Adelaide Energy Limited

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) announces a strategic alliance with Adelaide Energy Ltd (ASX:ADE) through a potential investment of A$12.1 million via a placement of both shares and options in the company.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) has completed its internal assessment of the resource potential of the Holdfast-1 and Encounter-1 vertical shale gas wells with the booking of an initial gross contingent resource of 2 trillion cubic feet of sales gas. While PEL 218 (Beach 90%) is approximately 1,600km2 in size, this resource booking has been constrained to areas of 100km2 around each of the two purpose drilled shale gas evaluation wells. Data collected to date indicate the shales are continuous across the PEL 218 acreage.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) advises the Holdfast-1 shale well in the Cooper Basin is currently flowing gas and some steam during ongoing clean up. The Holdfast-1 well is located within the PEL 218 tenement (Beach 90%), which covers an area of 1,600km2 in the centre of the Nappamerri Trough of the Cooper Basin.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) has completed the fracture stimulation of Holdfast-1 with the various selected target zones fracturing in line with expectations. The program was designed to be experimental, with the objectives set out below. However, the volume of fluid and proppant injected and the extent and apparent orientation of the fracturing is considered most encouraging.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) advises that the flow stimulation of Holdfast-1 commenced over the weekend.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) advises that flow stimulation of the Holdfast-1 and Encounter-1 shale wells will commence early June. Holdfast-1 has been successfully completed in preparation for flow stimulation.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) has completed drilling the Holdfast-1 well and is encouraged by the target zone intersection which is 353 metres. Commencing mid May, both Encounter-1 and Holdfast-1 will be fracture stimulated and flow tested.

Adelaide Energy Limited (ASX:ADE) release Holdfast-1 weekly drilling report ended 22 Feb 2011.

Adelaide Energy Limited (ASX:ADE) release Holdfast-1 weekly drilling report ended 15 Feb 2011.

Adelaide Energy Limited (ASX:ADE) release Holdfast-1 weekly drilling report ended 9 Feb 2011.