ADI - Adelphi Energy

[choppy]

AgentM,

I have some doubts/questions as to how Conoco views the play:

If the play is so great then why are they farming it out? It definitely isn't too small for them. On the other hand of course they say they like the play if they are trying to court a farm-out partner.

There are many wells being drilled/ fraced in the eagleford by other companies without any of the associated mechanical problems that they have had in this area. Do you think the bordovsky well is in the basal austin chalk (upper eagleford?) or in the eagleford (lower eagleford)? What is your basis for where in the zone the well is? Most of the other successful wells produce from the lower eagleford on trend.

 

[Bubba Oil]

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.

esteon,

I have not heard of anyone flowing back their wells after only doing a few frac stages and I do not think it would be prudent to do so. The standard way to do it is to complete all the frac stages and then flow it back.

agentm,

In the "classic" chalk play operators often do two or three horizontal legs from the same wellbore and do not frac. It is not necessary because of the natural fractures in the chalk. The Sugarkane area might be a little different and the fracs in the Eagle Ford may be fracing in to the chalk also. Maybe this is why this area is so rich in liquids.

 

[Agentm]

thanks for the reply bubba


this eog map in their presentation are pretty good, i added 3 eagleford wells they missed belonging to pioneer in live oak, their wells north of our kowalik well, the dan hughes well, eog wells in dewitt they neglected to tell their shareholders about.. but they have a lot of the others pegged in..

they speicfy the sugarkane field also which is the first time i have seen it mentioned, not even conocophillips have talked about their sugarkane field, only the eagleoford..

 

[estseon]

Bubba,

Thanks a lot for the reply.

I tried to say just that the other day, but it was too short to be accepted by ASF.

So, if I may, I would like to clarify the possible Kowalik single stage frac. I was trying to think how that would work. Surely they cannot (hydraulic) fracc where there are natural fractures? The fracc fluid and proppant would just disappear.

EME reported (2008)

10 Sept: 1,400 ft - intermittent flaring for last 100 ft
17 Sept: 2,100 ft - flaring following wiping operation
24 Sept: 2,500 ft - flaring activity
1 Oct : 3,500 ft - gas intermittent - flares 45 - 55 ft
8 Oct : 4,350 ft - Significant flares & back pressure
15 Oct : 4,500 ft - Ditto
22 Oct : 4,600 ft - Ditto - well completed short of target 6,000 ft

They had flaring activity for the 'bottom' 3,300 ft and seem to have had significant problems with the final 250 ft (they lost equipment and had to fish it out)

They were drilling underpressured (I think).

 

[Agentm]

baker 3 is 4190 foot lateral into the sugarkane, drilled by conocophillips and the ip report for it has become available.

the well was tested for ip on the 16th sept 2009

initial ip flow rates were as high as 4mmcfpd, and based on sugarkane averages you would be expecting the bopd to be in the region of 1230 bopd

any comments on baker 3 bubba!!

 

[choppy]

AgentM,

Based on the Gas to oil Ratio stated on that completion report of 7228, if it is making 4 mmcfd of gas then it would be making 553 bopd.

 

[Agentm]

18 November 2009

Via ASX Online

SUGARLOAF AMI: SUGARKANE GAS & CONDENSATE FIELD OPERATIONS UPDATE

Adelphi Energy Limited (Adelphi) provides an update on preparatory work for well stimulation operations within the Sugarloaf Area of Mutual Interest (AMI). These operations will form the first phase of the farm-in workscope as outlined in our announcement dated 6th October 2009.

The detailed planning for the fracture stimulation of each of the three horizontal wells has been completed. The operator of the Sugarloaf AMI, Texas Crude Energy Inc (TCEI) intends to carry out ‘multi –staged’ fracture stimulations along the horizontal section of each of the three wells. Each stage will be individually hydraulically stimulated using a design that has proved effective elsewhere in the play; that stage is then isolated and
the process repeated further up the liner. At Kowalik -1H, where it was not possible to recover the slotted liner, the slotted section will be stimulated with a single larger treatment and the conventional solid section of the liner will be treated in a similar fashion to the other two wells. Once treated, the wells will be brought on line to sales.

Each well has now been prepared with the production tubing now pulled at both Kennedy -1H and Kowalik -1H. The horizontal liners of all three wells are presently being washed out and clean water left behind ahead of the stimulations.

At Weston - 1H, production facilities are being installed, including a pipeline connection to the Kennedy -1H location to utilise the existing tie-in to a major export gas pipeline.

Progress to date and the availability of equipment indicates that the likely start of fracture operations will be during December. Each stimulation will take approximately 10 to 14 days. A further announcement will be made when these operations commence.

Adelphi currently (pre-farmout) has a 20% working interest in the Sugarloaf AMI.

 

[Bubba Oil]

agentm,

I agree with choppy's bopd number for the #3Baker based on the GOR. Yesterday Common Resources announced a good well result in LaSalle County (from PLS Market Alert):

Common Resources scores record Eagle Ford well, 12.9 MMCFeD
Common Resources LLC founder Roger Jarvis announced, at the November
17 Houston Producers Forum, drilling the “best Eagle Ford well to date.” The STS-
29H well in southeast LaSalle Co., Texas yielded 12.9 MMcfe/d on a 72 hour test and
was completed with a 15 stage frac. The well encountered 240 feet of reservoir, 18%
porosity and is currently producing 10 MMCFeD. Jarvis stated the well is expected
to yield 4.5 Bcfe and probably better than that. For perspective, Jarvis described the
Hawkville field in the Eagle Ford shale play as “uniquely thick and porous” coming
in at 180 to 300 feet. The average rates in the field are 9.1 MMCFeD on a 72 hour rate.
Common Resources holds 48,675 gross, 36,918 net acres in LaSalle and
McMullen counties and has 50 sq. miles of 3D and 3,320 miles of 2D. The leading
neighbor is Petrohawk who has recently been bringing wells in the 9.4 MMCFeD
range – again on a 72 hour test basis. Also in the area are El Paso, Lewis Petroleum,
Murphy Exploration and Rosetta Resources. — Gentry Braswell

 

[Agentm]

Bubba, do you think Baker 3 is open hole flow? i cant see any frac mentioned in the completion report


just a quick regional overview

SOUTH AND WEST

conooco is drilling plomero
Pioneer is drilling Robert Crawley
Crimson is Drilling Dubose


NORTH

EOG is drilling 2 wells Lyssy 1 and 2H

 

[Bubba Oil]

Bubba, do you think Baker 3 is open hole flow? i cant see any frac mentioned in the completion report


just a quick regional overview

SOUTH AND WEST

conooco is drilling plomero
Pioneer is drilling Robert Crawley
Crimson is Drilling Dubose


NORTH

EOG is drilling 2 wells Lyssy 1 and 2H

agentm,

I would say the test rates shown on their completion report are post frac. I do not think they could achieve these kind of rates without fracing.

 

[estseon]

agentm,

I agree with choppy's bopd number for the #3Baker based on the GOR.
==========================================================
Bubba / choppy.

I fished around on the RRC site and found this form:

http://www.rrc.state.tx.us/forms/forms/og/pdf/g-1p.pdf

There's no doubt (I think) that the figure is CFG/bbls (physical not energy conversion) but there is no clarity as to whether the reported gas volume includes the equivalent for the condensate (in which case, what conversion factor?) or whether it is just gas (in which case, why no report on the liquids).

If the reported flow includes the energy value of the liquids at about 5,660 cfg/bbl, it looks like a flow of 310bbls + 2.25mmcfg.

The liquids look low against the expected 250 bbls/1mmcfg but many of the early results on Block A were gassier immediately after fraccing but settled down towards the expected ratio.

Any views on this form and the meaning of the figures?

 

[choppy]

On a gas well completion report there is no place to put the number of bbls of condensate. You simply state the actual amount of gas and the GOR. On an annual gas well test report there is a place for liquids amounts: gas and/or water. Based on this I think the well is approx 4mmcfg and 550 barrels per day.

 

[jancha]

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 ..

Still holding Adobee?

Agentm you must have much patience in order to be still holding these over the years without any significant results. I hope it pays of you in the long run but for myself as with BMY i'm starting to lose interest in it. Sold out of BCC at .062c for a 80% profit only to buy more ADI

 

[buttonzhu]

Every dog has its day.

I think it is turning back in the short term trade according to my model.

Cheers

 

[nomore4s]

Every dog has its day.

I think it is turning back in the short term trade according to my model.

Cheers

buttonzhu,

Please provide some more detail to this post. Maybe explain why it is turning into a short term trade with either a chart or some reasoning. This is your last warning

This is a reminder to all posters that ASF expects a high standard of posting in the stock threads to keep the quality content up for the benefit of all users of the site. Posts like the above would normally be removed so to save wasting both your time and the mods time please try to add some useful content.

Thank you.

 

[Agentm]

Still holding Adobee?

Agentm you must have much patience in order to be still holding these over the years without any significant results. I hope it pays of you in the long run but for myself as with BMY i'm starting to lose interest in it. Sold out of BCC at .062c for a 80% profit only to buy more ADI

whether i have traded in and out or taken profit is not up for discussion jancha..

a year back the gfc caused adi to shut down all ops and try and survive, it did so by selling assets and getting a farm in partner.

those two objectives were reached

oil came back up from $35 bo to its current value around $77

if you understand the history, most investors got in way above the .03 - .06 range that adi sat at from about jan/feb..

a lot of investors, and me included, added considerably during the long wait when it was uncertain adi would be coming back in any shape at all..

in october 09 the farm in happened, and the yemen cash came thru.. so adi has only really come out of hibernation in the past 2 months,,


since then the frac designs were agreed to, and all three wells were worked over and prepared for a frac. water wells drilled, dams built and a new way of attacking the formation is now foremost in their minds

right now all 3 wells are ready for fracture stimulation, using a staged multifrac processes, those operations are likely in dec 09.. but i have heard on one well it could be a lot sooner

another 12 months of waiting was something one had to do if they chose to.

dont concern yourself too much over what patience i am capable of achieving. its not something i will be discussing in any case..

its very likely imho that with 3 laterals about to be opened up, and with 3 further wells drilled completely free carried, that some serious upside is available to the sp of adi.. what your not getting is hyped up reports that other small cap oilers are putting out...

 

[adobee]

I am still in.. (missed the house by $30k) agent underquoted it by $200k pretty poor form.. anyway Still in and have decided today to hold.. I am very positive on this one and sick of pulling out of things when I read other peoples negativity which changes my sentiment .. check out GWR today.. sold last week following all the negativity ... Short term not sure where this is going but once news is out it should be a different story..

 

[jancha]

whether i have traded in and out or taken profit is not up for discussion jancha..

a year back the gfc caused adi to shut down all ops and try and survive, it did so by selling assets and getting a farm in partner.

those two objectives were reached

oil came back up from $35 bo to its current value around $77

if you understand the history, most investors got in way above the .03 - .06 range that adi sat at from about jan/feb..

a lot of investors, and me included, added considerably during the long wait when it was uncertain adi would be coming back in any shape at all..

in october 09 the farm in happened, and the yemen cash came thru.. so adi has only really come out of hibernation in the past 2 months,,


since then the frac designs were agreed to, and all three wells were worked over and prepared for a frac. water wells drilled, dams built and a new way of attacking the formation is now foremost in their minds

right now all 3 wells are ready for fracture stimulation, using a staged multifrac processes, those operations are likely in dec 09.. but i have heard on one well it could be a lot sooner

another 12 months of waiting was something one had to do if they chose to.

dont concern yourself too much over what patience i am capable of achieving. its not something i will be discussing in any case..

its very likely imho that with 3 laterals about to be opened up, and with 3 further wells drilled completely free carried, that some serious upside is available to the sp of adi.. what your not getting is hyped up reports that other small cap oilers are putting out...

Agentm that wasn't a question for you to answer nor to discuss i was merely stating that you would have to had been very patient with ADI over the years. I've bought in at between .05 & .15 with a base cost of 10c & been following it for the last 6mths.

 

[Agentm]

Agentm that wasn't a question for you to answer nor to discuss i was merely stating that you would have to had been very patient with ADI over the years. I've bought in at between .05 & .15 with a base cost of 10c & been following it for the last 6mths.

its been great value since february, and with trojan and a few others who really supported adi for many years moving out in those tough months, there was plenty available. plenty of shares from the .06 cap raising also were sold in the recent run up..

my view is that the fraccing of 3 wells at the same time will spark a bit of speculation and see some buying pressure come back on the sp..

its very interesting times with the type of frac being undertaken imho

http://www.iogcc.state.ok.us/Websites/iogcc/Images/Biloxi2009/IOGCC Uconv Gas 10_09 Handout.pdf


http://www.pe.tamu.edu/crisman/files/CrismanAnnualReport2008.pdf

 

[gerkin02]

Agentm,
How long after an eagle ford well is completed and flow tested,does a company have to file a report with the Texas railroad commission?

Thankyou in advance.