after the AMI wells have started flowing i feel the reserves and...

after the AMI wells have started flowing i feel the reserves and resource position have to be addressed by the jvp partners, so these prices are well worth it imho, as i think in the near term those things will have a further impact on the sp above the .45 valuation that adi is yet to reach.. i certainly have been buying in the past days.. even old john campbell, the self confessed derided sceptic sees the light in the eagleford, in hilcorp and the jvp management. particularly the fact this jvp is not hyping up wells and is telling it as it is. as he says, adi may well have over $13 mill in revenue pretty soon from the wells drilled and put on production, if you add in the cash in hand, about $9 mill i believe, and the possibility of the sale of the yemen block.. then your really looking at a swag of cash.. imho that will bring the wolves in.. if adi remains valued at $47 mill, i would mount a takeover bid and use the cash to buy out the shareholders and delist adi..

like the attempt at buru

all in jest..


some may not see the value in the jvp right now, with the market shake up.. and the first stocks to suffer are the high risk high reward stocks.. but it still is by far under the radar imho, and far short of the .45 valuation of hartleys.. this report was from a few months back

26 Mar 2010

ADELPHI ENERGY LTD
What happened?
Adelphi Energy has reported sustained average 30 day flow rates from its first two wells at its Sugarloaf project onshore USA. The Kennedy #1H well has averaged 11.7 million cubic feet of gas equivalent per day* (mmcfe/d) and the Weston #1H well has recorded average 30 day production of 11.4mmcfe/d. These results have been achieved without the benefit of installation of production tubing, which has been indicated in nearby wells to result in a decrease in initial decline.
The Company has also reported that it now has three additional wells in the process of being drilled or fracture stimulated.

ADI is free carried through the current work program.
What does it mean?

At these rates, we estimate that each well is making US$50k-US$65k in revenue per day, with combined revenue from both wells grossing estimated US$3-4m in the first 30 days. We calculate that the average gas /condensate production per well is 3.75 million cubic feet of gas per day with 615 barrels of condensate per day (flow rates will decline significantly in the first year). With well costs estimated at US$6-8m, payback should be achieved within 5-8 months.

[you have to consider that morgan flowed at over 30mmcfpd e]

It is still early days; however, each piece of new information received to date has increased the potential of the play and estimated ultimate recovery per well is now likely to be significantly greater than 5 billion cubic feet of gas equivalent. To give an indication of potential value, there could be over 200 well locations on the Sugarloaf acreage, resulting in over 1 trillion cubic feet
of gas equivalent. We estimate that Adelphis share of this at current spot prices (US$80 oil, US$4 gas) is worth ~150cps (using US$2 per mcfe calculated net present value and 10% working interest post farmout).

At US$100 oil, the valuation potential increases to over 200cps.

Strong newsflow is expected over the next 2-3 months as the additional 3 wells are completed, fracture stimulated and flow tested. Now that the technical risk has been decreased due to a substantial number of successful wells being drilled in the play, we view these wells as very low risk (90% chance of success).

Hartleys Initial View

We recently upgraded ADI to a Buy based on the initial flow rates received from its first two wells and consistent information from wells in the surrounding acreage. This new information has increased our confidence in the potential of the resource and we re-iterate our Buy recommendation and
short term price target of 45cps.
If initial results from the next three wells (expected over the next 2-3 months)continue to be strong, there is substantial room in our valuation for further large upgrades in price target and valuation, as indicated by our unrisked valuation of 188cps.
*mcfe is calculated using a 12:1 conversion ratio for gas / condensate and a 25%
uplift in gas equivalent volume due to high calorific value of the produced gas


great buying opportunities atm..





hilcorp buying into more acreages in gonzales, one of the rigs on the AMI acreages is now drilling their first well in gonzales that hilcorp have leased in their own right..
leaving one rig to drill the turnbull 2 and 3 wells and the ipanema well in the near term


Lucas Energy Announces Closing Part I of Eagle Ford Shale Joint Venture

HOUSTON, May 10, 2010 (GlobeNewswire via COMTEX) -- Lucas Energy, Inc. an independent oil and gas company (the "Company") based in Houston, Texas, today announced that the Company has closed the first part of an Eagle Ford Shale joint venture with Hilcorp Energy I, L.P., an affiliate of Hilcorp Energy Company, one of the largest privately owned oil and gas companies in the United States. Hilcorp Energy I, L.P. acquired part of the Lucas Energy, Inc. deep rights (Eagle Ford rights) in Gonzales County, Texas and paid Lucas $7.52 million at closing. The remainder of the Lucas Eagle Ford shale properties will be part of a second closing that is expected to take place later in this month.

The purpose of the joint venture with Hilcorp is the development of the Eagle Ford Shale properties owned by Lucas Energy, Inc. in Gonzales County, Texas. Hilcorp is acquiring an 85% working interest in the deep rights, including the Eagle Ford Shale formation. Lucas will retain a 15% working interest. The joint venture does not include any producing wells or current production.

William A. Sawyer, President and CEO of Lucas Energy, said, "This is a major leap forward for Lucas. Hilcorp is one of the finest oil and gas companies in the U.S. today. We are proud to be a partner with them. Their expertise in drilling and completions will move our Eagle Ford program forward at a much faster pace than we could have done alone. The first thing we did with the capital was to pay off our Amegy Bank debt." For more information on this and other activities of the Company, see the Lucas Energy web site www.lucasenergy.com.


all imho and dyor