re: Ann: Sugarloaf Production and Operations ... SUGARLOAF...

re: Ann: Sugarloaf Production and Operations ... SUGARLOAF PRODUCTION AND OPERATIONS UPDATE
Adelphi Energy Limited (Adelphi) is pleased to provide the following update on production
and operations at the Sugarloaf Area of Mutual Interest (AMI) within the Sugarkane Gas &
Condensate Field, Texas.
Production Update
The recently completed Morgan #1H and Easley #1H wells have now been on production for
sufficient time to provide the following first 30 day production figures:
Total Gas Production
(mmscf)
Total Condensate
Production (bbls)
Average Daily Equivalent
Gas Rate (mmscfe/d)*
Morgan #1H 109.4 38,500 19.97
Easley #1H 125.9 12,212 10.13
* The equivalent gas rates 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 additional production figures continue to be very encouraging for the economics of
the field. Further production updates for these wells will be provided in quarterly reports
going forward.
Rancho Grande #1H
Adelphi has been advised by the Operator that the multi-stage fracture stimulation operation
of the Rancho Grande #1H well has now been completed and the well is presently
unloading. A production update will be provided to the market once stabilised flow has
been achieved.
Kowalik #2H
Adelphi has been advised by the Operator that the Kowalik #1H well location will be twinned
with a new well, which is planned to spud in July 2010. This decision has been made in light of
the sub-optimal original well design for the now preferred completion activities and the
previously reported operational difficulties at the well. The Kowalik redrill will be the first of a
number of Sugarloaf wells to be drilled during this calendar year where all Joint Venture
partners will contribute to costs and derive revenue on a post farm out basis.
ASX listed participants in the Sugarloaf AMI are:
Adelphi (ASX: ADI) 10% (post farmout)
Aurora (ASX: AUT) 10% (post farmout)
Eureka (ASX: EKA) 6.25% (post farmout)