Adelaide Energy Limited (“ADE”) announced that it has completed the purchase on interests in 3 permits in Queensland's Maryborough Basin. The deal has been caught up in negotiations since its initial announcement on Jan. 12.

After extensive dealings with various native title groups and Queensland government regulators over the course of 2010, ADE has now completed the purchase of the main permit (ATP 613P) under the agreement. Closure of the purchase of the other two permits (ATP 647P and ATP 733P), which were the subject of this agreement, is expected to follow shortly.

ADE is carried through a 9 hole drilling program by a farm-in party, Blue Energy Ltd., at the end of which ADE will have a 25% interest in the permits.

"Now that this deal has closed, ADE is looking forward to the work program commencing in 2011 to establish the coal seam gas potential of these permits - which are in a great address located close to the Gladstone LNG export hub,” said Carl Dorsch, the managing director of ADE. “Thereafter the joint venture is keen to explore the deeper shale gas and tight gas potential of the area. We are indebted to the rigorous work undertaken by the previous owner, Magellan Petroleum Corporation, in completing the regulatory obligations necessary to arrive at the point where we can now push on with drilling."

About Adelaide Energy Limited

Adelaide Energy Limited is an oil and gas exploration and production company with a focus on the Cooper and Otway Basins of South Australia. It is the dominant player in the onshore Otway Basin in South Australia, with existing gas production assets, a development program and substantial exploration acreage. The company holds exploration acreage in the Cooper and Maryborough Basins of South Australia and Queensland respectively which are prospective for large gas resources.