During one of the final stages of the work, when cement had been circulated into the annulus of the tie back string, a section of slim drill pipe was used as a running string for the tie back string that parted some 700ft below surface.

The initial fishing activities have so far recovered tubing down to a depth of 8,150ft but in light of the other activities commencing within the Sugarloaf AMI, it has been decided to suspend operations on Kowalik-1H so that further evaluation and planning can take place before re-entering the well.

The workover rig is presently being demobilized from the location. This will lead to a further delay before Kowalik-1H can be prepared for flow testing following the fracture stimulation carried out on December 28, 2009.

Adelphi has been advised by the operator, Texas Crude Energy (TCEI), that the Patterson #150 drilling rig has commenced mobilization to the Easley-1H rig site on January 14, 2010. It is expected that the well will be spudded early in the week beginning January 18, 2010. Easley-1H is the first new well to be drilled under the farm-in agreement with Hilcorp Energy within the Sugarloaf AMI.

Adelphi has been advised by TCEI that the Kennedy-1H fracture stimulation is scheduled to commence on January 18, 2010. The 4,000ft of horizontal liner will be phased in 14 separate stages with an isolation plug set between each stage. The operation is expected to take between seven to ten days after which the isolating plugs will be drilled out and the well be cleaned up and then flowed to sales.