Quarterly Report

Document Sample
Quarterly Report Powered By Docstoc
					Quarterly Report
                  March 2011

  •    Revenue from operations of US$6.4 million
  •    All bank debt paid off achieving savings of US$100K p/m
  •    Cash at bank of A$22.5m at end of the period - no debt
  •    Oil production of 61,787 BO - down 7% on previous quarter*
  •    Gas production of 268,088 MCF - down 4% on previous quarter*
  •    Significant unrealised reserve potential identified in Texas assets**
  •    4 new development wells drilled - all successful and being completed
  •    On market share buyback commenced - 3,742,050 shares repurchased
  •    Scheme Implementation Deed signed with Eden Petroleum Investments 2010, Inc.
  •    Post period – unforseen tax liability of approximately US$6m identified by Eden

  *       Lower production due to freezing weather conditions in Texas and the shorter February month (28 days).
  **      See knowledge qualifiers pursuant to ASX Listing Rules below.

  Amadeus Energy Quarterly Report, March 2011                                                             Page 1
Quarterly Performance Summary
                                       3 months         3 months     Change     9 months            9 months             Change
PRODUCTION                           to Mar 2011     to Dec 2010              to Mar 2011         to Mar 2010
Oil                                         (BO)             (BO)         %          (BO)                (BO)                 %
Total Oil                                 61,787           66,466       -7%       236,084             319,520              -26%
Total excluding Sale Assets                61,787          66,466       -7%         182,991              169,393             8%

Gas                                       (MCF)           (MCF)           %          (MCF)                (MCF)               %
Total Gas                                268,088         280,550        -4%         849,621              989,305           -13%
Total excluding Sale Assets              268,088         280,550        -4%         843,353              969,084           -12%

                                           (BOE)           (BOE)          %           (BOE)               (BOE)               %
Total BOE                                106,468         113,224        -6%         378,732              484,404           -22%
Total excluding Sale Assets              106,468         113,224        -6%         323,550              330,907            -2%

FINANCIAL (UNAUDITED)                (US$ million)   (US$ million)       %    (US$ million)      (US$ million)                %
Sales Revenue */**                            6.4             6.5       -2%               22.5                    25.9    -13%
Field Opex *                                  1.8             2.2      -18%                8.0                     6.1    -30%
Field EBITDAX                                 4.6             4.3       7%                14.5                    19.8    -25%

Expenditures                         (US$ million)   (US$ million)        %   (US$ million)      (US$ million)               %
Exploration                                    0.0             1.5    -100%             2.8                1.6             75%
Development                                    0.5             0.6     -16%             5.6                1.9            294%
Total                                          0.5             2.1     -76%             8.4                3.5            240%

                                       Mar 2011         Dec 2010         %
Cash (A$m)                                   22.5            43.2      -48%
Debt (US$m)                                   0.0            25.0     -100%

* YTD results impacted by the sale of the Company’s Kansas leases which had an effective date of 1 October 2010.
** Revenue does not include hedging impacts.

                       Amadeus Quarterly Production and Sales Revenue
      180,000                                                                                    $12,000,000
                                                                              USD sales

      120,000                                                                 *           *
       60,000                                                                                    $4,000,000
                                                                                                      USD Sales

             -                                                                                   $-
                     Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

             * Reduction in production and sales revenue from September 2010 due to sale of the
                  Company’s Kansas leases for US$60.25m, which had an effective date of 1 Oct 2010.

Amadeus Energy Quarterly Report, March 2011                                                                              Page 2
Sales Revenues and Cash Position
Revenue from core operations was                Exploration   and    development      cash
US$6.4m for the quarter which was in-line       outflows were lower than the previous
with the US$6.5m recorded in the                quarter due to reduced exploration and
December 2010 quarter and 20% higher            development activity with the main focus of
than the September 2010 quarter.                the Company being on the negotiation of a
Revenue was impacted by marginally              Scheme Implementation Deed (“SID”) with
lower production during the quarter caused      Eden Petroleum Investments 2010, Inc.
by very cold weather during the period and      (“Eden”). The SID was entered into on 18
by February being a shorter month.              March 2011 and details of this are
                                                included below (see corporate section in
This was offset by higher oil prices            this report).
received during the period. The average oil
price received for the quarter was              Four development wells were drilled during
US$84.76/BO which was higher than the           late February and March with the majority
December       quarter      average     of      of the associated costs to be paid in April
US$78.71/BO. The average gas price              (see exploration and development section
received was US$4.81/MCF which was              in this report).
higher than the December quarter average
of US$4.71/MCF.                                 Additional cash inflows of A$1.1m were
                                                received during the quarter representing
A US$0.6m commodity hedge net expense           proceeds from the sale of the Company’s
was incurred during the quarter reflecting      remaining shares in New Guinea Energy
the increase in oil prices. At present          Ltd (ASX:NGE). More information on this
approximately 40% of the Company’s oil          is provided in the corporate section in this
production is subject to a hedge cap of         report.
US$70/BO. From 1 July 2011 this will
reduce to 20% and from 1 January 2012
there will be no hedges subject to the
US$70/BO cap. For further information on
outstanding hedge arrangements refer to
the hedging section in this report.

Amadeus’ consolidated net cash balance
(after debt) at quarter end was A$22.5m,
compared to A$18.2m at the end of the
previous quarter. The increase in the net
cash position was due to strong operating
cash flow on the back of higher oil prices
as well as the receipt of preferential rights
sales proceeds in connection with the sale
of the Company’s Kansas leases which
completed on 24 December 2010.

On 31 March 2011 the Company paid off
all of its external debt which will result in
savings of around $0.1m in interest each
month. The Company has continued to
keep the US$30m debt facility in place
should it choose to redraw on the facility in
future periods.

Amadeus Energy Quarterly Report, March 2011                                         Page 3
Oil & Gas Production
Oil and gas production for the quarter was         Gas production was also negatively impacted
marginally impacted by very cold winter            by the SL328#9 well on the Lake Long
weather in Texas and by the shorter February       Project in Louisiana going off-line in February
month.                                             due to a casing leak.          This well has
                                                   historically accounted for approximately 10%
Oil production (net of federal, state and land     of the Company’s gas production.
owner royalties) for the quarter was 61,787
BO which was 7% down on the previous               Pursuant to the terms of the SID agreed with
quarter but 13% higher than the September          Eden, Amadeus cannot commit to more than
2010 quarter. Oil production from the              US$2.8m for exploration and development in
Company’s current assets is 8% higher year         the period between signing of the SID and the
to date compared with the corresponding            expected closing date, without the approval of
period in 2010.                                    the Implementation Committee (as defined in
                                                   the SID). The US$2.8m allows for a trimmed
Oil production for the quarter was positively      development program to be undertaken
impacted by new production coming on line          during the period. In the event that the
from 4 new wells drilled and completed on the      Implementation       Committee       approves
Stephens Shackelford Project in Texas during       additional expenditure then up to 6 new wells
the quarter and to the continued identification,   will be drilled on the Company’s Archer &
and recommencement of production from              Young, and Ford East Projects in Texas and
several shut in wells on multiple leases in        additional work to add new zones in existing
Texas. These wells had been shut in by the         producing wells will be carried out across all
previous operator in a lower oil price             the Texas projects.
environment with minor mechanical problems
but are now being repaired, cleaned out and        Of note is that gas produced on the
returned to production. These wells are            Stephens-Shackelford Project in Texas is
highly economic at current oil and gas prices.     high in liquid content and has a very high btu
                                                   component resulting in the Company
A program of evaluating approximately 200          receiving significantly more than the
shut-in wells across Amadeus’ leases is            prevailing Henry Hub gas price. Amadeus
continuing, with the objective of re-              currently receives approximately 180% of the
establishing production or adding new zones.       prevailing Henry Hub price for gas produced
Modelling of this work indicates a highly          on this project. During the quarter this
attractive economic rate of return.         Of     amounted to approximately US$8/MCF.
particular note is that the Parker lease
located in Ector County is presently               The Company’s development activities are
undergoing an extensive work-over program          being funded from net operating cashflow
to return the majority of the shut-in wells to     which averaged approximately US$1.2 million
production.                                        per month for the quarter. Net cashflow is
                                                   expected to improve after 30 June as some of
Gas production (net of federal, state and land     the Company’s commodity hedges fall away.
owner royalties) for the quarter was 268,088       At present the Company has approximately
MCF of gas which was a 4% decrease on the          40% of its oil production locked at a swap
previous quarter of 280,550 MCF, due in part       hedge price of US$70 BO. This will reduce to
to a refinery (that purchases gas from             approximately 20% from 30 June.
Amadeus’ Ford East Project) undergoing
maintenance       and     being     off-line for   The aggressive exploitation of the Company’s
approximately one month. Gas production            properties could deliver up to US$100m in
was 12% lower than the corresponding year          unrealised production and reserve potential*.
to date in 2010. As expected, gas production
for the quarter was lower as initial high flush    *   The future development potential has been
                                                       estimated in-house and modelled on an unrisked
production rates from newly completed wells            basis by Ms Ann Verzeletti, a petroleum engineer
in the Hallettsville Project fell away and long        with over 20 years experience.
term lower decline rates became established.

Amadeus Energy Quarterly Report, March 2011                                                Page 4
Commodity Hedging
US$127K gas hedge income was received                      Importantly a number of the oil hedges expire
during the quarter and US$705K oil hedge                   in June 2011 thereby allowing Amadeus to
expense was incurred. The hedges were a                    participate to a greater extent at the
requirement of the Company’s debt facility                 prevailing market price.
with BNP Paribas. As a result of the sale of
the Company’s White Eagle project in 2010                  The volumes covered by the outstanding
the outstanding debt under the facility has                hedge transactions are listed in the table
been reduced to zero which is delivering                   below, along with a summary of commodity
interest cost savings of approximately                     hedging arrangements in place as at 31
US$100K per month.                                         March 2011.

Most of the remaining hedges are a cap/collar
structure whereby the Company receives the
spot price between the collar and cap prices
with downside being protected by the collar
and upside limited by the cap.

Period                             Commodity        Total Quantity Hedged   Swap Price (US$)

 9 months to 31 December 2011                 Oil              74,900 BO                70.00

 9 months to 31 December 2011             Gas               93,000 mmbtu                 6.80

Period                            Commodity         Total Quantity Hedged   Collar - Cap (US$)

 9 months to 31 December 2011                 Oil              62,640 BO         65.00 - 90.50

12 months to 31 December 2012                 Oil             142,176 BO         65.00 - 96.20
 6 months to 30 June 2013                     Oil              64,902 BO        65.00 - 100.10
12 months to 31 December 2011             Gas               97,116 mmbtu           4.00 - 7.55
12 months to 31 December 2012             Gas              165,756 mmbtu           4.00 - 8.95

 6 months to 30 June 2013                 Gas               67,866 mmbtu           4.00 - 9.90

Amadeus Energy Quarterly Report, March 2011                                                      Page 5
Exploration & Development
Exploration                                           The well is subject to approval of the
A proposal to recomplete the Wolf-Cowling             Implementation Committee pursuant to the
A2 well on the Hallettsville Project in Texas         terms of the SID agreed with Eden.
was received during the quarter from the              Amadeus currently has a 20% working
operator of this project.          Amadeus is         interest in this well which has a target depth
reviewing the proposal and expects to make            of 11,100 feet.
a decision in the coming weeks about
                                                      Consistent with the Company’s commitment
whether it will participate in the recompletion.
                                                      to the aggressive development of its Texas
If the recompletion goes ahead the well will
                                                      properties, going forward the Company will
be recompleted in the Lower-Wilcox Zone
                                                      be doing less higher-risk exploration and will
and the work will be undertaken in the 4th
                                                      instead focus on the lower-risk development
                                                      of its existing acreage. High development
In early January the Anderson #1 well on the          reserve potential has been identified on this
Hallettsville Project in Texas loaded with            acreage which has been valued at up to
water. A cement squeeze treatment was                 US$100m on an unrisked PV10 basis*.
undertaken to shut-off the water egress from          *   The future exploration and development potential
a channel in the cement bond. Unfortunately               has been estimated in-house and modelled on an
the squeeze job was unsuccessful in re-                   unrisked basis by Ms Ann Verzeletti who is a
                                                          petroleum engineer with over 20 years experience.
establishing hydrocarbon production from the
affected zone. Accordingly the well is now            Development
being recompleted in a shallower zone. If the
shallower recompletion is unsuccessful the            Four new development wells (the EC
well will likely be plugged and abandoned.            Thompson #3, T Randall #1, Fambro #3 and
                                                      RO Thomas #5) were drilled during the
During the period the SL328#9 well on the             quarter on the Stephens-Shackelford Project
Lake Long Project in Louisiana developed a            in Texas. All of the wells were successful
casing leak and no production has been                and are either being completed for production
recorded from this well since the problem             or have been completed. First sales revenue
arose. The project operator is working to             from these wells is expected in May 2011.
determine if a repair to the casing is likely to
be economic. If a repair is undertaken it will        Previously shut-in wells on several of the
likely occur in the 4th quarter. Likewise, if it is   Company’s projects in Texas have continued
determined that a repair will not be economic         to be identified and several were cleaned out
the well will be plugged and abandoned in the         and returned to production during the quarter.
4th quarter. Amadeus has a 22% working                At current oil and gas prices these wells are
interest in this well.                                highly economical. This work is part of an
                                                      ongoing long term reinvigoration program.
The Lyles #1 well on the Longville Project in
Louisiana also developed a casing leak                During the quarter approximately 15
during the period. A repair was attempted but         development wells were recompleted or
was unsuccessful and the well is to be                worked over on the Racoon Bend Project and
plugged and abandoned.                                Parker leases in Texas and maintenance was
                                                      carried out to approximately an additional 20
The only remaining prospect to be drilled in          wells. The water-flood development initiative
Louisiana is the West Klondike prospect in            on the Parker Leases in Ector County
Iberville Parish. The well is targeting unrisked      continued during the quarter with 8 wells
reserves of 18 BCF of gas and 5 million               undergoing activity in connection with the
barrels of oil from the Marg Tex and Upper &          program.
Lower Nodosaria sands*. Amadeus has not
yet made an election on whether it will               The following table summarises the new
participate in the well but if it does then it is     development wells that were drilled,
anticipated that the well will be drilled in the      completed or that commenced production
first half of FY12.                                   during the quarter, and maintenance carried
                                                      out on exploration wells:

Amadeus Energy Quarterly Report, March 2011                                                    Page 6
     Project                 Well              WI       Activity      Outcome/Status

     Stephens-Shackelford,   EC Thompson #3    86%      Development   New well, to be completed
     TX                                                               for production

     Stephens-Shackelford,   RO Thomas #5      86%      Development   New well, to be completed
     TX                                                               for production

     Stephens-Shackelford,   Fambro #3         86%      Development   New well, to be completed
     TX                                                               for production

     Stephens-Shackelford,   T Randall #1      86%      Development   New well, to be completed
     TX                                                               for production

     Ford East, TX           Red Bluff 9#14    88%      Development   Production commenced
                                                                      during the period

     Raccoon Bend, TX        Deutrich #15      15%      Development   Completion underway

     Project                 Well              WI       Activity      Outcome/Status

     Lake Long, LA           SL328#9           22%      Maintenance   Repair/evaluation

     Longville, LA           Lyles #1          27%      Maintenance   P & A following casing leak

     Longville, LA           Doornbos #1       27%      Maintenance   Recompletion underway

     Hallettsville, TX       Wolf Cowling A2   25-35%   Maintenance   Reviewing options for well
     Hallettsville, TX       Anderson #1       25-35%   Maintenance   Recompletion underway in
                                                                      shallower zone

Amadeus Energy Quarterly Report, March 2011                                               Page 7
Project Areas

                                       #             Project                   Counties       State    WI %
                                       1      Red Creek              Jefferson                 OK       60
                                                                     Cottle, Knox,
                                       2      TNT Projects           Throckmorton, Runnels,    TX      35-55
                                                                     Clay, Baylor, Nolan
                                      3       Archer & Young         Archer, Young             TX      50-72
                                      4       Stephens-Shackelford   Stephens, Shackelford     TX       86
                                      5       Parker                 Ector                     TX       88
                                      6       Ford East              Reeves                    TX       88
                                      7       Hallettsville          Lavaca                    TX      25-35
                                      8       Raccoon Bend           Austin, Waller            TX       15
                                      9       Morgan’s Bluff         Orange                    TX       56
                                      10      Longville              Beauregard                LA       27
                                      11      West Klondike          Iberville                 LA       20
                                      12      Lake Long              Lafourche                 LA       22

Amadeus Energy Quarterly Report, March 2011                                                   Page 8
Scheme of Arrangement entered into                  All Amadeus directors intend to vote in favour
between Amadeus Energy Ltd and Eden                 of the Scheme in respect of the Amadeus
Petroleum Investments 2010, Inc.                    shares they own or control (approximately
                                                    15% of the register) in the absence of a
On 18 March Amadeus entered into a                  superior proposal and provided that the
Scheme Implementation Deed (“SID”) with             independent expert gives an opinion that the
Eden Petroleum Investments 2010, Inc.               Scheme is in the best interests of Amadeus’
(“Eden”). The SID contemplates that Eden            shareholders.
will acquire 100% of the issued shares of
Amadeus via a Scheme of Arrangement                 The Scheme is the result of numerous
(“Scheme” or “Transaction”) under the               initiatives that have been undertaken by the
Corporations Act.                                   Company since early 2010 in order to realise
                                                    the Company’s underlying asset value for
Under the terms of the Implementation Deed,         Amadeus’ shareholders which included the
Amadeus’ shareholders will receive A$0.33           sale of Amadeus’ Kansas and North Dakota
cash for each Amadeus share they hold at            assets for cash consideration of US$60.25m
the record date plus an additional dividend of      in December 2010.
approximately A$0.02 per share provided
certain conditions are met (“Distribution”).        Prior to announcing the SID Eden confirmed
The total cash received is expected to be           that it had undertaken extensive technical,
approximately $0.35 per share which reflects        legal, accounting and tax due diligence on
a significant premium of 59% to Amadeus’            Amadeus and its underlying assets and that
last traded price (before the Scheme was            this process was complete (other than receipt
announced) of A$0.22. Under the Scheme              of a final accounting due diligence report) and
(i.e.   excluding   any   Distribution)    the      had not uncovered any material issues. At
consideration payable is A$0.33 which               the time of announcing the SID, Eden and its
reflects a premium of 50% to the last traded        financiers were in the final stages of
price (before the Scheme was announced).            documenting the loan facility to be used to
                                                    fund the purchase of Amadeus shares by
While the A$0.33 payment under the Scheme           Eden.
is fixed, the final amount of the Distribution is
subject     to    various   factors    including    On 1 April Amadeus advised that a previously
commodity price and foreign exchange                unforeseen tax liability of up to an additional
movements         and     Amadeus'      financial   US$6 million had been identified by Eden.
performance up to the date the Scheme               Since then, the parties and their respective
becomes effective ("Effective Date"). The           tax advisors have been working to determine
amount of the Distribution is also subject to       if there are alternative structures which may
Amadeus having a minimum cash position of           reduce the tax liability (“Tax Review”) but to
$14.5 million subject to certain adjustments        date no alternative has been identified.
under the Implementation Deed, (a summary
of which was included at Annexure A of the          On 29 April Amadeus advised that it had
ASX announcement dated 21 March 2011) at            reached agreement with Eden whereby it will
the Effective Date. It is envisaged that the        be entitled to terminate the SID unless Eden
Distribution component will be paid in the          has committed financing in place by no later
form of an unfranked dividend.                      than 31 May 2011. Amadeus advised that
                                                    both it and Eden remain committed to
The      Amadeus       Board     unanimously        implementing the Scheme on the terms
recommends that shareholders vote in favour         announced on 21 March, but that an open
of the Scheme in the absence of a superior          ended delay to the process would not be
proposal, and provided that an independent          entertained by Amadeus. A revised indicative
expert gives an opinion that the Scheme is in       timetable for the Transaction was also
the best interests of shareholders. Amadeus         provided to the market and is also provided
has appointed PricewaterhouseCoopers as             below.
the independent expert to provide an opinion
as to whether the Scheme is in the best
interests of shareholders.

Amadeus Energy Quarterly Report, March 2011                                             Page 9
Under the terms of the SID, Amadeus has             First Court Hearing Date    Early June 2011
agreed to propose the Scheme to its                 Dispatch Scheme Booklet     Mid June 2011
shareholders at a shareholders meeting,             Scheme Meeting              Mid July 2011
which is now expected to be held in July            Second Court Hearing Date   Late July 2011
2011.                                               Effective Date              Late July 2011
                                                    Scheme Record Date          Late July 2011
Completion of the Transaction remains               Implementation Date         Early Aug 2011
subject to a number of conditions precedent,
including Amadeus shareholder approval of           Eden is part of the privately owned Eden
the Scheme, and in relation to Amadeus              Petroleum group of Australasian and US
providing financial assistance to Eden              companies which were formed to deliver
(including the grant of encumbrances in             value from developing oil and gas properties,
favour of Eden's financier) in accordance with      and to target a portfolio of world-wide
Part 2J.3 of the Corporations Act, as well as       petroleum exploration opportunities.
there being no material adverse changes to
Amadeus’ business between now and the               Macquarie Capital Advisers Ltd is financial
date of the second court hearing.                   adviser to Amadeus. Hudson Capital
                                                    Advisors LLC and Gleneagle Securities
The Implementation Deed also contains               (Australia) Pty Ltd are financial advisers to
customary deal protections such as a no             Eden.
shop, no talk provision and a potential break
fee of 1% of the Transaction value in certain       Bank Debt and Financing Arrangements
circumstances. A summary of the key terms
of the Implementation Deed was included as          During the period all of the Company’s
                                                    outstanding bank debt was repaid resulting in
Annexure A to the ASX announcement,
21/3/11.                                            interest cost savings of approximately $100K
                                                    per month. At the end of the quarter the
Of note is that the Transaction is subject to a     Company had net cash of A$22.5m.
condition precedent which stipulates that the
AU/US foreign exchange must not be more             On- Market Buy-back
than $1.05 at the second court hearing date.        An on-market buy-back in accordance with
Since signing the SID the exchange rate has         the 10/12 Rule commenced on the 7 January
increased from 0.979 to a record high of            2011. The buyback ceased on 24 January
currently over 1.09, a movement of over 11%.        when the Company was approached by Eden
This has contributed to Eden being unable to        in relation to the Transaction. A total of
finalise their funding arrangements on              3,742,050 shares were bought back during
acceptable terms in the timeframe originally        the period at an average price of $0.23 for
contemplated.                                       total consideration of $861,338.
In due course, Amadeus’ shareholders will
                                                    Sale of Listed Investments (NGE Shares)
receive a scheme booklet which will contain
full details of the Scheme, including the           During the quarter the Company completed
independent expert's report and a notice of         the sale of its holding in New Guinea Energy
meeting. It is currently expected the Scheme        Ltd (ASX:NGE).        Cash of A$1.1m was
booklet will be despatched to shareholders in       received for the sale of these shares during
the next 4-6 weeks.                                 the quarter.     The sale of these shares
                                                    commenced in the previous quarter and in
The Transaction is now expected to complete
                                                    total 14.66 million shares have been sold
in August 2011 (at which time shareholders
                                                    over the past 2 quarters at an average sale
will receive the applicable proceeds for their
                                                    price of $0.15. The sale generated income of
shares) - assuming that there are no further
                                                    $2.2m for the Company, part of which has
delays in the process and that all necessary
                                                    been used to fund the buyback of Amadeus
approvals from Amadeus’ shareholders and
                                                    shares (outlined above).
the Court are obtained.
An indicative timetable with key dates is set out   The sale of these shares, and the cessation
below. This timetable is subject to change:         of non-core activities, is consistent with the
                                                    recommendations       of    an    independent
                                                    corporate review undertaken in FY09/FY10.

Amadeus Energy Quarterly Report, March 2011                                          Page 10
      Quarterly Performance Detail
                                      3 Months        3 Months        Change        9 months to     9 months to      Change
                                   to Mar 2011     to Dec 2010                      to Mar 2011     to Mar 2010
Oil                                       (BO)            (BO)              %              (BO)            (BO)            %
White Eagle                                   -               -            N/A           53,093         150,127         N/A
TNT Projects #                           20,077          19,287            4%            57,348          62,117        -8%
Stephens-Shakelford                      14,161          17,578          -19%            42,778          10,251       317%
Ford East                                12,971          14,161           -8%            36,341          28,730        26%
Raccoon Bend                              7,183           7,608           -6%            22,935          24,721        -7%
Red Creek                                 2,787           3,339          -17%             9,673          11,997       -19%
Hallettsville                             4,126           3,769            9%            11,045          12,336       -10%
Longville                                   429             551          -22%             2,173          18,276       -88%
Lake Long                                    53             173          -69%               644             965       -33%
Total Oil                               61,787           66,466           -7%          236,084          319,520        -26%

Total Oil exc Sale Assets               61,787           66,466           -7%          182,991          169,393            8%

Gas                                      (MCF)           (MCF)              %            (MCF)               (MCF)         %
White Eagle                                  -                -            N/A            6,268          20,221         N/A
Hallettsville                          142,874          141,827            1%           415,596         491,792       -15%
Stephens-Shakelford                     55,716           53,757            4%           175,733         181,507        -3%
Lake Long                               14,849           40,193          -63%            98,142         120,062       -18%
Longville                               31,294           28,158           11%            93,341          93,328         0%
Ford East                               11,065            5,093          117%            35,412          47,323       -25%
Raccoon Bend                             8,023            6,317           27%            18,665           5,584       234%
Other TNT Projects                       4,267            5,205          -18%            12,733          29,488       -57%
Total Gas                              268,088         280,550            -4%          849,621          989,305        -13%

Total Gas exc Sale Assets              268,088         280,550            -4%          843,353          969,084        -12%

                                         (BOE)          (BOE)               %            (BOE)           (BOE)            %
Total BOE                              106,468         113,224            -6%          378,732          484,404        -22%
Total BOE exc Sale Assets              106,468         113,224            -6%          323,550          330,907         -2%

BOE by Project
White Eagle                                   -               -            N/A           54,138         153,497          N/A
Hallettsville                            27,938          27,407            2%            80,311          94,301        -15%
Stephens-Shakelford                      23,447          26,538          -12%            72,067          40,502         78%
Other TNT Projects                       20,788          20,155            3%            59,560          67,032        -11%
Ford East                                14,815          15,010           -2%            42,243          36,617         15%
Raccoon Bend                              8,520           8,661           -2%            26,046          25,652          2%
Lake Long                                 2,528           6,872          -63%            17,001          20,975        -19%
Longville                                 5,645           5,244            8%            17,694          33,831        -48%
Red Creek                                 2,787           3,339          -17%             9,673          11,997        -19%

BOEPD                                    1,183            1,258           -6%             2,058              2,632     -22%

FINANCIAL (UNAUDITED)             (US$ million)    (US$ million)            %      (US$ million)   (US$ million)           %
Sales Revenue */**                          6.4              6.5          -2%              22.5               25.9     -13%
Field Opex                                  1.8              2.2         -18%               8.0                6.1     -30%
Field EBITDAX                               4.6             4.3            7%              14.5               19.8     -25%
Expenditures                      (US$ million)    (US$ million)            %      (US$ million)   (US$ million)           %
Exploration                                 0.0              1.5        -100%                2.8               1.6     75%
Development                                 0.5              0.6         -16%                5.6               1.9    294%
Total                                       0.5             2.1          -76%               8.4                3.5    240%
                                      Mar 2011        Dec 2010
Cash (A$m)                                 22.5            43.2          -48%
Debt (US$m)                                 0.0            25.0         -100%

   #   TNT Projects include production from Archer/Young, Ector and Orange Projects. West Klondike Project
       not yet in production.
   * YTD results impacted by the sale of Sale Assets which had an effective date of 1 Oct 2010.
   Amadeus Energy Quarterly Report, December 2010
    ** Revenue does not include hedging impacts.                                                                 Page 11
Corporate Profile
Amadeus Energy Limited (ASX:AMU) - ACN 058 714 408

Directors            Craig Coleman            Chairman
                     Alexander Beard          Non-executive Director
                     Robert Scott             Non-executive Director
                     Peter Lehle              Non-executive Director (US based)

Senior Staff         Betty Dieter             President, Amadeus Petroleum Inc
                     Mitchell Wells           General Manager/Chief Operating Officer
                     Robert Ierace            CFO & Company Secretary
                     Ann Verzeletti           Vice President – Engineering
                     Greg Evans               Vice President – Land & Legal
                     Terri Watanuki           Vice President – Accounting

Registered Office    Amadeus Energy Limited
                     Level 11, St Georges Square
                     225 St Georges Terrace
                     Perth Western Australia 6000
                     PO Box 7778 Cloisters Square WA 6850 Australia
                     Tel +61 8 9226 0222 Fax +61 8 9226 0333

US Office            Amadeus Petroleum Inc
                     9250 East Costilla Avenue
                     Suite 510 Englewood
                     Denver, Colorado 80112 USA
                     Tel +1 303 858 8735 Fax +1 303 858 8589

Share Details        As at 31 March 2011 there were 300,288,855 ordinary shares on issue
                     and 7 million unlisted options.
                     Substantial shareholders:
                     - Wyllie Group Pty Ltd                9.32%
                     - National Nominees Ltd               5.59%
                     - CVC Ltd                             4.14%

Share Registry       Computershare Investor Services Pty Limited
                     Level 2, Reserve Bank Building
                     45 St Georges Terrace
                     Perth, Western Australia 6000
                     Tel +61 8 9323 2000 Fax +61 8 9323 2033

For information      Amadeus Energy Limited
                     Tel +61 8 9226 0222 Fax +61 8 9226 0333

Amadeus Energy Quarterly Report, March 2011                                         Page 12
AMU       Amadeus Energy Limited                 MMBO      Million barrels of oil
ASX       Australian Securities Exchange         MCF       Thousand cubic feet
BCF       Billion cubic feet                     MMCF      Million cubic feet
BO        Barrels of oil                         P&A       Plugged and Abandoned
BOE       Barrels of oil equivalent              WI        Working Interest
BOPD      Barrels of oil per day                 WTI       West Texas Intermediate

This document may contain some references to forecasts, estimates, assumptions and other
forward looking statements. These forward-looking statements reflect the current internal
projections, expectations or beliefs of Amadeus based on information currently available to
Amadeus. Although the Company believes that its expectations, estimates and forecast outcomes
are based on reasonable assumptions, it can give no assurance that they will be achieved. They
may be affected by a variety of variables and changes in underlying assumptions that are subject
to risk factors associated with the nature of the business, which could cause actual results to differ
materially from those expressed herein. Statements concerning reserves may also be deemed to
be forward looking statements in that they involve elements based on specific assumptions.

Amadeus Energy Quarterly Report, March 2011                                             Page 13