EKA - Eureka Energy

[Sdajii]

Thanks for sharing your research, Sharejon. Very much appreciated as always.

A bit of gas to help migration, pressure etc. makes perfect sense, but what's the explanation for deeper wells being better? Not doubting you at all, I'm just interested in the geology. Is it that the oil tends to settle in the lower bits, sort of like giant underground puddles?

I'm biting my nails waiting for Brioche production reports! Drill baby, drill!

 

[Sharejon]

Sdajii I wish I had the answer for you!

I too am very keen to see Brioche production reports, or reports from current Horizontal fully fracced wells in neighboring land!

I think the Fayette is experiencing a fair bit of leasing at the moment, so once more leases are purchased by companies then its basically a given that we'll be seeing more leasing activity more towards the North-East.

Once this happens maybe EKA are in a better position to do a similar lease pooling agreement, like they've done with Southern Bay Operating.

Southern Bay Operating have been fantastic partners so far, it'd be brilliant if we could combine our Fayette land with them. Or even better purchase a stake in their Fayette land, and have them as our JV partners!

 

[yma]

what are you thought of the announcement out on Friday? Share price down, but i would say it is because of the US problem

 

[Sdajii]

Uh oh! Trading Halt! Do I smell a takeover?

I don't want to sell out for less than 80c, but I'm sure they'd easily get us for under 50, and possibly under 40... just maybe under 30c at the moment. If it is a take over bid, let's hope we can fight it off, or at least hold out for a decent price.

I doubt it's capital raising... any other thoughts?

 

[yma]

Uh oh! Trading Halt! Do I smell a takeover?

I don't want to sell out for less than 80c, but I'm sure they'd easily get us for under 50, and possibly under 40... just maybe under 30c at the moment. If it is a take over bid, let's hope we can fight it off, or at least hold out for a decent price.

I doubt it's capital raising... any other thoughts?

For my understanding the trading halt is for Blackjack result announcement.

 

[Sdajii]

Ah, that sounds much nicer A friend of mine just told me the same thing I hope it's good and wish we were getting it during a nicer time.

 

[yma]

Ah, that sounds much nicer A friend of mine just told me the same thing I hope it's good and wish we were getting it during a nicer time.

It is actually not a bad thing to have trading halt with the current market sentiment, hopefully we will have some positive news from America tonight about QE3, beside the global market, EKA has 100% WI for blackjack, hope it will be a good result.

 

[AngusSmart]

Was so glad to see it in a halt this morning, but also since the markets recovered somewhat am a little peevedd..

why would they have gone into a halt over 1 well?? is it producing yet? i thought it was already announced in the previous quarterly, tho my minds all over the shop at the moment..

i am a little as to why they have gone into a halt over the well, since they dont usually do that..

 

[dazby]

Good afternoon,

Please see below announcement from GeoResources, Inc. (the operator of EKA's the Blackjack Springs #1H well) released this morning re: their financial & operating results for the quarter ended June 30. Of particular interest, is the information re: the Blackjack Springs #1H well.

Eureka Energy is in trading halt, pending ASX release to market re: Blackjack Springs.


HOUSTON, Aug 08, 2011 (BUSINESS WIRE) -- GeoResources, Inc. /quotes/zigman/72652/quotes/nls/geoi GEOI +0.74% , today announced its financial and operating results for the three and six month periods ended June 30, 2011. Highlights for the second quarter 2011 include:
-- Initiated successful commercial production operations on its first three wells in its Eagle Ford project area in Fayette County, Texas

-- Continued the successful development and de-risking of its Bakken operated project area in Williams County, North Dakota with the completion of the Muller 1-21-16H

-- Generated Adjusted EBITDAX(1) (non-GAAP) of $20.1 million in the quarter, a 21% increase over the second quarter 2010 and a 11% increase over the first quarter 2011

-- Generated Adjusted Net Income(1) (non-GAAP) of $7.9 million in the quarter, a 29% increase over the second quarter 2010 and a 9% increase over the first quarter 2011

-- Generated Diluted Adjusted Earnings Per Share(1) (non-GAAP) of $0.31/share for the quarter

-- Ended the quarter with $193 million in Liquidity(1) (non-GAAP)





Operational Update

Eagle Ford GeoResources recently completed its third well in its Eagle Ford project area, the Black Jack Springs #1H (44.1% working interest ("W.I.")). This well was drilled with a 5,900 foot lateral and was completed with 16 frac stages. This well averaged 460 boe/d of production over an initial 10 day period while being produced on a restricted choke of 14/64" to 16/64". The Black Jack Springs well is located further northeast in the Company's acreage block and therefore further de-risks the Company's Eagle Ford acreage. The table below summarizes the production data through early August from the Company's first three Eagle Ford wells which are still flowing up the production casing.


Lateral # of Avg. Daily Production (Boe/d)(1) Current
---------------------------------
Length Frac First Current Pressure
(feet) Stages 30 Days Current Choke (PSI)
------- ------ -------- ------------- ------- --------
Flatonia E #1H 3,200 10 391 244 24/64" 225
Flatonia E #2H 4,800 14 465 413 14/64" 1,050
Black Jack Springs #1H 5,900 16 390 (2) 358 18/64" 650




(1) Excludes non-producing days and initial "flow-back" days when well was cleaning up and producing frac fluid. (2) Represents average daily rate for first 22 days of production.

GeoResources is currently preparing to drill its fourth Eagle Ford well in Fayette County, the Peebles Unit #1H (39.8% W.I.), which is anticipated to have an approximate 5,000 foot lateral. The Company has identified a second rig for its Eagle Ford project and this rig could begin drilling operations early in the fourth quarter.

This follows the previous successful wells in the area.



Please see below release from July 06, 2011.

GeoResources, Inc. Provides an Operations Update
HOUSTON--(BUSINESS WIRE)--GeoResources, Inc., (NASDAQ:GEOI), today provided an operations update.

“2,525 Flatonia E Unit #2H ~4,800 14 50.0 % 1,242 480 16/64”

EAGLE FORD

We recently successfully drilled and completed our first two Eagle Ford wells in our operated project area in Fayette County, Texas. The table below provides an overview of production results to date from these wells:


Eagle Ford - Well Summary
Initial Production Data
Lateral
Length
(Feet) # of Frac
Stages GEOI
Working
Interest Daily Oil
Rate
(Bbl/d) Daily Gas
Rate
(Mcf/d) Choke Pressure
(PSI)
Flatonia E Unit #1H ~3,200 10 50.0 % 1,204 420 18/64" 2,525
Flatonia E Unit #2H ~4,800 14 50.0 % 1,242 480 16/64" 2,850


Although we initially produced these wells on the larger choke sizes indicated in the table above, both the Flatonia East Unit #1H and #2H have been flowing on restricted chokes of 12/64” and 10/64”, respectively, since first production. We have intentionally restricted production rates on these wells as we believe that producing on restricted chokes and at lower rates will reduce decline rates and optimize reservoir performance. Excluding the higher initial daily production rates above, the Flatonia East Unit #1H and #2H have averaged 487 and 495 barrels of oil equivalent per day (converting gas at 6 MCF = 1 BO) over the first 14 and 12 days of production, respectively, with average gas-oil ratios of 700 to 800 cubic feet of gas per barrel of oil. Although, gas is currently being flared from these producers, we expect to connect these wells to a gas sales line within the next 60 days as we have recently signed contracts with a purchaser who is installing a gas pipeline through our project area.

We also recently completed drilling our third Eagle Ford well, the Black Jack Springs #1H well, in which we have a 44.1% working interest. This well was drilled with a ~5,900 ft. lateral and is currently undergoing a 16 stage frac job. After drilling the Black Jack Springs #1H well, the drilling rig was moved to drill the West Cannon Unit #1H well in our Giddings Austin Chalk Field development area in Grimes County. The West Cannon well is currently drilling and should finish within the next few weeks. We expect this well to be an “oily” Austin Chalk producer, with strong economics. After drilling the West Cannon Unit, the rig will return to our Eagle Ford project in August 2011 and will continue drilling Eagle Ford wells.

Since April of 2010 we have acquired 24,000 net acres in the Eagle Ford Trend with acreage primarily located in southwest Fayette and northern Gonzalez counties. Our plan is to add a second dedicated drilling rig in the fall of 2011 and a third rig in early 2012 and potentially a 4th rig in mid-2012. Our intent is to significantly accelerate our Eagle Ford drilling in the second half of 2011 and into 2012. As we move forward in our development of this project area, we expect each of our operated rigs to drill 8-10 gross wells per year.

 

[AngusSmart]

just thought i'd track the report down and post the image as the text got warped from the guys post above..

cheers for the info however!

 

[jancha]

Very quiet on the EKA front of late. Floundering unloved and unwanted stock of 21c atm!
Hard to believe that EKA has dropped 100% over the last few months. Thats the same as AUT dropping to $1.50!
Just goes to show that EFS hype is calming down and monies has moved else where. No point having money sitting in a company thats stagnant and looks like it will be for awhile. Even good results and potentials from Black Springs announcement couldn't lift the sp.
It has the highest growth & value from Morningstar analyst and is valued at 60c+ by a broker but other than a T/O bid i cant see it coming back to life in the current market.
Disappointed with EKA and for now but one i'll be watching for when the market comes back with confidence.

 

[jancha]

Very quiet on the EKA front of late. Floundering unloved and unwanted stock of 21c atm!
Hard to believe that EKA has dropped 100% over the last few months. Thats the same as AUT dropping to $1.50!
Just goes to show that EFS hype is calming down and monies has moved else where. No point having money sitting in a company thats stagnant and looks like it will be for awhile. Even good results and potentials from Black Springs announcement couldn't lift the sp.
It has the highest growth & value from Morningstar analyst and is valued at 60c+ by a broker but other than a T/O bid i cant see it coming back to life in the current market.
Disappointed with EKA and for now but one i'll be watching for when the market comes back with confidence.

Seems to have found its resistance level at 21c. Just wondering what its next resistance level would be if the euro situation gets worse. Where's that chrystal ball of mine.

 

[Sdajii]

Seems to have found its resistance level at 21c. Just wondering what its next resistance level would be if the euro situation gets worse. Where's that chrystal ball of mine.

I assume you mean support. I just can't see it going much below 20c unless we see utter global catastrophe. If it does (and not because of catastrophe) I'll be buying as much as I can afford. I'm really puzzled by EKA at the moment, it just seems too ridiculous a bargain, the assets we have are too valuable for the current price to make sense. Perhaps I just don't know how to analyse things.

 

[jancha]

I assume you mean support. I just can't see it going much below 20c unless we see utter global catastrophe. If it does (and not because of catastrophe) I'll be buying as much as I can afford. I'm really puzzled by EKA at the moment, it just seems too ridiculous a bargain, the assets we have are too valuable for the current price to make sense. Perhaps I just don't know how to analyse things.

Looking at the market today you may get your chance to buy under 20c. Just the market being unsure atm is enough to bring it down so you dont need a catastrophe. Hardly any buyers and the sellers are wishing to get out into something more productive imo. EFS has always been driven by news & hype. Now that it's quieten down so has the sp. EKA also have leased land that hasn't been proven yet. Maybe thats has something to do with its sp but the likes of all in the efs have taken a hit. If goes below 20c i'll be joining you and putting in the bottom draw for ron.

 

[Assasin]

Jancha,

How much good news do you want? Announcements have been coming consistantly and are extremely good.
Now the SP, well that's another story. Has to be one of the most undervalued company around.
Just my thoughts.

 

[jancha]

Jancha,

How much good news do you want? Announcements have been coming consistantly and are extremely good.
Now the SP, well that's another story. Has to be one of the most undervalued company around.
Just my thoughts.

A lot of undervalued companies around. Have you heard the story about the boy coming home from school with an assignment of finding out the difference in meaning between the two words of potentially and realistically?

 

[Assasin]

Looking at the market today you may get your chance to buy under 20c. Just the market being unsure atm is enough to bring it down so you dont need a catastrophe. Hardly any buyers and the sellers are wishing to get out into something more productive imo. EFS has always been driven by news & hype. Now that it's quieten down so has the sp. EKA also have leased land that hasn't been proven yet. Maybe thats has something to do with its sp but the likes of all in the efs have taken a hit. If goes below 20c i'll be joining you and putting in the bottom draw for ron.

Jancha, upon reading your post again, you state that the EFS has quietened down. This is way off, check out recent well results from not only EKA but AUT and TXN as well. Check out the ramping up of drilling programs for EKA and AUT now that Marathon are about to take up the reigns.
But against that, check out the market. It's crap, with POO dropping and investors quite reasonably sitting on their hands.
Value is being added to EKA rapidly with plenty going on. I'll repeat, very under valued.
What is the difference between potential and realism???

 

[jancha]

Jancha, upon reading your post again, you state that the EFS has quietened down. This is way off, check out recent well results from not only EKA but AUT and TXN as well. Check out the ramping up of drilling programs for EKA and AUT now that Marathon are about to take up the reigns.
But against that, check out the market. It's crap, with POO dropping and investors quite reasonably sitting on their hands.
Value is being added to EKA rapidly with plenty going on. I'll repeat, very under valued.
What is the difference between potential and realism???

Sorry not so much about the news as you said all good but i meant more the Hype with EKA and the efs.
Someone wasn't sitting on their hands and sold down 550,000 EKA shares today. Getting close to the next support.

Difference?
A boy comes home from school with an assignment using the different meaning of the two words potentially & realistically in a sentence. He asks his father for help on it so his father tells his son to asks his mother if she would sleep with Robert Redford for a Million $ and then having done that ask your older sister if she would sleep with Brad Pitt for a Million $. Once you've done that come back to me.
So off goes the little boy and asks his mum would she sleep with Robert Redford for a mil. She replies quietly: dont tell your father but yes i would.
Little boy goes up the stairs to sisters room scratching his head and asks if she would sleep with Brad Pitt for a mil: Are you kidding of coarse i would she says.
The boy goes back downstairs to his father looking a bit confused.
Well son what did they say? His son tells him and his father replies
You have the answer.
Potentially we're sitting on a gold mine but realistically we're living with two s----.

Sorry doesn't have anything really to do with EKA other than potentially it's worth more but realistically atm it's 20c.

 

[Assasin]

Well done Jancha, thats a beauty.
At the moment I think your right.

 

[mattyhammer]

Jancha - BAHAHA, that's awesome!

EKA is easily my most painful trade ever. Making stacks then bang...just tanks for no reason I can come up with. Killing me!

Anyone got some insight on where this thing is potentially heading?