overview of sugarkane, page-247

mick, the presentation txco made on their progress in the shale is interesting..

as you know i dont consider tcei incompetent, and if you as a shareholder do, then i think you should voice your concerns to adi and state it.. would you perhaps consider asking them their opinion and allow me to step away from any argument with you on the strong opinions you have on tcei being incompetent?

when i studied the well that TXCO/anadarko have just completed a 10 stage frac on, which is the one they will not disclose details on to their shareholders on flow rates at the specific request of anadarko.. i noticed its a pretty short completion, and all the wells in the shale have been short, which is similar to what petrohawk and pioneer have done. But this well has a long history, its actually has 2 wells at the site, one drilled 2 years ago as a vertical, and it did a lot of testing on all their targets,, then drilled a second well and later put in a lateral and anadarko have done all the design and frac work on the well.. so many years of testing and drilling have taken place there, very similar program in costs and size to the kunde 3 cluster that burlington started (taken over by conocophillips now) and imho its very likely by the way txco talk in the presentation that the previous eagleford wells of TXCO were not too good and they certainly didnt put them on long term test.. initial flow rates might have been high, but they have not flowed the other wells and sought better frac techniques on the shale. imho the presentation alluded to cemented liner completion in this last well..

for me the TCEI eagleford well (kennedy) is more than long enough for a fracture stimulation base on what the other operators are using. i would have hoped that as mr fluor sits on the anadarko board (as incompetent as you think he is.. **and on the fluor corp baord**) would perhaps give the opportunity for the TCEI wells to achieve similar success? plus i believe TCEI is a jvp partner with conocophillips, and should have some insights into how conoco did on the kunde 3 well with their recent frac operations..


the success of the regional operators like pioneer, petrohawk, apache, geosouthern, anadarko, conocophillips and tcei and many others is important to the overall prospectivity and the long term success in developing a play like this.. they all agree with adi in that the oil price is too low and the wells costs too high for the play to be developed. $60 oil is needed and well costs have come down by 40% and more in some regions.. ME oil development will not proceed until $60 is reached and offshore anywhere is not viable unless $80 is on the cards.. so the unconventional and tight plays and offshore is on long hold for now world wide.. for me those factors weigh far more on the commercial success and the future of adi than whether others are making inroads..

mick, the reason why i, and other LT investors in this jvp study the regional success story is to not have blinders on this.. i will not stay in a program that is not succeeding in the region, so although it may bother you, for others it has a different perspective for them..

i am taking the long term view on this and research accordingly.. so there will be more research appearing in the future,, so if it bothers you too much i can only ask you put me on ignore perhaps..