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ADI - Adelphi Energy

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fflintoff said:
AgentM,
The EKA report refers to testing the primary only which is correct. The context of the shallower zones in the report is within the primary only. The JV have no plans to test the Austin at the moment, if at all.
P.S. I note that EME in England got their placing away today. Deeply discounted but EME is now fully funded for the Sugarloaf campaign.
Click to expand...

Folks
EME ended trading down just under 10% with about 6.3m shares traded - thats a little over 10% of those issued. Another 15M shares were placed at 35p so fully funded for 2007 ($5m). I hope Sugar Loaf comes good ... all my eggs are in this basket now !!
The placing wasn't well recieved by many of the private investors, but it's my sense that this will be a distant memory when testing starts at Sugarloaf - I'm hoping that we'll be at/around 70/80p by then
Have a great weekend
Cheers Dums
 
Agentm said:
i cant see them risking the primary if flows are coming in commercial as expected in the primary. I dont believe they will flow test any other zones and risk the very expensive well..



things are happening in texas on many fronts, and in many ways..

good luck all..
Click to expand...

Agent M
What do you mean by this .. are you saying that if the primary is full of free-flowing gas they'll taken that to the market and chase the gas/oil (potentially) at the shallower levels via other wells? ... Is this is so, Would EME automatically be allowed to farm-in as they were part of the original partnership.

Also - care to amplify your comment re: events in Texas re: Sugarloaf? I'm heavily into EME now and would welcome news from down-under, or up-over !!
Cheers Dums
 
Hi AgentM, as you know I'm a holder of ADI at present, waiting rather excitedly for the ann. of Sugarloaf.

I've read through all the announcements, and am wondering asides from the fact we have positive oil/gas shows, how a statement like this could be made.

I wount be selling any shares in ADI, today tomorrow nor next week.. I am 100% certain of the success of the secondaries in the well. I not only believe the secondary have mmet the highest expectations that were estimated, I believe the rumours and figures distributed last year are accurate and have been unable to find any reason to doubt their integrity.
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100% certainty that we will have a successful secondary with pressures suitable for commercial extraction??? Thats a bold claim. What am I missing here mate?

Not arguing, just trying to see if there's something else to the story that I'm missing.

Cheers
-Cali
 
Hey caliente, you should always invest in things that you have the confidence and understanding of, dont listen to others!! i always look at info and then check it out to discount it.. i am very bullish on the secondaries in SL, i always have been since couchy.. i followed couch oil closely for many months, then i noticed other forums started to notice him,, now its public knowlege they are a private investor, but he was able to enlighten us on many details..

I look at how adi actually view the secondaries, and i notice they have forward planned wells last year before they reached TD on the primary.. so for me i was 100% certain they had a very promising commercial find on the secondaries.

I invested for secondary success in either SL or NT, that was all i really expected, the secrecy and planning in the primary makes me extremely confident on the primary..

I looked at AUT's quarterly and see even though it was by the same directors of EKA, or in reality it was AUT first then thy bought into EKA as a way to get directors more share holding in the SL deal. instead of getting better value for the AUT shareholders. anyway i notice the EKA and AUT reports directly contradict eachother. EKA claiming the secondaries will be flow tested, and AUT saying only the primary will be flow tested!!

I dont hold much value to their quarterlies, i notice that AUT is trying to pass off the EKA company details in the appendix 5B section of their report. I dont think any executive chairman worth a pinch of salt would dare try that one on the ASX.. its only a matter of time before the asx should notice and give them a hefty penalty for trying to not disclose to their shareholders properly.
its inexcusable and completely unprofessional. makes a mockery of due dilligence and professional conduct and makes them the laughing stock of the day.. good luck to them if they get away with it,, but for me it makes me nervous to see JVP's behaving that way.

I look forward to ADI's quarterly on the news on SL.
 
...and testing to take up to two months. Is this normal for a testing program? and also, would one expect results to be announced within this two month period or would they announce once all the testing has been completed?
 
stereo21 said:
...and testing to take up to two months. Is this normal for a testing program? and also, would one expect results to be announced within this two month period or would they announce once all the testing has been completed?
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ASX rules require the company to announce any significant development. I would assume that a significant gas flow would be immediately announced. The company is sensitive to this. The start of trading today for ADI and AUT was delayed this morning for 12mins. All the announcement was the commencement of testing in two weeks. Watch for trading halts as these will probably preceed the next announcement. I suggest the sooner the news the better the news and after the big trading halt it will be too late to get in or out. The time for a decision is now. ( I,m in)
Comments please Agentm
 
i see that ADi carefully announce the program in specific and very deliberate ways.

high density perforation of the production casing over selected intervals is the technique

check this link for some great pictures of what it actually looks like in the hole!!

http://www.ptac.org/gas/dl/gasf0601p04.pdf

basically they are saying, they are doing the primary first.. and subject to the result, then they can continue..

they exude an uncanny amount of confidence in the primary dont they!! there is no question they will test the secondary if they have no result in the primary, but they cant announce anything to do with further wells or which way they can go until they get the results from the primary..

doesnt matter, either way the well is a success.. but what a problem to have hey? you cant flow test both zones if the primary is a go!! i love this share!!

still find it difficult to see any downside on the announcement..

i notice all the JVP's have announced new ventures and or have gone to the market for capital, yet adi doesnt, which says to me the straight forward pragmatic and dedicated approach to both SL and NT remains. they are going to see them through before running off on any ole deal that comes by.. i believe the quality on the new ventures which are yet to be announced will be quite something else compared to the average junior,, as they have the backing of ARQ to back them up and get them to places others cant go!

great news all round in any case!




its definately game on now​
 
AUT now fixes quarterly! nice!! now it looks better...........

only a few weeks and we have our first production well!! looking forward to that!
 
two weeks. Thanks for the presentation link AgentM. Cool pictures.

Knowing only the basics of petroleum geology/process from what I can gather, they fire charges into the cement casing in order to perforate into the well and commence flow testing.

From the images, high density perforation looks like more holes in the casing.

My question is why would companies use low density perforation in the first place, asides from a cost issue?
 
I've made a post on this a while back. I'm far from an expert, but my understanding is it all depends on geology of the rock they are fracing. If it was a really permeable rock, then low density may do the trick, because it would just crack the target. At the depths of the hosston, high density fracing would hopefully aim to bust the rock with millions of tiny fractures spaning hundreds of metres. They do this by firing explosive charges in the target zones in order to breach the casing. They then pump extremely high pressure fluids into the well, but do this in an on-off-on-off… manner so that the pressure is not constant but rather huge, then none, then huge, then none, etc. When the pressure is turned on and off like this it fracs the rock more effectively due to constant change in stress. While pumping high pressure fluids into the well they also add sands which help fill these cracks and hold them “open” while still enabling flow once the fracing is complete. As you could appreciate this is no overnight job. I have seen coal seams that have been pressure frac’d to help release methane and when you go down to mine the coal afterwards, it falls apart like talc, so the process can be very effective. Hope this helps… & makes sense.
 
then they flow test then we count the cash!!

btw maverick. that was an extremely good run down on what it does...
 
AgentM,

You have mentioned your gut feel for the size to be 1.5tcf.

The jvp's have estimated 800bcf. In Hartleys summary of the stock back on 8th dec on the primaries with an estimated 800bcf and commercially productive values the company at $4.50.

Therefore if your estimate of 1.5tcf proves to be correct (hopefully), would that value the share price at close to $9.00.

If this is correct then some very happy days are coming our way.

Cheers
 
if i read it correctly, in the eka prospectus that the independent analysis in the prospectus basically said 1.5 tcf was more likely the senario, and that other JVP's had scaled down the reserves to a ultra conservative 800bcf.. if i read it correct i dont think 800bcf with fracing and minimal baseline flowrates could be commercially viable. i think they expected the reserves and estimates to be considerably larger that the jvp's

the quarterly is remarkably late for adi, this time is goes out later than arq and for the first time in ages on the last day of the month.. i assume the news will contain more nice enticing snippets of info, maybe some news of the projects hinted at and suggested in the last report. would be nice to see a continuation on the SL secondaries theme as per their last report.
 
maverick11 said:
I've made a post on this a while back. I'm far from an expert, but my understanding is it all depends on geology of the rock they are fracing. If it was a really permeable rock, then low density may do the trick, because it would just crack the target. At the depths of the hosston, high density fracing would hopefully aim to bust the rock with millions of tiny fractures spaning hundreds of metres. They do this by firing explosive charges in the target zones in order to breach the casing. They then pump extremely high pressure fluids into the well, but do this in an on-off-on-off… manner so that the pressure is not constant but rather huge, then none, then huge, then none, etc. When the pressure is turned on and off like this it fracs the rock more effectively due to constant change in stress. While pumping high pressure fluids into the well they also add sands which help fill these cracks and hold them “open” while still enabling flow once the fracing is complete. As you could appreciate this is no overnight job. I have seen coal seams that have been pressure frac’d to help release methane and when you go down to mine the coal afterwards, it falls apart like talc, so the process can be very effective. Hope this helps… & makes sense.
Click to expand...

Maverick,
Thanks for excellent explanation which complements the info provided by AgentM in the link. The extended flow test could last up to 180days?
If the well flows it will be kept in production from the Hosston. The other layers notably Austin would then have to be tested from different appraisal well(s).
 
fflintoff said:
Maverick,
If the well flows it will be kept in production from the Hosston. The other layers notably Austin would then have to be tested from different appraisal well(s).
Click to expand...
I seem to recollect that an earlier report from ADI mentioned a budget for 2 more wells at Sugarloaf. This was before the well had reached total depth but after the initial gas discovery. Can't find it now but i"m sure it was there somewhere. At the time and on the strength of it I bought some more shares.
 
nioka said:
I seem to recollect that an earlier report from ADI mentioned a budget for 2 more wells at Sugarloaf. This was before the well had reached total depth but after the initial gas discovery. Can't find it now but i"m sure it was there somewhere. At the time and on the strength of it I bought some more shares.
Click to expand...

nioka,
USA Sugarloaf Leases
Sugarloaf-1 currently drilling
2 possible “shallow” wells 2007

Page 5 of the annual report


http://www.adelphienergy.com.au/files/annual/Adelphi 2006 Annual Report.pdf
 
today we get the news,,

i maintain the secondaries are always going to be developed regardless of flowtesting with the current well. regardless of the result in the primary i am certain the secondaries are commercial. The well is in no way a dry well as some maintained earlier in the piece, i think the commitment to the primary speaks for itself, and with NT about to arrive at the zones of interest the days ahead are going to be breathtaking..

i remain steadfast on this stock, and i assume the ongoing forward plan on the secondaries will be maintained in todays quarterly.

perhaps news of a few other ventures to entice?
 
Hi, I have a question from todays NT ann. Is there any significance to the converting to an oil based mud system prior to drilling ahead?? Why would they do that??

Regards
Kevro
 


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