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Adelaide, July 22, 2010 (ABN Newswire) - Adelaide Energy Limited (
ASX:ADE) releases Fourth Quarter Activities Report ended 30 June 2010.
PRODUCTION AND REVENUE
2. DEVELOPMENT
a) Otway Petroleum Project (PPLs 62, 168 & 202; PRLs 1 &2; PELs 255, 494 & 496 - all 100% and Operated)
In the quarter, the new gas and condensate pipeline network connecting the Limestone Ridge-1, Jacaranda Ridge-2 and Wynn-2 gas/condensate wells to the Company's 100% owned Katnook gas plant was tested, commissioned and is now operating commercially.
b) Otway energy assets
The Company is progressing its FEED studies into a small-scale electricity generation plant to be located at the Katnook plant. ADE envisages this plant would primarily use gas from the previously developed but currently non-producing Ladbroke Grove gas-field.
Additionally, the commercialisation of the gas storage potential of the Company's depleted reservoirs at Katnook/Ladbroke Grove is being discussed with a number of third parties.
3. EXPLORATION AND APPRAISAL
a) Otway Petroleum Project (PPLs 62, 168 & 202; PRLs 1 &2; PELs 255, 494 & 496 - all 100% and Operated)
The Company announced gas discoveries from the Hollick-1 and Patrick-1 wells drilled in PEL 255 in the quarter.
Flow-rates from tests of the wells have been less than indicated was likely during the drilling phase and ongoing technical evaluation work is underway to ascertain how to increase flow-rates. Ultimately stimulation in some form to enhance production rates may be required. Reserves bookings are expected prior to the end of the calendar year.
The Wynn-2 well (previously drilled by Origin Energy (ASX:ORG) (PINK:OGFGF)) was completed in the quarter. Petroleum has not (yet) flowed to surface and testing is ongoing on this well.
The processing and interpretation of the seismic shot over PELs 494 and 496 earlier this year is nearly finalized. Approaches have recently been received from a number of parties over potentially farming into these 100% owned permits.
b) PEL 218 (20.05% in Post Permian, 10% in Permian)
No material activity in the quarter.
The drilling of the Encounter-1 and Holdfast-1 shale gas exploration wells by the Operator of PEL 218 (Permian), Beach Energy Ltd (BPT) (ASX:BPT) (PINK:BEPTF) is expected to commence in August this year.
The joint venture with respect to the Post Permian section of PEL 218 is currently determining the next stage of its work program, which may include activities such as coal bed methane (CBM) exploration and/or the testing of the cased and suspended Wakefield-1 well.
c) PEL 105 (50% and Operator)
The planned drilling activities for PEL 105 in the Cooper Basin, which were intended for mid-year, have been delayed by very wet weather in the region, and delayed until conditions improve.
d) ATP 849P (20%)
The Company has recently entered into an Agreement to sell this asset.
e) ATPA 855P (20%, reducing to 7.5% under a farmout)
A Right to Negotiate Agreement was executed with native title parties in the quarter and the permit is now expected to be granted by the Queensland Government later this year.
f) ATP 904P (100% and Operator, subject to farmout of gas rights)
The Company has initiated technical studies into prospects in this recently acquired permit.
g) ATP 613P, ATPA 674P and ATP 733P (100%, reducing to 25% post farmout)
Native title has also progressed in connection with these Maryborough Basin permits and an Ancillary Agreement has now been executed, clearing the path for Government grant. Thereafter, a CBM exploration program to be operated by Blue Energy should commence (ADE will be fully carried through this program).
h) West Florence, Colorado, USA (58.33%)
Although small scale oil production continues in this permit, no new material work was undertaken in the quarter. However, the decks have been cleared to move this asset forward, as the West Florence joint venture has been recently rationalized, with ADE buying out 2 minor parties to give it a 58.33% interest in the joint venture.
ADE and the other remaining joint venture party, Strata-X Inc (the Operator), are currently exploring various options for the asset, including sale, sell-down, farm-out and further drilling.
4. CORPORATE AND FINANCE
a) Business Development
During the quarter the Company entered into Agreements for the following acquisitions and disposals:
a) The purchase of 2 separate interests in the West Florence joint venture, which now gives ADE a 58.33% stake therein.
b) The acquisition of a further 30% Operated stake in the oil discovery retention lease PRL 13 ("Killanoola") in the Otway Basin from Beach Energy Ltd. Following completion of this purchase, ADE will have 80% of this permit.
c) The sale of the Company's equity in ATP 849P for sale proceeds of A$1.6M.
b) Capital Raisings
During the quarter the company made the following capital raisings:
- A placement of 10M shares at 15c per share to sophisticated investors, raising A$1.5M.
- A 1 for 4 non-renounceable pro-rata rights issue, also at 15c per share, under which 14.3M shares were issued, raising A$2.1M.
- A placement of 4.5M shortfall shares not taken up in the rights issue, raising A$0.675M
- The total funds raised of A$4.3M have been disbursed on the Company's Otway drilling program.
For the complete Adelaide Energy Limited quarterly report including Mining exploration entity quarterly report, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63365-ASX-ADE-178842.pdf
ASX:ADE) releases Fourth Quarter Activities Report ended 30 June 2010.PRODUCTION AND REVENUE
Revenue (A$k): - Quarterly Comparison ------------------------------ Q2 2010 Q1 2010 Change (%) ------------------------------ A$1,541 A$573 169% - Corresponding Period Comparison ------------------------------ Q2 2010 Q2 2009 Change (%) ------------------------------ A$1,541 A$425 263%Revenues increased substantially in the quarter, as gas and condensate production was brought on line from the recently connected Limestone Ridge-1 and Jacaranda Ridge-2 wells.
2. DEVELOPMENT
a) Otway Petroleum Project (PPLs 62, 168 & 202; PRLs 1 &2; PELs 255, 494 & 496 - all 100% and Operated)
In the quarter, the new gas and condensate pipeline network connecting the Limestone Ridge-1, Jacaranda Ridge-2 and Wynn-2 gas/condensate wells to the Company's 100% owned Katnook gas plant was tested, commissioned and is now operating commercially.
b) Otway energy assets
The Company is progressing its FEED studies into a small-scale electricity generation plant to be located at the Katnook plant. ADE envisages this plant would primarily use gas from the previously developed but currently non-producing Ladbroke Grove gas-field.
Additionally, the commercialisation of the gas storage potential of the Company's depleted reservoirs at Katnook/Ladbroke Grove is being discussed with a number of third parties.
3. EXPLORATION AND APPRAISAL
a) Otway Petroleum Project (PPLs 62, 168 & 202; PRLs 1 &2; PELs 255, 494 & 496 - all 100% and Operated)
The Company announced gas discoveries from the Hollick-1 and Patrick-1 wells drilled in PEL 255 in the quarter.
Flow-rates from tests of the wells have been less than indicated was likely during the drilling phase and ongoing technical evaluation work is underway to ascertain how to increase flow-rates. Ultimately stimulation in some form to enhance production rates may be required. Reserves bookings are expected prior to the end of the calendar year.
The Wynn-2 well (previously drilled by Origin Energy (
ASX:ORG) (PINK:OGFGF)) was completed in the quarter. Petroleum has not (yet) flowed to surface and testing is ongoing on this well.The processing and interpretation of the seismic shot over PELs 494 and 496 earlier this year is nearly finalized. Approaches have recently been received from a number of parties over potentially farming into these 100% owned permits.
b) PEL 218 (20.05% in Post Permian, 10% in Permian)
No material activity in the quarter.
The drilling of the Encounter-1 and Holdfast-1 shale gas exploration wells by the Operator of PEL 218 (Permian), Beach Energy Ltd (BPT) (
ASX:BPT) (PINK:BEPTF) is expected to commence in August this year.The joint venture with respect to the Post Permian section of PEL 218 is currently determining the next stage of its work program, which may include activities such as coal bed methane (CBM) exploration and/or the testing of the cased and suspended Wakefield-1 well.
c) PEL 105 (50% and Operator)
The planned drilling activities for PEL 105 in the Cooper Basin, which were intended for mid-year, have been delayed by very wet weather in the region, and delayed until conditions improve.
d) ATP 849P (20%)
The Company has recently entered into an Agreement to sell this asset.
e) ATPA 855P (20%, reducing to 7.5% under a farmout)
A Right to Negotiate Agreement was executed with native title parties in the quarter and the permit is now expected to be granted by the Queensland Government later this year.
f) ATP 904P (100% and Operator, subject to farmout of gas rights)
The Company has initiated technical studies into prospects in this recently acquired permit.
g) ATP 613P, ATPA 674P and ATP 733P (100%, reducing to 25% post farmout)
Native title has also progressed in connection with these Maryborough Basin permits and an Ancillary Agreement has now been executed, clearing the path for Government grant. Thereafter, a CBM exploration program to be operated by Blue Energy should commence (ADE will be fully carried through this program).
h) West Florence, Colorado, USA (58.33%)
Although small scale oil production continues in this permit, no new material work was undertaken in the quarter. However, the decks have been cleared to move this asset forward, as the West Florence joint venture has been recently rationalized, with ADE buying out 2 minor parties to give it a 58.33% interest in the joint venture.
ADE and the other remaining joint venture party, Strata-X Inc (the Operator), are currently exploring various options for the asset, including sale, sell-down, farm-out and further drilling.
4. CORPORATE AND FINANCE
a) Business Development
During the quarter the Company entered into Agreements for the following acquisitions and disposals:
a) The purchase of 2 separate interests in the West Florence joint venture, which now gives ADE a 58.33% stake therein.
b) The acquisition of a further 30% Operated stake in the oil discovery retention lease PRL 13 ("Killanoola") in the Otway Basin from Beach Energy Ltd. Following completion of this purchase, ADE will have 80% of this permit.
c) The sale of the Company's equity in ATP 849P for sale proceeds of A$1.6M.
b) Capital Raisings
During the quarter the company made the following capital raisings:
- A placement of 10M shares at 15c per share to sophisticated investors, raising A$1.5M.
- A 1 for 4 non-renounceable pro-rata rights issue, also at 15c per share, under which 14.3M shares were issued, raising A$2.1M.
- A placement of 4.5M shortfall shares not taken up in the rights issue, raising A$0.675M
- The total funds raised of A$4.3M have been disbursed on the Company's Otway drilling program.
For the complete Adelaide Energy Limited quarterly report including Mining exploration entity quarterly report, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63365-ASX-ADE-178842.pdf
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About Adelaide Energy Limited
Adelaide Energy Limited (ASX:ADE) is an oil and gas exploration and production company with a focus on the Cooper and Otway Basins of South Australia.
ADE is the dominant player in the onshore Otway Basin in South Australia, with existing gas production assets, a development program and substantial exploration acreage.
ADE hold exploration acreage in the Cooper and Maryborough Basins of South Australia and Queensland respectively which are prospective for large gas resources.
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