train leaving the station, page-48

29 October 2008

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 10:30pm Texas time on 25 October 2008 the Kowalik -1H well had been completed and
the Patterson #130 rig was released and commenced demobilisation to the next drilling location.

Once the well site has been cleared, preparations will begin for the production test of Kowalik – 1H, which is anticipated to commence within the next 3 days. Results will be announced as soon as possible thereafter. The location has been tied into production and export facilities so that when the test is complete the production can be immediately switched to sales.

Weston -1H

Adelphi has also been advised by TCEI that the next well to be drilled within the Sugarloaf AMI will be the Weston -1H well. The well site is located approximately 1.5km to
the east of the Kennedy -1H well and it is designed with a 6,000 feet horizontal section drilled to the south east.
The well is targeting the upper chalk interval that produced flares while drilling the Kowalik -1H well and which has been reported to have successfully produced gas and condensate in three wells in the adjacent acreage. The well design continues to build upon the knowledge gained from recent operations and offset data.
The well is planned to take 65 days from spud date which is anticipated within the next week.