Ann: Sugarloaf Production and Operations Update , page-6

re: Ann: Sugarloaf Production and Operations ... 25 March 2010

Via ASX Online

SUGARLOAF AMI PRODUCTION AND OPERATIONS UPDATE

Adelphi Energy Limited ("Adelphi") is pleased to provide the following update on production and operations at the Sugarloaf AMI within the Sugarkane Gas & Condensate Field, Texas.

Production

Initial production trends for the Kennedy #1H and the Weston #1H wells are now being established, although meither well has yet had production tubing installed. Further to previous ASX announcements detailing initial production rates, Adelphi can now provide 30 day
average production rates for these wells.
Kennedy #1H 11.7 mmscfe/d*
Weston #1H 11.5 mmscfe/d*
*These figures have been calculated to reflect value using a 12:1 conversion ratio for condensate and a 25% uplift on gas equivalent volumes due to the high calorific value of the produced gas.

These figures are very encouraging and compare favourably with other reported 30 day averages across the Eagle Ford trend, in particular Petrohawk Energy Corporation (NYSE:HK),
who recently announced (01/02/10) in their fourth quarter results that 19 wells in the Hawkville Field (located to the south east of Sugarkane within the Eagle Ford Trend) were averaging 7.8 mmscfe/d (12:1 conversion) over their first 30 days of production.

Operations

Morgan #1H The horizontal section of this well is progressing with the latest reported depth at 16,926 ft which equates to a reservoir section of approximately 4,800 ft. Once TD is called on this well it will be completed with a cemented casing string and fracture stimulated before
being flowed to sales.

Rancho Grande #1H A drilling rig has been mobilised to the location of this, the third farm-in well within the Sugarloaf AMI, and is presently being rigged up. This well is expected to spud shortly.

Easley #1H This well is waiting on commencement of fracture stimulation operations and it will then be flowed to sales.
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kennedy 11.7 mmscfe/d off 2200 feet of well in the eagleford!!

Weston 11.5 mmscfe/d off 3000 feet of lateral in the lower chalks !!


morgan now at 4800 feet and still going strong!! liking that one more and more.. we can expect over 22 mmcfpde if the operator stopped now..

3 wells producing nicely, i completion about to frac, another still drilling and further well about to spud

looking pretty spectacular for the time being..