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

Adelaide, April 7, 2010 AEST (ABN Newswire) - The Otway Petroleum Project is Adelaide Energy Limited (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 and other ongoing activity currently being undertaken by ADE in the Otway Petroleum Project, the Company intends in this quarter to issue weekly drilling reports and regular project updates to investors on the progress being made in the various drilling and other project areas.

Although evaluation operations are taking longer than anticipated, electric logging operations in open hole typically present technical challenges. ADE is committed to evaluating the well as fully as possible including confirming the presence of hydrocarbons in a number of sands in the deeper Sawpit section drilled during the week.

If hydrocarbons are confirmed at the lower levels, this may require milling out the remaining 19m of fish in the hole.

Full scale testing will follow the running of production casing in this well and the drilling of the next well as announced previously.

WEEKLY DRILLING REPORT

---------------------------------------------------------------------ITEM                                         DETAIL---------------------------------------------------------------------Well name                       - Hollick-1Permit                          - PEL 255Participants                    - ADE - 100%Primary targets                 - Jacaranda Ridge/Sawpit sandstoneMeasured Depth (MD) - current   - 2959 m (metres)MD @ end of previous week       - 2901 m Metres drilled during week      - 58Top of JacarandaRidge Sandstone(MD)             - 2666 mTop of Sawpit Sandstone (MD)    - 2770 mActivities during week          - Finished drilling in 6 3/4" hole                                  to final depth (TD) : conditioned                                  hole for electric logging : ran                                  first logging tools (super combo)-                                  log hole down : first repeat from                                  bottom to top of Sawpit - tool                                  stuck on bottom during next repeat:                                  fishing operations over 4 days were                                  partially successful (some 19m                                  fish left in hole with top of fish                                  at 2900m)Current activities              - Conduct formation testing loggingSafety issues                   - NoneEnvironmental issues            - None---------------------------------------------------------------------

PROJECT UPDATE

-------------------------------------------------------------------------PROJECT AREA                     PROGRESS REPORT-------------------------------------------------------------------------Drilling               - Hollick 1 - see weekly drilling report                       - ADE expects to spud either Patrick 1 or                         Brand 1 in the coming weeks-------------------------------------------------------------------------Production Facilities  - ADE has shut in its 100% owned Katnook gas                         processing plant from 31 March 2010 whilst                         commissioning its new gathering pipeline network                       - Approval has been given by the Rgulatory                         Authority to commence "new" production                       - ADE plans to produce from Limestone Ridge 1                         and Haselgrove South 2                       - Production is expected to re commence this week-------------------------------------------------------------------------Seismic                - Processing of the seismic recently shot by ADE                         over PELs 494 and 496 is underway-------------------------------------------------------------------------

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.

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