ADI - Adelphi Energy

the petrohawk presentation (thanks saf)

Petrohawk ( HK )
Barclays 2009 CEO Energy/Power Conference Sep 9 , 2009


“Eagle Ford Shale
~210,000 net acres
~1,500 net drilling locations
1 Bcfe Proved Reserves
7.0 Tcfe Resource Potential “

Forthcoming HK well locations are primarily northwards
towards the SK/SL AMI Blocks A & B acreage “ increasing
condensate yield “







from the adi summary in the 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.

It should be remembered that the farm out does not just concern the AMI but also the substantial acreage shared by AUT & TCEI - that's how it all started. The deal with the new partner (according to the public statements) will be a package including rights and obligations as regards the other acreage. So, it will be a complex balancing act to make it fair and equitable and the new partner will have early drilling obligations as regards that other acreage as well as early completion and drilling obligations as regards the AMI. With that, there will also be infrastructure considerations.

That is possibly why they allowed themselves 6 months to negotiate something in the first place. That is also possibly why they brought in Jeffries. There's a 3-way negotiation. ADI/EKA/EME will have to be satisfied that they are not subsidising TCEI/AUT in relation to the other acreage.

repost of info (again thanks saf for your great research)

Pioneer ( PXD ) :Barclays Capital CEO Energy/Power Conference

September 10, 2009

“Substantial Eagle Ford Shale resource potential”



http://phx.corporate-ir.net/Externa...9MzUwNTQ4fENoaWxkSUQ9MzQwMDM3fFR5cGU9MQ==&t=1

Murphy is also a candidate for the farm out.

Murphy Oil Corp

Barclays 2009 CEO Energy Power Conf Sept 10, 2009

http://www.murphyoilcorp.com/ir/pdf\Barclays_Sept_09_Murphy_Oil_DMW_website.pdf






saf also noted some conoco rrc submissions


The field designation to which Eskew & Lasca relate as per the earlier post from agentm is the Sugarkane (Cretaceous) Field which as per Burlington ´s submission is “a single field from 11,360 feet to 11,662 feet & which is bounded by the Pecan Gap Shale and below by the tight Buda Limestone, both of which provide reservoir pressure seals.” At the time of the RRC classification the field contained six wells ( Kunde #1, Baker #1, Kunde #3 , Kennedy ( TCEI ), Baker #2 & Marlene Olsen )

“OIL AND GAS DOCKET NO. 02-0261131
THE APPLICATION OF BURLINGTON RESOURCES O & G CO., LP TO ADOPT FIELD RULES AND CONSIDER PERMANENT GAS WELL CLASSIFICATION FOR ALL WELLS IN THE SUGARKANE (CRETACEOUS) FIELD, LIVE OAK AND KARNES COUNTIES, TEXAS”

The status of these wells as per the examiners report is as follows:-

The discovery well for the field was the Burlington - Kunde Lease, Well No. 1. The well was a vertical well and was completed from 11,440 feet to 11,520 feet. This well was permanently classified as a gas well based on PVT analysis performed on September 12, 2006 and submitted for the well during a hearing held on February 9, 2007 in Oil & Gas Docket No. 02-0250021. The recombined fluid was evaluated during a Constant Composition Expansion (“CCE”) at pressures ranging from 8,000 psia down to 500 psia.The original reservoir pressure was 8,653 psia and the results of the CCE indicates the reservoir fluid exists as a single phase gas until the reservoir pressure reaches 5,072 psia, the retrograde dew point pressure. Compositional analysis indicates the full wellstream to be 61.5 mol% methane and 10.4 mol% heptanes plus. The maximum retrograde liquid as a percent of hydrocarbon pore volume is 32.4% at 3,000 psia. The liquid sample had gravity of 57.5 degree API and a straw color.

The second well completed in the field was the Burlington - Baker Family Trust
Lease, Well No. 1. The well was a horizontal well and was completed from 12,071 feet to 12,248 feet TVD. The PVT analysis for the well was performed on a fluid sample taken from the well on April 14, 2008. The recombined fluid was evaluated during a CCE at pressures ranging from 12,022 psia down to 1,616 psia. The original reservoir pressure was 9,678 psia and the results of the CCE indicates the reservoir fluid exists as a single phase gas until the reservoir pressure reaches 4,216 psia, the retrograde dew point pressure. Compositional analysis indicates the full wellstream to be 67.1 mol% methane and 7.2 mol% heptanes plus. The maximum retrograde liquid as a percent of hydrocarbon pore volume is 13.3% at 2,014 psia. The liquid sample had a gravity of 57.0 degree APIand a straw color.

The third well completed in the field was the Burlington - Kunde Lease, Well No. 3.The well was a horizontal well and was completed from 11,805 feet to 14,405 feet MD. The PVT analysis for the well was performed on a fluid sample taken from the well on June 27, 2008. The recombined fluid was evaluated during a CCE at pressures ranging from 10,000 psia down to 500 psia. The original reservoir pressure was 9,029 psia and the results of the CCE indicates the reservoir fluid exists as a single phase gas until the reservoir pressure reaches 4,669 psia, the retrograde dew point pressure. Compositional analysisindicates the full wellstream to be 61.7 mol% methane and 10.1 mol% heptanes plus. The maximum retrograde liquid as a percent of hydrocarbon pore volume is 27.5% at 3,000 psia. The liquid sample had a gravity of 52.9 degree API and a straw color.

The fourth well completed in the field was the Texas Crude - Kennedy Lease, Well
No. 1H. The well was a horizontal well and was completed from 12,232 feet to 12,253 feet TVD. The PVT analysis for the well was performed on a fluid sample taken from the well on November 20, 2008. The recombined fluid was evaluated during a CCE at pressures ranging from 9,000 psia down to 500 psia. The original reservoir pressure was 7,975 psia and the results of the CCE indicates the reservoir fluid exists as a single phase gas until the reservoir pressure reaches 4,435 psia, the retrograde dew point pressure.Compositional analysis indicates the full wellstream to be 61.5 mol% methane and 10.2 mol% heptanes plus. The maximum retrograde liquid as a percent of hydrocarbon pore volume is 29.5% at 3,500 psia. The liquid sample had a gravity of 57.8 degree API and a straw color.

The fifth well completed in the field was the Burlington - Baker Family Trust Lease,Well No. 2. The well was a horizontal well and was completed from 12,165 feet to 12,316 feet TVD. No PVT analysis was performed on this well.

The sixth well completed in the field was the Burlington - Marlene Olson Lease, Well No. 1. The well was a vertical well and was completed from 12,026 feet to 12,213 feet. The PVT analysis for the well was performed on a fluid sample taken from the well on December 18, 2008. The recombined fluid was evaluated during a CCE at pressures ranging from 12,015 psia down to 2,430 psia. The original reservoir pressure was 9,439 psia and the results of the CCE indicates the reservoir fluid exists as a single phase gas until the reservoir pressure reaches 4,422 psia, the retrograde dew point pressure. Compositional analysis indicates the full wellstream to be 67.7 mol% methane and 7.0 mol% heptanes plus. The maximum retrograde liquid as a percent of hydrocarbon pore volume is 16.5% at 2,430 psia. The liquid sample had a gravity of 54.0 degree API and a straw color.

“Liquid hydrocarbons produced at the surface from the subject wells are the
product of condensation and should not be classified as crude petroleum oil. Because the liquids produced from the wells are not crude petroleum oil, the subject wells should be classified as a gas wells.”

www.rrc.state.tx.us/meetings/ogpfd/ogpofldrules/02-61131-frl.pdf

some ip's for rosetta on the eagleford.. which continue to have a 100% strike rate across all operators it seems


Rosetta Resources Inc. Provides Operational and Financial Update
Thu Sep 10, 2009 5:30pm EDT

HOUSTON, Sept. 10, 2009 (GLOBE NEWSWIRE) --
Rosetta Resources Inc. ("Rosetta") (Nasdaq:ROSE) today provided an update on several operational and financial matters, including updates on key drilling programs in the Eagle Ford Shale, the Alberta Basin Bakken Shale and the Sacramento Basin, as well as updates on its hedging program and liquidity. In announcing these items, Randy Limbacher, Rosetta's President and CEO commented, "We have been on a path to differentiate our company and strengthen our competitive position as a resource company. Our practice is generally to provide comprehensive program specifics as part of our routine quarterly disclosure; however, given the interest in our emerging programs, we believe it is timely to provide this interim update. While it is still early in these plays, we believe today's announcement offers some evidence that we are creating significant value for our shareholders through a combination of operational success and financial discipline." Among its recent achievements, Rosetta announced the following:

Horizontal Eagle Ford Shale Program

Springer Ranch #1H Well Results

Rosetta Resources has successfully completed its first horizontal Eagle Ford
well, the Springer Ranch #1H. This well is located in southwest LaSalle County, Texas. Rosetta has a 100% working interest in the well and roughly 13,000 net acres under lease in the Springer Ranch Area.

The Springer Ranch #1H well was re-entered and drilled to a total measured depth of 15,240', which includes a 4,000' horizontal wellbore drilled through the Eagle Ford Shale at a true vertical depth of roughly 10,900'. The wellbore was cased with 4-1/2 inch production casing and cemented in place. A 2.5 million pound, 116,000 bbl fracture stimulation treatment was performed in the
horizontal portion of the wellbore over 10 stages. The well was first delivered to sales on September 3, 2009. After seven days, the well was producing on a 26/64 inch choke at a rate of 5.2 MMcf/d and 10 bbls per hour of frac fluid recovery. Cumulatively, the well has produced and sold 39 MMcf of gas and recovered roughly 20,000 bbls (~17%) of the frac fluid.

Regarding the Springer Ranch well, Limbacher commented, "We are in the early stages of assessing the results in our first Eagle Ford well, but performance has met or exceeded our expectations for this test well. As the well continues to clean up, we will monitor production rates and pressures to estimate the ultimate recovery of the well. We are encouraged that our 13,000 net acre leasehold position in the Springer Ranch Area has the potential to add significant value to our company."

Gates 05D #9H Well Drilling Update

Rosetta Resources has reached total depth on its second horizontal Eagle Ford well, the Gates 05D #9H. This well is located in northwest Webb County, Texas. Rosetta has a 100% working interest in the well and roughly 10,000 net acres under lease in the Gates Area.

The well was drilled to a total measured depth of 12,400' which includes a
3,700' horizontal wellbore drilled through the Eagle Ford Shale at a true
vertical depth of roughly 8,300'. The wellbore was cased with 5-1/2 inch
production casing and cemented in place. A multi-stage fracture stimulation
treatment is planned to commence in early October, 2009.



magnum takes out sharon talks up the eagleford

Magnum Hunter Resources Corporation Announces Acquisition of Sharon Resources, Inc.


HOUSTON, TX -- (Marketwire) -- 09/10/09 -- Magnum Hunter Resources Corporation (NYSE Amex: MHR) (the "Company") announced today the execution of a definitive agreement to acquire 100% of the capital stock of Sharon Resources, Inc., a wholly owned subsidiary of Calgary based Sharon Energy Ltd. (TSX-V: SHY).

The total consideration of $2.35 Million (USD) under the agreement will be paid in 2,294,474 shares of restricted common stock of Magnum Hunter Resources Corporation. This represents approximately 5.6% of the Company's 40.8 Million fully-diluted common shares outstanding as of August 1, 2009. No debt or any other liabilities will be assumed by Magnum Hunter and no other consideration beyond issuance of the new Magnum Hunter restricted common shares was paid for the acquisition.

Closing is anticipated to occur on or about September 30, 2009 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory approvals.

About Sharon Resources, Inc.

Houston based Sharon Resources, Inc. ("Sharon Resources") is an independent oil and gas exploration company engaged in the exploitation of emerging trends and the development of proven reserves. Sharon Resources has an established track record for identifying, acquiring, drilling and developing oil and gas reserves, particularly in areas which utilize advanced drilling and completion techniques. Sharon Resources' primary focus has been on exploration and development projects along the Texas Gulf Coast (onshore) offering repeatable, lower risk development opportunities. Specific project areas include mineral acreage positions in the Eagle Ford Shale, Austin Chalk, and Northwest Speaks areas where a substantial inventory of lower risk projects with repeatable success profiles have been assembled.

Notably, Sharon Resources has acquired approximately 6,400 acres in the Eagle Ford fractured shale resource play. This acreage position is directly on trend with recent developmental success by other operators in the area. Under the direction of Magnum Hunter's senior management, Sharon Resources will continue to pursue the acquisition of additional acreage in this new resource play.

Based on the analysis completed by Magnum Hunter as of June 30, 2009, Sharon Resources had estimated total proved reserves of approximately 2.9 Bcfe's (30% proved developed producing and 85% natural gas) with daily net production of approximately 288 Mcfe's per day (95% natural gas). The PV-10% value as of June 30, 2009 was $4.2 Million at the SEC pricing ($69.89 per Bbl pricing for crude oil and $3.835 per MMBtu pricing for natural gas). Sharon Resources operates over 65% of its proved reserve base.

H.C. "Kip" Ferguson III, President of Sharon Resources, Inc., stated, "Our team of three highly seasoned exploration and evaluation oriented professionals are very excited to be joining forces with the new management team at Magnum Hunter Resources. With the contribution of our existing inventory and ready to drill portfolio of lower risk and repeatable projects, we believe our Company is positioned with one of the better situated acreage holdings in the emerging Eagle Ford Shale resource play. We are truly excited about the business combination of our two organizations whereby we can contribute an immediate impact to Magnum Hunter's business model."

Management Comments

Mr. Gary C. Evans, Chairman of Magnum Hunter Resources, commented, "The announcement today of our acquisition of 100% of Sharon Resources from its Canadian parent in an all stock transaction follows in line with the strategy we previously laid out in late May when I joined the Company as its new Chairman of the Board. Kip Ferguson and his team of successful exploration and evaluation professionals brings to Magnum Hunter three seasoned industry professionals with specific expertise that previously did not exist in our organization. Sharon's existing inventory of attractive drilling opportunities, expertise in advanced drilling and completion technologies (particularly in resource plays), and expansion of our operational and technical staff will be immediately accretive to our existing organization. We have been most impressed by the high quality of Sharon's existing projects even in this low commodity price environment. In particular, their 6,400 acre position in the Eagle Ford Shale resource play is something we are very excited about and intend to pursue immediately."

About Magnum Hunter Resources

bubba

copy of the eskew west completion.. about 5 miles west of our adi well in live oak county, this report is for production after a 60/40 hydroprop frac on 3524 feet of the lateral

the eskew west well is listed as an eagleford well but i am given the impression by the total vertical depth of 12072 and the sugarkane at 12205 that the figures in the report are interesting in that regard

i assume its a ceramic proppant.. so conocophillips are experimenting with different types of fracs in their wells on an ongoing basis..

the lateral had 2 sidetracks i see in the revised permit from a few days ago

ip flow rates were about 3.5 mmcfpd off 24/64 choke.. so the bopd would have been anywhere from 875 to 1000 bopd

i hear it settled back to 500 bopd from "local talk"


this from petrohawk on 4th aug

http://www.istockanalyst.com/article/viewiStockNews/articleid/3395041


some info on hydroprop from petrohawk



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.




also the manufacturer discussing this new proppant last year

CARBO Ceramics Q4 2008 Earnings Call Transcript
February 05, 2009

http://seekingalpha.com/article/118889-carbo-ceramics-q4-2008-earnings-call-transcript


Jeff Tillery - Tudor, Pickering Energy & Co.

Okay. And in the release, you mentioned HYDROPROP being sold into the Haynesville. I think thinking back to November, I think you guys talked about CARBOPROP and EconoProp as being the primary products used in that play. Is HYDROPROP utilization new in that play and what's driving that?

Gary Kolstad

Well, so first of all, think about the Haynesville. You are drilling horizontal wells, your fracs are transverse. So three critical items there. One is that your wellbore contact with your frac is very limited, which is one reason you need a heck of a lot of conductivity, okay? Two, the pressure is... it needs to be ceramics, right, the stress on the proppant. Three, the temperature. Sand-based products degrade like crazy, if you would have listened to my... the webinar presentation I did on the Haynesville recently, we have all the graphs and stuff on that.

Jeff Tillery - Tudor, Pickering Energy & Co.

Sure.

Gary Kolstad

Finally, a lot of people are using slick water in the Haynesville. So why did we create HYDROPROP? One, they have the strength of ceramic, but two, the transportability of it. So you are going to get that proppant transported out to the long link. So HYDROPROP has really come out strong in the Haynesville.

Agentm,
There is an interesting article that i found that may be worth posting.

Energy and capital.

Natural gas price rebound-the bullish case for natural gas.
By Keith Kohl,tuesday 18th August 2009.

Thanks.

"Natural Gas Price Forecast
Investors are Betting Millions on $10 Gas

By Ian Cooper
Tuesday, August 25th, 2009

Natural gas may be plunging to seven-year lows, but one fund is betting heavy that the commodity will rebound by more than 200% over the next six months. And we’re looking to profit right along with them.....P.S. When natural gas begins to rebound, Keith Kohl’s unearthed natural gas trades stand to skyrocket even more. Already, the four companies he’s initiated coverage on have spiked 51%, 80%, 41%, and 66% in mere months. But this is just the beginning ”” there’s plenty more money to be made. Read more in our free report, here..."


Nice to believe and may be true but be aware that he is talking his own book.

Watch the weather forecast - if the US turns cold this winter, prices will respond...

Natural gas prices jump 12 percent
Natural gas prices spike 12 percent even with storage facilities bulging
On Monday September 14, 2009, 11:21 am EDT
Buzz up! 6 Print
NEW YORK (AP) -- Oil prices dipped below $69 a barrel Monday though a strong rally for natural gas extended into its third straight day.

Prices jumped more than 12 percent in value for each per 1,000 cubic feet of natural gas on the New York Mercantile Exchange to start the week.

Rapidly spiking prices led to some talk on Nymex that a very large player in the market believes that, at least in the short term, prices have fallen too far.

Analysts at Goldman Sachs said prices for natural gas may even triple over the winter, though most energy experts believe there is a far greater chance that prices will plunge again.

There are two big factors that support the latter view, which would mean extremely cheap heating bills for a lot of people over the next few months.

The first is that natural gas in storage is 17 percent greater than it was last year and it is even nearing the maximum storage capacity in some places. And the U.S Energy Information Administration said in its short-term energy outlook that it expects another 12 percent buildup through October.

At the same time most meteorologists predict a very mild winter for large parts of the country. With demand already way down from industrial utility customers, the U.S. has an enormous amount of unused natural gas.

Oil and natural gas have historically tracked one another as far as prices go, but this year has been a different story. On Monday crude prices fell again as natural gas rose.

Benchmark crude for October delivery fell 84 cents to $68.45 a barrel. On Friday, the contract tumbled $2.65 to settle at $69.29.

A lot of pressure has been placed on the dollar-based crude because the dollar has rebounded in recent days. Oil prices have fallen about $4 during the last two trading days. Still, prices have doubled from earlier this year during what may have been the depth of the recession.

A lot of experts believe that optimism is premature because crude in storage, like natural gas, remains at very high levels.

Signs of an improved economic outlook have fueled optimism for growing demand for crude around the world, but supplies remain at high levels.

"At some point hope has to become a reality or prices will have to adjust accordingly," said PFGBest analyst Phil Flynn.

At the pump, the average price for a gallon of regular gasoline fell a tenth of a cent to $2.572, according to auto club AAA, Wright Express and Oil Price Information Service. That's 7.3 cents more than a month ago, but $1.22 less than at this time last year.

Gasoline for October delivery on the Nymex fell 1.41 cents to $1.7457 a gallon.

Prices have most certainly peaked for most motorists this year, barring some disruption in the Gulf of Mexico.

"The 'driving season' is over ... and supplies are greater today than in May," analyst and trader Stephen Schork wrote in his morning report.

In other Nymex trading, heating oil for October delivery rose less than a penny to $1.7329 a gallon. Natural gas jumped 38 cents to $3.342 per 1,000 cubic feet.

In London, Brent crude fell 13 cents to $67.56 on the ICE Futures exchange.

Associated Press Writers Pablo Gorondi in Budapest, Hungary, Alex Kennedy in Singapore and Stephen Bernard in New York contributed to this report.

gerkin estseon jesstex

i have watched the gas prices like all have,and fortunately they are not a major factor in the adi acreages, the primary reason the eagleford and chalks are a being developed is for the condensate, and at current prices and with the aussie dollar getting into good territory, the oil that sits under the acreages adi have an interest in, is in my view the primary drive for the moment.

this from lucas and their mysterious partner

September 14, 2009 (FinancialWire) -- Lucas Energy, Inc. (NYSE AMEX: LEI ) an independent oil and gas company based in Houston
, Texas, announced the commencement of drilling the Ervin et al No.1 well, Gonzales County, Texas, a deepening of a horizontal Austin Chalk well plugged back last year.

The well was spudded on August 24, 2009 and is expected to be drilled down to total depth within two weeks. The lateral in the Austin Chalk was plugged back last year in anticipation of this deepening. The well will be cleaned out to the top of the plug back cement plug and drilled straight down to the lower intervals (Austin Chalk, Eagleford Shale, and Buda). This well is a part of a joint venture program involving Lucas Energy, Inc., as operator, and two other non-operator working interest owners, one of which purchased an eighty percent BPO (before payout) working interest in the subject well.

Lucas operates twenty-two wells in Gonzales County, Texas. Lucas, recently, re-entered two other wells in this area, the Norris No.1 well and the Mills Oil Unit No.1 well. The Norris No.1 well has been completed and tested 99 BOPD flowing. The Mills Oil Unit No.1 well is awaiting installation of a pumping unit to test the well.

William A. Sawyer, president and CEO of Lucas Energy, said "Lucas Energy, Inc. has moved ahead in this quarter toward the completion of Phase I of our operational business plan. With oil prices at $67 per bbl now and headed into the $70 per bbls range for the next quarter, we are looking forward to a good fiscal 2nd quarter financially."

EOG has permitted several interesting Eagle Ford locations. The EOG 1 Marshall Unit (42-177-32077) is located approximately 32 miles northeast of the EOG Milton wells in Karnes County. The EOG 1 Peeler (42-013-34272) and EOG 2H Peeler (42-013-34273) wells are located approximately 44 miles southwest of the Milton wells. These are big time step out wells and could really stretch the play. If the Atascosa County wells are successful that would be good news for ADI.

I am been watching ADI and this thread for some time now.. There seems to be some avid believers / interest in the stock which is great.. However there also seems to be some substanial difference in the amount if information put into the thread and the amount of information released by this company..

For the holders are you expecting some market sensitive news out in the near future.. Is this company going to do anything in the near future that will actually affect the share price .. ? If not why are you holding on and giving more information than the company cares too..

adobee said:

I am been watching ADI and this thread for some time now.. There seems to be some avid believers / interest in the stock which is great.. However there also seems to be some substanial difference in the amount if information put into the thread and the amount of information released by this company..

For the holders are you expecting some market sensitive news out in the near future.. Is this company going to do anything in the near future that will actually affect the share price .. ? If not why are you holding on and giving more information than the company cares too..

Click to expand...

Have to agree with this.

It seems that a lot of the info in this thread is not actually directly related to ADI (ie what they are doing), rather what other companies in the area are doing.

Huge opportunity cost holding this one, especially over the last 6 months.

prawn_86 said:

Have to agree with this.

It seems that a lot of the info in this thread is not actually directly related to ADI (ie what they are doing), rather what other companies in the area are doing.

Huge opportunity cost holding this one, especially over the last 6 months.

Click to expand...

This is how I feel.. I have been holding for about 8 months.. and see the opportunity that if there was some market sensitive news this could easily break out which a huge return.. but the market news has been poor and I have spent about 25 hours reading this thread which hasnt really made me any more confident that I should just dump it and jump back in 18 months time..

I am not putting the stock or company down but from the perception of making money on shares am not sure about holding this unless it is really long term and if it is then why hold now and not come back to it .. ?

adobee said:

I am been watching ADI and this thread for some time now.. There seems to be some avid believers / interest in the stock which is great.. However there also seems to be some substanial difference in the amount if information put into the thread and the amount of information released by this company..

For the holders are you expecting some market sensitive news out in the near future.. Is this company going to do anything in the near future that will actually affect the share price .. ? If not why are you holding on and giving more information than the company cares too..

Click to expand...

the eagleford play was discovered by TCEi and conocophillips in the kunde 1 well. our well which was the second well to test the eagleford was sugarloaf 1.. since that time the play has gone from a very secret discovery to a long drawn out development program.. and a substantial amount of research and capital has been invested by all operators including adi, adi has been restricted by TCEI and conocophillips (the partner with tcei) on what little regional information was allowed to be published, the majority of info on the eagleford has really only been released in the previous 12 months, prior to that all operators were the same, buying leases and testing under heavy silence.. any data i released on the play was laughed at and mocked and disbelieved. until regional operators finally started talking it up, and more recently the dicussions on the play has been more appreciative..

adi can only release regional info on the likes of petrohawk but is still severly restricted on anything close by that either adi or conocophillips do, a few of us talk to locals and get good data, which upsets the operator big time every time its put on the web. an exapmle of how paranoid they are, we know what i have posted post here and on hc is seen at ground zero, printed and published on the COP drill sites to determine if any contractors are talking.

the next news to come will be whether the farmout deal has been successful, they wont be negotiating much more than a few more weeks. so that is when news on the future of the current untested laterals will be revealed and the forward plan to develop the entire field

it will be a substantial deal, so i imagine the ole adi will wake up from hibernation then.

as for the sp? i gather some are holding and anticipating some better days ahead my view is that adi would be making sure the yemen cash is secured, perhaps selling the other yemen asset and waiting on whether the farmout deal is a success or that capital will be spent on the sugarkane or on the positive outcome, it will be free carried on 6 or 8 wells and have plenty to spend on new ventures immediately..

once adi comes out of hibernation there may be some better days for holders and exciting projects in the making.. who knows?? after years of waiting a few weeks more is no big deal..

you can speculate on whether to hold or sell any share really, its always entirely up to the invetsor on the timings..

Agentm said:

once adi comes out of hibernation there may be some better days for holders and exciting projects in the making.. who knows?? after years of waiting a few weeks more is no big deal..

Click to expand...

What if it never eventuates? Or takes years more? And you cant say that wont happen, because things have been 'just around the corner' for years now already...

Do current holders have an exit plan? Or is it just a buy with the possible rewards outweighing the possible entire loss?

prawn

adi is at cash value as it stands right now.

adi and indeed the entire jvp went into hibernation.

adi plan was to survive, the announced their intentions as such..

1. sell assets and get capital to stop the company from risking liquidation.

2. join in with the previously announced AUT/TCEI plan to farmout some of the sugarkane (eagleford/chalks) play.

3. no activity for any operations in the sugarkane at all. then if a deal is struck - continue on the sugarkane.. and if no deal is struck be financial to continue on the sugarkane...

jefferies has a few weeks left to do a deal on the farmout. so until they complete their work there is nothing planned for the jvp..

if the deal is struck adi are free carried there for a good period to come, and have plenty of capital to invest in other new ventures.

if no deal is struck, then adi have the capital to develop the wells thus far completed. and go ahead with more and develop further and put in more development wells..

its up to the individual to assess whether the other jvp members keep their acreages, or will be liquid enough to continue, should the deal not be completed i guess.

at near cash value the risk reward is far less than before..

gatta love rumours

Emerging Eagle Ford Shale In South Texas

This play is heating up more and more. It is larger than the active operators that are drilling the Eagle Ford are saying. It is not isolated only beneath the Edwards Reef trend in the downdip section. EOG and others are leasing in the middip and the updip section of the play. LaSalle, Mcmullen, and Atascosa are the three most active counties. There have been rumors that 2 wells have tested in the middip section of the play in excess of 1,600 BOPD with associated gas. This is the oil play for Texas.

http://www.oilvoice.com/post/Main_D...gle_Ford_Shale_In_South_Texas/b1ad44b230.aspx

well theres no denying that some interest is showing today.. small volumes still but sellers really drying up... If something crazy comes out soon we could see this run off the hook...

Please oh please announce something... anything ...