go kow go, page-30

05 November 2008

Company Announcements Platform
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
Via ASX Online

UPDATE ON OPERATIONS AT SUGARLOAF JOINT VENTURE

Adelphi Energy (Adelphi) is pleased to provide the market with an update on operations within the Sugarloaf AMI.

Kowalik -1H

Adelphi has been advised by the operator, Texas Crude Energy Inc (TCEI), that at 6am Texas time on the 4 November 2008 that the Kowalik -1H well was flowing at an unstimulated rate to sales. During the 24 hour period prior to this time the well produced 937,000 cubic feet of gas, 321 barrels of oil and 14 barrels of water. The water production is considered to be predominantly drilling and completion fluids. The well was still producing slugs of drilling mud during the period and is not believed to have been fully cleaned up yet.
TCEI is making preparations to flush the well with a mud cleanout treatment to help mobilise any remaining drilling mud and completion fluids. Such treatments have effectively been used many times in the Chalk at analogue and other fields to enhance the flow and clean the formation. The well was shut in on 4 November 2008 in preparation for this operation.

Weston -1H

Adelphi has also been advised by TCEI that the Weston -1H well has reached a depth of 735 feet and has run and cemented the surface casing at this depth. Preparations are
currently underway to commence the next hole section.
The well is targeting the upper chalk interval that has been reported to have successfully produced gas and condensate in three wells in the adjacent acreage and gave positive indications while drilling in the Kowalik -1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.