Ann: Kennedy Operations Update , page-6

Adelphi Energy Limited
Level 4, 679 Murray Street, West Perth, Perth Western Australia 6005
PO Box 574, West Perth, Western Australia 6872
Tel: 61-8 9480 1300 Fax: 61-8 9480 1388
Email: [email protected]
1 February 2010
Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online
KENNEDY #1H - OPERATIONS UPDATE
Adelphi Energy Limited (Adelphi) is pleased to provide the following update on operations
at the Kennedy #1H well.
Adelphi has been advised by the Operator, Texas Crude Energy Inc (TCEI), that the isolation
plugs set as part of the fracture stimulation operations have been drilled out and the well
commenced unloading at 0100 hrs on Thursday, 28 January 2010 (USCST).
The initial production rate going to sales at 0700 hrs on Saturday 30, January (USCST) using a
22/64 choke was 4.39 mmscf/d gas and 1,132 bpd of condensate. The water production rate,
from the recovery of frac fluids, was 408 bwpd.
Whilst these initial rates are very encouraging, the following points should be noted:-
This is an initial production rate during clean up and is not yet indicative of a short or
long term production profile.
The well still has considerable fluids to recover from the fracture stimulation operations.
The well is flowing from approximately 2,200 ft of stimulated Eagle Ford Shale with the
remainder of the 4,000 ft horizontal liner isolated and not contributing.
The well is currently producing through the 7" production casing, with a production
tubing string to be installed in due course.
Adelphis Managing Director, Chris Hodge commented:
Whilst it is early days, these initial flow rates are extremely encouraging including the
expected high condensate ratio. We look forward to seeing how the well cleans up as well
as the imminent fracture stimulation of our Weston well. Together with the three new wells
being drilled as part of the farm-in program by Hilcorp across the Sugarloaf AMI, we expect
to obtain additional valuable production performance data in the very near term to further
prove up the commercial potential of our interests."
Adelphi will continue to advise the market on production rates as part of its regular updates
or as specifically required.
Adelphi currently (pre-farmout) has a 20% working interest in the Sugarloaf AMI including the
Kennedy #1well.
Other ASX listed participants in the Sugarloaf AMI, and their respective pre-farm-out working
interests are:
Aurora Oil and Gas Limited 20.0%
Eureka Energy Limited 12.5%
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For inquiries please contact:
Chris Hodge, Managing Director or Alex Forcke, Chairman.
Telephone: +61 8 9480 1300
Email: [email protected]
Yours faithfully
CHRIS HODGE
Managing Director
Adelphi Energy Limited