• Australian (ASX) Stock Market Forum

EKA - Eureka Energy

Discussion in 'Stocks 0-H' started by Broadside, Oct 30, 2006.

  1. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    12.5% interest in Sugarloaf (discussed at length on ADI thread - starting new thread so as not to annoy ADI'ers)...next 2 weeks will be drilling in primary Hosston target

    new project announced today, Turkey, another high impact relatively low cost prospect, should get indication of first well mid-late November

    market cap (undiluted) ~$22m with 41.5m in the money options exercisable at 20c (expiry March 31 2008)

    could be a very interesting month ahead :eek:

    ===========================================================

    ASX RELEASE 30 OCTOBER 2006
    Eureka acquires interest in Bismil Oil Prospect in Turkey
    First well to spud in early November
    Key Points
    Ӣ Eureka has acquired rights to earn a 20% interest in two exploration Licenses
    in South Eastern Turkey
    ”¢ First of two turnkey farm in wells, the ‘Koyunlu-1’, to spud in early November
    2006 and is expected to reach target depth within 2 weeks
    Ӣ First exploration well located 17 kilometres south and up-dip of the giant West
    Raman oil field
    Ӣ Koyunlu-1 exploration well to drill to 1,380 metres and will test the eastern
    portion of a structure with similarities to the Raman field structures.
    Ӣ The target reservoirs are Cretaceous age carbonates of the Mardin Group,
    the same reservoirs which host oil in the Raman fields and numerous other oil
    fields in the region.
    Ӣ The structure has the potential to host recoverable reserves of 31 million
    barrels (P50) or 204 million barrels (P90), if oil is present and commercially
    extractable.
    Ӣ Eureka has also acquired an option to increase its interest in the Licences to
    45%
    Prospect Background
    The two Licences, covering an area of approximately 500 square kilometres are
    located in South Eastern Turkey in the major oil producing region of that country.
    Koyunlu-1 is located about 17 kilometres south of the West Raman oil field (original
    oil in place 1.5 billion barrels) and about 40 kilometres south of the Selmo oil field
    (original oil in place 500 million barrels), presently operated by an ASX listed
    Australian company.
    The Koyunlu-1 target is located in a regionally well established oil system and good
    oil shows were obtained in the nearest well, which was out of closure some 8
    kilometres to the north east. Oil generation, migration and reservoir risk is considered
    to be low.
    Although the Koyunlu-1 well is up-dip from the West Raman field, structural integrity
    is the largest risk due to the wider than optimum seismic grid. Licence conditions
    require a well to be drilled in November so it is not possible to acquire further seismic
    before the due drilling date. Subject to results from the Koyunlu-1 well, it is intended
    to fill in the seismic grid prior to drilling the second farmin well.
    The oil recovered from the Raman fields is relatively heavy (13-18 API gravity) and
    any oil at Koyunlu -1 is likely to be similar. This oil is readily saleable at a small
    discount to standard Middle Eastern Crude prices.
    The area has good oil and gas infrastructure with the regional oil refining and
    handling centre at Batman, 24 kilometres north of the well location.
    Farm-in Terms to Acquire 20% interest & Option to acquire a further 25%
    interest
    Eureka will earn a 20% interest in the two adjoining Exploration Licences from
    Turkish company, ARAR Petrol Gaz AUPAS (registered license holder and operator
    of the Licences) by funding 20% of past exploration costs and 30% of the Koyunlu-1
    well dry-hole cost on a turnkey basis. Eureka’s total cost including drilling of the
    Koyunlu Well ”“ 1 will be approximately A$800,000.
    Eureka’s share of the second farm-in well costs are capped at the lesser of
    US$525,000 or 30% of dry-hole cost.
    Following drilling of the Koyunlu-1 well, additional seismic may be required to
    determine the exact drilling location for the second farm-in well. Eureka’s share of
    seismic costs will be 20%.
    Eureka may withdraw from the farm-in agreement and licenses at any time following
    the drilling of the Koyunlu-1 well.
    Eureka has an option to increase its interest in the Licences to 45% by purchasing an
    additional 25% of the Licences for US$ 2,000,000. Eureka will pay an option fee of
    US$191,000 and the option will expire 3 weeks after the second well is drilled. The
    option would only be exercised in the event of the discovery of commercial oil in
    either or both wells and gives Eureka significant leverage to drilling success.
    Mr Graham Dowland, Chairman of Eureka said “the Board is very pleased that
    Eureka has acquired the opportunity to participate in the drilling of such a significant
    oil play at a relatively low entry cost and protected from well cost over-runs by the
    turnkey contract. The project fits Eureka’s strategy of targeting significant sized
    international projects heavily leveraged to success.
     
  2. DAVIDB75

    DAVIDB75 Member

    Posts:
    5
    Likes Received:
    0
    Joined:
    Oct 11, 2006
    i thought this deal (turkey) sounded extremely good , spend a million or so and have a say 20-30% chance to make 100 million, in two to three weeks, with a further option once the second well is drilled.

    the sp does not indicate the market thinks so. is it too good a deal?
    am i missing something?

    i'd be grateful for further information/experience of this type of deal.

    thanks,
     
  3. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    starting to come together, secondaries in Sugarloaf look very promising, now we drill the top of Hosston primary target and encounter gas immediately...and Turkey spudded in next week or so (?) based on initial announcement of this project.
     
  4. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    and more gas...2 days out of 2... :D
     
  5. conman

    conman Member

    Posts:
    9
    Likes Received:
    0
    Joined:
    Oct 11, 2006
    Make that 3 out of three and counting (according to couch)

    Yeeeha
     
  6. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    no news today to confirm Couch rumour...maybe we'll know tomorrow and failing that, the weekly update on Wednesday.

    Anyway Turkey is spudded and price currently 67c.

    =====================================================================================

    ASX RELEASE 13 November 2006
    Dear Sir/Madam
    KOYUNLU - 1 WELL COMMENCES DRILLING
    Eureka advises that the Koyunlu-1 exploration well, located onshore South Eastern Turkey commenced drilling on 11 November 2006 and at midnight Turkey time on 12 November, was drilling ahead at 439 feet (133.8 metres).
    The well is located in the major oil producing region of Turkey approximately 17 kilometres south of the West Raman oil field (original oil in place 1.5 billion barrels)
    Eureka recently acquired farm-in rights to earn a 20% interest and an option to increase its interest to 45% in two exploration Licenses, together known as the Bismil Prospect.
    Koyunlu-1, with a proposed total depth of 1,380 metres, will test the eastern portion of a structure with similarities to the Raman field structures. The target reservoirs are Cretaceous age carbonates of the Mardin Group (1,280 metres), the same reservoirs which host oil in the Raman fields and numerous other oil fields in the region. The Operator expects to reach target depth within 2 weeks.
    The structure has the potential to host recoverable reserves of 31 million barrels (P50) or 204 million barrels (P90), if oil is present and commercially extractable.
    ASX releases will be made routinely every Tuesday unless there are material matters which require an earlier release.
    Background to the Bismil Prospect
    The two Licences cover an area of approximately 500 square kilometres. The first of two farm-in wells, Koyunlu-1, is located about 17 kilometres south of the West Raman oil field (original oil in place 1.5 billion barrels) and about 40 kilometres south of the Selmo oil field (original oil in place 500 million barrels).
    The Koyunlu-1 target is located in a regionally well established oil system and good oil shows were obtained in the nearest well, which was out of closure some 8 kilometres to the north east. Oil generation, migration and reservoir risk is considered to be low. Although the Koyunlu-1 well is up-dip from the West Raman field, structural integrity is the largest risk due to the wider than optimum seismic grid.
    The oil recovered from the Raman fields is relatively heavy (13-18 API gravity) and any oil at Koyunlu-1 is likely to be similar. This oil is readily saleable at a small discount to standard Middle Eastern Crude prices.
    The area has good oil and gas infrastructure with the regional oil refining and handling centre at Batman, 24 kilometres north of the well location.
    Further details of the Bismil Prospect and associated farm-in terms are summarised on our website at www.eurekaenergy.com.au.
     
  7. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    no one seems interested but I'll post anyway :D

    undiluted market cap approx $23m, up 6c to 58c today, probably in anticipation of drilling in Turkey recommencing following oil show. Note the oil show is 9 metres and then they stopped...it may be more than 9m.

    Sugarloaf wireline logging in progress which also has obvious upside for EKA if gas shows in secondary and primary prove economic.

    ==========================================================

    ASX RELEASE
    27 November 2006
    Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
    OIL SHOW IN KOYUNLU-1 WELL
    Eureka advises that at 0400 hours Eastern European Time on 27th of November 2006 the Koyunlu-1 well, located onshore South Eastern Turkey, was tripping out of the well with drill pipe, after drilling to a depth of 1,220 metres.
    Oil shows were obtained in fractured carbonates of the target Garzan Formation, over 9 metres to the present depth of 1,220 metres. The shows were represented by bright yellow streaming cut fluorescence in drill cuttings.
    While the shows are encouraging their commercial significance will not be known until the well has reached total depth, wire-line logs are interpreted and flow testing, if warranted, has been carried out.
    Drilling has halted so that casing can be run and cemented just above the show zone. This casing configuration will allow the remaining un-drilled portion of the target Garzan and the underlying Mardin Formations to be drilled with a drilling fluid designed to minimize formation damage.
    Drilling operations are expected to resume on or around the 1st of December.
    Proposed total depth is 1,380
     
  8. conman

    conman Member

    Posts:
    9
    Likes Received:
    0
    Joined:
    Oct 11, 2006
    Well the market never fails to suprise me.

    Just when the centinment seems to be that sugar loaf is a duster and two days AFTER the annon wiht regards to Turkey the price jumps.

    Im out now but expecting 10000 shares from the SSP.

    Hope fully these will be worth a fortune by late DEC, ill be following the stock closely till then.

    Just a question...I sent the check for the SPP about 3wks ago should I have recieved any confirmation from EKA about them receiving this? Has anyone else done this?

    Good luck to all still holding, if the price dips I could be back in.

    Conman
     
  9. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    conman I sent my cheque for SPP a couple of weeks ago, not received confirmation of shares but the cheque was presented.

    Turkey looks very promising thus far especially if the oil show continues, then they can exercise option on second drill. Very happy to be holding, it is still very low market cap.

    I know some quarters of the market have dismissed Sugarloaf, I certainly haven't: they have gas shows in upper primary and Austin Chalks secondary and now they are running wire line logs, so not able to understand the doom and gloom.

    Anyway we will know soon enough.
     
  10. HOMER J

    HOMER J Well-Known Member

    Posts:
    79
    Likes Received:
    0
    Joined:
    Oct 11, 2006
    Same Broadside, im still quietly confident on sugarloaf, especially the secondaries, and see turkey as a potentially big bonus. hoping for a trading halt on monday re turkey, and we'll hopefully see wireline results from sugarloaf soon too....
     
  11. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    double whammy good news today :D

    ASX RELEASE
    4 December 2006
    Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
    KOYUNLU-1 WELL REPORT
    Eureka advises that at midnight Eastern European Time on 3 December 2006 the Koyunlu-1 well, located onshore South Eastern Turkey, had reached a depth of 1,252 metres.
    Since our last report of the 27 November, casing was run and cemented at 1,215 metres and 32 metres were drilled to present depth of 1,252 metres.
    Oil shows continued over the 32 metres in fractured carbonates of the target Garzan Formation, to the present depth of 1,252 metres. The shows were represented by bright yellow streaming cut fluorescence in drill cuttings and small quantities of crude oil were recovered during drilling as films floating on drilling fluid in the drilling fluid tanks. The shows were accompanied by total gas of about 7% over the interval 1,223 metres to 1,252 metres.
    While the shows are encouraging their commercial significance will not be known until wire-line logs are run and interpreted and production testing, if warranted, has been carried out.
    The well is presently waiting on delivery of well tubulars and operations are not expected to resume until 10th December.
    Proposed total depth is 1,380 metres (4,530 feet).


    =========================================================

    4 December 2006
    Company Announcements Platform
    Australian Stock Exchange
    Level 4
    20 Bridge Street
    SYDNEY NSW 2000
    By e-Lodgement
    Dear Sir/Madam
    SUGARLOAF-1, PRIMARY TARGET- WIRE-LINE LOG INTERPRETATION
    Aurora Oil & Gas Limited advises that wire-line logs were successfully run over the open hole section of the Sugarloaf-1 well between 16,998 feet (5,182 metres) and total depth of 20,896 feet (6,371 metres).
    Interpretation of wire-line logs over the primary target indicates that an aggregate of 90 feet (27.4 metres) of potential reservoir are gas saturated and may be capable of commercial production after fracture stimulation.
    Based on the log interpretation and the gas indications obtained while drilling, the well participants have elected to run and cement a production liner, fracture stimulate and test the zones of potential interest. The total cost of these operations is estimated to be US$2 million.
    By 6am Texas time on 3 December 2006, installation and cementing of the production liner to total depth had been completed and the well was being prepared for temporary suspension so that the deep drilling rig can be released.
    Preparation of the well for fracture stimulation and flow testing will be carried out with a smaller work-over rig. An update on the timing of the fracture stimulation and flow testing operations will be provided when the equipment has been contracted.
    After the primary target has been tested the joint venture will make a decision on production testing the shallower carbonate reservoirs previously identified as potentially productive.
    Participants in the Sugarloaf-1 well are:
    Aurora Oil & Gas Limited 1
    20.0%
    Texas Crude Energy Inc (Operator) et al 2
    41.5%
    Eureka Energy Ltd
    12.5%
    Adelphi Energy Ltd
    20.0%
    Empyrean Energy plc
    6.0%
     
  12. DAVIDB75

    DAVIDB75 Member

    Posts:
    5
    Likes Received:
    0
    Joined:
    Oct 11, 2006
    So that's 41m of oil shows (+ decent gas units) from Turkey and by the
    sound of it the shows have'nt finished yet. Perhaps they are even preparing to drill beyond their stated TD. (hence the requirement for more pipe)

    In addition Sugarloaf partners must be quite confident in their 27M of likely
    productive gas shows in Sligo to spend $2million for that deep section alone.

    Plus the reputedly/rumoured highly productive Austin - it all adds up to strong production coming for EKA I suspect.

    What would a reasonable risked value market cap be now I am wondering? (while considering whether more shares are required)
     
  13. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    I really don't know until we know flow rates, suffice to say I am bemused the market has virtually ignored this great news. Sooner or later the value will be recognised, until then I am happy to wait.
     
  14. JBMMMMMMMMMM

    JBMMMMMMMMMM Member

    Posts:
    18
    Likes Received:
    0
    Joined:
    Nov 20, 2006
    looking very undervalued with there fingers in two massive pies of value.

    -500,000,000 in Turkey - at least 100mill in sugarloaf -600m of EKA value-

    current market cap -23m :cool:
     
  15. djones

    djones Well-Known Member

    Posts:
    149
    Likes Received:
    0
    Joined:
    Oct 22, 2006
    500mil in turkey??
     
  16. JBMMMMMMMMMM

    JBMMMMMMMMMM Member

    Posts:
    18
    Likes Received:
    0
    Joined:
    Nov 20, 2006
    Yeah i know it sounds unbeliveable :eek: but do the research :cool:

    -----Off HC-------------
    This well is 90m updip (vertical height) of the giant West Raman (original oil in place 1.5 billion barrels) field only 17km to the north which hit oil at 1300m and 150m updip of the nearby other giant Raman field...probably unlikely but potential is a 200m oil trap which would be the second biggest field in Turkey if similar to nearby fields.



    By my calculations, 41m of oil shows in Turkey and still in hydrocarbons.

    Take p50 case of 30mmbbo, valuations look interesting.

    30million x sayA$40 a barrel (discounted) x 45% if option exercised = $540 million.

    What if more than 30m barrels?? upside 200m barrels


    -I know that Sugarloaf alone will rate EKA alot higher 2+

    -EKA X 10 = marketcap 200m on the low side

    JBMMMMMMMMM-holding 30k of EKAO
     
  17. sandybeachs

    sandybeachs Well-Known Member

    Posts:
    115
    Likes Received:
    0
    Joined:
    Jul 11, 2004
    hi guys

    if you want to understand more about Bismil Prospect in Turkey, worth reading reports/presentations by INCREMENTAL PETROLEUM LIMITED [IPM]

    (IPM) have Selmo Oilfield about a stones throw away from Bismil Prospect which i also expect Bismil will have the same quality oil (heavy).

    from memory Selmo has an average of 71bopd per well...(gross production 1,500bopd, i think it's from about 8 producing wells)

    if successful what will Bismil flow at..????

    no idea...

    someone on h/c asked what Bismil might be worth per share, IMO more likely priced on BOPD rather than OIP or RECOVERABLE OIL..why..

    because IPM is very very grossly undervalued, IMO because of low flow rates..

    comments welcomed..

    regards
     
  18. sandybeachs

    sandybeachs Well-Known Member

    Posts:
    115
    Likes Received:
    0
    Joined:
    Jul 11, 2004
    just a follow up on the above (IPM) Selmo Oilfiled "Certified" P2 "12mmbls"

    IPM's market cap approx $90mm, so this values Selmo at approx $7.50bbl

    so as you can see because of the low quality oil & flow rates it's effecting IPM's share price. had the oil been better quality & higher flow rates. no doubt IPM's share price would be much higher.

    regards
     
  19. Broadside

    Broadside Well-Known Member

    Posts:
    668
    Likes Received:
    0
    Joined:
    Apr 3, 2006
    sandy as you have rightly pointed out on this and ADI thread, flow rates are the key...nevertheless EKA looks to have enormous potential and looks undervalued to me given their discoveries thus far, even if flow rates are on the low side
     
  20. sandybeachs

    sandybeachs Well-Known Member

    Posts:
    115
    Likes Received:
    0
    Joined:
    Jul 11, 2004
    hi broadside

    overall EKA is looking good..(excellent actually).

    i'm sure if people sit on their shares this time next year we should see a share price way higher than it is at present.

    as usual DYOR

    regards
     
Loading...

Share This Page