ADI - Adelphi Energy

[Ramblin Round]

I am here to report that I am a landowner in this play and that myself and about 2000 acres around me are currently not leased at this time. I was contacted today about leases from two different outfits. Both are low key drilling outfits IMO, but is is interesting that it happened today. In the past it has been driven by economics only.

Something big is happening. Also just today it was discovered that a local entrepreneur is hosting office space for a new leasing company to make a home for a couple of years. It's a race now boys. The word is out.

 

[condog]

Ramblin what sort of figure per acre are they talking these days, cause at one stage i believe it was $30,000 per acre per annum.... obviously most people didnt get that, but at its 2008 peak, i believe that was the best figures quoted.....

Might be worth an email to all the big players before you accept an offer........

That new Ferrari is lookin good mate....

PS..i think you should show loyalty and only sign with the AMI parties....lol

 

[Agentm]

condog

acreages are not at that level yet, but are going for significantly more than what conoco and tcei first paid in the first leasing agreements

re the car purchase, i think if you look at the first pay cheques these wells will deliver its clear that rambling will not be buying ferrari's but buyin out farrari inc

karnes county was one of the poorest counties in texas.. now its due for a big change..

 

[condog]

condog

acreages are not at that level yet, but are going for significantly more than what conoco and tcei first paid in the first leasing agreements

re the car purchase, i think if you look at the first pay cheques these wells will deliver its clear that rambling will not be buying ferrari's but buyin out farrari inc

karnes county was one of the poorest counties in texas.. now its due for a big change..

Na there not there at present but during 2008 they where... just google "eagle ford $30,000 acre" without the quotation marks and you will have an abundance of articles siting the dizzy highs of 2008

I also watched a BBC news / documentary....i think the link was in here or hc....cant remember...on how the acerage lease prices have transofrmed the life from extreme poverty to rediculous wealth, and it also cited lease values over $25,000 per acre...in 2008

 

[Agentm]

Na there not there at present but during 2008 they where... just google "eagle ford $30,000 acre" without the quotation marks and you will have an abundance of articles siting the dizzy highs of 2008

I also watched a BBC news / documentary....i think the link was in here or hc....cant remember...on how the acerage lease prices have transofrmed the life from extreme poverty to rediculous wealth, and it also cited lease values over $25,000 per acre...in 2008

condog

the eagleford was known for its low acreage prices.. you are incorrect in your assumptions totally..

$250 - $300 per acre is where it started.. i think a jvp in live oak went for $3000 and acre for petrohawk under the awp field?? someone may correct me there??

haynesville and also the legendary barnett shale play in fort worth saw some dizzying figures on leases

eagleford is yet to climb to those figures, but i am hearing some big numbers but will not discuss them on the forums, its not really about that for adi, its about the acreages they do have and what the forward plan is on the acreages that are secured..

imho the thing to focus on is the objective, the extraction of the resource, how its done how well it flows, what technology works, what doesnt work so good etc etc

its getting closer to the time where the curtain is about to be raised. some are startign to get it, others are still oblivious..

good luck to those lucky ones buying and best of luck to those eager sellers!

 

[Ramblin Round]

Correct Agent M. I was always taught that it is the fool who wants to "get rich" on simply the leasing portion. I too refrain from discussing lease prices in this area. I've seen as low as $75/acre and as high as $1750/acre in the last 10 years. My interest is to be a steward of the land as well as look out for the well being of production opportunities on and around the ranch. (lol... a warm hearted hippie oil man?) : On the other hand more is always better. But this Texas fool is sitting on %100 of all royalties from the topsoil down. I want someone to DRILL lol....

Condog, you're right on. When the time is right I would be willing to negotiate a bit more to help a well vested AMI party for this play. I'll hard nose to any and all small sellout companies. But if a fair offer with an honest company who will let their guard down a bit and talk straight with me comes along, I will play nice. Guess I'll know it when I see it.


I am so glad I found this forum !!!

 

[estseon]

Good luck, Rambling.

You may be able to extract a bit of "nuisance value" if the surrounding land becomes leased.

It couldn't happen in the UK - minerals belong to the Crown. Water belongs to the water company except when you get flooded - then it's your problem.

Hilcorp are doing a lot of logging on their way down...wonder what else there is?

 

[condog]

Definitely reached $30K for Haynesville, i stand corrected, eagleford has reached $400 with projection of possible $15,000 per acre for 2010...if things stay hot
"6/30/08 - CHK - Plains gives $30,000 an acre for Haynesville
acreage" but as you say the important thing is the royalty and getting the resource out of the ground for us...

" 185.6 acres scattered around the Mansfield area of DeSoto Parish went to Classic Petroleum for a $18,537 per acre lease bonus and a 25% royalty."

Rambling...i was only joking about AMI...you do whats right by you...enjoy your spoilings......

I agree Agent with hilcorp on board, there new $300M stash, IMO this thing is really going to ratchet up now...IMO hilcorp took over for one predominent reason, they reckon as operator they can extract more value faster.....

 

[Agentm]

hard to see any downside is there condog

all the cards have fallen into place now

unlike many other junior oil explorers, adi is in the box seat

all aboard for the sugarkane hilcorp express

 

[philly]

hard to see any downside is there condog

all the cards have fallen into place now

unlike many other junior oil explorers, adi is in the box seat

all aboard for the sugarkane hilcorp express

Hi Agentm and Condog
thankyou again for your massive input to this thread.
I am really really excited about ADI. I am so pleased that management didn't rush the farm-in process they have secured a fantastic partner in Hilcorp. Clearly, Hilcorp can see the upside in the Sugarkane and hopefully we will all benefit very soon. I'm going to enjoy this ride.

 

[Tordilla Kid]

Ramblin' I concur that bonuses in the area (Karnes County) have not been what they've been in other shale plays nationally. Big ranches down here, history of oil and gas, we be poor, IDK. Folks I know are starting negotiations a lot higher recently, however.

Forty or so Cummings diesels blowing full bore will likely chase the game from your place to mine. I won't complain one way or the other. I've a couple huge boar hogs you're welcome to. Suckers are rootin' up my roads like two feet deep. The recent rains are welcome . . . don't get me started.

A recent Ross Smith Energy Group report, "Eagleford Update – Let’s Talk Details: Friday, January 22, 2010" indicated that rigs operating in the play quadrupled from 11 in August to 45 in January! Significant?

Local folks are talking about landmen wanting to lease for a 20"+ pipeline to run the length of the play. Enterprise?

Things is definitely heatin' up. :evilburn:

Tomorrow I will check my rain gauge. Hoping for two plus inches. :dance:

 

[condog]

A recent Ross Smith Energy Group report, "Eagleford Update – Let’s Talk Details: Friday, January 22, 2010" indicated that rigs operating in the play quadrupled from 11 in August to 45 in January!

"Petrohawk Energy plans a similar ramp up in the Eagle Ford shale. The company drilled 24 wells at its Hawkville Field in 2009, and plans 60 more wells in 2010. "

Petrohawk intend to heat things up big time too, so expect that number to jump significantly...Also ExxonMobil took over TXO and expect to be making in-roads into the "non-conventianal onshore US plays...in 2010 ( eagleford?? bakken?? Haynesville??)

 

[Ramblin Round]

Yes we hear the new pipeline is already being discussed. Local fencing contractors are putting in their bids for fencing jobs. Can't get a parking spot at the courthouse in DeWitt for all the landmen shoulder to shoulder doing research. Seen it with my own eyes last week.

Pioneer built a pipeline location last year/year before in North Dewitt. I suspect they will have to connect to that to flow out of the Yorktown wildcat oilfied among others on the line. Don't know much about pipelines. But I do know one is coming, and is greatly needed. Some of these wells flare for a year.

Rigs that are stacked are currently being pulled and rebuilt. Can't get on the highway without getting stuck behind trucks these days. They are actually meeting each other. One going on location, one back to the yard. lol.............

This is so exciting ! I'm holding ADI and sitting on Eagle Ford dirt ??? I better go check the toilet for gold nuggets. :bonk:

 

[condog]

Extremely interesting update this morning especially the bit where it says:

"will continue to make releases as and when required and in accordance with ASX disclosure obligations. However, with the increase in field activity currently under way and planned going forward"

Easley #1H
The well has reached a depth of 11,350ft having run and cemented the intermediate casing
string. This hole section will now drill down to the Austin Chalk and Eagle Ford Shale targets
with a vertical pilot hole to a planned depth of 11,800ft. The pilot hole will be logged before
sidetracking as a horizontal production well.
Weston #1H
Adelphi has been advised by the Operator, Hilcorp, that fracture stimulation operations
commenced at the Weston #1H well on 4 February 2010. It is expected to take
approximately two weeks to stimulate the 3,000 ft of horizontal liner in a number of stages.
The fracture design is similar to that recently successfully applied to the Kennedy #1H well.
Process equipment and flow lines have already been installed and the well will be flowed to
sales during the clean up.
Kennedy #1H
The well continues to clean up with production performance in line with expectation after the
recently reported IP rates of 4.4 mmscf/d and 1,130 bcpd. Production tubing will be installed
in this well in due course.

 

[Agentm]

condog

the operator is under a lot of pressure to keep the ops quiet, so sensitive info will be held off.

the parts you posted were interesting but you missed some better ones..

the key point is the operatorship aspect

Operatorship

Adelphi has been advised by Texas Crude Energy Inc (“TCEI”), that Hilcorp Energy (“Hilcorp”) have exercised their right under the farmout agreement to assume operatorship of activity within the Sugarloaf AMI effective from 1 February 2010.

Adelphi welcomes this development but would also like to acknowledge and thank TCEI for the significant role they have played to date in maturing the project to its present status. TCEI remain very actively involved and in particular will continue to manage land related issues


tcei have done a brilliant job so far, and hilcorp can now demonstrate to the jvp their preparedness to move forward, as we note in todays release, and we can look forward to the next phase of exploration and field development..

we can also see how the sensitivity of the play is creating issues with the operator on the news releases

With regard to ASX releases in particular but all other relevant disclosures, Adelphi and its listed joint venture partners follow a formal review and approval process with the operator to ensure that commercially sensitive information remains confidential. Adelphi will continue to make releases as and when required and in accordance with ASX disclosure obligations.
However, with the increase in field activity currently under way and planned going forward, Adelphi intends to make regular releases updating the market but when appropriate rather than strictly on a weekly basis on a particular day.

obviously the operator wont allow weekly updates.. so news will be released, as it can be, and whenever

 

[estseon]

"Commercially sensitive".

So, they are still in leasing mode??? It's a bit difficult to see what else it might be.

 

[condog]

Yep as important as the operator ship was I thought in here it was old news dated 1st feb so i dint focus on it.... I acknowledge its more useful to investors then anything else...... but todays news acknowledging things where accellerating is the first serious acknowledgment by the AMI threesome from the ASX that things are likely to accellerate....and it was welcome news to my eyes...

"However, with the increase in field activity currently under way and planned going forward"

I would read the commercially sensitive mainly to be pertaining to new well annoucements, drilling results etc so that all parties recieve timely infromation together....but we all know in reality it doesnt usually happen....unless they have mobile phone jammers on site and security cameras and bugs on the phone...

Not that i care, as long as there drilling and theres gas and condensate im happy..

 

[condog]

See AUT thread page 6 , post 111 for a slide from Pioneers Q3 Earnings report and presentation from seeking alpha.... you may find interesting... where they have highlighted three zones in thier lease are as liquids, condensate and dry gas....

 

[Ramblin Round]

Just got word that EOG are moving offices into DeWitt with 70+ landmen ready to go. It's probably a combination of the shale plays and the pipelines being discussed.

 

[Agentm]

hilcorp got a fine rating for the bonds issued

courtesy of saf..

S&P rates Hilcorp ´s debt as BB & confirms that the bonds will be used to fund recent & pending acquisitions as expected.

“-S&P rates Hilcorp Energy I LP new notes 'BB-'
(The following statement was released by the rating agency)

Feb 3 - Standard & Poor's Ratings Services said today that it assigned its issue-level and recovery ratings to Hilcorp Energy I L.P.'s proposed $300 million senior notes due 2020.
The issue-level rating is 'BB-' (the same as the corporate credit rating). At the same time, we assigned a recovery rating of '3', indicating our expectation of meaningful (50%-70%) recovery in the event of a payment default.
"Our recovery analysis incorporates Hilcorp's plans to use the proceeds from the proposed notes offering to, among other things, repay outstanding balances under its revolving credit facility and fund recent and pending acquisitions," said Standard & Poor's credit analyst Patrick Lee.

Houston-based Hilcorp is a private partnership that acquires, develops, and produces crude oil and natural gas. Our corporate credit rating on Hilcorp is 'BB-', and the outlook is stable. (For the corporate credit rating rationale, see the research update on Hilcorp published Sept. 16, 2009.) RELATED RESEARCH -- "Volumetric Production Payments (VPPs) For U.S. Oil And Gas Exploration And Production Companies," Jan. 30, 2009 RATINGS LIST Hilcorp Energy I L.P. Corporate Credit Rating BB-/Stable/-- New Rating Hilcorp Energy I L.P. Proposed $300 mil. senior notes due 2020 BB- Recovery Rating 3 Primary Credit Analyst: Patrick Y Lee, New York 212-438-4682”

https://research.tdwaterhouse.ca/research/public/Markets/CommoditiesNews?documentKey=