Projects – PEL 255 : 100% equity

Otway Basin

The Otway Basin was the site of the first well drilled in South Australia and 100 years later ADE acquired a dominant position in the Basin.
ADE has become a significant acreage and reserves holder in this proven hydrocarbon province.

• ADE drilled and completed the Jacaranda Ridge-2 discovery well in 2007
• Jacaranda Ridge-2 flowed gas at 3 mmcfd with 235 bbls oil & condensate following a production test in July, 2008
• ADE receives income from the 100% owned Katnook Gas Plant, Penola, and it's engineers are constantly working up methods to maximise production from the surrounding fields.
• Jacaranda Ridge 2 will be connected by a new pipeline to the Katnook Plant in the first half of 2010 and ADE will receive gas and liquids revenues from this well thereafter
• Independent consultants prepared a detailed potential reserves report following the interpretation of 3D seismic data over Jacaranda Ridge acquired by Adelaide Energy at a cost of $3 million during late 2007/ early 2008 and geological and reservoir data collected during drilling and testing operations
• The findings of the report indicate that the mean potential 2P (P50) reserves in place previously announced for the Jacaranda Ridge-2 discovery well  of 0.3 million barrels of oil equivalent (mmBOE) have increased by a factor of 25 times to 7.7 mmBOE
• Five additional drilling prospects on the Jacaranda Ridge structure have been defined by the 3D survey.  All of these are larger than the Jacaranda Ridge-2 compartment, some of them many times larger. ADE will drill at least 2 wells on the Jacaranda Ridge structure in the first half of 2010.