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

Adelaide, May 5, 2010 AEST (ABN Newswire) - The Otway Petroleum Project is Adelaide Energy Ltd's (ASX:ADE) 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.

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 28 April 2010

------------------------------------------------------------------------------ITEM                                             DETAIL------------------------------------------------------------------------------Well name                                - Patrick - 1Permit                                   - PEL 255Participants                             - ADE - 100%Primary targets                          - Jacaranda Ridge/Sawpit sandstoneMeasured Depth (MD) - current            - 2,674 metres (m)MD @ end of previous week                - 1,767 mMetres drilled during week               - 907 mTarget depth - true vertical depth (TVD) - 2,630 mTarget depth - measured depth (MD)       - 2,675 m Total depth of well (MD)                 - 2,953 m Activities during week                   - Drilled to top of primary target                                             (Jacaranda Ridge Sandstone)                                         - Significant gas shows encounteredCurrent activities                       - Pulling out of hole prior to cutting                                            coresSafety issues                            - NoneEnvironmental issues                     - None-------------------------------------------------------------------------------

PROJECT UPDATE

----------------------------------------------------------------------------PROJECT AREA                    PROGRESS REPORT----------------------------------------------------------------------------Drilling - Patrick-1    - see weekly drilling report----------------------------------------------------------------------------Testing - Hollick-1     - Equipment is currently being mobilised to site                           to enable testing of the Hollick-1 and Patrick-1                           wells - due for mid-May----------------------------------------------------------------------------New facilities          - Gas production from the Limestone Ridge well has                           stabilised over the last week as various technical                           issues have been resolved                        - Over the last 4 days, gas flows have averaged in                           excess of 6 TJ/day from this well----------------------------------------------------------------------------

Contact

Carl Dorsch Managing Director Adelaide Energy Limited Mob:+61-0400-508-088 Email: c.dorsch@adelaideenergy.com.au Neil Young Chief Commercial Officer Adelaide Energy Limited Mob: +61-0417-850-245 Email: neil.young@adelaideenergy.com.au