Petrohawk sold 50% of its Haynesville midstream assets (pipelines, gas treatment plants, etc) to Kinder Morgan (a pipeline company). They didn't sell any acreage. I dont know that ADI really owns any midstream assetts that they could monetize.
ADI - Adelphi Energy
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Petrohawk sold 50% of its Haynesville midstream assets (pipelines, gas treatment plants, etc) to Kinder Morgan (a pipeline company). They didn't sell any acreage. I dont know that ADI really owns any midstream assetts that they could monetize.
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no one is saying yemen is not for sale, and block 7 was sold a long time ago and the cash is in the bank for adi.. last week they said it was still active in selling the remaining block rambling
choppy, adi are a little different to the other jvp partners, in that they hold both considerable cash reserves and also have a block of acreages in yemen.
they have stated the block is up for sale, but they also need to be prepared for the liabilities of drilling should that not occur.
hilcorp will require some considerable capital from the jvp partners when drilling commences on the acreages, so adi is preparing themselves for all eventualities and outcomes in the near term the way i see it. and giving themselves a potential injection of new capital from new investors which imho is critical at this point also..
unpopular as always a cap raising is, but imho its part and parcel of development.
imho the value about to be attained by the jvp through the current wells being opened up and the injection of new blood is excellent timing and will be positive for adi long term.. no one can argue a cap raising will be popular with current holders but its necessary and well timed imho
all imho and dyor
On the same page Agent.
Add to that the fact that alot of smaller oilers can get drilled out (this has been brought up before)
Hilcorp raised up to 300mil (by my memory) not to spend at the local shops, but to do some serious drilling. You can bet the jvps are just as astonished at the rate these guys are going.
Pay for it or lose it. Hilcorp are not wasting time, as I mentioned in a prior post the reality will be ADI becomming a producer and management would know this.
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Well if there's any good news out of this then this might be it. I pass on my compliments to the Board for taking a careful approach to future "possible" expenditures for the corporation. It seems to be a wise strategy and a good worst case scenario to be prepared for such things such as the need to furthur drilling Yemen if necessary.
The downside is that it may be a gloomy projection on paper for ADI and perhaps will shun some investors, but knowing what is going on in Texas and seeing it here with my own eyes the ADI and AUT seem derisked to a level that I am comfortable with.
IMHO and DYOR, of course. I'm no expert. Just watching the rigs go up over here that's all. And MAN are they going up fast !
The downside is that it may be a gloomy projection on paper for ADI and perhaps will shun some investors, but knowing what is going on in Texas and seeing it here with my own eyes the ADI and AUT seem derisked to a level that I am comfortable with.
IMHO and DYOR, of course. I'm no expert. Just watching the rigs go up over here that's all. And MAN are they going up fast !
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been watching the rig activity closely myself,, and totally agree
up fast.. but have you noticed how fast they come down with hilcorp.. 3 weeks! and they are putting in cemented liners and pulling them apart!!
on a side note.. adi has been suspended trade until the announcement on the equity is issued
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Being around the oilfield most of my life, I must add. It is AMAZING............I say again........... AMAZING the turnaround time from drill bit to production on these wells. The perfection of this drilling process has been the talk around here lately. Nothing better than a good operator to reduce overhead for these wells. Amazing production these are. Talk the talk, walking the walk is what I see.
30 April 2010
Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online
ADELPHI TO RAISE $5.5 MILLION TO PROGRESS SUGARLOAF DEVELOPMENT
Adelphi Energy Limited (“Adelphi” or “the Company”) is pleased to advise that it has resolved
to raise $5.5 million through a placement of 22 million ordinary shares at $0.25 per share
(“Placement”), predominately to institutional and sophisticated investor clients of Hartleys
Limited, which acted as Broker to the Offer in respect of the Placement. Adelphi’s long-term
cornerstone shareholder AWE Limited has confirmed its ongoing support for Adelphi and has
committed to take up a pro-rata share in the Placement to maintain its 32.5% shareholding in
the Company.
Funds raised pursuant to the Placement will be primarily used to fund the development
program at Sugarloaf following the rapid progress made by our operator in relation to the
recent farm-in wells, where flow rates of up to 1,132 bopd and 4.4mmcfg/d have been
achieved.
Commenting on the success of the Placement, Adelphi’s Managing Director, Chris Hodge
stated:
“As demonstrated by the sustained strong oil and gas flows achieved from the first two wells
on production at Sugarloaf, which we consider to be comparable with the best achieved in
the Eagle Ford, Adelphi’s perseverance at Sugarloaf is now beginning to reap rewards. We
are excited by the potential upside offered by the ongoing work program - with results from
the 3 wells that have recently been drilled expected to be reported over the coming 4-6
weeks.
We are also very pleased with the strong support that has been received in respect of the
Placement, which will ensure Adelphi remains well funded to progress the Sugarloaf
development.”
The Placement shares will be issued pursuant to the Company’s 15% capacity under ASX
Listing Rule 7.1. On completion of the Placement, Adelphi will have cash reserves of
approximately $9.5 million.
Adelphi’s latest investor presentation will be released separately this morning to ASX.
Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online
ADELPHI TO RAISE $5.5 MILLION TO PROGRESS SUGARLOAF DEVELOPMENT
Adelphi Energy Limited (“Adelphi” or “the Company”) is pleased to advise that it has resolved
to raise $5.5 million through a placement of 22 million ordinary shares at $0.25 per share
(“Placement”), predominately to institutional and sophisticated investor clients of Hartleys
Limited, which acted as Broker to the Offer in respect of the Placement. Adelphi’s long-term
cornerstone shareholder AWE Limited has confirmed its ongoing support for Adelphi and has
committed to take up a pro-rata share in the Placement to maintain its 32.5% shareholding in
the Company.
Funds raised pursuant to the Placement will be primarily used to fund the development
program at Sugarloaf following the rapid progress made by our operator in relation to the
recent farm-in wells, where flow rates of up to 1,132 bopd and 4.4mmcfg/d have been
achieved.
Commenting on the success of the Placement, Adelphi’s Managing Director, Chris Hodge
stated:
“As demonstrated by the sustained strong oil and gas flows achieved from the first two wells
on production at Sugarloaf, which we consider to be comparable with the best achieved in
the Eagle Ford, Adelphi’s perseverance at Sugarloaf is now beginning to reap rewards. We
are excited by the potential upside offered by the ongoing work program - with results from
the 3 wells that have recently been drilled expected to be reported over the coming 4-6
weeks.
We are also very pleased with the strong support that has been received in respect of the
Placement, which will ensure Adelphi remains well funded to progress the Sugarloaf
development.”
The Placement shares will be issued pursuant to the Company’s 15% capacity under ASX
Listing Rule 7.1. On completion of the Placement, Adelphi will have cash reserves of
approximately $9.5 million.
Adelphi’s latest investor presentation will be released separately this morning to ASX.
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The upside to this is that getting a large placement at a small discount to market rate shows the amount of confidence the market has. The downside is the dilution. This has halved ADI's advantage over AUT in the joint venture profits.
I'd like to get hold of some more shares at 25c.
So much for new blood Agentm.
Tho i'm a long term holder of the company i guess i don't qualify as a sophisticated holder
Maybe the sp will go below or hang around the 25c mark for a few months.
"institutional and sophisticated investor clients of Hartleys
Limited, which acted as Broker to the Offer in respect of the Placement"
Does this change Hartley's price target given the dilution then or was it already factored in?
The recent push on AUT may not be a coincidence then.
Not too fussed given the new investors shouldn't introduce too much volatility. However with the cash injection, the emphasis has shifted a bit from operational excellence(which hilcorp has proven) to strategy.
Limited, which acted as Broker to the Offer in respect of the Placement"
Does this change Hartley's price target given the dilution then or was it already factored in?
The recent push on AUT may not be a coincidence then.Not too fussed given the new investors shouldn't introduce too much volatility. However with the cash injection, the emphasis has shifted a bit from operational excellence(which hilcorp has proven) to strategy.
"institutional and sophisticated investor clients of Hartleys
Limited, which acted as Broker to the Offer in respect of the Placement"
Does this change Hartley's price target given the dilution then or was it already factored in?
Not too fussed given the new investors shouldn't introduce too much volatility. However with the cash injection, the emphasis has shifted a bit from operational excellence(which hilcorp has proven) to strategy.
I'll bet that Hartleys will be promoting the stock at a much higher price than they paid. I'm annoyed that they had the offer at a discount price and the offer was not made to all shareholders. AWE were given a pro rata issue for them to maintain their percentage holding, but then they are represented on the board so they were able to look after themselves. Hartleys were handed about $1M in easy profit.
Yes the more exposure the more likelyhood of new blood but wouldn't you opt for AUT over ADI if you were looking to come in?
I'll bet that Hartleys will be promoting the stock at a much higher price than they paid. I'm annoyed that they had the offer at a discount price and the offer was not made to all shareholders. AWE were given a pro rata issue for them to maintain their percentage holding, but then they are represented on the board so they were able to look after themselves. Hartleys were handed about $1M in easy profit.
I'm with you on this nioka.
Been holding this company for a long time now.
Just wondering if Agentm is a sophisticated investor?
Where's my discount?
You can say what you want about the equity raising, I for one am not over the moon about it but at least we know that there is going to be alot more action on the AMI.
What made me happy today was the release of an investor presentation. WOW it's about frickin time they did some promoting of this world class play, let's hope this promoting brings some increased volume and apreciation to the SP.
What made me happy today was the release of an investor presentation. WOW it's about frickin time they did some promoting of this world class play, let's hope this promoting brings some increased volume and apreciation to the SP.
If you adjust the cash balance for the Yemen reserve, ADI and AUT (which both have a 10% WI) now seem to have comparable cash that can be allocated to S/L of about AUD 6m.
The cost of a well (in one of the 31/3 presentations) is about USD 7m. The FX is about AUD = 0.93 USD. That all suggests that both ADI & AUT have cash allocated to S/L sufficient for about 8 wells......
They are still quiet about proposals for 2010 post completion of the farm out programme.
Perhaps that should be the focus rather than the dilution. Dilution can be partially / wholly compensated for by bringing forward production and increasing NPV values. They seem to be using a 10% discount rate ("NPV 10").
Note that ADI reports that there are only 6m option shares available to be exercised by directors at 23 cents - that would not have raised the cash raised by the placement.
EME is cashed up as well.
I don't follow EKA and haven't done any calcs but they've recently raised cash.
The cost of a well (in one of the 31/3 presentations) is about USD 7m. The FX is about AUD = 0.93 USD. That all suggests that both ADI & AUT have cash allocated to S/L sufficient for about 8 wells......
They are still quiet about proposals for 2010 post completion of the farm out programme.
Perhaps that should be the focus rather than the dilution. Dilution can be partially / wholly compensated for by bringing forward production and increasing NPV values. They seem to be using a 10% discount rate ("NPV 10").
Note that ADI reports that there are only 6m option shares available to be exercised by directors at 23 cents - that would not have raised the cash raised by the placement.
EME is cashed up as well.
I don't follow EKA and haven't done any calcs but they've recently raised cash.
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looks like me getting out at .31 was a good move in the short term and will re-enter after things stabilize ....... I feel for the long term holders not fair to them and at .25c the shoe could of been on the other foot and you guys could of been saying "i told you so" to myself, dilution was going to happen so why not give a bit to the average shareholder....
Rock86, I don't think it's about advertising the play in general. The different small caps in the play are currently receiving different levels of interest.
Following recent successes ADI has been the most de-risked out of the similar caps and different people with different risk preferences may well choose to invest differently. However this now may change, as Estseon has pointed out and I touched on, there hasn't been a lot of information on the 'future direction' of ADI, in terms of beyond the farm-in what's in store.
I read it thus:
Short term ADI will try to promote interest, and has started with the long overdue presentation. It however is nothing new. Just reading by the wording of the announcement the cap raising is not underwritten as such we shouldn't speak about as if the cash is already in the bank. See EKA's recent raising (to existing share holders mind you) which was undersubscribed. ADI has an interest to maintain the share price leading up to the raising to respectable levels. If so, some clear view of the future direction is essential.
Yemen I assume is about oil, and the success with hilcorp so far does not extend it to that area, so I wouldn't assess the potential cash in the same basket.
Interesting to see how ADI wishes to position itself now. Whether the risk profile will suit existing investors it's up to the individuals.
Disclosure: I do hold ADI.
Following recent successes ADI has been the most de-risked out of the similar caps and different people with different risk preferences may well choose to invest differently. However this now may change, as Estseon has pointed out and I touched on, there hasn't been a lot of information on the 'future direction' of ADI, in terms of beyond the farm-in what's in store.
I read it thus:
Short term ADI will try to promote interest, and has started with the long overdue presentation. It however is nothing new. Just reading by the wording of the announcement the cap raising is not underwritten as such we shouldn't speak about as if the cash is already in the bank. See EKA's recent raising (to existing share holders mind you) which was undersubscribed. ADI has an interest to maintain the share price leading up to the raising to respectable levels. If so, some clear view of the future direction is essential.
Yemen I assume is about oil, and the success with hilcorp so far does not extend it to that area, so I wouldn't assess the potential cash in the same basket.
Interesting to see how ADI wishes to position itself now. Whether the risk profile will suit existing investors it's up to the individuals.
Disclosure: I do hold ADI.
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While it may seem foolish and immature I look at myself as a long-term holder of ADI at least for a few years (3-5). If other investors can absorb this current dilution you're still in a company with no debt and mucho money in the bank with wells in place in the largest oil and gas play in North America. It has been totally derisked on the Texas side because we live it and see it daily. How to explain this to worldwide investors will be the difficult issue. Exposure is the key...more exposure to EVERYone about ADI's position along with the other JVP as well will hlep springboard this thing later this year.
That's why I find the recent presentation pleasing and easily absorbed with a bit of prior knowledge. My advice is to start hustling more Texas money into this thing to attract large investors and get on the map. Even in the most recent articels AZZ and AUT are mentioned, but ADI is invisible. Alex Forcke if you're reading this do some PR in the states man....get with it !!
If there's ever anything to get you excited about, read this article and blog. I still can't beleive my land and surrounding cities are in this thing and this is what I am seeing. This article is spot on to what is going on here in our small towns in Texas.
http://eaglefordshaleblog.com/
Even with the current price the .25 is still a win for me as I see furthur down the road the capability of this company when production hits full scale. It should still be so for others too that can see long-term advantages of this play. I would like to hear the thoughts of others here as well.
That's why I find the recent presentation pleasing and easily absorbed with a bit of prior knowledge. My advice is to start hustling more Texas money into this thing to attract large investors and get on the map. Even in the most recent articels AZZ and AUT are mentioned, but ADI is invisible. Alex Forcke if you're reading this do some PR in the states man....get with it !!
If there's ever anything to get you excited about, read this article and blog. I still can't beleive my land and surrounding cities are in this thing and this is what I am seeing. This article is spot on to what is going on here in our small towns in Texas.
http://eaglefordshaleblog.com/
Even with the current price the .25 is still a win for me as I see furthur down the road the capability of this company when production hits full scale. It should still be so for others too that can see long-term advantages of this play. I would like to hear the thoughts of others here as well.
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I just had a thought. 5.5 mill is barely enough to cover expenses for just one well. What are their plans for this money ? One more rig ? Maybe two ? Etc. ?
Thoughts and comments ? In the oilfiled 5 mill is not that much money. I hope it was worth it.
Thoughts and comments ? In the oilfiled 5 mill is not that much money. I hope it was worth it.
