farms in to big us gas prospect

excellent announcement.

acturtle

see below

ADELPHI SECURES HIGH IMPACT TEXAS EXPLORATION PROSPECT Adelphi Energy Limited (Adelphi) is pleased to announce that it has entered into a farm-
in agreement to acquire a 12.5% interest in the large Sugarloaf Prospect in the onshore Gulf Coast basin of southern Texas, USA. Sugarloaf is a world-class exploration prospect. It is a large 4-way dip closure with an area of some 80 sq km or 20,000 acres (approximately the same areal size as the large
Moomba gas field in onshore South Australia), which makes it one of the largest un-drilled
structures in the onshore US. The farm-in well will target mean potential reserves of approximately 800 BCF of gas in a deep (5,200m+) growth fault structure with upside
potential of several trillion cubic feet of gas. The growth fault structural setting is a prolific producer in the Gulf Coast region. The target Lower Cretaceous Hosston Formation is a
significant producer in other geological environments but has yet to be tested in a growth fault environment. Adelphi will earn its 12.5% working interest by paying 15.625% of the cost of the farm-in well plus associated leasing costs. These farm-in terms equate to a modest promote of
1.25 for 1, with an expected cost to Adelphi of some A$1.75 million on a dry-hole cost
basis. The farmor is Texas Crude Energy Inc. ("Texas Crude"), an experienced and reputable
private US operator of onshore gas production and exploration wells in Texas, California and Canada. Other partners in the joint venture include fellow ASX listed Aurora Oil and
Gas Limited ("Aurora") who is also acquiring a 12.5% interest on identical farm-in terms to Adelphi. The Sugarloaf -1 well is expected to spud in late 2005 to early 2006, and will take
approximately 90 to 110 days to drill to the target formations. The well will be operated by Texas Crude who identified the major Sugarloaf anticline following the reprocessing of
1970's and 1980's seismic data. The high gas prices in the US and the existing gas processing and transport infrastructure
in close proximity to the prospect mean that any gas discovery can be quickly and profitably commercialised. Technical details of the Sugarloaf Prospect and key farm-in terms are provided in the attached summary which also includes a review of the US gas market and fiscal terms.