Adelaide Energy Limited (ASX:ADE) Holdfast 1 Weekly Drilling Report Ended 11 January 2011

Adelaide, Jan 11, 2011 AEST (ABN Newswire) - Adelaide Energy Limited (ASX:ADE) is pleased to release Encounter-1 weekly drilling report ended 11 January 2011.

- Well name: Holdfast-1

- Permit: PEL 218 (Permian JV)

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

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

- Spud date: Uncertain - see below

- Target depth (prognosed): 3625m

- Total depth @ end of current week: 0m

- Total depth @ end of previous week: 0m

- Metres drilled during week: 0m

- Activities during week: Complete rig and camp move: cement conductor in place

- Current activities: Ready to spud once inclement weather abates

- Other comments: None

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