ADI - Adelphi Energy

[rock86]

So, now that the farm out and (when the Yemen cash is tied up), where to now for ADI? Will they just be focusing on Eagleford?

 

[Agentm]

These 3 new lyssy eog permits a few miles north west of kennedy are pretty interesting!!

http://webapps.rrc.state.tx.us/DP/d...icQuery=Y&name=LYSSY+UNIT&univDocNo=485779127

http://webapps.rrc.state.tx.us/DP/d...icQuery=Y&name=LYSSY+UNIT&univDocNo=485779128

http://webapps.rrc.state.tx.us/DP/d...icQuery=Y&name=LYSSY+UNIT&univDocNo=485779130


eog will drill them pretty quick


it points to the fact that these eagleford wells that eog are drilling must be impressing them as they continue to drill at a very high rate, i think they have possibly 2 rigs on the go atm

they are very close to the adi/tcei acreages


the dan hughes well a few miles due north of kennedy, i hear from a few sources that the well is very impressive also. very high rates of oil are been rumored from them.. similar to the rumor article i posted a few days back..

 

[Agentm]

http://www.adelphienergy.com.au/Hartleys Broker Report-21.09.09.pdf

the latest hartleys report on adi

they factor in only .60 cents on the austin chalks, the eagleford (7 tcf in ground) is not put into the equation atm

interesting

 

[rock86]

does anyone want to elaborate why after the good announcement yesterday that there has been no favourable movement for ADI.

Still holding

 

[Agentm]

rock86

just an observation here

adi's turnover has been amazing, and the sp remains flat, indicating an exit from the share.

various people have suggested the .06 cap raising crowd is moving on out. if you recall adi did a cap raising then the jvp suddenly went into hibernation instead of progressing on the wells and went into farmout mode.

my view is that its an opportunity for them to exit so they are, the announcement has generated some 10% of the yearly turnover in the stock occurring in the past week..

its being touted as a good buy by hartleys and i think there is good healthy turnover atm indicating the interest in this small cap is there.

i agree that adi flatlined whilst the other jvps went up 19% (eme) 97% (eka) 70% (aut)

pretty much nil anyone can do atm other than accumulate or wait.

all imho and dyor

 

[gdaf]

a 20%+ profit from a few weeks ago most likely.

a couple of thousand bopd should sort things out

zzzzzzzzzzzzzzzzzz

 

[adobee]

does anyone want to elaborate why after the good announcement yesterday that there has been no favourable movement for ADI.

Still holding

could have something to do with the fact i am a share holder... i will drop it shortly and you will see new highs immediately..

Hartley 6 month target of 10c doesnt sound that promising to me..
might be time to drop it like its hot !!

 

[rock86]

http://www.adelphienergy.com.au/Hartleys Broker Report-21.09.09.pdf

the latest hartleys report on adi

they factor in only .60 cents on the austin chalks, the eagleford (7 tcf in ground) is not put into the equation atm

interesting

Agentm, if Hartley's have a 60c price target with only the austin chalks, and if all goes to plan with this and eagleford, care to have a guess of how much more cps eagleford could add to ADI. If all goes to plan do you think we're looking at $1 plus??

I'm gunna stick it out

 

[Agentm]

there 7 tcf in ground resource is for the sugarkane. about 1/3 is for the chalks and 2/3 is the eagleford

hartleys is ignoring that the sugarkane field actually exists and extends from the liveoak wells to the kennedy and if you look at other wells you may see it mentioned

sugarkane is distinctly different to the eagleford.. its two big zones the eagleford and austin chalk zones and a few smaller ones.. "The proposed interval is bounded above by the Pecan Gap Shale and below by the tight Buda Limestone, both of which provide reservoir pressure seals."

hartleys give no credibility to the sugarkane what so ever, they only talk the chalks, nd give it .60 to the share, but we know the eagleford is producing. eskew west was the first deeper well that conoco put in, its in the eagleford and is producing very nicely. kennedy is producing from a featherduster frac and will be completed for production shortly.


let me explain with what conoco say it is, keep in mind they needed our kennedy wells results to present this one some 180 days ago

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

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

HEARD BY: Richard D. Atkins, P.E. - Technical Examiner
HEARING DATE: March 25, 2009
APPEARANCES: REPRESENTING:
Jamie Nielson Burlington Resources O & G Co., LP
Greg Cloud
Yolanda Perez
EXAMINER’S REPORT AND RECOMMENDATION
STATEMENT OF THE CASE

Burlington Resources O & G Co., LP (“Burlington”) requests that Field Rules be
adopted for the Sugarkane (Cretaceous) Field. The proposed rules are summarized as follows:
1. Designation of the field as the correlative interval from 11,360 feet to 11,662 feet as shown on the log of the Burlington Resources O & G Co., LP - Kunde Lease, Well No. 1 (API No. 42-297-34621);

Burlington also requests that all wells in the Sugarkane (Cretaceous) Field be
permanently classified as gas wells, effective the date of first production for each well.

The application was unprotested and the examiner recommends approval of the Field Rules and permanent gas well classification for all wells in the Sugarkane (Cretaceous) Field.

OIL AND GAS DOCKET NO. 02-0261131 PAGE 2

DISCUSSION OF EVIDENCE
The Sugarkane (Cretaceous) Field was discovered in September 2006. The field is classified as a non-associated gas field and operates under Statewide Rules. Two wells are carried on the proration schedule with one vertical well operated by Burlington and one horizontal well operated by Texas Crude Energy, Inc. (“Texas Crude”). However, Burlington has drilled and completed one additional vertical well and three horizontal wells that are not yet listed on the schedule. Production is from a depth of approximately 11,400
feet and the initial reservoir pressure and temperature was 8,653 psia and 287 degree F.

Cumulative production from the field through February 2009 is 324 MMCFG and 63.4 MBC.

Burlington requests that the correlative interval from 11,360 feet to 11,662 feet as shown on the log of the Burlington Resources O & G Co., LP - Kunde Lease, Well No. 1 (API No. 42-297-34621), be considered a single field known as the Sugarkane (Cretaceous) Field. The proposed interval is bounded above by the Pecan Gap Shale and below by the tight Buda Limestone, both of which provide reservoir pressure seals. The Cretaceous formation was deposited in a deep shelf environment and is composed of limestone with inter-bedded calcareous shales. The formation also contains natural fractures that enhance hydrocarbon production.

The discovery well for the field was the Burlington - Kunde Lease, Well No. 1.

Thewell 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 a 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 API and a straw color.

OIL AND GAS DOCKET NO. 02-0261131 PAGE 3

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 analysis indicates 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.

Statewide Rule 79 defines a gas well as “....A well which produces hydrocarbon liquids, a part of which is formed by a condensation from a gas phase and a part of which is crude petroleum oil, shall be classified as a gas well unless there is produced one barrel or more of crude petroleum oil per 100,000 cubic feet of natural gas; and that the term “crude petroleum oil” shall not be construed to mean any liquid hydrocarbon mixture or portion thereof which is not in the liquid phase in the reservoir, removed from the reservoir

 

[Agentm]

the rest of the report.........

OIL AND GAS DOCKET NO. 02-0261131 PAGE 4

in such liquid phase, and obtained at the surface as such.” Burlington believes that because the liquid hydrocarbons in this reservoir are essentially non-existent, any liquid produced at the surface does not meet the definition of “crude petroleum oil”. Instead, the produced liquid is a product of condensation and should not be used as a basis for classification of the wells as oil wells.

Burlington also believes that all wells in the field should be permanently classified as gas wells, based on the available data for current wells in the field. All five of the wells that had PVT analysis performed in the field have passed most of the requirements for administrative classification as gas wells. Any additional wells completed in the field are expected to exhibit similar fluid characteristics and additional PVT analysis is unnecessary
for classification of wells as gas wells.

FINDINGS OF FACT

1. Notice of this hearing was given to all persons entitled to notice and no
protests were received.
2. Burlington applied for and received a new field designation for the Sugarkane (Cretaceous) Field in September 2006. The new field is classified as a nonassociated gas field and operates under Statewide Rules. A total of six wells have been completed in the field.
3. Burlington requests that the correlative interval from 11,360 feet to 11,662
feet as shown on the log of the Burlington Resources O & G Co., LP - Kunde
Lease, Well No. 1 (API No. 42-297-34621), be considered a single field
known as the Sugarkane (Cretaceous) Field. The proposed interval is bounded above by the Pecan Gap Shale and below by the tight Buda Limestone, both of which provide reservoir pressure seals.
4. All wells in the Sugarkane (Cretaceous) Field should be permanently
classified as gas wells.
a. The original reservoir pressure and temperature in the discovery well
was 8,653 psia and 287 degree F.
b. The PVT analysis for the Kunde Lease, Well No. 1, indicates that 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.

OIL AND GAS DOCKET NO. 02-0261131 PAGE 5

c. The PVT analysis for the Baker Family Trust Lease, Well No. 1,
indicates that 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.
d. The PVT analysis for the Kunde Lease, Well No. 3, indicates that 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.
e. The PVT analysis for the Kennedy Lease, Well No. 1H, indicates that
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.
f. The PVT analysis for the Marlene Olson Lease, Well No. 1, indicates
that 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.
5. Liquid hydrocarbons produced at the surface from the subject wells are the
product of condensation and should not be classified as crude petroleum oil.
6. Because the liquids produced from the wells are not crude petroleum oil, the subject wells should be classified as a gas wells.

CONCLUSIONS OF LAW
1. Proper notice of this hearing was issued.
2. All things have been accomplished or have occurred to give the Commission
jurisdiction in this matter.
3. Adopting Field Rules for the Sugarkane (Cretaceous) Field is necessary to
prevent waste, protect correlative rights and promote development of the
field.
4. All wells ever completed in the Sugarkane (Cretaceous) Field are gas wells,
effective the date of first production, based on the definition of a gas well
pursuant to Statewide Rule 79 (a) (11) (C).

OIL AND GAS DOCKET NO. 02-0261131 PAGE 6
RECOMMENDATION

Based on the above findings of fact and conclusions of law, the examiner
recommends that the Commission adopt Field Rules for the Sugarkane (Cretaceous) Field, as proposed by Burlington, and approve permanent gas well classification for all wells ever completed in the Sugarkane (Cretaceous) Field.

Respectfully submitted,
Richard D. Atkins, P.E.
Technical Examiner

 

[Agentm]

i guess sometimes maps are easier to get a picture of things..

there is a lot of talk about the eagleford, its one section, below the austin chalks,

then theres the massive discovery that adi sit on, its a double whammy, both the chalks and eagleford, called the "sugarkane"

these maps explains how far both plays reach thus far

first the eagleford play, a massive play:

now the thing that everyone was keeping so secret on top of the secrecy of the eagelford that all operators are blabbing about now they are leased up to the eyeballs

this is the sugarkane.. a very impressive play, it contains both the chalks and the eagleford

is this helping anyone understand whats going on here with adi?

hartleys is in the dark ages imho

 

[rock86]

so ADI's acreage sit's with in both plays, yet Hartley's do not include the more impressive play

 

[Hatchy]

is this helping anyone understand whats going on here with adi?

hartleys is in the dark ages imho

Hartley's in the Dark Ages? Surely Not!!!!!! ::::::::::

It's a waiting game, and it's one that's been taking a few non-waiters out of play in the last week - we'll see if this large turnover can continue going forward.

Once again I re-iterate what I said previously - sit tight guys, it's going to take some new results to stimulate an upward trend.

But yes Rock86 - we'll be looking at significant upside if this play comes off

 

[adobee]

Dumped it yesterday... left the profits in to run.. (which are f.all)..
Will revisit if some news comes out and has positive affect... from buying before last announcement doesnt seem like it will be to hard to pick up on before hand..

 

[Agentm]

hatchy

i have checked all my data and i cannot conclude nor agree with hartleys report. if my data told me that the adi acreages were not smack in middle of the sugarkane field, and if my data showed me the kowalik chalks well and the kennedy eagleford well were not both producing, and if the hooks well in dewitt county and the live oak wells of conocophillips were all not producing, then i would have to agree that the sugarkane field was not a factor at all. but imho its clearly not the case and harlteys is entirely in the dark ages,


i will post all the production data for the sugarkane field which is in direct conflict with what hartley is concluding.

my data shows production both ends of the field in in the middle in adi's 2 wells

 

[Hatchy]

Thanks AgentM,
I have full faith in this field and in the overall play.

I shake my head sometimes when reports come out that go one way or the other - too high or too low, generally indicates the researchers aren't too sure of what they know.

It's just a shame that hartleys have a knack of it. Just my view.

Even if they don't classify it as sugarkane, how can they not see the two plays Eagle and Chalk as being worth more than a few cents?

Anyway - The end to a good week of trade in ADI - may there be many more to come and much good news before the years end.

 

[jancha]

Rarely a week goes by without updates or comments on this company so why has it been quiet the last week or so? Has agentm gone on holiday or are we just waiting on some breakout to occur?

 

[rock86]

Rarely a week goes by without updates or comments on this company so why has it been quiet the last week or so? Has agentm gone on holiday or are we just waiting on some breakout to occur?

just waiting for some updates and things to start happening I think, hopefully it'll be soon, still a little dissapointing with the reaction of the market to the farmout, this stock needs some attention

 

[Agentm]

i am hoping for the jvp to start contacting the new partner, hilcorp, and get a feel for their timings. imho its pretty early days atm, but some clarification is slowly coming out.

my view is that the jvp want very immediate action, and it would be a major disappointment if hilcorp were not equally as interested in the sugarkane play

this from aut in the past hour or so. i think if your investing in adi its worth a read myself

 

[rock86]

do you think this news had anything to do with the price jump at the end of the day??? Argh this one hundred charcters