Friday 18th January 2008 General Manager The Company...

Friday 18th January 2008


General Manager
The Company Announcements Office
Australian Stock Exchange


Dear Sir/Madam
ANNOUNCEMENT TO ASX

UPDATE: Jacaranda Ridge #2 - Adelaide Energy 100% : PEL 255, Otway Basin, South Australia

Adelaide Energy Limited ("ADE") is pleased to announce that the Jacaranda Ridge 3D Seismic Survey
commenced in its wholly owned Jacaranda oil and gas project in the Otway Basin during the second
week of January 2008 and recording is expected to start on or around 22 January 2008.

The survey will cover 48 square kilometres over the Jacaranda Ridge structure in onshore PEL 255 in the
South East of South Australia, with the recording phase expected to take 12 days.

The aims of the survey are to fully delineate the Jacaranda Ridge structure, mapping not only its shape
but also faults that are known to be present and hopefully the location and shape of the target reservoir
intervals.

The Company drilled the Jacaranda Ridge-2 gas discovery well - seven kilometres west of Penola - in
July 2007, immediately after listing on the ASX. The well produced condensate-rich gas at flow rates up
to 2.5 MMCFD (million cubic feet per day) with up to 100 barrels of condensate per million cubic feet of
gas produced. This gas production appears to originate from reservoirs that were not present in
Jacaranda Ridge-1, drilled in 1999. However, Jacaranda Ridge-1 produced oil at a rate up to 400 BOPD
(barrels of oil per day) from a reservoir that was not reached by the Jacaranda Ridge-2 well. Hence, this
oil bearing sand presents another target for future drilling on this structure and therefore the Jacaranda
Ridge structure is considered to have potential to be both gas and oil productive.

One of the aims of this 3D survey will be to identify and map all the individual reservoirs over the entire
structure and possibly identify the type of fluids contained within them. Hence, the survey results may be
able to indicate the distribution of the gas bearing reservoirs intersected in Jacaranda Ridge-2 and the oil
bearing reservoir found in Jacaranda Ridge-1.

Jacaranda Ridge-2 is currently shut-in pending on-going productive capability studies.

Following the completion of the recording phase of this survey, the data acquired will be processed and
interpreted. It is anticipated that this work will be completed in the second quarter and following this the
Company should be in a position to select drilling locations in optimal structural positions and to penetrate
as many reservoirs as possible.





Registered Office
Level 5, 70 Pirie Street, Adelaide SA 5000
www.adelaideenergy.com.au
t +61 8 8228 5207 f +61 8 8228 3235
ABN 43 116 256 823