ADI - Adelphi Energy

[Agentm]

hey Austrader,,

agree with all your calculations, and look forward to seeing those numbers come up,

as for workover rig, i believe the type of tests these guys want to do cant be performed by this rig, a workover rig is definately on the cards. if its 3 days then thats brilliant, lets see if todays announcement brings any news on TD and also on the workover rig perhaps..

 

[stereo21]

The 2006 AGM presentation has just been posted on the ASX. Very interesting stuff...

 

[blues]

Did anyone attend yesterday's AGM? Would be interesting to hear comments and the tone of the meeting?

 

[djones]

"Geology Mainly As Expected"

"Operationally Very Successful"

 

[Sean K]

Hope you guys held this before the sell off this month. 30%. Ouch.

Looks to be consolidating ok at the moment, and possibly generally up, but beware the potential H&S formation which if confirmed would send this back to about $0.40/45 and about where the next decent support should be.

 

[Agentm]

a sub economic gas flow is a "failure"

nice one.. that should end any speculation!!!

bring on the flow testing guys....

 

[nioka]

Report doesn't look anything fancy. In the forward program they opnly list 2 possible shallow wells for sugarloaf.

 

[Agentm]

I think the terminology used is none the less positive nioka..

i found the new projects interesting but as i didnt have the airfare booked for perth i didnt attend and didnt get any insight into the future projects.. indonesia is also mentioned, also the 3ds on the USA gulf coast.. isnt that what TCO is doing?? i wonder if its to do with the TCO operations.

regarding the wells when you think about it, they cant list a deep well for Sugarloaf or risk massive speculation on the share price, yet the 100 BCF estimates for the austin and two wells doesnt even cause a ripple on the shareprice..

they are very bullish on the austin

the severe secrecy on the primary has its sound reasons, and the reasons to only report potentially commercial shows 58 meters in all on the primary, and to absolutely report no other shows since the end of the secondaries (sligo) even in the weekly reports can show you how closed and tight the information is on the primary. What we do get is that the size of the primary is way bigger than expected, and if you think back to the seismics not being accurate and the hosston sands commencing way deeper than expected, then it makes sense that the actual size of the gas shows were way bigger than expected...

i see adi have pointed all three shows as part of the upper hosston, and nothing in the lower,, i thought the lower was the third show in the primary..

looks good for the near term,, i bought in at a great price and can see some good reasons to hold for now,,

 

[Agentm]

ok.. i'll start..

if we are still in the primary why stop drilling???

what is TD?

if not at TD then why wirline b4 TD?

 

[HOMER J]

Im scratching my head too. would drillers usually announce reaching total depth? seems they have stopped 30m short.....

 

[nioka]

I'll suggest total depth has been reached. To date I have been a cautious optimist. Today I have become pessimistic. (When I saw the presentation that showed only 2 shallow wells in the budget for next year and none after that for sugarloaf)
Maybe the wireline logs will find something more but don't count on it. I have kept some of my ADI shares but have sold 50000 which cost47c av for 62c today and invested in AOE. I am pessimistic of ADI but optimistic of AOE

 

[djones]

When I saw the presentation that showed only 2 shallow wells in the budget for next year and none after that for sugarloaf

Could that be because they dont plan wells unless they know its economic and they cant ascertain that yet?

 

[nioka]

Could that be because they dont plan wells unless they know its economic and they cant ascertain that yet?

Your guess is as good as mine or better. I don't gamble on what someone MIGHT do. I only invest on what they ARE doing.

 

[djones]

Your guess is as good as mine or better. I don't gamble on what someone MIGHT do. I only invest on what they ARE doing.

Well then you should only be investing in established resource companies as explorers and drillers like this one are only worth what they MIGHT do in the future. They ARE testing reserves that they have found to see if it worth doing something, youd prefer they tested first than put 20 wells in there AGM slide and then they find they can only have 2 definite ones...

 

[Agentm]

nioka

nice to see you made some gains and are happy to get on with other investments..

adi has allocated cash for the sugarloaf and other US projects..

You cannot expect they announce multiple wells on the austin chalks, if you expected it then you would never get it, just as they cant for the primary, as it would possibly send the wrong signal to the market. Currently they have 2 possible wells for the chalks already for 07, and thats before they have announced the results of the wireline logs, it says to me the logs may have been more positive than negative to me.... and as for the primary, we today have an unexpected drilling halt and suddenly into wireline logging. so whats happening there? For me i am bullish on the secondaries, and as for the primary, after todays announcement i am extremely curious as to why they stopped drilling and are wirelining instead.. no anouncements of shows, and we know they wont announce shows less than the previous one, so have they a whole series of smaller shows? whats happening out there??

For me i remain in for the value of the secondaries and the final yes or no on the primary. I know that wont be known until after wireline logging and testing and then once they continue drilling again.

from whats floating around the traps on the primary in the recent days i am not that suprised they are suddenly wireline logging..

but as i say, great to see money made on the share.. well done..

 

[nioka]

Well then you should only be investing in established resource companies as explorers and drillers like this one are only worth what they MIGHT do in the future. They ARE testing reserves that they have found to see if it worth doing something, youd prefer they tested first than put 20 wells in there AGM slide and then they find they can only have 2 definite ones...

What they ARE doing, according to their report, is budgeting for 2 Shallow wells no mention of another deep one. Shallow gas wells will be a long time recouping the cost of sugarloaf to date.

 

[maverick11]

I think they want to log the primary to see what they've got. The drill also probably requires maintenance or something. On the bright side, we will have some gas data announced later in the week or early next week after logging. Who knows whether the primary stops at exactly 21,000' or a bit before or after?? I think they will find out what the primaries are looking like as part of their risk assessment as to whether they will drill past 21,000'.

 

[tarzanhey]

anyone notice it doesnt say - We have reached TD? maybe they will wireline and continue to drill on - they may have found something big! it says they continued to drill in the primary target - not stopped.


AIM quoted Empyrean Energy PLC today announces that as at 6am Texas time on 28th
November 2006, the Sugarloaf-1 exploration well located in the onshore Gulf
Coast Basin was at a depth of 20,896 feet (6,371 metres). The current operation
is conditioning the hole and preparing to run wire-line logs.

Since the last report released on 21st November 2006, the well has continued to
drill in the primary target of the Sugarloaf-1 well.

It is expected that the running of the wire-line logs and interpretation of
these and other geological information will take several days.


THESE GUYS ARE SO CAGEY YOU HAVE TO READ BETWEEN THE LINES. LOL

HAPPY BIRTHDAY TO ME!!!

 

[austrader02]

Yo Tarzan,

Happy birthday mate! From my understanding, wireline logs are always run after a company has reached TD. Reason being they need to pull the drill assembley an put in the wireline running tool and run back down the hole! This process takes time = mONEY! So from my understanding, i think TD has been reached and they will log.....fingers crossed.

I was hoping they would be more clear but i think they are unsure also! No leak from Couchie, not much info from the releases in the last two weeks BUT IT doesnt mean nothing is there! My question, is lets say they say primary was a dud and secondary is great and we will complete the well and test it.....will that impact the price at all?
If the release indicates that they will complete the secondaries, what do u all think will happen the share price....hasnt this already been factored in at the current price?

 

[fflintoff]

anyone notice it doesnt say - We have reached TD? maybe they will wireline and continue to drill on - they may have found something big! it says they continued to drill in the primary target - not stopped.


AIM quoted Empyrean Energy PLC today announces that as at 6am Texas time on 28th
November 2006, the Sugarloaf-1 exploration well located in the onshore Gulf
Coast Basin was at a depth of 20,896 feet (6,371 metres). The current operation
is conditioning the hole and preparing to run wire-line logs.

Since the last report released on 21st November 2006, the well has continued to
drill in the primary target of the Sugarloaf-1 well.

It is expected that the running of the wire-line logs and interpretation of
these and other geological information will take several days.


THESE GUYS ARE SO CAGEY YOU HAVE TO READ BETWEEN THE LINES. LOL

HAPPY BIRTHDAY TO ME!!!

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It has been TPD ( Total Proposed Depth ) rather than TD for some time. There will not be any more drilling. Maverick knows from the logs from leaky rice that the formation is 80% shale & siltstone at this depth rather than the nice 80% sandstone from 18000ft to 18500ft where they reported the glorious earlier shows in mid Nov.