Adelaide Energy Limited (ASX:ADE) Encounter-1 Weekly Drilling Report Ended 9 November 2010
Adelaide, Nov 9, 2010 AEST (ABN Newswire) - Adelaide Energy Limited (
ASX:ADE) is pleased to update on Encounter-1 Weekly Drilling Report:
Projects - PEL 218
Eromanga Basin and Cooper Basin: ADE 10% Equity
Eromanga Basin
A geological legacy of marine flooding of the central Australian continent during the Mesozoic Era and invaluable National asset hosting hydrocarbons and water reserves of the Great Artesian Basin. ADE acquired 219 km 2D seismic in 2008.
- The Eromanga Basin contains the oil prospective Namur and Hutton sandstone reservoirs
- High heat flows ensure organic material has entered the generative "oil window"
- Numerous anticlinal plays have been identified and 3 matured to Prospect status
- Farm-in partners Beach Petroleum, Icon Energy, Bounty Oil and Gas, Deka Resources and Well Traced drilled the first Eromanga well in PEL 218 in 2009 ? Wakefield 1 ? oil shows and potential coal seam gas prospects were identified and are currently being evaluated.
- The 2008 Wakefield Seismic Survey acquired 219 km 2D seismic to delineate additional plays in the permit.
- ADE has met all obligations in PEL 218 under Native Title agreements and Work Area Clearance to protect sites of cultural significance
Cooper Basin
A prolific hydrocarbon province formed during a period of abundant coal-forming Palaeozoic forests, massive lakes and river systems. Thick sequences of Permian age sands and hydrocarbon-generating coals sealed by impermeable caprock shales
- Thick sequences of Permian age sands and hydrocarbon-generating coals sealed by impermeable caprock shales
- Home of the massive Moomba, Big Lake and Tirrawarra gas, condensate and oil fields
- Maximum thickness of Cooper Basin sediments and highest heat flows occur in the Nappamerri Trough, the heart of Adelaide Energy 's PEL 218 permit
- Despite its massive size and great potential the Nappamerri Trough remains under-explored because wells drilled previously did not effectively evaluate the Permian formations
- ADE will follow the lead of Canadian and American visionaries and drill for tight gas, the exciting new play concept gaining international focus in an energy-hungry world
- ADE has entered into a farm-out agreement with Beach Petroleum Limited whereby Beach will contribute $2.5 million towards ADE's share of future exploration expenditure in PEL218
- The Joint Venture will invest $25 million collectively to evaluate and commercialise the unconventional gas resources in PEL 218 to meet the expanding natural gas market
ENCOUNTER-1 WEEKLY DRILLING REPORT---------------------------------------------------------------ITEM DETAIL---------------------------------------------------------------Well name - Encounter-1Permit - PEL 218 (Permian JV)Participants - Beach Energy Ltd - 90% (Operator) - Adelaide Energy Ltd - 10%Primary targets - Roseneath/Epsilon/Murteree shale/ sand/shale sequenceSpud Date - 3 October 2010Target depth (prognosed) - 3625mTotal depth @ endof current week - 2862mTotal depth @ endof previous week - 2596mMetres drilled during week - 266mActivities during week - Run and cement 9 5/8" casing (some lost time): nipple4 up and test BOP's: drill out and drill ahead in 81/2" holeCurrent activities - Drill ahead in 81/2" holePlanned Activities - Drill ahead to REM unit expected at +/-3200m - commence coring---------------------------------------------------------------
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
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