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

Adelaide, May 19, 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

d. PRL 13 (30% ADE) - Killanoola Prospect (soon to be 80% ADE)

WEEKLY DRILLING REPORT TO 0600 hrs 19 May 2010

-------------------------------------------------------------------------------ITEM                                             DETAIL-------------------------------------------------------------------------------Well name                                   - Patrick - 1Permit                                      - PEL 255Participants                                - ADE - 100%Primary targets                             - Jacaranda Ridge/                                               Sawpit sandstoneMeasured Depth (MD) - current               - 2,970 metres (m)MD @ end of previous week                   - 2,998 mMetres drilled during week                  - NilPrimary Target (Jacaranda Ridge Sandstone)  - 2,675 - 2,712 mMD (approx)Secondary Target (Sawpit Sandstone)         - 2,765 - 2,970 mMD (approx)Activities during week                      - Finish electric logging                                            - Lay out pipe                                            - Ran and cemented 4 1/2" production                                               casing to 2997 mMD                                            - Ran 4 1/2" permanent packer plus                                               perforation guns on wireline                                             (packer depth at 2,638 m MD)                                            - Ran 2 3/8" premium production                                              tubing, install and pressure test                                              Xmas tree                                            - Release rig on 17 May 2010                                              (start move to Wynn-2)Current activities                          - Moving to Wynn-2Safety issues                               - NoneEnvironmental issues                        - None------------------------------------------------------------------------------

PROJECT UPDATE
-------------------------------------------------------------------------------PROJECT AREA                    PROGRESS REPORT-------------------------------------------------------------------------------Drilling - Patrick-1/Hollick-1   - Equipment has been mobilised to site to                                    enable testing of the Hollick-1 and                                    Patrick-1 wells                                 - Cased hold testing will commence today                                 - The Company expects the results of the                                   testing program to be available over the                                    following weeks. Any material developments                                   will be advised to the market when available.-------------------------------------------------------------------------------Testing - Wynn-2                 - The Hunt rig is moving to Wynn-2 on PRL 1                                    after release from Patrick-1                                 - 2 7/8" tubing completion will be run and well                                   testing will commence shortly thereafter-------------------------------------------------------------------------------New facilities                   - Gas production from Limestone Ridge-1                                    continues into the Katnook Gas Plant.-------------------------------------------------------------------------------

    
      
        
          
            
            
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