Adelaide Energy Limited (ASX:ADE) Otway Petroleum Project - Weekly Drilling Report

Adelaide, Mar 24, 2010 AEST (ABN Newswire) - The Otway Petroleum Project is Adelaide Energy Limited's (ASX:ADE) (PINK:ADEZF) 100% owned suite of integrated production, development and exploration oil and gas assets, which are located in the South Australian section of the onshore Otway Basin.

Given the current drilling activity currently being undertaken by ADE in the Otway Petroleum Project, the Company will issue drilling reports more frequently if required as the target sands are approached and intersected. Updates on other material Project activities will be made as they arise.

Progress has not been as expected with rates of penetration slowed by the need to maintain angle and azimuth. It has been difficult to prevent "walking to the right" with lots of corrections being required hampering progress.

Note that the actual performance of Jacaranda Ridge 2 is included for reference. It should be noted that this well did not require the same level of directional control.

Target depth is now expected to be reached in the next 4 -5 days.

The Otway Petroleum Project (100% ADE) comprises:

a. PEL 255 : contains the Jacaranda Ridge 2 discovery + 5 extra targets

b. The Katnook Gas Assets consisting of: The Katnook Gas Processing Plant and associated infrastructure The Ladbroke Grove Gas Processing Plant and associated infrastructure Petroleum Retention Licences 1 (Wynn) & 2 (Limestone Ridge) Petroleum Production Licences 62, 168 & 202 Existing gas pipelines to the Gas Plants from wells in the PPL's 13 Producing/shut in gas/gas liquids wells

c. PEL's 494 and 496 - 2 exploration licences awarded to ADE on 24 March 2009

       WEEKLY DRILLING REPORT TO 0600 hrs 24 March 2010-----------------------------------------------------------------------ITEM                                      DETAIL-----------------------------------------------------------------------Well name                               - Hollick-1Permit                                  - PEL 255Participants                            - ADE - 100%Primary targets                         - Jacaranda Ridge/                                          Sawpit sandstoneMeasured Depth (MD) - current           - 2418m (metres)MD @ end of previous week               - 1710mMetres drilled during week              - 708 mTarget depth - true vertical depth(TVD) - 2860 mTarget depth - measured depth (MD)      - 2950 mActivities during week                  Drill ahead directionally in                                        6 3/4" hole to 2418m with bit                                        and assembly changes as                                        required (hole angle 17.3 deg,                                        azimuth 54.7 degrees).Current activity                        - Drilling aheadSafety issues                           - NoneEnvironmental issues                    - None-----------------------------------------------------------------------

Contact

Carl Dorsch Managing Director Adelaide Energy Limited Mob: +61-400-508-088 Email: c.dorsch@adelaideenergy.com.au Neil Young Chief Commercial Officer Adelaide Energy Limited Mob: +61-417-850-245 Email: neil.young@adelaideenergy.com.au