Adelaide Energy Limited (ASX:ADE) Encounter-1 Weekly Drilling Report Ended 26 October 2010

Adelaide, Oct 26, 2010 AEST (ABN Newswire) - Adelaide Energy Limited (ASX:ADE) is pleased to release Encounter-1 Weekly Drilling Report.

Well name: Encounter-1

Permit: PEL 218 (Permian JV)

Participants: Beach Energy Ltd (ASX:BPT) (PINK:BEPTF) - 90% (Operator); Adelaide Energy Ltd - 10%

Primary targets: Roseneath/Epsilon/Murteree shale/sand/shale sequence

Spud Date: 3 October 2010

Target depth (prognosed): 3625m

Total depth @ end of current week: 2445m

Total depth @ end of previous week: 2073m

Metres drilled during week: 372m

Activities during week: Drill ahead in 12 1/4" hole with bit changes

Current activities: Drill 12 1/4" hole at 2445m (Nappamerri Group)

Planned Activities: Drill ahead to intermediate casing point at 2600m

For the complete Adelaide Energy announcement including Encounter-1 Time Depth Chart, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64028-ASX-ADE-180141.pdf

Contact

Carl Dorsch Managing 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