DRILLING

Minor success as Amadeus drills ahead

Amadeus Energy will continue its latest US drilling campaign with the Strand Energy Mattern Gas Unit-1 well in the Koerth Project (25%), which is the first of several high potential gas exploration wells to be drilled in the Midcox trend of Lavaca County.

Minor success as Amadeus drills ahead

The well should take 25-35 days, following which the rig will be moved to the Trio Scheinamann South and then to the Trio Gerdes 1 location. Each of the three wells has potential gas reserves in the range of 5-15 billion cubic feet (BCF) of gas per well.

Additionally the company's Raccoon Bend prospect in Texas has had a minor success with the Austin College-35 well intersecting 21 feet of excellent gas pay in a Miocene sand at a depth of 1,850 - 1,871 feet.

While reserves associated with this well are modest, being in the range of 0.5 BCF, they are considered to be important because they represent an internal source of gas, owned by the joint venture, for use in the gas lift system in operation in the Raccoon Bend field.

Use of this gas will reduce field operating costs by approximately $US30,000 per month. Any gas surplus to the requirements of the gas lift system will be sold, further enhancing field revenues and profitability.

Amadeus owns a 60% working interest in the Raccoon Bend project.

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