Release: Adelphi acquires Indonesian PSC

(14 November 2008)--Adelphi Energy Limited is pleased to announce that it has acquired a majority interest in a new production sharing contract (?PSC?) in Indonesia.

Pursuant to a joint bid agreement (?JBA?) with Continental Energy Corporation and GeoPetro Resources Company, the group?s joint venture company, ACG (South Bengara-II) Pte. Ltd. (?ACG?), signed a new PSC for the South Bengara-II block. Adelphi owns a 50.002% interest in ACG and its new PSC.

The South Bengara-II PSC was one of several new PSC?s signed by the Minister of Mines and Energy at a ceremony in Jakarta yesterday. The award is a result of ACG?s winning bid submitted in the August 2008 international bid round held by the Indonesian ministry of oil and gas.

ACG, in accordance with the terms of its bid and the PSC, is obliged to pay a signing bonus of US$1 million and complete a work program during the first three PSC contract years which includes conducting geological and geophysical field surveys and studies, acquiring at least 100 line kilometres of 2D seismic, and drilling one exploration well for a total minimum expenditure of US$7,850,000.

In accordance with the provisions of the JBA, Adelphi will be free carried through the first US$4 million of gross expenditure on this block including the initial $1 million signing bonus. This is expected to cover the first two years of the PSC term.

The South Bengara-II Block encompasses an area of 5,257 square kilometres and lies onshore on the northeast coast of the island of Borneo in the Indonesian province of East Kalimantan. The block contains an existing gas accumulation, several oil and gas seeps, and large prospects and leads. It also lies adjacent to and immediately south of the Bengara-II Block which is partly owned by Continental and GeoPetro and in which a drilling program revealed encouraging results last year.

Continental will have management rights over ACG?s operations during the initial exploration phase of the PSC given the synergies with its existing Indonesian interests and its fully staffed Jakarta office with experienced technical and commercial personnel.

Commenting on the award, Chris Hodge, Adelphi?s Managing Director said that ?we are delighted to have signed this PSC with the Government of the Republic of Indonesia and we look forward to working closely with our new partners to immediately commence exploration work on this prospective acreage.

Importantly, Adelphi has no cost exposure towards this PSC for the initial years and has retained a significant equity interest which provides us with options to fund future drilling expenditures.? (end of release)