ADI - Adelphi Energy

[rock86]

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 ...

Yeh i know, but there has been small volumes for the past few days. Sp has moved up over the past week, I know only a little, but maybe some speculation of an announcement AgentM ??

 

[Lucky_Country]

I think if you havent got your fair share of ADI now then you are going to have to pay up.

Its been along time coming but news maybe about to break.

Yemen and Farmin could really calm investors nerves and see a substantial rise.

LNG / GAS are currently the market darling so ADI will want to capitalise on the momentum.

 

[blues]

I have talked to all the Aussie JVP's in the last few weeks and the impression I got was that the potential farmin wasnt going to happen in the next few weeks. I would love to be wrong on that as we are all over the waiting.

Although I was told the Yemen deal would settle in the next few weeks and that was a couple of weeks ago.

Cheers

 

[Agentm]

I have talked to all the Aussie JVP's in the last few weeks and the impression I got was that the potential farmin wasnt going to happen in the next few weeks. I would love to be wrong on that as we are all over the waiting.

Although I was told the Yemen deal would settle in the next few weeks and that was a couple of weeks ago.

Cheers

blues there would be only 2 ways to take that

1. the negative view that there is absolutely no farm in partner talking to jefferies and no farm in would happen in the next few weeks and the jefferies contract would be closed..

2. or a very much promising view that there is a potential farm in partner negotiting with jefferies and the deal would not likely be made in the coming few weeks. then you need to speculate as to whether the jvp will allow any further negotiations past the end date, or forget the deal and go ahead in their own right..

blues your doing a damn sight better than i am in talking to the jvp partners, because i get told the jvp know zip.. that tcei have said very little about the deal, and that they cant even speculate on whether a deal is going to be secured or not. other than the land and region has attracted a lot of attention and a deal should be secured on the type of acreages adi have.. the best i get on the current status is they would likely have perhaps 1 perhaps more suitors in at various stages with jefferies and TCEI has not elaborated anything..

well done for getting a better picture than i ever could.. imho if you have been told no deal can be done in the coming weeks (and god knows how that is known) then it may be a fair bet there is one still out there, i would be very surprised if there was no interest past looking at the data room level..

 

[adobee]

there is only one way i can take it at the moment ... no one is selling people are buying... its been dead for the past 9 months.. something is on the cards...

 

[blues]

Hi Agentm,

All this is my impression from talking to the JVP's and perhaps I might be reading to much into it but I thought I would share my observations. It is my understanding that there are interested parties (as you would expect) but the the feeling I got from the jvp's that a deal wasnt immminent although I believe there have been detailed discussions on a deal. I also got the impression that they wont wait forever and that they want action quickly or other options would be considered.

Also was told that a couple of different options were being considered such as someone financially backing a development/exploration program or someone becoming the Operator of our leases.

These are my impressions and I havent been told a deal isnt imminent but I just didnt get the feel it was weeks away. I would love to be wrong and wake up to an announcement tomorrow morning.

Cheers

 

[estseon]

Because of the other TCEI/AUT acreages, it's bound to be a complex balancing act to secure fairness for all the partners. That is possibly one of the reasons why Jeffries has been employed. That is possibly why the starting point from our side was to cede up to 50% WI across the board on all the acreages. But there is some development of the SL acreage in contrast to the other TCEI/AUT acreages and the initial focus for the new partner will be completion of the 3 wells drilled on SL + free carry for [3] new wells [?]. The existing wells are linked up to the gas line. AUT/TCEI have a lease commitment to drill [2] wells in their acreage. Timing might be of the essence to comply with those lease requirements.

It is a complex deal. Protracted negotiations will not necessarily mean that the SL is difficult to sell. It could simply be the allocation of the new partner's commitment between the different JVP's interests.

I'm just guessing (like everyone else) but I see potential problems that have little to do with the attraction of SL. Also, they are problems that can be solved by compromise.

 

[Agentm]

nice to see the farmout successful

yemen cash needs to be confirmed, and as adi have yet to report the farmout success perhaps they have some good news to add

we shall see

 

[OK2]

nice to see the farmout successful

yemen cash needs to be confirmed, and as adi have yet to report the farmout success perhaps they have some good news to add

we shall see

Well done on the call, where to from hear in your opinion or based on all of your research? Perhaps a speeding ticket is coming up for ADI at open!

 

[Miner]

Well done on the call, where to from hear in your opinion or based on all of your research? Perhaps a speeding ticket is coming up for ADI at open!

Interesting to see today's market for ADI - gone to 8.1 cents - no report yet. Hope something is hatching as you suspected or speculated. But ADI yet to earn the status of a speeding ticket

Disclaimer - I hold

 

[Agentm]

Australian Stock Exchange Limited

ADELPHI FARMS OUT INTEREST IN SUGARLOAF AMI

Adelphi Energy Limited is pleased to advise that it has farmed out half of its 20% interest in the Sugarloaf AMI to Hilcorp Energy Company (Hilcorp) via Texas Crude Energy Inc. (TCEI) in return for a significant farmin work program.

Hilcorp is a major privately owned Houston based oil exploration and production company with considerable operating experience onshore USA.
The farmin work program is expected to commence promptly, and will involve initially the completion or recompletion of up to 3 existing Sugarloaf AMI wells; Kennedy – 1H, Kowalik – 1H and the Weston -1H. Thereafter up to 3 new horizontal exploration wells will be drilled.

Interest may be earned progressively across parts the Sugarloaf AMI only as each element of the farmin work program is undertaken and completed. This work program has a series of deadlines over the next 20 months, and no interest will be earned unless the agreed work programs are completed.
This farmout is an excellent outcome for Adelphi because it will continue development of the Sugarkane Austin Chalk and Eagle Ford shale field within the Sugarloaf AMI and will allow the leasehold acreage position to be managed proactively.

From a corporate perspective, this farmout will result in Adelphi retaining meaningful equity in a multi TCFe resource project and be free carried through a significant work program.

Preservation of capital for Adelphi remains an appropriate strategy at this early stage in the development of the resource in the Sugarloaf area.
This farmout of Sugarloaf in conjunction with the sale of Adelphi's Block 7 interest in Yemen will place Adelphi in a much stronger financial position without the need to obtain further equity funding for its current projects.
Adelphi currently (pre-farmout) has a 20% working interest in the Sugarloaf AMI.

 

[Miner]

Well Done AGENTM : the hawk eye for ADI
While I was trying to down load the ASX report you have done it.
Any way here goes the ASX report from ADI.
The volume was very high - expected
But the price went up much higher before the report was published than the price level now after the report got published.
General market is down since it went up at the start .

 

[Agentm]

the asx report was out pre open.

i saw the eka and aut reports were nearly 45 minutes earlier

the deal is very heartening, the free carry on the completion of kennedy and weston and the remedial frac needed on kowalik will mean very quick returns to adi, ontop on the yemen cash

the drilling of 3 further wells completely free carried is also brilliant news

my view is that the jvp may target both zones, imho the eskew west well of conocophillips was designed to flow off both chalks and eagleford, and imho the future wells will follow that strategy. the eagleford is 7 tcf on it own and 25% recoverable has been projected by other operators

add to that the chalks as well, and i think adi may look very undervalued atm..

 

[gerkin02]

There appears to be some significant repositioning occuring today.

Once this has run its course we can move forward with greater certainty now.

All the best.

 

[Miner]

Reading the report, it appears ADI almost said no equity will be raised as an effect of the Farm In.

So it should be good news for current holders to increase value of their shareholding.

The heavy volume also indicates there are far more interest on ADI with some expectation

I am sitting tight hopefully to be rewarded for my patience

 

[adobee]

EKA & AUT have alot better run from this news than ADI.. EKA up something like 114% now... AUT 50% ...

 

[rock86]

EKA & AUT have alot better run from this news than ADI.. EKA up something like 114% now... AUT 50% ...

I'm a little dissapointed atm, I thought with this good news we might see a little bit more of a rise, I'll still hold tight. More good movement to come

 

[Hatchy]

I'm not that surprised that there isn't a great deal of interest in ADI today even with the news.

The news tells us two things:

• ADI have sold off 50% of their stake in Texas for a deal that will eventually see great returns if the flows are similar to the neighbours.
• ADI are still trying to finalise the sale of the yemen asset. This might be worry enough to keep the punters away / showing caution. (which is counter intuitive considering there isn't a need for cash with this new farm in)

My Opinion:
Don't be disheartened by the lack of movement today - when reports start coming through about the refinishing of the wells currently flowing and the drilling of the three prospectives there will be movement in the price.

As far as to why EKA and AUT are moving faster - there's no logic there.

Patience is what's needed - and those ADI faithfull that are still left know what that stuff is.

DYOR

 

[Agentm]

I'm a little dissapointed atm, I thought with this good news we might see a little bit more of a rise, I'll still hold tight. More good movement to come

to equate .007 cents of a rise into 3 laterals being fracced and 3 new wells being drilled is a big disappointment, but thats all the sellers think its worth so thats how the markets are played

imho the volume is more related to a move out by a group of investors.. waiting for the news and knowing the outcome would stimulate buying interest.

so its being sold into bigtime right now, so there is no shortage at all

is 7tcf or 200 bcf ($2 in ground) worth investing in?

i keep accumulating

 

[Bubba Oil]

to equate .007 cents of a rise into 3 laterals being fracced and 3 new wells being drilled is a big disappointment, but thats all the sellers think its worth so thats how the markets are played

imho the volume is more related to a move out by a group of investors.. waiting for the news and knowing the outcome would stimulate buying interest.

so its being sold into bigtime right now, so there is no shortage at all

is 7tcf or 200 bcf ($2 in ground) worth investing in?

i keep accumulating

I am a little surprised there was not more of a bump. Once the existing wells are fraced and new wells are drilled and fraced I think the stock will soar. At that time a good portion of the acreage can be considered Proved Undeveloped (PUD). The future looks bright in my opinion.