ADI - Adelphi Energy

[Agentm]

ADELIPHI announcement


Future operations

It is anticipated that fracture stimulation of the three horizontal wells, Weston – 1H, Kennedy – 1H and Kowalik – 1H will commence during the month of November with the new horizontal wells planned for early 2010.


EKA announcement

• planning and well-site activity on the first phase of the Hilcorp farmin work program at Sugarloaf has commenced with operations underway at all three existing horizontal wells in preparation for stimulations that are scheduled to start in mid November.

Having completed this transaction preparation and planning activity commenced immediately at the three existing Sugarloaf wells that are to be stimulated. The fracture design being used requires considerable volumes of water and dedicated water wells and holding pits are being prepared at each location. Stimulation activities are due to commence on these wells in mid November. The first farmin wells are expected to be drilled within the Sugarloaf area and are anticipated to commence in Q1 2010.


AUT announcement

• Planning and preparation activity has commenced on the first phase of the Hilcorp farmin work program with operations underway at the three existing horizontal wells in preparation for stimulation which is scheduled for mid November.



so its pretty clear that the 2 jvp partners are anticipating a frac this week

have many stayed in the share or have most exited and been part of the big sell down from .18???

very quiet on the adi forums now, when usually there was interest in the share close to operations and often a larger volume of trade, this is the first time i have seen the share grind to a complete halt in the hours before a pretty major event..

keeping my fingers crossed the frac designs in weston will provide access to the charge and get connectivity from the formation into the well bore at commercial rates.

best of luck over the next days to anyone still in it.

 

[Bubba Oil]

Newfield Exploration Company could soon become a player in the Eagle Ford Trend. NFX has bid $223 million to take TXCO out of bankruptcy. TXCO has a large acreage position in Dimmit, Maverick, LaSalle and Webb Counties, and is in a joint venture in these areas with Anadarko and St. Mary.

From Oil & Gas Investor Online (11/9/09):

Newfield Exploration Co., Houston, (NYSE: NFX) plans to acquire all of the assets of San Antonio-based TXCO Resources Inc. (Nasdaq: TXCO) for $223 million in cash via court auction.

TXCO filed for protection under Chapter 11 in the U.S. Bankruptcy Court for the western district of Texas in May. The Newfield offer is subject to higher and better offers, due by Jan. 6, which includes a 3% break-up fee to Newfield.

TXCO has interests in the Maverick Basin, the onshore Gulf Coast region and the Marfa Basin of Texas, and the Midcontinent region of western Oklahoma. At year-end 2008, TXCO had proved reserves of 81.7 billion cubic feet equivalent (56% oil). 2008 total production was 9.2 billion cubic feet equivalent. It held 160,000 gross developed acres (66,700 net) and 1.1 million gross undeveloped acres (694,000 net) in Texas, Oklahoma and Louisiana. Assets included 749 gross producing wells (457 net). TXCO core operations are in the Maverick Basin of South Texas prospective for the Pearsall and Eagle Ford shales, and the San Miguel heavy oil sands. It also holds interests in the Marfa Basin in West Texas, the Fort Trinidad area of East Texas, and in the Midcontinent region of western Oklahoma.

In February, the company retained Goldman Sachs & Co. to review strategic alternatives and in August retained Global Hunter Securities LLC.

 

[adobee]

You would think ADI could make an anouncement to some affect and get some interest pre frac...

Still hold .. But attending an auction this weekend so may be forced to sell before settlement say 35days from 14th ..

Should leave me in for a bit of a run if something comes out .. If it does will leave profit in ..

 

[sam76]

do you hold many shares in ADI, Adobee?

If you hold over 100k you could probably sell it down 30% lol

 

[Agentm]

You would think ADI could make an anouncement to some affect and get some interest pre frac...

Still hold .. But attending an auction this weekend so may be forced to sell before settlement say 35days from 14th ..

Should leave me in for a bit of a run if something comes out .. If it does will leave profit in ..

lol

i think they are fracing all three straight away


so one after the other.. i think exactly 36 days after the 14th of this month the sp will fly up, and all in one day, and be north of $1 and heading for $2

pity you will be selling the day before, (the 35th day) but you will have a nice house..

maybe wait a few months then you can buy a whole town

lol

 

[adobee]

do you hold many shares in ADI, Adobee?

If you hold over 100k you could probably sell it down 30% lol

I was just considering taking it up to 16c which would be hard either and then quickly printing a snap shot of my portfolio for my loan docs ... Same goes for my BMYO & ROGO and actually all my other shares.. I would only need to spend about 30k and my portfolio value could x4 !

 

[adobee]

looks like sellers are slowly drying up which is positive.. it wont take much to run.. but it will take something .. fingers crossed that something comes soon !

 

[rock86]

looks like sellers are slowly drying up which is positive.. it wont take much to run.. but it will take something .. fingers crossed that something comes soon !

Seems like we have been waiting forever, but hasn't been that long since the farmin and well frac announcement, I think we all just no this little stocks potential and want it to fly the coup soon

 

[Kremmen]

have many stayed in the share or have most exited and been part of the big sell down from .18???

I have been watching this thread with interest for a little while. When they started sliding back, I put in an order at .13 but didn't think they'd get that low. I suddenly got a contract note email a few days ago, which reminded me!

You are obviously watching this company, and those in the same area, very closely. You may have commented on this before, (I haven't read all 200+ pages of this thread) but what was behind you becoming the ADI expert, as opposed to following anything else?

 

[Agentm]

I have been watching this thread with interest for a little while. When they started sliding back, I put in an order at .13 but didn't think they'd get that low. I suddenly got a contract note email a few days ago, which reminded me!

You are obviously watching this company, and those in the same area, very closely. You may have commented on this before, (I haven't read all 200+ pages of this thread) but what was behind you becoming the ADI expert, as opposed to following anything else?

its a bit off topic, if you want to discuss the share i am all for it.. and i dont think i will be discussing other issues OT on this thread

imho some potentially great days ahead..

cheers

 

[Kremmen]

its a bit off topic

You are not compelled to tell us, but I think someone's reason for becoming heavily involved in a stock is on topic, if they are going to be writing tens of pages of data here. If someone has a vested interest, for example, it may be appropriate for readers to know.

Secondly, how investors choose to get involved with specific shares is relevant to the topic of stock investment in general.

 

[martyfar]

Hiya Agent,

Got a coupla queries, was wonderin if you may be able to shed some light on...

.....any idea on how long it will take (roughly) to complete each frac, and what is the likely cost of the revised frac method ??

I understand Hilcorp will pay for the fracs and a number of new wells in the new year .... however is ther money they spend on fraccing the three existing wells, and the drilling costs of the new wells (as per the farmout agreement) to be paid back to them (Hilcorp) out of initial production earnings ?

cheers

 

[Agentm]

marty

i think bubbaoil can answer timings on 14 stage multi fracs,

Kennedy

Fracture stimulate the entire
3,800 ft lateral with up to 14
stages.

Kowalik

Acid stimulation or large
single stage fracture
stimulation or both.


Weston

Fracture stimulate the entire
3,800 ft lateral with up to 14
stages.


lol lets hope there is not a 3 month frac job planned for these wells like conocophillips had with bordovsky!


ADI is free carried on the operations.. and for the completion of 3 news wells in the acreages. The first well is scheduled to start any time from about 52 days from now (Q1 2010) where hilcorp are currently scheduling 10 wells for 2010.


sorry kemmen, not entering into it.. cheers

 

[estseon]

Though ADI said that Weston was 3,800 ft in the latest qtly, that is an error, I think. They did a cut & paste on Kennedy. It is 3,000ft. That is what I recall from the RNSs and that is what EME says in its published accounts.

"Total depth of 15,797ft was reached on 13 February 2009, after which a 4 ½” liner was cemented to total depth. The original plan was to drill to 18,405ft measured depth and drilling was cut short to reduce risks as several challenges were encountered whilst drilling. This premature termination still meant that
approximately 3000ft of horizontal hole lay within the target zone of the Upper Austin Chalk"

There's a suggestion ("several challenges") that this might be a bit of a monster. we shall see....

 

[Agentm]

regency partners on the eagleford

In South Texas, volumes around our South Texas gathering and treating system continue to ramp up with the continued drilling of the Eagle Ford shale plate.

We added 5 new Eagle Ford wells to our system in the third quarter and we expect an increase in drilling activity going forward.

Currently, we are flowing out of the Eagle Ford shale area, approximately 70 mill cubic feet per day. That’s a significant increase from where we were at the beginning of the year with very low volumes. So this area is getting very active and we’re seeing the results in our South Texas region.





John Edwards - Morgan, Keegan & Company, Inc.

On the Eagle Ford shale, given the push by enterprise in that areas, well how are your, how is margins holding up on the volumes coming in there?

Patrick Giroir

This is Pat Giroir, the margins are holding on quite well, I mean we have through the couple of different contracts, been able to provide some effective out takes for the liquids for our customers. So in terms of the gathering margins they are holding at this time.


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

Lenny Brecken - Brecken Capital

Did you quantify the actual contribution to volumes for Eagle Ford for the quarter?

Byron R. Kelley

Let's get exact number we're moving 70 now we did an average 70 for the whole quarter though, I'll let my numbers do to look that up.

Lenny Brecken - Brecken Capital

So it's definitely up substantially sequentially?

Byron R. Kelley

That's correct.

Stephen L. Arata

It's up every month.

Byron R. Kelley

That’s right and we had five wells in the quarter.

Lenny Brecken - Brecken Capital

Can you please just review to us what your capacity is there to expand that?

Byron R. Kelley

Pat, you want to go around?

Patrick Giroir

The capacity I mean it just depends on where we take the gas and the one nice piece to our system down there is we have a number of key takeaways by the different takeaway locations on several or the other pipelines in the processing folks down there.

So, we can probably load up that line depending on whether the gas comes in another 100 million plus, I mean it's easily expandable.

Lenny Brecken - Brecken Capital

Easily expandable, is that capital or --?

Patrick Giroir

With the limited amount of capital we can probably get another $50 million to $75 million a day out of the line.

Lenny Brecken - Brecken Capital

So, it is bringing close to 250 to 300 then?

Patrick Giroir

Right.

Lenny Brecken - Brecken Capital

Total?

Patrick Giroir

It's just a factor of the key line that we have down there that is ideally suited for this, it goes right through kind of the heart of the current drilling that you're seeing down there.

The impact in the third quarter, the increased drilling down there was about three-quarter to a million dollars of margin for us.


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


Michael Blum - Wells Fargo

Two other questions. One, you did a nice job of going through by geography what you're seeing now, but I'm curious if you have any general thoughts on where you see volumes in the gathering business going in 2010?

Byron R. Kelley

Well, obviously we expect the Eagle Ford shale area and South Texas continue to add volumes. West Texas, we think we've got a chance to add a little volume in West Texas with the increased prices in oil and associated gas as well as with the higher capacity we now have through our upgrade in our plant.

We have the opportunity to go try to capture some additional packages there.



http://seekingalpha.com/article/172...ners-q3-2009-earnings-call-transcript?page=-1

 

[Bubba Oil]

marty

i think bubbaoil can answer timings on 14 stage multi fracs,

Kennedy

Fracture stimulate the entire
3,800 ft lateral with up to 14
stages.

Kowalik

Acid stimulation or large
single stage fracture
stimulation or both.


Weston

Fracture stimulate the entire
3,800 ft lateral with up to 14
stages.


lol lets hope there is not a 3 month frac job planned for these wells like conocophillips had with bordovsky!


ADI is free carried on the operations.. and for the completion of 3 news wells in the acreages. The first well is scheduled to start any time from about 52 days from now (Q1 2010) where hilcorp are currently scheduling 10 wells for 2010.


sorry kemmen, not entering into it.. cheers

I would say the 14 stage frac would take from five to seven days. Typically two or three frac stages can be completed per day.

 

[estseon]

Bubba,

Would I be right in thinking that they will isolate each section (say 2-300 ft), perforate, fracc, put in a temporary plug, then move on down to the next section? It has been suggested that they might want to flow test the early ones to optimise the design - is this possible? That would take a few days, surely?

I just wondered because there seem to be doomsters on some BBs who think that oilfield ops should all go according to undisclosed timetables and will bray about failure if there is no report when they think there should be one. They work out constant drilling rates and do simple arithmetic based on those.

The history of Weston per EME releases at the time:

21 Jan 09 - minor flares gas readings 3,100
28 Jan 09 - still flaring gas readings 2,000 - 3,000
04 Feb 09 - drilling assembly stuck - flares up to 60ft
11 Feb 09 - 'fish' bypassed - flares up to 40 ft (gas units 2,000+)
18 Feb 09 - cemented production liner successfully run

Two things occur (but I could be totally wrong):

1. There does not seem to be anything uniform about the 3,000 ft so fraccing design might have to be modified as they proceed along (??)

2. There could be sections encountering natural fractures.

 

[choppy]

Word around the campfire in Texas is that the Bordovsky well (IP 4 mmcfg 1500 bo) went downhill really fast. Anyone else heard that rumor? AgentM?

I heard that they screened out alot of their frac and they were bailing sand out of the tubing for weeks, so it may be that it has sand plugging up the tubing again. Seems like Burlington should farm out their acreage to another operator who knows what they are doing.

 

[Miner]

You are not compelled to tell us, but I think someone's reason for becoming heavily involved in a stock is on topic, if they are going to be writing tens of pages of data here. If someone has a vested interest, for example, it may be appropriate for readers to know.

Secondly, how investors choose to get involved with specific shares is relevant to the topic of stock investment in general.

Dear Kremmen

Curiosity is good but that should be taken with reason.

You chose not to read the postings on ADI and just asking Agentm's interest.
He was a bit polite to evade the issue. But I thought to write something more from the perspective of excellent knowledge base posting Agentm has been contributing on this stock for few years. Of course Agentm has vested interest from the gain from ADI. But look he is sharing all info he could. Why not appreciate it?

Yes I do have vested interest as I hold. I bought ADI at 6.4 cents knowing nothing but following this thread. I give the major credit to Agentm and balance to others in this forum.

It is not always true as I bough GCR at 4.8 cents following postings by some so called excellent contributor. I lost heaps of money. That was my discredit as I was idiot not to undertake enough research and jumped into conclusion into buy. For the record I also learnt heaps from the postings from Kennas, Grace, Hanseng, Jman, Seaspirite, Julia, So Cynical, Kegee, Kauri, and others. Hats off to them.

So lessons learnt FIRST ADI or any thread just read objectively and cut the fat if any and DYOR. Profit is your and loss is your too. Do not blame or no point in asking some one's interest unless you feel it is a ramping or wrong info.

Why not share some of your experience too ?

Regards

 

[Agentm]

Word around the campfire in Texas is that the Bordovsky well (IP 4 mmcfg 1500 bo) went downhill really fast. Anyone else heard that rumor? AgentM?

I heard that they screened out alot of their frac and they were bailing sand out of the tubing for weeks, so it may be that it has sand plugging up the tubing again. Seems like Burlington should farm out their acreage to another operator who knows what they are doing.

choppy

all i heard was that halliburton and conoco worked hard on cobra frac, and i did hear of down hole issues but nothing like your alluding to. i will ask around and see if the local talk matches up.. jim from conoco was pretty positive on the well and the eagleford, and they must have said it a few times that they are in negotiations with a farm out of the sugarkane.. they are just waiting for the price to be right.. i have no idea on what declines bordovsky has had..

halliburton advertise that cobra system on wells to about 8000 feet so to be using it in overheated and overpressurised formations at 16000 feet is stepping up the technology big time

i thought a far simpler multi stage frac is very much on the minds of the frac engineers working for TCEI and hilcorp..

bubba may want to comment on multistage fracs on the chalks, i am not familiar with many regional austin chalk wells doing them, but the eagleford is being extensively fracced with multistages and delivering good wells so far.