22 January 2010Company Announcements Platform Australian Stock...

22 January 2010
Company Announcements Platform Australian Stock Exchange Limited Exchange Centre 20 Bond Street
SYDNEY NSW 2000
Via ASX Online
SUGARLOAF OPERATIONS UPDATE
Adelphi Energy Limited (Adelphi) provides an update on operations within the Sugarloaf AMI.
Kennedy #1H - Fracture Stimulation Program
Adelphi has been advised by the Operator, Texas Crude Energy Inc (TCEI), that the fracture stimulation operations at Kennedy #1H commenced as scheduled on Monday 18th January. The operations thus far have been executed as planned with the fourth stimulation stage out of fourteen underway early on the morning of Thursday 21st January local time. It is expected that the stimulations will be completed next week and thereafter the isolating plugs that are set in-between each stimulation stage will be drilled out with coiled tubing and the well will be flowed back to sales.
Easley #1 H Commencement of Drilling
TCEI have also advised Adelphi that the Patterson #150 drilling unit has now completed rig-up and the Easley #1H well was spudded on Thursday 21st January. The well is scheduled to take approximately 40 days to drill, which includes a vertical pilot hole from which additional data on the Eagle Ford Shale will be gathered. The well has been designed with a 4,000 ft horizontal section and will access both the Austin Chalk horizon, which is locally prevalent within the Sugarkane Field and the Eagle Ford Shale when it is subsequently stimulated. The well is located approximately 2km to the north east of the Weston #1H well. The Easley #1H well will be the first new well to be drilled under the farmin agreement with Hilcorp Energy within the Sugarloaf AMI.
Further operational updates will be issued on a weekly basis or if required following material events. Adelphi currently (pre-farmout) has a 20% working interest in the Sugarloaf AMI.
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%