holding up? I know it was on a pretty limited frac.

Scott Sheffield

Yes. Obviously, it's on [hydrobolic] decline curve. I have not kept up with the production on it. But as Tim mentioned, we did not get very little of the well bore was into the pay zone.

..........

Unidentified Analyst

Then switching to the Eagle Ford, are you guys adding any additional acreage there?

Tim Dove

Yes.

Unidentified Analyst

You are. Okay. The well that you drilled, was that in LaSalle County?

Tim Dove

It was in DeWitt County.

Unidentified Analyst

DeWitt County. Okay, all right. It does very helpful.

Xin Liu - JPMorgan

You mentioned you bought some Eagle Ford acreage. Can you talk about how much you paid for it on a per acre basis and how many acres?

Tim Dove

Due to competitive reasons, we're not at liberty to discuss that.

 

[Agentm]

extracts from the petrohawk earnings and conference call

fair bit of talk on the eagleford. and some interesting questions..



http://seekingalpha.com/article/154...tion-q2-2009-earnings-call-transcript?page=-1

Floyd Wilson - Chairman, President and CEO

...... Another ongoing important activity in our combined evaluation of the Eagle Fort Shale in South Texas – that is another important activity. We have taken what we have learned at Hawkville, our discovery in South Texas, which ignited the entire Eagle Fort Shale play, you know began to evaluate other areas in that region that looked to us to be perspective.

More on that from Dick in a minute. Anyone that has followed Petrohawk knows that our business view is a multi-year view and conservative financial view that supports our expansion in existing and new areas, our priorities are significant production growth and reserve growth, paid with low operating costs, or active hedging program and our ever present attempt and successful I should say to gain technical advantages and efficiencies, which improve over time in these large scale resource plays.

We expect what is good to get even better and we're conservative managers of our capital structure. I will turn the call now over to Mark Mize to discuss our financial performance.


Dick Stoneburner

......... In the Eagle Ford, we operated two horizontal rigs, drilled six operated wells, and one non-operated well, and put three of the operated wells on production, resulting in 140% increase in production from 5 million a day to 12 million a day

Switching to the discussion of the Eagle Ford Shale trend, our excellent results in the Hawkville Field continue to support the belief that this discrete geological area appears to be a highly commercial field. The company drove drilled six wells in the quarter and completed three of them at an average IP rate of 9.3 million per day.

Similar to the Haynesville production practices, these IP rates where all obtained by producing the wells at a maximum rate on a 24/64 choke with average flowing casing pressure of almost 4,200 pounds. Additionally, we completed the J.C. Martin well in mid-July at a rate of 8.8 million a day and 50 barrels of condensate on the 24/64 choke with 3,710 pounds for casing pressure.

This brings the total number of wells on production to eight of which seven have been on production for at least 30 days. The average rate of those wells based on a 621 Gascon estate ratio was 6 million a day and it was 6.9 million a day when calculated using an 18 to 1 gas to and condensate ratio and using the appropriate BTU adjustment.

Additionally, a few of the wells experienced some curtailment during the first 30 days, in which case the normalized 30 day average using conventional gas ratios against condensate ratios were 6.6 million per day and 7.6 million per day, when using the higher ratio assumption.

While there is not sufficient production history to utilize the time zero EUR forecasting method that we presented earlier on the Haynesville wells, we are very encouraged with performance of the wells to date and confirm the belief that the EUR range should be in the 4 to 7 Bcf range.

The economics of the fields have been greatly enhanced by the dramatic decrease in well cost. At the end of the second quarter, we had drilled six wells without intermediate casing, without drilling a pilot hole. Those wells have averaged reaching total measured depth of approximately 16,000 feet in 18 days from spud, which is a result in an average cost to rig release of $2.4 million.

Combine that with a significant reduction in service costs, specifically pumping services and the result is total well costs that are averaging slightly less than $5 million. Similar to the Haynesville, we have been varying certain aspects of our frac jobs, in order to optimize the cost versus benefit ratio.

The most significant change within a significant increase in the number of stages. The last two wells that we have fraced, we have pumped 18 stages. This has decreased the average stage link in these wells to approximately 245 feet with eight per clusters per stage that are approximately 30 feet apart. While it is too early to determine whether this project will be more effective, there does appear to be evidence of a flatter decline curve in early data, which could have significant impact on the EUR.

While we have focused the majority of our efforts to date in the area of the Hawkville field, we have been actively putting our geological experience to work in identifying areas and the trend that appeared to have rough quality, similar to what we have found at Hawkville.

These efforts have resulted in obtaining leases in several additional perspective areas in both the up-dip and mid-dip areas of the field. This leasing along with additional leases acquired in Hawkville has increased our net leasehold position to approximately 210,000 acres.

Lastly, regarding the Fayetteville Shale, we have intentionally decreased our operated focus in the Fayetteville Shale, in order to ensure that timing development of our leasehold and Hayneville and Eagle Ford. As recently as the middle of the fourth quarter of 2008, we were operating 11 horizontal rigs in the field.

But have now decreased that to two rigs. However, due to the increased level of activity and exceptional operational results of our non-operative partners, we have been able to achieve steady and impressive production growth in the field. At the beginning of the year, our net production in the field was approximately 71 million a day and by the end of the second quarter it had grown to just over 80 million a day, or approximately 13% growth.

While we are still very positive about the opportunities set in the Fayetteville, we will continue to direct the majority of our capital expenditures to the Haynesville and Eagle Ford over the next two years as we develop our term leasehold in each field.

With that I will turn the call back over to Floyd.

.............


Michael Hall - Stifel Nicolaus

Okay, fair enough. If I one – if I may one more, can you come at all on the exploratory counties and the Eagle Ford and kind of which direction you are heading, is up-dip north or northeast any commentary there or color?

Floyd Wilson

I know Dick would really like to talk about that, but I'm going to hold him back. It is highly competitive if we have – been reviewing some areas that are both for reef and back reef up dip if you will and we are very specifically targeting some areas that have a geologic story rather than just acreage. Beyond that it is so competitive down there right now that we are just not going to comment too much.

Michael Hall - Stifel Nicolaus

Okay, kind of figured, but it was worth a try. Thanks gentlemen.

............

Subash Chandra - Jefferies

Yes. Good morning. I guess the question is for Dick. I think, Dick, (inaudible) I saw in the presentation, you referred to permeability in Eagle Ford sort of over a thousand Anadar season [ph]. And I was curious if you’re seeing that pretty much everywhere or if you’re seeing some variety to the perm? And then secondly, is there a tipping point for too much liquids in the stream?

Dick Stoneburner

Regarding perm, Subash, we have two core available to us at this point. The third one’s still in analysis. I think the 1.1 was the higher of the two. But the other one was not too far behind it. Though it was probably – I can’t, off the top of my head. It wasn’t higher than. It wasn’t quite as high as, but it was close.

In terms of liquids, I don’t think so, Subash. For one, it’s a great revenue add. But you’re comment is probably more addressed to performance. And you know, in this type of rock with nano-perm and in a highly fractured network that we’ve induced, we don’t think – and peers that I’ve spoken to, whether it be Marcellus or other areas of the Eagle Ford, I don’t think anybody is seeing, number one, any detrimental effects to date, or expect any.

It’s just not the same type of situation in a conventional high-perm reservoir where you have a retrograde condensate reservoir. Any liquids that drop are nominal. And your fracture network has sufficient perm to deliver those liquids and gas without a change. That’s our opinion.




petrohawk claim to be the first in the eagleford and everyone else followed

what is positive is that they are seeing the play through now.. for a long time the general trend was to just explore, now we are seeing the likes of conocophillips and petrohawk start development wells in the region right along the trend

another petrohawk permit appreared for mcmullen yesterday

DONNELL 1086 1H

http://webapps.rrc.state.tx.us/DP/d...Query=Y&name=DONNELL+1086&univDocNo=485703438

 

[Bilja]

Thanks for your reply Estseon, much appreciated. I have been following for a while now and I guess its much more of the same waiting game.

AgentM - thanks for all your stella work

 

[rock86]

Hey Everybody,

I have been following this thread for a while now. I know that in this forum you are not allowed to offer advice on what stock to buy/sell. I want to purchase ADI shares, but I'm currently in a catch 22 situation. My car just carked it, and I'm looking for a new car atm, I was just wondering whether anybody thinks it's an idea purchasing the shares now, or will it still be a little bit before ADI releases some announcements. Bloody cars

 

[Agentm]

bilja

no probs, its not too hard to research a play once you get involved for a while, unfortunately this one has gone on for a long time then the cash ran out, and 90 days more of these ground hog days max is needed to close the farmout or start doing things with capital already in the bank.

rock86. no one can offer advise to you. good luck with the car problem..

btw the eme agm had a few people i know attend, it was suggested in their presentation that the deal was in an advanced stages then. but these stories dont mean a deal will be struck

all imho and dyor

 

[estseon]

bija,

no probs.

Two points re the farmout.

Firstly, Jeffries has been instructed and the JVPs are looking for the best deal from the most credible bidder - it has been noted elsewhere that Petrohawk is raising some more cash. The JVPs haven't spelt out their criteria but they are obviously looking for the longest carry on both drilling/completion costs and on infrastructure; they want accelerated development and proving up of the acreage; and they will want fast and cheap drilling and completion with no mishaps. So they will probably be looking at some organisation with track record and experience in the over-pressured chalk and shales.

Secondly, the package includes acreage held by TCEI & AUT that ADI and the other JVPs (EKA and EME - UK company) have no interest in. The deal has to suit their purposes as regards those other acreages.

That is bound to make it a bit more complicated.

Rock86 - if you need a new car before Xmas, it might be an idea to give priority to that purchase. There's no telling when the deal will be done; no telling when the completion operations on the 3 drilled wells will be completed and the wells tested; and, in particular, no telling when the ASX investors will start to recognise the prospective value of this company. Oh, and there cannot be certainty that a deal on acceptable terms will be offered to the JVPs.

 

[Agentm]

petrohawk did talk up the eagleford big time and they have plans for pipelines and a lot of wells in 2009

 

[Agentm]

http://www.globenewswire.com/newsroom/news.html?d=170927


Rosetta Resources Inc. Announces Second Quarter 2009 Results and Provides Update On Emerging Plays


Randy Limbacher, Rosetta's President and CEO, commented, "We are at the half-way mark in a challenging, but exciting year for Rosetta. We are operating effectively and prudently in this environment by optimizing our organic drilling program, divesting non-core properties, and maturing our positions in the prospective Eagle Ford and Bakken plays. These plays have the potential to add significant value for Rosetta shareholders, and our progress to date is clear evidence of our commitment to become a resource player. Our priorities continue to be preserving liquidity, protecting against commodity price downside and positioning for the recovery that is inevitable."

EMERGING PLAY UPDATE

Eagle Ford Shale

The Company made significant progress during the second quarter in advancing its position in the Eagle Ford play. Evaluation of technical data from the Company's two vertical wells as well as continued regional work was ongoing. In addition, Rosetta increased its acreage position to roughly 35,000 net acres in the play which includes 31,000 net acres fully assigned and 4,000 net acres committed. The majority of the leases are 100% operated working interests. The Company continues to maintain an active, yet selective, leasing program based on favorable geoscience, petrophysical and engineering indicators.

Rosetta commenced horizontal drilling on the Springer Ranch #1H. The well is located in southwest LaSalle County, Texas. This horizontal well is currently drilling laterally in the Eagle Ford Shale interval at a measured depth of 14,276 feet (10,861 TVD). The well is targeting a lateral length of roughly 4,000 feet.

Additionally, the Company initiated a second Eagle Ford horizontal well, the Gates 05D #9-5H, which is located in northwest Webb County, Texas. This well is currently drilling at a depth of 3,210 feet and is targeting the Eagle Ford Shale interval at approximately 8,000 feet TVD.

Both the Springer Ranch #1H and the Gates 05D #9-5H are operated by Rosetta with a 100% working interest.

FINANCING UPDATE

In addition, during the second quarter, Rosetta filed a universal shelf registration statement with the SEC and it has since been declared effective. The Company does not have any stated plans to issue securities, but would consider doing so under certain circumstances, notably to fund an attractive acquisition or to fund follow-on activities in our prospective Eagle Ford and/or Bakken plays.

2009 OUTLOOK

The Company continues to project its organic capital spending level at no more than its internally-generated cash flow. The majority of the current estimate for 2009 expenditures is earmarked for developmental drilling in the Lobo Trend of South Texas, recompletions in the Sacramento Basin, and exploratory tests in the Eagle Ford Shale and the Bakken Shale. Currently, the Company expects to spend $115 million of organic capital, which includes a significant Lobo drilling and seismic program ramp in late 2009, lease acquisition and drilling capital in the Eagle Ford, drilling capital in the Bakken, and a multi-well recompletion program in the Sacramento Basin. At this expected level of spending, the Company expects to achieve between 130-140 MMcfe/d of full year production, excluding acquisitions, divestitures, and possible contributions from the Eagle Ford and Bakken programs

"We continue to monitor the environment closely and adjust our activities and programs, as appropriate," noted Limbacher. "We are focused on protecting liquidity and optimizing capital to minimize volume impacts. We are spending on our impact exploratory programs to build value for the future. And we are staying diligent on the big and small controllable factors that will improve our relative position and allow us to emerge from this downturn as a stronger company."

 

[Bubba Oil]

El Paso has permitted an Eagle Ford test in southern LaSalle County just north of the Webb County line. The El Paso 1H Briscoe-Nunley (42-283-32211) is located significantly down dip from Hawkville Field. Has anyone heard anything new on the Hughes 1H Darlene or EOG 1 Milton wells in Karnes County?

 

[Agentm]

from saf, who researches this eagleford play like i do

http://www.stmaryland.com/Investors/August 2009 - print.pdf



This is Pioneer Drilling ( PDC ) transcript dated 6 Aug i.e. not to be confused with Pioneer Natural Resources (PXD ) who reported the day before. PDC is a land driller & rig fleet owner.

Pioneer Drilling Q2 2009 Earnings Transcript ( PDC ) Aug 6, 2009

Wm. Stacy Locke - President and Chief Executive Officer

"I think we're also seeding a modest pick up in our South Texas market. Some of that for Pioneer at least is turnkey work. We have increased our turnkey activity. But I also think it's impart due to the Eagle Ford shale play that continues to develop -- we just completed a well or we just completed a drill in a well therefore a customer and there has been a number of well drilled. And it looks like that activity will continue to increase even this year."

“Unidentified Analyst
Good morning. At this point Stacy in terms of Eagle Ford, given the current prices on oil and the higher liquid content. It's logical that with those economics down there, you might see that pickup first, are you seeing any to that or you're seeing import activity that kind of thing going a little bit faster than maybe the Marcellus or Haynesville at this point.

Wm. Stacy Locke
Well, it still in it's infancy but there is very active leasing activity. There have been a number of wells drilled there probably several rigs running today that are drilling in the -- as I mentioned earlier we just finished drilling one. And I would say that activity will probably continue if not picked up towards the end of the year. There are some operators talking about really starting to drill it that evaluated further and I think its' a very attractive play essentially for the point you mentioned that some area that oil and other areas that condensate rich gas. So, I think it could be a pretty significant place.”

http://seekingalpha.com/article/154...ings-transcript?page=-1&find=eagle+ford+shale

Murphy Oil drilling their first well this month in the Eagle Ford. Big hitter
( market cap $10.99B ) Possible candidate for the farm out?

also keep in mind murphy took over the meridian acreages and have taken over the permit drees 1H .. which will drill this month according to them.

Murphy Oil Corporation Q2 2009 Earnings Call Transcript Aug 6 , 2009

David M. Wood – President, Chief Executive Officer & Director

“While we have been quite active of late in exploration, things will naturally slow down in the second half of 2009. We plan to drill an Eastern Gulf of Mexico well later this year. We will also commence drilling this month on our Eagle Ford shale position located in south Texas where we are still actively leasing.”

“We are still seeing many more opportunities on the horizon, and I’m looking forward to our group of wells in our Eagle Ford share acreage.”

"Eagle Ford which will drill our first well here this month, I am hoping that will have some production tests from that well in November, and then if you get to put that online, and in the event that it does what we think it’s going to do, there will be something there as well. So, I like the momentum that we have here."


“Michael Jacobs - Tudor, Pickering, Holt & Co.

If I could squeeze in one more on the Eagle Ford, you mentioned actively ongoing lease efforts; from a high level given where you’re at, I believe you’re between the Edwards and the Sligo reef; are you thinking of adding additional acreage more to the east or more to the west?

David M. Wood

Yes, the play in concept I think stretches in a pretty good length as a rhythm between the two reef trends you mentioned and we’re looking at all of that area. We’re primarily focused on the gas part here, but don’t preclude an interest in the oil part, and beyond that I really don’t want to hamper our lease guys, otherwise they’ll say it’s my fault for lease costs going up in certain areas versus others. So, I’ll bow to the pressure from them and say we’re still very actively leasing, very interested in the play, and having said that all we’ve got to go off is other people’s results because we have not drilled a well, but we’re going to fix that this month. The wells that we’re going drill, we’re going to core in and ultimately drill them horizontal and crack them. So, we’re very much climbing a learning curve ourselves, but there are a lot of other people active. We’ve been getting good experience from our British Columbia effort, in the Montney effort, we have a good idea what we need to do, and so we’re going to apply that here. Overall, I like the plan.”

http://seekingalpha.com/article/154...call-transcript?page=-1&find=eagle+ford+shale



and lastly


Anadarko ( APC ) have six wells & still learning.

Important player because of the Peter Fluor link to Texas Crude Energy / COP & the APC / St Mary / TXCO & Encana JVs generating pooled knowledge to crack open the current Block B wells & optimum completions of the new wells at Reckling, Rudolph etc

Anadarko Petroleum Corp. Q2 2009 Earnings Call Transcript Aug 4, 2009

“Subash Chandra - Jefferies

Two quick ones here. On the Eagle Ford, any comment on I guess almost the half dozen wells that have been drilled, how many of them have been producing length of time? How the wells might have held up? Second, on the cash balances on hand, you know pretty enormous what plans are with what? If there are further things you might do to you know sell down interests and raise more cash by year-end?

Unidentified Company Representative

Yes. Subash, I shall go ahead and start with the Eagle Ford. I guess the way to put a frame around the Eagle Ford right now that we are very encouraged about it but its real early we have got the six wells that you have mentioned. We have seen rates as high as six million equivalent, out of some of those horizontals. From the Eagle Ford we also have Pearshall zones that we are testing out there, we have announced 10 million a day but what we are seeing is that some of the infrastructure is not adequate to really get good long-term data on these things like the Pearshall well is way choked back because of the gathering system out there. We’re having to build that out, so we can get the information we need. To-date, right, now it’s encouraging, but we've got a ways to go to really know exactly what we've got.”

"Doug Leggate - Howard Weil

Okay, great. Thanks for that. The only follow-up I have is just jumping back to the lower 48 and the Eagle Ford. It seems there has been some comments from one of your partners this morning about changes to operator ship. Can you just maybe bring us up to date as to what your plans are now that you guys are kind of running the show? And whether or not we'd expect you to accelerate activity down in that region?

Bob Daniels

I don't think there is going to be any change to our plan. We did pickup an operated rig here a few months ago, I guess. We didn't have to do that but we saw enough encouragement we wanted to start that process. And we'll probably have a couple of rigs running out there to continue to evaluate the Eagle Ford and also to test the pierce Saul as we go on. I don't think there is a change. What we wanted to do is have the partnership earn the acreage, spend their money to test it, and meanwhile we saw enough encouragement we wanted to start learning ourselves, so we put a rig out there a little early"



http://seekingalpha.com/article/153743-anadarko-petroleum-corp-q2-2009-earnings-call-transcript

 

[Agentm]

El Paso has permitted an Eagle Ford test in southern LaSalle County just north of the Webb County line. The El Paso 1H Briscoe-Nunley (42-283-32211) is located significantly down dip from Hawkville Field. Has anyone heard anything new on the Hughes 1H Darlene or EOG 1 Milton wells in Karnes County?

not heard anything bubba, i think dan hughes is still completing their well, and eog have put in second permit on those leases, so a vertical followed by a horizontal next to it. which indicates the vertical will possibly be involved in monitoring perhaps?

what are your thoughts?

bubba, do you hear anything on the farm out TCEI is doing yourself in houston (i assume your connected to the oil industry in some respect)??

 

[Bubba Oil]

not heard anything bubba, i think dan hughes is still completing their well, and eog have put in second permit on those leases, so a vertical followed by a horizontal next to it. which indicates the vertical will possibly be involved in monitoring perhaps?

what are your thoughts?

bubba, do you hear anything on the farm out TCEI is doing yourself in houston (i assume your connected to the oil industry in some respect)??

The EOG #2 Milton is currently drilling and it appears it could indeed be a vertical well originally. I think you may be right Agentm the #2 well would be used to monitor the frac in the #3H Milton Horizontal well. Also, EOG may be planning to take full diameter cores in the #2 well to get a better understanding of the rock properties.

I have not heard anything specific with regard to the TCEI farm out but I think there are many potential suitors. In addition to the usual suspects (companies already active in the Eagle Ford) I would not discount the possibility of a new player such as XTO, Devon or similar company farming in the acreage.

 

[Agentm]

The EOG #2 Milton is currently drilling and it appears it could indeed be a vertical well originally. I think you may be right Agentm the #2 well would be used to monitor the frac in the #3H Milton Horizontal well. Also, EOG may be planning to take full diameter cores in the #2 well to get a better understanding of the rock properties.

I have not heard anything specific with regard to the TCEI farm out but I think there are many potential suitors. In addition to the usual suspects (companies already active in the Eagle Ford) I would not discount the possibility of a new player such as XTO, Devon or similar company farming in the acreage.

hey bubba

i heard they are still working on bordovsky, some production liner is needed there, pretty quiet on the site.

the other eagledofrd wells in live oak are settling down and producing.

eskew west was drilled in record time, and i hear baker 3 smashed that drilling time. the rig is currently on the marlene olsen well



hey nioka now that eka and adi are basically trading on a parity, is this the time that you buy and sell between them?

 

[nioka]

hey nioka now that eka and adi are basically trading on a parity, is this the time that you buy and sell between them?

Maybe I am. Just not telling anyone about it. Oops..Until now. There is not a lot of opportunity most of the time.

 

[Agentm]

Maybe I am. Just not telling anyone about it. Oops..Until now. There is not a lot of opportunity most of the time.

lol..



eka is practically the same value as adi there would seem either to be value in one or complete miscalculation on another..

still accumulating currently, imho the fact adi has no value to it compared to a jvp member with half the share adi has in the sugarkane, and with adi holding further acreages in yemen and the cash from the sale of block 6 in yemen still to come, there must be some upside coming soon

EME in the uk turned over some 6% of its shares overnight, some 7 million shares traded, and i think they rose some 34% there

perhaps there is some interest in these eagleford explorers yet?