Adelaide Energy Limited (ASX:ADE) To Commence Operations On Holdfast 1 Well

Adelaide, Jan 4, 2011 AEST (ABN Newswire) - Adelaide Energy Limited (ASX:ADE) ("ADE") would like to advise that following the completion of the first well in the PEL 218 Permian Joint Venture (Encounter 1), the rig has now been moved to the second location, Holdfast 1 and operations are expected to commence shortly. ADE will commence weekly progress reports starting next week.

- Well name: Holdfast-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 ("REM" unit)

The REM target is expected to be reached approximately 40 days after operations commence and be completed in a total of 60 days.

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