Adelaide Energy Limited (ASX:ADE) Encounter-1 Weekly Drilling Report Ended 7 December 2010

Adelaide, Dec 7, 2010 AEST (ABN Newswire) - Adelaide Energy Limited (ASX:ADE) is pleased to release Encounter-1 weekly drilling report ended 7 December 2010.

Well name: Encounter-1

Permit: PEL 218 (Permian JV)

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

Primary targets: Roseneath/Epsilon/Murteree shale/sand/shale sequence ("REM" unit)

Spud date: 3 October 2010

Target depth (prognosed): 3625m

Total depth @ end of current week: 3462m

Total depth @ end of previous week: 3346m

Metres drilled during week: 116m

Mud weight: 13.2ppg

Current formation: Epsilon

Activities during week: Drill 8 1/2 hole from 3346m to 3380m; cut core in Epsilon from 3380m to 3406m; drill ahead from 3406m to 3462m; run 2 logging runs

Current activities: Drilling ahead to Murteree

Planned activities: Drill ahead to next core point in Murteree Shale - cut core and drill ahead towards Total Depth

Other comments: After logging it has become evident that the Roseneath section is much thicker than anticipated (190-200m)

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/64376-ASX-ADE-180950.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 http://www.adelaideenergy.com.au