sell side at .41, page-13

the ones buying are taking up a position on the basis that
AWE is far to low and know the ADI bod have to reply in a
very short time frame to any unconditional offer, the
announcement will be in the next few days, but definitely
by the end of the week

AWE have not been a great performer, with the AWE share
under performing to the ASX 200 over the past year..

but recent IP and 60 day flow rates have sparked AWE up..
they suddenly see value!!

the AWE management see the eagleford as a very lucrative
item to have ownership of.. they have a sudden supreme
confidence in the eagleford and currently their efforts are
primarily to steal the sugarkane at the lowball bid price
they have offered

adi and the jvp have performed at exceptional levels
compared to the ASX 200 over the past 12 months imho.. and
i am not complaining about their performance one bit.

the jvp has only just started producing from the eagleford,
only since late january, and hilcorp are introducing more
rigs into the region, that i am very aware of and thats why
i hold, i absolutely believe there will substantial
increases in rigs and wells being drilled in the AMI this
year and into the coming years..

AWE dont want any further value to come into the adi
share,, they are striking very very early and thus stifling
any opportunity for the adi long term holders to achieve
any future value..

hartleys say this about the sugarkane just in march. just
b4 the morgan result which was staggering.

btw i hear that morgan was the highest producing oil well
in texas for a number of days!!!!

Hartleys Initial View

We recently upgraded ADI to a Buy based on the initial flow
rates received from its first two wells and consistent
information from wells in the surrounding acreage. This
new information has increased our confidence in the
potential of the resource and we re-iterate our Buy
recommendation and short term price target of 45cps.

If initial results from the next three wells (expected
over the next 2-3 months) continue to be strong, there is
substantial room in our valuation for further large
upgrades in price target and valuation, as indicated by our
unrisked valuation of 188cps

http://www.adelphienergy.com.au/files/brokerreports/Hartleys%20Broker%20Report%2026%20March%202010.pdf



the jvp very close to having the results from many wells
just placed on production driving more value into the share
with reserves estimates.. AWE have struck prior to that
next milestone with an excessively low bid imho