ASX:ADE) releases Third Quarter Activities Report 3 months to 31 March 2010.1. PRODUCTION AND REVENUE
--------------------------------- Quarterly Q1 Q4 Change Comparison 2010 2009 (%) --------------------------------- Revenue (A$k) 573 307 + 46 --------------------------------- Corresponding Q1 Q1 Change Period 2010 2009 (%) --------------------------------- Revenue (A$k) 573 472 + 18 ---------------------------------
Production (and therefore revenues) are expected to increase significantly in the June quarter as new wells come on line (see development section below).
2. DEVELOPMENT
a) Otway Petroleum Project (PPLs 62, 168 & 202; PRLs 1 &2; PELs 255, 494 & 496 - all 100% and Operated)
Extensive development works were undertaken in the quarter, laying gas pipelines and connecting the Limestone Ridge, Jacaranda Ridge and Wynn gas/condensate wells to the Company's 100% owned Katnook gas plant.
After the end of the quarter, and following the appropriate commissioning procedures, material gas-flows from Limestone Ridge have commenced to the plant.
b) No development activities on other permits/assets were undertaken in the quarter.
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 spudded the Hollick-1 well in PEL 255 in March and had significant gas indications. Further cased hole testing of Hollick-1 will be undertaken in the current quarter.
Also after the end of the quarter, the Patrick-1 well was spudded (also in PEL 255).
A seismic shoot of ~100km of 2D was undertaken in the quarter in PELs 494 and 496. Processing of this is underway, with results expected by mid-year.
b) PEL 218 (20.05% in Post Permian, 10% in Permian)
No material activity in the quarter.
The drilling of the Holdfast-1 well by the Operator of PEL 218 (Permian), Beach Energy Ltd (
ASX:BPT) (PINK:BEPTF) is expected for Q3 this year (subject to weather issues).The joint venture with respect to the Post Permian section of PEL 218 is currently determining the optimal test path for the Wakefield-1 well, which was cased and suspended late last year.
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.
d) West Florence, Colorado, USA (25%)
No material work was undertaken with respect to this asset in the quarter.
4. CORPORATE AND FINANCE
a) Business Development
During the quarter the Company entered into Agreements for the following acquisitions:
a) The purchase of Magellan Petroleum Corporation's (
NASDAQ:MPET) 100% interests in three permits in Queensland's Maryborough Basin (ATP 613P, ATPA 674P and ATPA 733P) for consideration of A$450,000. These permits are subject to a Farmin Agreement with Blue Energy Ltd (ASX:BUL) under which it will earn a 75% interest by completing a coal bed methane (CBM) drilling program.b) The entire share capital of 2 private companies, Deka Resources Pty Ltd and Well Traced Pty Ltd, for consideration (in total) of A$2M and the issue of 15M shares in ADE. These companies collectively hold the following permit interests:
- PEL 218 (Post Permian) - 10.05%
- ATPA 855P - 20% (subject to a farmout to a private party)
- ATP 849P - 20%
- ATP 904P - 100% of oil rights and 5% ORR over the gas rights
The permits acquired through these acquisitions are illustrated on the map below(see link at the bottom of the release):
b) Capital Raisings
After the end of the quarter, the company announced the following capital raisings:
- A placement of 10M shares at 15c per share to sophisticated investors.
- A 1 for 4 non-renounceable pro-rata rights issue, also at 15c per share, to issue up to 52M new shares.
- The total capital raised will be up to A$9.3M
- The funds will be primarily used to finance or defray the company's ongoing drilling & development activities and the acquisitions outlined above.
For the complete Adelaide Energy Limited annoucement including figures and maps, please click the following link:
http://www.abnnewswire.net/media/en/docs/62762-ASX-ADE-177907.pdf' target=_blank>http://www.abnnewswire.net/media/en/docs/62762-ASX-ADE-177907.pdf' target=_blank>http://www.abnnewswire.net/media/en/docs/62762-ASX-ADE-177907.pdf
About Adelaide Energy Limited
Contact
Carl DorschManaging Director
Adelaide Energy Limited
Mob:+61-0400-508-088
Email: c.dorsch@adelaideenergy.com.au
Neil Young
Chief Commercial Officer
Adelaide Energy Limited
Mob: +61-0417-850-245
Email: neil.young@adelaideenergy.com.au
Related Companies
Magellan Petroleum Corporation.
