It could be a long time, have a read of the report to the ASX on the 28, DON'T worry they are AOK, your money is safe, you WILL make money on them.
BNL - Blue Star Helium
- Thread starter yogi-in-oz
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It could be a long time, have a read of the report to the ASX on the 28, DON'T worry they are AOK, your money is safe, you WILL make money on them.
your guess is as good as mine. probably taking longer than expected to sort out watever they have to do. i think thats why they didnt specify a date for end of halt. unlike URL who majorly screwed me over by extending it and giving me false hope.
but this on the other hand, i cant see as being any bad news. the only thing i can think of that may bring down the SP would be some lame uneventful announcement that is not price sensitive, something actually negative (which i dont think should happen considering the recent performance) or capital raising which has an upside.
if its a public raising and higher than current price...well use your logic to figure out what happens.
if its below the market price (it better be significantly lower) then us azz holders can probably take it up and sell on market before it revalues lower.
i think alot of people have realised cap raisings usually = easy money.
either way, from what i can see unless something drastic happens, then i can only see good news happening. this is me being overly optimistic though
but this on the other hand, i cant see as being any bad news. the only thing i can think of that may bring down the SP would be some lame uneventful announcement that is not price sensitive, something actually negative (which i dont think should happen considering the recent performance) or capital raising which has an upside.
if its a public raising and higher than current price...well use your logic to figure out what happens.
if its below the market price (it better be significantly lower) then us azz holders can probably take it up and sell on market before it revalues lower.
i think alot of people have realised cap raisings usually = easy money.
either way, from what i can see unless something drastic happens, then i can only see good news happening. this is me being overly optimistic though
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I see two possible announcements.
i) Closed capital raising involving a large institutional investor and announcement of the purchase to 100% share of additional acreage for Yellow Rose project. No offer to existing shareholders; or
ii) Negotiations with institutional investor was not successful, allowing only a 50% share in additional Yellow Rose acreage.
I'm only speculating, so I'm sure time will tell. I can only see good news though...
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The quarterly report released yesterday mentions that $10,000,000 capital was raised, (40 million ordinary shares at 0.25).
Must have been a closed CR. What would this mean for the long run?
Source: Antares Energy 30 June 2009 Quarterly Report
Must have been a closed CR. What would this mean for the long run?
Source: Antares Energy 30 June 2009 Quarterly Report
well u were half right, nice spotting of the CR though. it appears they are going to still raise more money. i can only see this as a good thing
it says eligible shareholders. i assume they just mean anyone who is on their register as of 20th august right?
if so i am most certainly going to take up my $15000 and im going to use another broker account to buy AZZ so i can get another $15000
the only issue is i confused myself a bit and cant get my head around the order i should do things.
currently as i type the sp is rallying a bit on the good news. clearly its because of AZZ's increased interest in the yellow rose project but also people who want to start to get in right? how long will this last? im speculating until end of entitlement period and ppl have no chance to get in and shareholders start taking arbitrage profits? or will it drop before then?
the sp isnt even rallying that hard either which is a surprise to me
it says eligible shareholders. i assume they just mean anyone who is on their register as of 20th august right?
if so i am most certainly going to take up my $15000 and im going to use another broker account to buy AZZ so i can get another $15000
the only issue is i confused myself a bit and cant get my head around the order i should do things.
currently as i type the sp is rallying a bit on the good news. clearly its because of AZZ's increased interest in the yellow rose project but also people who want to start to get in right? how long will this last? im speculating until end of entitlement period and ppl have no chance to get in and shareholders start taking arbitrage profits? or will it drop before then?
the sp isnt even rallying that hard either which is a surprise to me
Be careful how you handle this.
The company has stated they only want an extra $2m or 8m extra shares issued.They dont want extra dilution at this stage so you may only recieve a small portion of you allocation,if any as it may close early.
All the best.
The company has stated they only want an extra $2m or 8m extra shares issued.They dont want extra dilution at this stage so you may only recieve a small portion of you allocation,if any as it may close early.
All the best.
Ive recently been told to have a look at AZZ,
I remember the stock back years ago, and I have since turned away from onshore/Gulf of Mexico...
not favourable cash flow positive region, and high success rate doesnt mean anything... TEX for example pulled right back after its recent well Snapper A-3....
anyway, im just about to start researching AZZ anybody want to share some info on this company and I will share mine?
I remember the stock back years ago, and I have since turned away from onshore/Gulf of Mexico...
not favourable cash flow positive region, and high success rate doesnt mean anything... TEX for example pulled right back after its recent well Snapper A-3....
anyway, im just about to start researching AZZ anybody want to share some info on this company and I will share mine?
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shoe crew
i have been watching this one a while.
its got some interesting acreages but the current well has yet to deliver anything. its in a region where the eagleford is active, but it remains to be seen if the well is going to get anything on the edwards reef itself.
azz is drilling a vertical well, the francis dilworth, which so far has tested the gas zones in the edwards
it reports this
Antares is pleased to announce phase one of the Frances Dilworth No. 2 production testing program is complete. Phase one included the perforation and stimulation of the Edwards limestone being the lower most formation in the Frances Dilworth No. 2 well. Due to gas deliverability being less than our previously advised self imposed commercial hurdle rate of greater than 2 Mmcf/d, production stream composition analysis, project economics and the surrounding Eagle Ford shale results, Antares will proceed with phase
two of the production testing program in the pursuit of achieving the greatest shareholder value in the shortest possible time frame being the successful development of the Eagle Ford shale.
the edwards is not commercially viable on the frac they performed, which is very disappointing for the investors. so the secondary target would be the condensate rich eagleford shale above.
the next phase for AZZ is to raise capital and then put in a horizontal completion on the untested eagleford shale. the eagleford shale on the reef region itself is not tested regionally, and petrohawk are not mentioning the francis dilworth well in their presentations at all. but petrohawk have land on assignment from AZZ and will be completing a well called Donnell 457 No. 1H shortly. that well sits south of the reef and not on it like the francis dilworth, and will probably flow at similar rates to the other eagleford wells south of the reef. what ever potential value the assignment acreages have are imho entirely reasonable to be considered in the AZZ valuations
the next phase that AZZ have chosen is unusual imho, rather than test the eagleford itself in the vertical completion, something they have planned for in the construction of the well itself, the AZZ decision is to put in a an expensive lateral and then frac the well, so its very much unknown territory for azz holders, as they will be spending a lot of capital on a well that will be testing rock that is not tested for its ability to flow, so there wont be any prior frac data to call on and its will be a real hit or miss job as far as the multi stage frac goes.. and therefor has to be considered a high risk venture still but somewhat derisked with the knowledge the shale is commercial south of the reef but not tested on the reef itself
to me the only acreages worthy of real valuation attention is the assignment acreages to petrohawk, as its definitely in the right zone, the petorhawk slide below shows where they are looking. other holders in the azz share may want to enlighten as to what the real value of th assignment acreages will be to azz.
as is said the region where the fracis dilworth well sits is yet to be tested in the shale and its unknown whether its going to be commercially productive or whether it may be tight there like the edwards zone has demonstrated
i will post a recent slide from petrohawk and the francis dilworth as you can see is located in the reef region
things to look out for is in the future is a permit for a horizontal completion on the francis dilworth, (yet to be put in the RRC). when that happens you can be reasonably certain the next phase is happening, and you can look around regionally and maybe look at the eog wells in karnes county as a guide as to what happens in tight shale, and example, the EOG milton well is on the "Karnes trough" and is needing gas lift to extract good flow there, its unknown whether the edwards reef will be the same as the karnes trough, buts its interesting that petrohawk have deliberately not drilled on the reef region itself, which may be an indicator as to what others feel regards the reef
the region has far higher condensate than the lasalle wells, which is why it possibly worth the risk on a lateral in francis dilworth, but the region gets even more richer (many times) in condensate as you progress on trend through live oak and into karnes county (look at eka, aut and adi for their ops in those regions)
all imho and dyor
whats your info?
i have been watching this one a while.
its got some interesting acreages but the current well has yet to deliver anything. its in a region where the eagleford is active, but it remains to be seen if the well is going to get anything on the edwards reef itself.
azz is drilling a vertical well, the francis dilworth, which so far has tested the gas zones in the edwards
it reports this
Antares is pleased to announce phase one of the Frances Dilworth No. 2 production testing program is complete. Phase one included the perforation and stimulation of the Edwards limestone being the lower most formation in the Frances Dilworth No. 2 well. Due to gas deliverability being less than our previously advised self imposed commercial hurdle rate of greater than 2 Mmcf/d, production stream composition analysis, project economics and the surrounding Eagle Ford shale results, Antares will proceed with phase
two of the production testing program in the pursuit of achieving the greatest shareholder value in the shortest possible time frame being the successful development of the Eagle Ford shale.
the edwards is not commercially viable on the frac they performed, which is very disappointing for the investors. so the secondary target would be the condensate rich eagleford shale above.
the next phase for AZZ is to raise capital and then put in a horizontal completion on the untested eagleford shale. the eagleford shale on the reef region itself is not tested regionally, and petrohawk are not mentioning the francis dilworth well in their presentations at all. but petrohawk have land on assignment from AZZ and will be completing a well called Donnell 457 No. 1H shortly. that well sits south of the reef and not on it like the francis dilworth, and will probably flow at similar rates to the other eagleford wells south of the reef. what ever potential value the assignment acreages have are imho entirely reasonable to be considered in the AZZ valuations
the next phase that AZZ have chosen is unusual imho, rather than test the eagleford itself in the vertical completion, something they have planned for in the construction of the well itself, the AZZ decision is to put in a an expensive lateral and then frac the well, so its very much unknown territory for azz holders, as they will be spending a lot of capital on a well that will be testing rock that is not tested for its ability to flow, so there wont be any prior frac data to call on and its will be a real hit or miss job as far as the multi stage frac goes.. and therefor has to be considered a high risk venture still but somewhat derisked with the knowledge the shale is commercial south of the reef but not tested on the reef itself
to me the only acreages worthy of real valuation attention is the assignment acreages to petrohawk, as its definitely in the right zone, the petorhawk slide below shows where they are looking. other holders in the azz share may want to enlighten as to what the real value of th assignment acreages will be to azz.
as is said the region where the fracis dilworth well sits is yet to be tested in the shale and its unknown whether its going to be commercially productive or whether it may be tight there like the edwards zone has demonstrated
i will post a recent slide from petrohawk and the francis dilworth as you can see is located in the reef region
things to look out for is in the future is a permit for a horizontal completion on the francis dilworth, (yet to be put in the RRC). when that happens you can be reasonably certain the next phase is happening, and you can look around regionally and maybe look at the eog wells in karnes county as a guide as to what happens in tight shale, and example, the EOG milton well is on the "Karnes trough" and is needing gas lift to extract good flow there, its unknown whether the edwards reef will be the same as the karnes trough, buts its interesting that petrohawk have deliberately not drilled on the reef region itself, which may be an indicator as to what others feel regards the reef
the region has far higher condensate than the lasalle wells, which is why it possibly worth the risk on a lateral in francis dilworth, but the region gets even more richer (many times) in condensate as you progress on trend through live oak and into karnes county (look at eka, aut and adi for their ops in those regions)
all imho and dyor
whats your info?
Attachments
Agentm,
To the best of my knowledge petrohawk have no acreage that includes the edwards limestone trend.Their acreage is all below that.
On the seismic data that antares aquired the joint venture acreage that petrohawk has is some 1000ft plus deeper than much of antares acreages.
From my research once you move above 11000ft the chances of increased condensate content are increased.It will be interesting to see where the lateral will be located in the francis dilworth 2 well.
As for the edwards limestone,with a verticle well and an acid frac it was unlikely that the well would flow more than 2mmscfd,but in wells you test from the lowest zone first,plu with prodominately dry gas its simply not commercial in the current environment.
If the eagle ford is sucessful in this well,the will be no more wells drilled to intersect the edwards until all available eagle ford shale wells are drilled.
People ask if the 39000 acres antares shot 3d seismic over is so prospective ,why have other companies not leased the land.
There are several reasons for this,
1)only antares,sidc and pioneer have acess to the seismic
2)why hasnt pioneer leased some of the land then?
3)I believe antares and sidc still have a valid deed of exclusivity over the balance of the land.
4)I believe petrohawk has only been given access to the 3d seismic data for the land involved in the joint venture.
I hope this sheds some light on some grey areas.
All the best.
P.S. I wish to add that it doesn't make economic sense in the current environment to spend additional funds completing a horizontal on the edwards (if it is possible) to maybe only increase flow rates by a modest amount when you can perform a horizontal in the eagle ford with potentially a significant condensate content hence far greater commercial economics.
To the best of my knowledge petrohawk have no acreage that includes the edwards limestone trend.Their acreage is all below that.
On the seismic data that antares aquired the joint venture acreage that petrohawk has is some 1000ft plus deeper than much of antares acreages.
From my research once you move above 11000ft the chances of increased condensate content are increased.It will be interesting to see where the lateral will be located in the francis dilworth 2 well.
As for the edwards limestone,with a verticle well and an acid frac it was unlikely that the well would flow more than 2mmscfd,but in wells you test from the lowest zone first,plu with prodominately dry gas its simply not commercial in the current environment.
If the eagle ford is sucessful in this well,the will be no more wells drilled to intersect the edwards until all available eagle ford shale wells are drilled.
People ask if the 39000 acres antares shot 3d seismic over is so prospective ,why have other companies not leased the land.
There are several reasons for this,
1)only antares,sidc and pioneer have acess to the seismic
2)why hasnt pioneer leased some of the land then?
3)I believe antares and sidc still have a valid deed of exclusivity over the balance of the land.
4)I believe petrohawk has only been given access to the 3d seismic data for the land involved in the joint venture.
I hope this sheds some light on some grey areas.
All the best.
P.S. I wish to add that it doesn't make economic sense in the current environment to spend additional funds completing a horizontal on the edwards (if it is possible) to maybe only increase flow rates by a modest amount when you can perform a horizontal in the eagle ford with potentially a significant condensate content hence far greater commercial economics.
Hey AgentM,
heres my thoughts....
I only just sat down for an hour and looked at this company, I do not hold it...
Im not excited about the company...AZZ is similar to what ive been saying about GDN...(not here)
But AZZ has more going for it than GDN, so no direction comparison in that respect....
First of all,
I have noticed some inconsistancys in the share price predictions (outlook) in the companys market releases...Developing/Producing the Shale zone at The Eagle Ford interval is not a company making project, even though it is potentially large in resource...
The revenue stream is drawn out for 15 years plus... If only those revenues could be drawn out in 2-3 years!... Its a major difference, and these sorts of revenues are not large enough to grow a strong cashflow positive company to support a market value of 63 million...
AZZ has run hard this year up about 500%...
This company is all about Eagle Ford shales testing program now...
horizontal well and fracture stimulation...
West Wharton and Oyster Creek provide little real production umff......
Looking at The Edwards Objective straight away I see a problem...
80 BCF target, its just not enough...
80BCF one well, YES...
but thats off 20 wells...
Eagle Ford Shale potential right now, but not the sort of attractive investment for me.... hype usually has a part to play initially so there could be trading opportunities....exposure to risk makes it not worth it overall, but who knows what will happen ....
Such a lofty current market valuation is being held up by a thread......
Ok...
I read in the latest company ann that this project Yellow Rose, and The Eagle Ford Shale target, could add $7.84 worth of value to the company....
I cant post link until Ive made 5 posts...
(its in recent report)...
The first thing I saw wrong was how there was no discounting (which cripples those revenues drawn out in 10 years plus)..... and that each well costs 5million US dollars to drill, where they state different drilling costs in the summary....
so on the High end estimates of the size of the resource 140 development wells would be required to get Gas in total of 288 BCF... so out of revenues of 1.4 Billion US... 140 well * $5M=700 Million US.
making the resource worth 700,000,000 over 20 years...
AZZ is sinking all its funds into this well (a few million left perhap?, I didnt have time to look at cash position exactly)...
Each one of these shale wells could recover 4-7 BCF...
so say 6BCF...
Therefore each well will earn 30million US dollars over its life time...
so a drips and drabs earner unless you get many development wells in, and I just cant see this company maintaining their current exposure in the project over the next few years as this is costly to get off the ground... There might be a time for this company... not yet though.....
Initial run will pull back (if there is one), because the market will eventually sink in the 6MMCF ann, and go ohhhh.... "thats not really that large"...
Boy,
I would like to see AZZ get 100 wells in there, .... AZZ's partners budget for further development of Eagleford would be 120million US dollars next year...
How on Earth is AZZ going to be able to fund its position as a drips and drabs potential producer for at least the next two years.......
Im not excited for this company...
On another note Eagle Fold Shale came in 50 feet above estimates...
Hum...
And what,
When they flow tested The Edwards Objective it flowed at less than 2MMCF which is below the breakeven point for taking the project further.........
humm... by how much less than 2MMCF did Edwards flow at, can anyone tell me? It didnt say...
This might give a better indication on how Edwards might flow...
Discoveries and flow testing along the Edwards trend to date have been successful in the 8MMCF per day region, in La Salle County...
heres my thoughts....
I only just sat down for an hour and looked at this company, I do not hold it...
Im not excited about the company...AZZ is similar to what ive been saying about GDN...(not here)
But AZZ has more going for it than GDN, so no direction comparison in that respect....
First of all,
I have noticed some inconsistancys in the share price predictions (outlook) in the companys market releases...Developing/Producing the Shale zone at The Eagle Ford interval is not a company making project, even though it is potentially large in resource...
The revenue stream is drawn out for 15 years plus... If only those revenues could be drawn out in 2-3 years!... Its a major difference, and these sorts of revenues are not large enough to grow a strong cashflow positive company to support a market value of 63 million...
AZZ has run hard this year up about 500%...
This company is all about Eagle Ford shales testing program now...
horizontal well and fracture stimulation...
West Wharton and Oyster Creek provide little real production umff......
Looking at The Edwards Objective straight away I see a problem...
80 BCF target, its just not enough...
80BCF one well, YES...
but thats off 20 wells...
Eagle Ford Shale potential right now, but not the sort of attractive investment for me.... hype usually has a part to play initially so there could be trading opportunities....exposure to risk makes it not worth it overall, but who knows what will happen ....
Such a lofty current market valuation is being held up by a thread......
Ok...
I read in the latest company ann that this project Yellow Rose, and The Eagle Ford Shale target, could add $7.84 worth of value to the company....
I cant post link until Ive made 5 posts...
(its in recent report)...
The first thing I saw wrong was how there was no discounting (which cripples those revenues drawn out in 10 years plus)..... and that each well costs 5million US dollars to drill, where they state different drilling costs in the summary....
so on the High end estimates of the size of the resource 140 development wells would be required to get Gas in total of 288 BCF... so out of revenues of 1.4 Billion US... 140 well * $5M=700 Million US.
making the resource worth 700,000,000 over 20 years...
AZZ is sinking all its funds into this well (a few million left perhap?, I didnt have time to look at cash position exactly)...
Each one of these shale wells could recover 4-7 BCF...
so say 6BCF...
Therefore each well will earn 30million US dollars over its life time...
so a drips and drabs earner unless you get many development wells in, and I just cant see this company maintaining their current exposure in the project over the next few years as this is costly to get off the ground... There might be a time for this company... not yet though.....
Initial run will pull back (if there is one), because the market will eventually sink in the 6MMCF ann, and go ohhhh.... "thats not really that large"...
Boy,
I would like to see AZZ get 100 wells in there, .... AZZ's partners budget for further development of Eagleford would be 120million US dollars next year...
How on Earth is AZZ going to be able to fund its position as a drips and drabs potential producer for at least the next two years.......
Im not excited for this company...
On another note Eagle Fold Shale came in 50 feet above estimates...
Hum...
And what,
When they flow tested The Edwards Objective it flowed at less than 2MMCF which is below the breakeven point for taking the project further.........
humm... by how much less than 2MMCF did Edwards flow at, can anyone tell me? It didnt say...
This might give a better indication on how Edwards might flow...
Discoveries and flow testing along the Edwards trend to date have been successful in the 8MMCF per day region, in La Salle County...
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gerkin
i am an observer here only, i would jump on any good eagleford shale play thats going to run in a heartbeat, i really have looked this play through quite thoroughly.. my questions on why petrohawk dont drill on the reef itself or north of it must be because they have some good local knowledge on the region.. would love to see some local data on the eagleford in lasalle and mcmullen on the reef or north of it, but i have not tracked any down yet..
re the 3d thing..
conoco are doing a massive 3 d operation in live oak and karnes, part of it is on the tcei/ adi acreages, but that does not mean adi will purchase it.
3d's dont gave you mineral rights on land in texas, you sign up a different contract for a 3d, as for a pipeline and also for a exploration lease deal.
some friends of mine in texas have another deal, where their land is being used for underground storage, so they get royalties there also!
these points you raise
People ask if the 39000 acres antares shot 3d seismic over is so prospective ,why have other companies not leased the land.
There are several reasons for this,
1)only antares,sidc and pioneer have acess to the seismic
2)why hasnt pioneer leased some of the land then?
3)I believe antares and sidc still have a valid deed of exclusivity over the balance of the land.
4)I believe petrohawk has only been given access to the 3d seismic data for the land involved in the joint venture.
I hope this sheds some light on some grey areas.
1/ if pioneer have access to the seismic then so be it, but from what i see they are not going to drill north of the edwards reef, from my memory their next eagleford well will be well south of the reef in mcmullen county.
anyone can do another 3d on the same region. in lasalle there is the union pacific PENA-PENA UNIT that tested the chalks in 1991,
2/ pioneer has not leased land in mcmullen primarily as it has well over 300,000 acres of far more prospective acres of eagleford already, and it has also got eagleford/chalks plays in dewitt and karnes and bee counties.. they dont discuss their chalks well but i know all about it. and the eagleford regions that pioneers has in dewitt, karnes are way superior to the eagleford in mcmullen. (250 - 300 + bo per 1mmcf ) they are simply testing the bookend of the play east and west atm..
3/ if AZZ has exclusivity over land then they should declare it, its a public company and that should not be hidden, i am not aware of any such deed, and imho any landowner signing one would be limiting their opportunities, can you varify where the info on this is? i would be interested in that.
4/if petrohawk buy 3d data for their use, its not uncommon. i doubt if it would be given.. nothing is free in the oil game.
shoecrew. i understand what you saying in regard to your opinion on azz, i share some of them myself, i am not sure if your being too harsh on azz, but i do agree the costs for development of a play like this is far beyond the scope and more importantly the ability of azz..
should azz find the eagleford is active and commercial in their current well, then i think the opportunity to get a roll onto the play is not outside the scope of azz if they held a far smaller interest. it would take 2 - 3 rigs and need a good $50 - $100 mill to charge into the play. these wells are being drilled in some really staggering times..
there is a good commercial envelope there to work in, but you need the rock to flow and the wells to produce some good condensate, the mcmullen and lasalle county wells need much higher ip figures. in live oak i believe the eskew west well of COP is now settling in at 500 bopd, so the economics of the eagleford is highly attractive there with payback in months. and a handy profit within a year.. and they are looking at 20 year flow rates on the shale
not saying azz is not a good investment, i am just observing the share myself and questioning why noone is drilling on the reef or north of the edwards reef in lasalle and mcmullen? and i just dont get why they dont test the eagleford first b4 pushing into a shale lateral?? if you have a well there and have designed it for a test, then why not test it?
that part is a mystery for me in any case..??
gerkin are you aware why they changed course?
all imho and dyor.. and i am not trying to put down azz at all, just throwing in a few observations and questions..
Agentm,The reason I believe antares and SIDC have an exclusive right to the remaining area of the 39000 acre 3d survey is that this land is owned by SIDC.
Hope this helps kind regards.
Hope this helps kind regards.
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not really, there were a heap of questions unanswered there gerkin
if you say SIDC owns the land, that does not hold up with my data, i my data says dilworth owns it and SIDC have the leases until 2012
Type:
Memorandum of Lease
Lease Form:
Not Selected
Date:
3/3/2009
Effective Date:
2/11/2009
Multiple Leases:
no
Lessor / Grantor:
FRANCES DILWORTH, ET AL 400 FM 534 SANDIA, TX 78383
Lessee / Grantee:
San Isidro Development Co, LC 400 FM 534 Sandia, TX 78383
Acres:
8577.0
Depths Covered:
unknown
Survey HOUSTON, J N A-878 Sec:31 DILWORTH RANCH
Survey POITEVENT, J/STEELE, J A-825 Sec:8 JAMERS H HOUSTON, #31
Survey POITEVENT, J/STEELE, J A-828 Sec:6 JAMES STEELE
Survey POITEVENT, J A-370 Sec:9 JAMES STEELE
Survey BS&F A-582 Sec:29 J POITEVENT
Survey DIAZ, J I A-175 B S & F
Survey VASQUEZ, R A-487 JUAM IGNACIO DIAZ
Survey BENITES, T A-65 RAFAEL VASQUEZ
Survey POITEVENT, J A-374 Sec:7 TRINIDAD BENITES
Survey BS&F/MILLER, N R A-934 Sec:30 J POITEVENT
Survey AB&M/LANE, J W A-693 Sec:26 N R MILLER
Survey RUDDER, MRS E M A-939 Sec:506 J W LANE
Type:
Memorandum of Lease
Lease Form:
Not Selected
Date:
3/3/2009
Effective Date:
2/11/2009
Multiple Leases:
no
Lessor / Grantor:
FRANCES DILWORTH, ET AL 400 FM 534 SANDIA, TX 78383
Lessee / Grantee:
San Isidro Development Co, LC 400 FM 534 Sandia, TX 78383
Acres:
8577.0
Depths Covered:
unknown
Survey HOUSTON, J N A-878 Sec:31 DILWORTH RANCH
Survey POITEVENT, J/STEELE, J A-825 Sec:8 JAMERS H HOUSTON, #31
Survey POITEVENT, J/STEELE, J A-828 Sec:6 JAMES STEELE
Survey POITEVENT, J A-370 Sec:9 JAMES STEELE
Survey BS&F A-582 Sec:29 J POITEVENT
Survey DIAZ, J I A-175 B S & F
Survey VASQUEZ, R A-487 JUAM IGNACIO DIAZ
Survey BENITES, T A-65 RAFAEL VASQUEZ
Survey POITEVENT, J A-374 Sec:7 TRINIDAD BENITES
Survey BS&F/MILLER, N R A-934 Sec:30 J POITEVENT
Survey AB&M/LANE, J W A-693 Sec:26 N R MILLER
Survey RUDDER, MRS E M A-939 Sec:506 J W LANE
Instrument Terms
Term:
36 months
Delay Rental:
No
Bonus:
Expiration:
2/11/2012
but i am not so concerned about the leases myself my questions are more on the region and the sudden change of plan.. i'll leave it for the time being if no one can answer
best of luck
cheers
- Joined
- 2 October 2006
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again its not really too clear, i would say your wrong in assuming sidc actually own it.
sidc would not own the land, the president does and leases it to sidc. if there is a deal in place for the leases its really irrelevant, azz would hold rights to leases for 3 years and the questions i am asking are not really about the leases, but about the change of course on the dilworth well and the reasons why they are chasing the shale on the reef itself with a lateral and not testing it in the vertical as previously advised, those two questions are more what is curious to me..
again i am not really going to ask the same thing over and over and get answers on leases, i really dont want to be spending hours on basically pointless issues on the leases girkin if its ok with you..
cheers
Agentm,
How many companies do you know that have had a successful producing eagle ford shale well from a verticle.?
With the data that antares has access to the only way to see if this well will be commercial is to perform a horizontal test with a possible 3000ft frac.
This is the completion techniques that most of the reputable operators are doing.
Antares will use the same operators that are currently performing petrohawks wells.
As you say if you cant obtain significant condensate quantities then you will not have a commercial operation.
I am not critising you as you are responsible for my current significant gains in the eagle ford shale.
Thankyou again and all the best.
How many companies do you know that have had a successful producing eagle ford shale well from a verticle.?
With the data that antares has access to the only way to see if this well will be commercial is to perform a horizontal test with a possible 3000ft frac.
This is the completion techniques that most of the reputable operators are doing.
Antares will use the same operators that are currently performing petrohawks wells.
As you say if you cant obtain significant condensate quantities then you will not have a commercial operation.
I am not critising you as you are responsible for my current significant gains in the eagle ford shale.
Thankyou again and all the best.
- Joined
- 2 October 2006
- Posts
- 3,043
- Reactions
- 2
happy to answer this but remember its all imho
COP have a commercial well in the eagleford, its called kunde 1. producing since 2005. its the discovery well.. but the best way ot go with the shale is horizontal
gerkin, the point is being missed by you on why you test a vertical well in the first place, its done so you can learn firstly if the rock will flow.. very important to know... and you can get a lot of technical detail and information from a vertical frac to help understand how to frac a horizontal successfully. its a cost saver as your paying for a long lateral and a very expensive frac..
many operators will drill a pilot hole, and set it up for multiple tests if there are multiple targets, as in the case of the fracis dilworth, azz themselves said they designed the well for that. my question is why design a well to do this then change course..
regarding the horizontal, most operators do a vertical pilot hole, test it for a while, look at declines and make sure the rock is good enough to spend more capital on. you rarely go into a region blind and just test a horizontal first up. if you have a endless supply of capital you may, but with marginal capital its reckless imho
AZZ can expect similar rates of condensate as with the other regional petrohawk wells, but if the shale is tight they may not get the high flow rates that the other wells in the more prospective regions south of the reef are getting
my concern is that azz may experience what eog did in karnes county.. not that its stopped them there, eog are drilling two wells right now , a vertical right next to a brand new horizontal. what EOG will do is experiment with the vertical by listening in with seismic collectors and get very clear pictures during the frac, these techniques will get them better understandings and teach them how to modify the frac and extract better flow raters in the tight shale.. the vertical can later become a horizontal..
my view is that dilworth 2 should be drilled at the same time as a vertical, then learn all you can in the frac. but running blind on the current well is a concern to me. with a second well you can get the benefit of delivering better wells later with the invaluable data you collect.
right now they would be guessing with the frac.
all imho and dyor and i will leave the board for a while, i dont own the share and its taking a lot of my time really
best of luck
all imho and dyor
COP have a commercial well in the eagleford, its called kunde 1. producing since 2005. its the discovery well.. but the best way ot go with the shale is horizontal
gerkin, the point is being missed by you on why you test a vertical well in the first place, its done so you can learn firstly if the rock will flow.. very important to know... and you can get a lot of technical detail and information from a vertical frac to help understand how to frac a horizontal successfully. its a cost saver as your paying for a long lateral and a very expensive frac..
many operators will drill a pilot hole, and set it up for multiple tests if there are multiple targets, as in the case of the fracis dilworth, azz themselves said they designed the well for that. my question is why design a well to do this then change course..
regarding the horizontal, most operators do a vertical pilot hole, test it for a while, look at declines and make sure the rock is good enough to spend more capital on. you rarely go into a region blind and just test a horizontal first up. if you have a endless supply of capital you may, but with marginal capital its reckless imho
AZZ can expect similar rates of condensate as with the other regional petrohawk wells, but if the shale is tight they may not get the high flow rates that the other wells in the more prospective regions south of the reef are getting
my concern is that azz may experience what eog did in karnes county.. not that its stopped them there, eog are drilling two wells right now , a vertical right next to a brand new horizontal. what EOG will do is experiment with the vertical by listening in with seismic collectors and get very clear pictures during the frac, these techniques will get them better understandings and teach them how to modify the frac and extract better flow raters in the tight shale.. the vertical can later become a horizontal..
my view is that dilworth 2 should be drilled at the same time as a vertical, then learn all you can in the frac. but running blind on the current well is a concern to me. with a second well you can get the benefit of delivering better wells later with the invaluable data you collect.
right now they would be guessing with the frac.
all imho and dyor and i will leave the board for a while, i dont own the share and its taking a lot of my time really
best of luck
all imho and dyor
i sold out above 31 cents before the exentitlement date and bought back in again at 25 cents. Didnt need the capital raising lol. Ive been trying to average down further these days. i have full confidence in this stock to bounce back up in the future too. Even purely on a technical/a basis
