ADI - Adelphi Energy

chance fate · 21 July 2007

... barney, broady, yeah...agree with the logic... whatever happens it's probably good news... mind you there's one depressing thing... it's so easy to play with the sp on EKA... the financier could have easily played around last week... i seem to remember 347000 sell at 45c at one point??

Agentm · 23 July 2007

looking closer at the XTO wells only 6 miles to the north of kunde 3 and SL2, its been quite a money spinner for them.

XTO is a top 10 gas producer in the USA, so no minnow.

35 wells in all at the 11000 feet zone so far and a great producer over the past decade or more..

I tend to think the couch oil statement that their porosity is as low as 3% makes our location and fact we have oil a very exciting find for the jvp's:

The Austin Chalk zone from 11,925’ to 12,200’ looks very oil productive. The log results may set us up to drill over 100 wells in offsetting lease (26,000 acres) to just produce the oil from that zone. The porosity is just about double from what is normally found NE of our well location. Some folks have successfully produced with as low as 3% porosity. We have 9 to 12% porosity.

little wonder the major oil companies were contesting the leases..

there are wells producing oil on the same depth only a little way further into karnes county.. all the new permits and pre permits seem to be at the same depth in karnes.. and these wells are all going on production..

keep seeing only positive things in the immediate area around out 20,000 acres..

cicak_kupang · 23 July 2007

On Sunday I had a chance meet with a guy who works for a company that supplies drillers to the O&G sector. This guy who I don’t remember his name as we chatted briefly for 5 min ( and in any case it doesn’t matter) is currently working on the northwest shelf O&G fields, in the Timor sea. I thought it would be interesting to ask him if he had any idea how big a gas discovery would have to be before any of the big fish showed an interest. He was humming and erring a bit as to a number, so I suggested TCF and BCF as an answer. He said TCF with out any second thoughts.
The significance of this answer to me is that ConicoPhillips is a big fish on the Sugarkane field, and wouldn’t be playing with a few BCF. Sure Texas is a long way from the North West shelf, but this only adds to my certainty that ADI is on winner with SL, and we are indeed talking TCF size.
I have no reason to think this guy was pulling my leg. I can’t prove the content of our chat, but what I’ve written is how it was. Just thought his answer was relevant for me in relation to ADI.

Broadside · 23 July 2007

thanks cicak that's an interesting anecdote because there is someone at another forum implying CP would be involved even if it was bcf and that any tcf talk is BS.

Agentm · 23 July 2007

broadside..

is that person an investor? or has that person got industry knowledge to back that up?

i cant see how major oil companies can make it and replace reserves chasing down tiny 50bcf plays?? they are constantly chasing multi tcf plays and developing them in order to survive..

seriously, i cant even imagine that the likes of CP would be in live oak and karnes for the number of years they have, in securing leases and developing this play unless they really had some large numbers staring at them...

XTO has got 35 wells on about 4 leases just 6 miles NE of us, and some wells have been producing for a lot longer than the average.. they have very low porosity,, half what we have.. and we have oil.. as they have just got their first "oil well" on their last well they put in karnes county a few months ago, just 5 miles or so north of SL1.. and still more vertical wells on the drill there right now..

this sugarkane field is a new discovery field.. tell the doubters to bring forward some data to prove its only 50 bcf!!

Broadside · 23 July 2007

I'm inclined to agree, just like a BHP doesn't waste time making p!ssant acquisitions or developing small projects. I am just looking forward to some results that come from the horse's mouth not the neighbours. You have done a fantastic job piecing together the puzzle but most of the market will wait until the JVPs themselves release their flow tests before they really take off (in my opinion).

The naysayer is a Japanese raw fish I believe you have on ignore, who has never been much of a fan of Sugarloaf.

Agentm · 23 July 2007

Broadside said:
I'm inclined to agree, just like a BHP doesn't waste time making p!ssant acquisitions or developing small projects. I am just looking forward to some results that come from the horse's mouth not the neighbours. You have done a fantastic job piecing together the puzzle but most of the market will wait until the JVPs themselves release their flow tests before they really take off (in my opinion).

The naysayer is a Japanese raw fish I believe you have on ignore, who has never been much of a fan of Sugarloaf.

i watch the counties like a hawk,,

EME announced the kunde 3 well spudded, they didnt even mention it was horizontal, and the well was not spudded when it announced, it was infact at 11500 feet..

i am not interested in whether the raw fish thinks he knows how a major oil company operates,, if i had any interest in his understandings and contributions, i would listen, but he is like a few others, very negative without having done any research, and never backs anything up with research or data.. i dont believe anything i hear, and most definately not from the people that have responsibilty for my holdings, i only research what ADI say, and then varify it.. and if it checks out i stay.. i judge their honesty and integrity by what i find out, and how much of what they say is true..

i know about announcements you will hear this week, some will stagger you, its not because i have inside knowledge,, i just want to know whats going on.. so i find out by research..

one thing that is very interesting about this kunde 3 well is that they have got it very very advanced, and TCEI has the data from it to be confident enough to drill a horizontal just a mile or so away from it with SL2..

the testing of SL1 is now going ahead, and we are looking at a well with a proven play in it, and dont nessesarily think the sugarkane is the proven play.. thers more to it.. theres a lot more to this than meets the eye..

i purchased more adi today.. because of the research i have done up till now, and as a result of the research i did yesterday, and today..

there seems to be a lot of new oil wells in karnes county at 11000 feet!!

chance fate · 23 July 2007

cicak_kupang said:
On Sunday I had a chance meet with a guy who works for a company that supplies drillers to the O&G sector. This guy who I don’t remember his name as we chatted briefly for 5 min ( and in any case it doesn’t matter) is currently working on the northwest shelf O&G fields, in the Timor sea. I thought it would be interesting to ask him if he had any idea how big a gas discovery would have to be before any of the big fish showed an interest. He was humming and erring a bit as to a number, so I suggested TCF and BCF as an answer. He said TCF with out any second thoughts.
The significance of this answer to me is that ConicoPhillips is a big fish on the Sugarkane field, and wouldn’t be playing with a few BCF. Sure Texas is a long way from the North West shelf, but this only adds to my certainty that ADI is on winner with SL, and we are indeed talking TCF size.
I have no reason to think this guy was pulling my leg. I can’t prove the content of our chat, but what I’ve written is how it was. Just thought his answer was relevant for me in relation to ADI.

Just a comment...Offshore NWS you need multi Tcf fields (e.g. Pluto is about the smallest you can get away with to support an LNG train/underpinning contracts by itself at that distance)... to pay for infrastructure incl. LNG plant...which runs into billions of $'s... onshore USA close to transport pipelines.. you can get away with Bcf's... notwithstanding that CP's management time would be better spent on big fields which by association with this project would support the implication that's it's in the Tcf range... imo...

highroller · 23 July 2007

Well, I've been sucked in and bought some on Friday. Annoyed at myself for not getting them earlier.

Curious as to whether anyone here owned any shares in XEN when they were part of a JV drilling for deep gas in California.

fflintoff · 24 July 2007

This post on ADVFN in England might interest agentm:-

Safiande - 23 Jul'07 - 15:03 - 46887 of 46892 edit

JJF,
Re your earlier point on Couch & the Sugarkane wells.
I don ´t know whether he is in or not but he was aware of the Kunde # 1 well data in his 1 Sep 2006 newsletter ( see below re offset data ). Two weeks later he was on site & a week after that his son & a group of investors were also on site. Shortly after which we had all of the unexplained trading halts.
This provides even more evidence that SL & Kunde are on trend & demonstrates that the Sugarkane Gas project as referred to in the RNS is Kunde even though this is still doubted by some on this thread:-

“Sugar Loaf – Hosston
The Texas Railroad Commission requires the Carrizo fresh water sand be isolated with cement from the intervals above and below it. This interval was expected (from offset data – Kunde #1) to be from about 4700’ to 6000’, hence our plans to drill to 6,100’ and set casing. Upon logging, the Carrizo appears to be running 200 – 300’ deeper than anticipated.

Our plans are now to drill to about 6,500’ before setting casing, in order to insure coverage of this interval. The alternative is to place a DV collar in the 9-5/8” casing to be run at 14,500’. That option is considered too risky for this well as it reduces the integrity of the 9-5/8”, which could be disastrous if it were to leak during our deep drilling operations. So we drilled to 6,500’ and set casing this morning.”

http://www.couchoil.com/daily/2006/0901.htm

Agentm · 24 July 2007

not sure about that flintoff.. i think the requirment to do this is standard for all wells in the region.. have to look into it one weekend..

now NT..

index oils press release announced an independent report on its operations, and a lot of mentions of NT.. this report is only just released now..

it appears in terms of exploration, for them its a significant prospect..

http://www.otclive.com/IXOG_Initiation_Report[TSC].pdf page 11, and remember its a 8% WI well for them..

these things are of interest

On September 10, 2006, the Company signed an agreement to participate in the New Taiton Project in Wharton County, TX.

The first well, Ilse 1 has been drilled and logged with completion results pending, targeting stacked Wilcox sands on trend with large nearby gas fields producing gas from the same Wilcox reservoirs. The prospect is defined by modern 3D seismic data. If Ilse 1 proves successful, the Company expects to participate in further wells to develop the potential of the New Taiton Project.

The Company has a 10% working interest before payout and an 8% working interest after payout in the New Taiton Project

The first well, Ilse No. 1, will target stacked Wilcox sands; nearby gas fields have cumulative production in the 30 BCF range from the same reservoirs. There are at least 3 wells planned for the project in a successful scenario, based on the commerciality of the initial well. Drilling of Ilse 1 began in December 2006 targeting Middle Wilcox sands at approximately 17,000 feet. Ilse 1 has now been drilled and logged with completion results pending. This project is also in keeping with the Index’s strategy to participate in prospects with larger potential.

The following 5 wells (including a low risk production well) are planned to be drilled, plus the prospective completion of Ilse 1 during the current fiscal year ending 31 March 2008:

I see a very upbeat, bullish and optomistic view on the well is still there..

After seeing this i cant see NT as being lost!! much more is happening there..

all imho and dyor

HOMER J · 24 July 2007

EKA raising 3 million for sugarloaf:

Eureka is pleased to announce that it has agreed the placement of 9,375,000 shares at an issue price of $0.32 per share to raise $3,000,000, before the costs of the issue.
Funds raised from this issue will be applied towards the Sugarloaf project including drilling activities and for general working capital.

AUT raising 10.6 million

CAPITAL RAISING
Aurora Oil & Gas Limited (ASX:AUT) (“Company” or “Aurora”) is pleased to announce a capital raising to provide additional working capital for activities, including drilling, infrastructure, seismic and land acquisition, on the Company’s US oil & gas projects.
The capital raising consists of:
• A placement of 20 million shares at $0.53 per share to professional and sophisticated investors to raise $10.6 million before costs; and,
• A 1 for 10 non-renounceable rights issue at $0.53 per share

“The continued support of investors for our activities in the US is greatly appreciated. We are optimistic that the forthcoming period of activity will generate positive news flow and significant value for shareholders

Remedial cementation of the Sugarloaf-1 well has been completed without operational problems and tubing is presently being withdrawn in preparation for the fracture stimulation and test program.
The fracture stimulation of the Sugarloaf -1 well is presently expected to begin by mid August, subject to equipment availability.
The fracture stimulation of our North Belridge 26-2H well is also expected to start in mid August.
The drilling of our Sugarloaf-2 horizontal well is presently anticipated to commence towards the end of August.”

Broadside · 24 July 2007

Re Eureka: not happy Jan, they could have waited a month and placed at double these levels if all went well. I know there is risk but they should be trying to avoid dilution to existing holders - and especially options holders Homer!

HOMER J · 24 July 2007

I know what you mean Broadside, but at least it isn't a huge share issue and its at 32c which should mean the price holds up fairly well. Im glad they are spending it on sugarloaf anyway.......

Agentm · 24 July 2007

“The continued support of investors for our activities in the US is greatly appreciated. We are optimistic that the forthcoming period of activity will generate positive news flow and significant value for shareholders

i am not sure if there is something they forgot to say here

this is as big hint that you are going to get.. i thought it was worth reposting and highlighting..

Agentm · 24 July 2007

9 may 2007 (75 days ago)

Eureka is pleased to announce that it has agreed the placement of up to 7,875,000 shares at an issue price of $0.20 per share to raise up to $1,575,000, before the costs of the issue.

In addition, the Company has agreed subject to shareholder approval to issue a further 2,125,000 shares at the same issue price to raise $425,000 before issue costs. A notice convening a general meeting of shareholders to consider this additional placement will be sent to shareholders in the near future.
Funds raised from these issues will be applied towards the Sugarloaf project and for general working capital

today

Eureka is pleased to announce that it has agreed the placement of 9,375,000 shares at an issue price of $0.32 per share to raise $3,000,000, before the costs of the issue.
Funds raised from this issue will be applied towards the Sugarloaf project including drilling activities and for general working capital.

11 july 2007

A suitable rig has been identified and subject to Joint Venture approval and execution of relevant documentation, is expected on location about the end of August. Eureka’s 12.5% share of dry hole costs are approximately US$450,000 based on a gross estimated dry hole cost of US$3.6 million for this well. Total well completion costs are estimated at US$1.65 million (Eureka share US$207,000).

so i think its time to add things up..

the 1.5 mill should have covered SL1 and SL2 with about $800,000 left for at least another well..
the 3 mill will give them enough for about 5 more horizontals.. and with the other cash they have enough for say 6 horizontals..

now the money EKA is raising is specifically for Sugarloaf..

i would say sugarkane must becoming one heck of a project.

fflintoff · 24 July 2007

Agentm said:
9 may 2007 (75 days ago)

Eureka is pleased to announce that it has agreed the placement of up to 7,875,000 shares at an issue price of $0.20 per share to raise up to $1,575,000, before the costs of the issue.

In addition, the Company has agreed subject to shareholder approval to issue a further 2,125,000 shares at the same issue price to raise $425,000 before issue costs. A notice convening a general meeting of shareholders to consider this additional placement will be sent to shareholders in the near future.
Funds raised from these issues will be applied towards the Sugarloaf project and for general working capital

today

Eureka is pleased to announce that it has agreed the placement of 9,375,000 shares at an issue price of $0.32 per share to raise $3,000,000, before the costs of the issue.
Funds raised from this issue will be applied towards the Sugarloaf project including drilling activities and for general working capital.

11 july 2007

A suitable rig has been identified and subject to Joint Venture approval and execution of relevant documentation, is expected on location about the end of August. Eureka’s 12.5% share of dry hole costs are approximately US$450,000 based on a gross estimated dry hole cost of US$3.6 million for this well. Total well completion costs are estimated at US$1.65 million (Eureka share US$207,000).

so i think its time to add things up..

the 1.5 mill should have covered SL1 and SL2 with about $800,000 left for at least another well..
the 3 mill will give them enough for about 5 more horizontals.. and with the other cash they have enough for say 6 horizontals..

now the money EKA is raising is specifically for Sugarloaf..

i would say sugarkane must becoming one heck of a project.

….and Pioneer is splashing out millions for three more horizontal wells at the giant Pawnee field right next door to SL/SK

“Oil and Gas Report: 07.24.07

BEE COUNTY
Pioneer Natural Resources USA of Irving has filed for permits to drill three more 17,000-foot horizontal wells in the Pawnee (Edwards) field. The No. 9 Tomasek Gas Unit will be 12.1 miles northwest of Tuleta in the BS&F Survey A-128. The No. 4 Mansker Ranch Gas Unit and the No. 3 Winnie Madge Going Gas Unit will be drilled 9.1 and 8.5 miles northwest of Pettus in the R. B. Marcy Survey A-127.”

http://www.caller.com/news/2007/jul/24/oilgas/

Agentm · 25 July 2007

Project: New Taiton
Prospect: New Taiton
Well: Ilse-1
Wharton County, Texas, S. Lavon Evans, Jr., Operating Company, Inc. Operator, Antares 25%

The Ilse-1 well remains shut-in pending a formal recommendation from the operator. A joint venture meeting was held on 18 July 2007, attended by the working interest participants, and the operator agreed to supply estimated costs for the testing of three secondary sandstone
intervals. After receipt of formal cost estimates and AFE documents (authorisation for expenditures) the joint venture will collectively decide the forward program.

after the US partner puts out some news on NT, we see that they have come to an agreement..

great news at NT..

chance fate · 25 July 2007

this looks encouraging... from eme on lse today... eme sp seems to be reflecting overall market sentiment on oil price:

RNS Number:8123A
Empyrean Energy PLC
25 July 2007

Empyrean Energy PLC

("Empyrean" or the "Company"; Ticker: (EME))

Sugarloaf Block A, Texas USA

• TCEI JV Block A # 1 well update

Empyrean has been advised by Texas Crude Energy Inc that the TCEI JV Block A
#1 well, the first well to be drilled as part of the recently announced 16
well deal, continues to drill ahead having drilled to date approximately
1500 feet of the planned 4000 feet horizontal drainhole in the Cretaceous
Carbonate.

The well has encountered encouraging gas shows in addition to fluorescence
in the cuttings. Multiple gas flares measuring between 10-40 feet have been
reported during the circulation of bottoms up accumulations as the mud
weight has had to be substantially increased.

The well is planned to be drilled 4000 feet horizontally (about 15500 feet
measured depth) after which appraisal and analysis of the hydrocarbon shows
encountered during drilling will be carried out. Although encouraging, no
conclusions should be drawn from these gas shows, fluorescence and flares
until the drilling is completed and testing operations have been conducted.
Further updates will be provided as relevant information comes to hand.

The information contained in this announcement was completed and reviewed by the
Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has
over 40 years experience as a petroleum geologist.

For further information:
Charlie Geller/ Ed Portman
Conduit PR
Tel: +44 (0) 207 429 6604/
+44 (0) (797) 006 7320

Empyrean Energy plc
Tel: +44(0) 207 182 1746

resourceboom · 25 July 2007

"Fluorescence can be an indication of crude oil staining, or of the presence of fluorescent minerals"
From http://en.wikipedia.org/wiki/Formation_evaluation

I hope and expect it to be an indication of the former!!

ADI - Adelphi Energy

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