ADI - Adelphi Energy

[Dukey]

G'day all - heres a new thread!!
I have wondered why there is not much talk about Adelphi. I've been watching for a while, but not holding (yet!! )

ADI Seems to be an oil/gas exploration play with good potential with good backing from ARQ (Arc Energy). They have just started drilling the Sugarloaf prospect in Texas.

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The following is condensed from ADI website - some info here could be slightly dated?

Sugarloaf Prospect: ...." Mean potential reserves at Sugarloaf are estimated to be approximately 800 BCF of gas. However, given the large size of the prospect area, there is upside potential of several TCF if geological factors such as porosity, net sandstone and permeability combine favourably.
Note that the above reserve estimates ....do not include the gas and oil potential from the shallower Sugarloaf horizons."

Overview of ADI

Petroleum exploration company, Based in WA.

Aiming to identify and acquire a well balanced portfolio of Australian and international oil and gas exploration assets. Focus on frontier exploration areas which have the potential to add significant value for shareholders.
Has approximately $10 million in cash - well funded to pursue its exploration strategy.

During 2006 Adelphi will participate in two high impact onshore gas exploration wells in Texas , USA . These comprise of the Sugarloaf Prospect, a major international quality exploration play with potential reserves of several TCF, and the lower risk New Taiton Prospect with multiple well-defined reservoir targets.

During 2005 Adelphi also successfully bid for two onshore exploration blocks in Yemen as part of an international joint venture group led by Oil Search Limited. Exploration activities on these blocks are expected to commence during 2006, with an extensive drilling program comprising at least seven exploration wells to kick off in 2007.

Strategic alliance with ARC Energy Limited ("ARC") via ARC's approximately 25% shareholding in Adelphi and access to ARC's technical, financial and administrative expertise.

Fully Paid Shares: 70,346,908

Options (unlisted)
* 8,750,000 - 11 January 2007 ($0.25)
* 8,550,000 - mid-June 2008 ($0.36)

Cash ~ $10 million Bank Debt ~ None Net Assets ~$12 million

Exploration Assets
USA: Sugarloaf, Texas (20%) & New Taiton, Texas (25%)
Yemen: Exploration Blocks 7 & 74 (8.5%)
Timor Sea: AC/P32 (23.1%)
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Big potential here i feel - is anyone holding this one?? Anyone interested??

[stiger]

I hold ADI only for the potential positive outcome of Sugarloaf.All the data I have seen has been good .Cheers DYOR.

[Dukey]

Well stiger - sugarloaf is drilling as we speak - i believe!!

Could be interesting to see what happens if they hit paydirt.

Maybe in September ??? What sort of timing do you expect.

[Dukey]

Drilling advice from ADI website as of Sept 5.
They say – Sugarloaf (20% holding for ADI) drilling ahead at 7000 odd feet.
First target is around 12-14000 ft. (expect to reach it mid Sept)
Primary Target is 21000ft (expect to reach Mid Oct.)

link is here if anyone is interested...

http://www.adelphienergy.com.au/file...y%20Report.pdf

-Dukey

[stiger]

Was looking around and found Rigzone which had a snippet on JV partner who expects big things from sugarloaf. Soon I hope.Dyor .Cheers.

[Dukey]

Trading Halt on ADI today!!
What do you think it is Mr Stiger. Seems too early for the main gas target. But follows a quick rise from low 30's to 40c - maybe some leaky news? - (that would be something to remember). Fingers and everything else crossed.
-Dukey

[stiger]

Its GAS how much only time will tell..This could be very very Good. EME in London up tonight on falling market also a good sign.DYOR.

[Agentm]

hello all..

no it aint just gas!!!!!! and dont think the guys in USA are not excited by the austin chalks...... perhaps the asx rules dont allow unconfirmed speculation but private investors are allowed to say exactly what they see when ever they like... no rules there..

ADI and EKA and AUT were in a trading halt on friday, then had to give a report re sugarloaf.. which was fairly predictable, low key and not giving away anything

perhaps you might be interested in this one from a private investor!
it was posted on saturday.. i was certainly impressed!!!!!!!!!!

Sugarloaf – Hosston – 1st phase a success

We have dug the well to 14,480’ and logged the upper sections.

Well was trying to flow back gas during the logging operations.

Sugarloaf

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.



The Edwards is from 12,275’ to 14,000’ looks tight or too dense to produce.



The Sligo formation begans about 14,500’



The Hosston (Objective) begans at 17,000’ Planned total depth is 21,000’.



This morning they are running 9 5/8” casing to 14,480’

happy punting!!!!!!!!!!

[nioka]

ARQ hold a 25% interest in ADI. Thet may be worth looking at?

[Agentm]

if ADI find gas @P50 estimates, then ARQ will gain $1.00 to their share price,, the price of ADI will go $6.00 on that part of the find alone.. we are talking primary target here... it could go $12 on best case senario..

The interesting news was the oil in the shallow Zone.. and the talk of 100 wells to be drilled for it.. That hasnt been discussed in any prognosis so far,, and here in Australia they are saying nothing at all about the oil shows, nothing about porosity, only reporting a gas show and not even that it was causing huge problems with the backflow during the wireline log.... nothin in the wireline has been revealed,, but stateside the inveters are beside themselves at the moment,, and extremely excited..

If porosity is as they say,, then the current find goes beyong their expectations, and potentially puts the find at the higher end of the potential, not at the lower end.. the Austin chals were eagerly signed up in April when a rig near by found big reserves in the zone,, looks like they have the same finds in this drill but with superior porosity.. meaning higher yields..

if they find gas in the primary target it will make it one of the largest onshore gas finds in the USA.. the monster rig is drilling away to 22,000 feet... and they have found a reserve in the secondary targets that potentially could be far in excess of their initial expectations, and with porosity that has been shown to be way beyond their dreams...

They originally predicted a secondary find could be easily worth .63 to the share price,, what the market isnt understanding is that there is oil and gas there and in my opinion developing and drilling another 100 times to fully exploit the field means theres far more there than anyone has estimated..

its a share that could go at any time...

[stiger]

This has the makings of a very good speccie for me,I hope you all make gains from this stock.Cheers.Dyor.

[Agentm]

i have to agree with you, we all hope for big things on this stock,,

the owner of texas crude oil inc has a fine pedigree,, he sits on the board of some of the largest financial institutions, and infistructure companies, when you research him you sorta realise that these guys are the ones that make things happen and are more than capable of continuing to stay on that same path of success..
Texas crude itself is not exactly a small oil minnow,, but a long standing highly successful private oil company.. the people behind this operation are the type of people that you would say are amoungst the richest folk in the usa... and they dont deal in trash,, only very prospective and well researched projects..

Also one other private investor alone will pass all the engineering reports, 2d and 3ds etc on to 4 different and independent analysts... if all 4 pass it then they go ahead.. they have a very tiny margin of failed projects,, a dry well is a rarity.. these guys really impress me no end

i keep my hopes up and i always invest with the best... good luck all!!

[cicak_kupang]

I'm looking in2 buying this one as a spec stock. I like what I have read around the place. I agree that this stock could go off at any time. Heres hopping. I also like ARC, ADI's parent company, although down at the moment, due to dive in crude lately. Arc is in the enviable position off benefiting from any ADI finds. And with good solid managing and sound financial position I feel both are worth while.... well... hope so...

Not an adviser, just a guy with eyes and ears and a hope....

[kennas]

cicak.

Isn't that a gecko?

Gordon type?

[Agentm]

ARQ has had 2 production wells drilled at jigema and hovea, so they will be producing oil at a higher rate.. they have to decide on either a further production well or start their exploration program... they have not discovered a drop of oil or gas in over 12 months,, dry well after dry well.. even origin lost faith in their program... lets hope their new program is more successful,, so far the offshore drills are also dry wells... canning basin has become a problem,, its full of cowboys,, and a few weeks ago one of the canning basing lease owners REY, decided to sell their leases to a subsiduary company and according to ARQ in breach of their agreement to sell their leases to them... Canning has a bad repuataion of being problematic, with poor communications, poor cooperation with the traditional landowners, and too many shonks in the area... like the real wild west out there.. Yemen is likely to be a their immediate saviour after the Adelphi success...

I see ADI sister EME in the UK had a great rally last night. 7% rise and they had traded much higher,, neaarly 14% for a while... they are hot for the stock as they also have read the private operators reports and read
"Sugarloaf: first phase success" as agenuine reason to believe the wireline logs that they reported were accurate, and that there is a swag of oil and gas there in the Austin Chalks that is yet to be officially announced by the 4 listed paertners due to the specific rules of their prospective exchanges... they all dont want speculation on their stocks at this time and are taking a very quiet and low key attitude to their exciting drill.. ARC announced the ASX last week through a corporate presentation to Maquarie WA emerging leaders conference, that their wire line logs at their sister company's sugarloaf drill as having "good shows".

Lets see how they fair today after the resource sector plummets perhaps with the bad news of oil prices dropping... watch out for nigeria,, they are thinking of slowing down their supply and have civil unrest,, the fall may be short lived!!

[ijh]

Looking strong in early morning trade see how adi goes after update feeling real confident with sugarloaf almost feel with first target results will support sp if main target is a duster and that is becoming a more remote outcome by the day

[Agentm]

yes, the share price is going well again,, the volumes are up which is what I expected, yesterday nearly 1 mill trades,, today its high already,, but dont expect any news on the primary target today, the announcement today in about 45 minutes is only going to say what depth they are drilling to. I think the market is gradually waking up to the stock and its potential.. i think if you research the stock you find each thing you find makes you more and more confident.. thats what i found..

the secondary targets hold much more value than the current share price.. .60 is a rough guide but the way they have carried on in the USA over the successes so far, and remembering that sligo is yet to be reported which is another seconday target,,, then after that comes hosston, which we all want to see being productive.. but the share price of the stock doesnt closely resemble the value od the secondaries so far confirmed..

enjoy the ride if you decide to get on board..

[ijh]

Totally agree with you assesment announcement was very sraight down the line with expectations but drilling is going well and only a few weeks till we find out how much money we can make should go with a bang but there are more good drilling targets too follow in the near future

[Agentm]

if you mean new tiaiton,, then yep,, its a low risk job,, worth about .60 and there are proven reserves on the same fault some 40k away... so its considered a low risk drill and they usally have a very high success rate in texas on drilling on proven plays.. yemen is another story,, they dont have their stuff together in yemen yet, its the yemens governments fault for the delays, but the mining rights have yet to be given,, and dont look likely to be given in the near term. perhaps Q1 07. if you noticed that ADI did some revenue raising recently?? then you probably realise that they need the cash for any further works to be done at sugarloaf or new tiaton,, its not widely reported but new tiaton has a secondary target on the same lease which they also can go after.. so they have heaps of cash handy to quickly develop any finds,, and also have the cash if they didnt have success, which currently isnt the case,, so dont expect them to announce that they are buying into any new field exploration leases in the near term.. they have to sit this out and then count the cash..

their silence is for me another indication of why i like the stock so much..

[ijh]

Good finish too the trading day even after a no news announcement growing in confidence