Adelaide Energy Limited (ASX:ADE) Gas Storage Retention Licence Granted

Perth, Sep 20, 2010 AEST (ABN Newswire) - Adelaide Energy Limited (ASX:ADE) is pleased to announce that it has been granted Gas Storage Retention Licence GSRL 27 by the South Australian Government for an area of 45 square kilometres which covers the same area as its petroleum production and retention licences in the Otway Basin.

The gas storage retention licence will facilitate the advancement of technical studies on, and commercial negotiations over, ADE's potential gas storage assets in a secure ownership environment.

Under the terms of the licence, ADE has an initial five year period within which to advance the commercialisation of the gas storage potential of the depleted and depleting reservoirs in the area which is the subject of the licence grant.

Commenting on the transaction, Carl Dorsch, ADE's Managing Director, said:

"We are pleased to be granted what we understand to be Australia's first gas storage retention licence. Our assets in the Otway Basin are technically suitable, and excellently located, to support what we consider to be the rapidly increasing appetite for gas storage in Eastern Australia."

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 http://www.adelaideenergy.com.au