EKA - Eureka Energy

Nice ta see a bit of support for the "ünloved" litle oiler (EKA)... perhaps the tide is turning ... at one stage we were at a ratio of 12/1 with big brother AUT, (down to about 10.8 /1 today) Great one day volume traded last week in excess of 1.5m shares - not quite sure why ?. Should be getting an anouncement about Blackjack Springs Unit #1H in the very near future.........anyone have an opinion as to when ?? a good result might be just the catalyst needed to get the share price movin forward at a pace of knots ...

Good to see some large volumes being traded in the past few days, and the SP has reacted positively.

Hopefully this is the start of something big!

Harvestar said:

Good to see some large volumes being traded in the past few days, and the SP has reacted positively.

Hopefully this is the start of something big!

Click to expand...

Rare day off today so some time to review investments....

Next few weeks could be very Interesting for EKA as the first well at its Pan de Azucar Eagle Ford Shale project - Black Jack Springs Unit 1H - should reach target depth very soon - followed by frac in the following weeks. With luck and good results - and coming on top of the confidence boosting arrival of Marathon into Sugarloaf AMI - this well could see EKA looking very good for the forseeable future... (IMO).

Waiting with baited breath ... !

link : http://www.ogfj.com/index/article-d...eople/energy-players/eureka-energy_names.html

I hope you're right, and we might get a bit of increased interest and some positive movement in anticipation of results when the well is at depth and we're told it has been fracked (fracced? Fraced? Is frac actually a real word? Fractured...) but I don't expect any serious movement before actual flow results are released. That could be a big game changer... potentially either way, but I'm guessing it'll be positive to a greater or lesser extent. Happy to be proven wrong with good movement earlier.

We're still AUT's little brother, and our big brother seems to be getting proportionately more attention than us. In my opinion, being in AUT's shadow has left us undervalued relative to AUT; we're smaller than something else so people have ignored us, but that may have left us with more value per dollar by current prices. I think has been the case for a while, but even more so now that the little brother is largely on unproven land (naturally, that depends on how good the land turns out to be). People hate uncertainty, so good results will really have the potential to give us a strong confidence boost which would be reflected in the SP. Look back and see what has happened before with AUT, EKA, ADI and others when their land has been proven. Let's hope we see something similar again with EKA's land! Could be brilliant!

Disclosure: Holding (since over a year ago with top ups all along the way).

And don't get me wrong, I like AUT too and have been holding for over a year, also with top ups along the way. I think AUT has a fair bit of growth to come over the next 6-60 months, but EKA has the potential for more... more risk and potentially more return. I'm happy to be holding both

Disclaimer: I'm just a n00b, my 2c may not be worth listening to

Since we're comparing to big bro AUT, does anyone know what the overall NETT boepd figure Eureka has?

bbker said:

Since we're comparing to big bro AUT, does anyone know what the overall NETT boepd figure Eureka has?

Click to expand...

Damn good question BBKER.... can't find that data in their reports but we can have a go at calculating a rough estimate....

Attachment below is from the EKA March Qtr report here:
http://www.eurekaenergy.com.au/docs/2011/EKA20110429_2.pdf

Rough calculations: Using these conversion tools [ http://www.questoffshore.com/Home/ConversionCalculator/ ]

[Condensate ~268 KBOE + gas~215.5 KBOE ] / 890 well-days = Av of 0.543 KBOE/well/day = Average of 543 BOE per well per day.

They have 11 wells listed there - so that would be 11 x 543 = 5975 BOE/day (this is -gross - ie. spread across all parties).
multiply by ~ 6.25% WI for EKA.....
and we get production rates of about 373 BOEPD Net to EKA... as at end of March.



... which is why they are the smaller cousin of AUT , but those figures will increase.

Also shows the importance of the new black jack well results to EKA - with 100% WI right next door to the new well - the results will be very important for EKA prospects.

(** NOTE ** please check my figures - they are very approximate - at best... and may contain errors as I'm not doing this stuff all the time).

- Dukey...

Seeming we're comparing EKA to AUT...EKA presently trading at 31.5c Aut trading presently at $3.35.

In their Investor Presentation p9 EKA stated Paterson's valuation of their Sugarloaf acreage (1500 acres) at $126m. Using this valuation and applying to the 15,000 acrees AUT have in the sugarloaf it comes to $1.26billion (being mindful that all of AUT's acreage is potentially as "sweet" as the acreage that EKA and AUT jointly share).... this values AUT at $1,26B or $3.07 per share..... AUT currently trading at a 7.7% premium to this price.
EKA have projected a share price (given Paterson's valuations) of 62c per share, (adding Pan de Azucar and Brioche basically at cost) Doing the sums and adding the 7.7% premium built into the AUT share price, it would seem reasonable that EKA could potentially be valued at not 62c per share , but 64.5 c per share

On fundamentals alone there seems no valid reason why the EKA share price is not 64.5 right now....TODAY !! ........... oooooh for a positive change in sentiment (ta light the fuse)

Thanks Dukey and martyfar

Yep your figures look close enough; going by the chart a quick calculation using just the oil gives 821595/2321 = 353 bopd

Which well are you referring to when you write the new well next to the Black Jack well?

bbker said:

Thanks Dukey and martyfar

Yep your figures look close enough; going by the chart a quick calculation using just the oil gives 821595/2321 = 353 bopd

Which well are you referring to when you write the new well next to the Black Jack well?

Click to expand...

Sorry - not talking about a new well - just that - unless i'm mistaken - the current blackjack well is not in the acreage that EKA holds at 100%. but it is right next to it - so will give a good indication what is over the fence in EKA's 100% holding. EKA may have a small % of the blackjack well currently drilling i think - not sure exactly.

Dukey said:

Sorry - not talking about a new well - just that - unless i'm mistaken - the current blackjack well is not in the acreage that EKA holds at 100%. but it is right next to it - so will give a good indication what is over the fence in EKA's 100% holding. EKA may have a small % of the blackjack well currently drilling i think - not sure exactly.

Click to expand...

Yes 9.4%

Gotta be a sign of good things ta come ... EKA Director Ian Cubbing purchased 300,000 EKA shares @ 36c per share ($108,000) on the 2/6/11.... if I was going ta spend $108,000 of my hard earned dosh I'd wanna be confident that I was making an informed decision based on a sound investment rationale

I've been reading some comments local land owners in the area, that obviously have a large interest in the Blackjack/Flatonia well results.

"Drove over to Blackjack Springs - loads of activity. Never seen a fracking op before but I've never seen so many tanks and trucks. Is that what is going on there?"

This was followed by a very knowledgeable O&G poster confirming that this should mean they'll be starting very soon, with the fraccing taking a minimum of 4 days.

I bought more EKA shares at these prices, it was too good to refuse. I think the Blackjack results will speak for themselves, yet obviously the market tends to differ.

I'm extremely surprised at how cheap these shares are at the moment. EKA has a world-class asset in it's Sugarloaf interest to it's not like it's backed on speculative oil plays.

A firm asset-base with exploration upside is a great combination for this stock in my opinion.

Eureka is pleased to provide an operations update on the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on‐shore Texas USA. As per the latest Operator reports, multi‐stage fracture stimulation operations have commenced on the well. It is intended to undertake a 16 stage frac over an approximate 6,000 ft horizontal section of the well. Eureka will provide a further update following the fracture stimulation and once the well has been cleaned up. The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

With good results anticipated from the Blackjack well EKA should have a renewed interest.

Very exciting times!

It was good to see a positive response today, but I think the real action will happen when/if the production rates are good. I'm pretty confident, and very hopeful. The market is so wary of unknowns; having solid data and results to go on should really make a big difference. In if the new land is only 'fairly good' it will no longer be a complete unknown and should have people feeling more comfortable. At 25-26c recently I was very very tempted to buy some more, but I'm already holding a heap (most of it for around a year), so reluctantly decided against it. I'd have been buying in if I wasn't already holding a stack.

jancha said:

Eureka is pleased to provide an operations update on the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on‐shore Texas USA. As per the latest Operator reports, multi‐stage fracture stimulation operations have commenced on the well. It is intended to undertake a 16 stage frac over an approximate 6,000 ft horizontal section of the well. Eureka will provide a further update following the fracture stimulation and once the well has been cleaned up. The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

With good results anticipated from the Blackjack well EKA should have a renewed interest.

Click to expand...

any idea about when we can get the result?

yma said:

any idea about when we can get the result?

Click to expand...

Shouldn't be too far off yma.
A positive is EKA sp price is starting to claw it's way back up. No real volume but at least no one selling at this stage. Market waiting on results of Blackjack.

jancha said:

Shouldn't be too far off yma.
A positive is EKA sp price is starting to claw it's way back up. No real volume but at least no one selling at this stage. Market waiting on results of Blackjack.

Click to expand...

HOG is going to have its result on August, result from EKA for Blackjack is coming as well, i am so exited about it as i bought in at 26c(Switch from AUT).

waiting for them for sky rocket.

I am currently holding EKA, HOG and SEA.

Excellent results from the two wells GeoResources have in Flatonia East only 10kms southeast of the Pan de Azucar area. Also with GeoResources contracting the installation of a gas pipeline running thru the area gives EKA something to smile about.
Blackjack springs and the Pan de Azucar area are looking even better now with those results. Sp now 31c still half of it's value sp by Pattersons of 62c before Pan de Azucar.

An increase in volume today showing signs of more interest with the sp working it's way back to where it (imo) should be. Good signs for a good result for Blackjack Spings.
All aboard

Hey all,

I've cleared up a few additional things from that AKK report regarding the depth of the Brioche Project and how it compares geologically to AKK's project.

First of all I got puzzled by the AKK statement "In the AKK lease area the depth of the eagleford is 8200-8900 feet" (with their initial acquisition announcement stating 8000-12000)

And EKA's statement that the Brioche acreage "ranges in depth from 10,500 to 12,000 feet and displays the geological prerequisites seen in our existing Eagle Ford project areas" so I had a further look into it.

I was well aware that the depth of the Eagle Ford Shale differs substantially in certain areas, however it seems I under-estimated just how greatly it can differ!

As seen in this image (of AKK's Burleson acreage), the EFS can dip quite steeply over a short interval.

http://imageshack.us/photo/my-images/18/picture2th.jpg/

(page 67-69 of the AKK Resource Evaluation announcement)

Here's a map of EFS well depths

http://info.drillinginfo.com/urb/eagleford/files/2010/08/Depths.png

This bodes well for EKA holders as technically the '10,500-12,000' feet deep wells should out-perform the shallower EFS wells, assuming that the other drilling/fraccing methods and conditions are constant.

So in other words AKK who are drilling 3 Burleson wells (commencing in July, with 1 of those 3 wells being horizontally drilled and fracced using the 'Hi-WAY' method) will give us a good sniff at what is down there, however I assume that our wells should 'technically' have greater production potential than their shallower wells (assuming the drilling/fraccing practices are the same). It will be very interesting to see their results in the area.

*note I'm only referring to the 915 acres AKK have acquired which were used in the study, not the other 4,000 acres in the area which they've got rights to. I don't think it's quite been announced where these leases are located in comparison*

Here's what a Geologist who posts on an Eagle-Ford Shale lease forum (going out of his way to provide some info to land-owners) stated which relates to eagle-ford depths.

"There is beginning to be some concensus that being at or near the oil/gas contact (but still in the oil "window") at deeper depths, is where the better wells are being made because the gas to oil ratio is higher and the estimated recovery rates per well are higher because associated gas keeps oil moving towards the wellbore. Some folks are beginning to see that updip wells at shallower depths don't have high GOR and won't have good recovery rates. Clayton Williams drilled some horrible shallow, updip wells and has taken all his drilling rigs out Burleson County, etc. back to W. Texas."

Credit goes to "Mike" whose original post can be found here http://www.mineralrightsforum.com/f...tivity&id=4401368:Topic:3525&page=65#comments

Hopefully this may clear a thing or two up for you as well.

Enjoy.