Adelaide Energy Limited (ASX:ADE) Otway Petroleum Project Testing Program Update

Adelaide, June 9, 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.

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)

ADE has recently drilled and completed a number of wells as part of its Otway Petroleum Project. This report provides an update on the ongoing testing and analysis program on those wells.

TESTING PROGRAM REPORT TO 0600 hrs 9 June 2010

------------------------------------------------------------------------ITEM                    Detail------------------------------------------------------------------------Jacaranda- - ADE is in the process of seeking approval from PIRSA to Ridge-2      bring the Jacaranda Ridge-2 well onto production - that              approval is expected very shortly           - Production from this well (which in its initial flared              production test flowed liquids rich gas at a rate in              excess of 3,000,000 scf/day) will flow directly to the              Katnook Plant (and hence to sales)           - This extended production test is designed to assist the              company in establishing the extent of reserves of gas              and condensate proved up by the drilling of Patrick-1              and Hollick-1           - ADE will obtain an independent audit of these reserves              from the respected expert RISC over the coming months---------------------------------------------------------------------Patrick-1  - Field testing work on Patrick-1 and Hollick-1 during and          the week achieved higher flow-rates from Patrick-1 Hollick-1    (of ~500,000 scf/day)           - Laboratory and other analytical work is ongoing with              a view to better understanding the reservoirs accessed              by the wells and the issues that may be retarding              flow-rates           - Downhole pressure recorders are to be retrieved from              Hollick-1 today           - All on-site testing equipment has been demobilized--------------------------------------------------------------------         Wynn-2     - Testing work on Wynn-2 is currently focusing on              chemical analysis------------------------------------------------------------------------Safety     - Noneissues         ------------------------------------------------------------------------Environmental issues     - None------------------------------------------------------------------------

Commenting on the blemish-free safety and environmental record achieved over the last few months, ADE's Managing Director, Mr Carl Dorsch, said:

"I am delighted that Adelaide Energy has over the course of this year undertaken a material development, drilling and testing program at our Otway Petroleum Project without any safety or environmental problems arising. This is a tribute to our staff and contractors, and I would like to give particular recognition to the professionalism of the drilling team at Hunt Energy."

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