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CORPORATE INFORMATION

Business Plan & Objectives

 

Corporate Vision

Adelphi's vision is to become a successful participant in the international oil and gas industry by way of identifying and acquiring a balanced portfolio of highly prospective exploration and production assets in areas where success could result in high rewards to shareholders.

Company Business Plan

Adelphi’s Business Plan is based on the following key corporate objectives:

  • to build a portfolio of highly prospective exploration assets in areas where success could result in high rewards;

  • to participate in drilling programs on exploration assets at a level that appropriately preserves capital for the Company;

  • to develop the assets in the portfolio to a point at which either farm-in parties can be introduced to further develop or operate the assets, or further capital can be raised to develop the assets; and

  • to continually grow shareholder value through a rigorous and disciplined approach to the above objectives.

Oil and gas exploration, by its very nature, is a risky and potentially expensive business and therefore requires a high level of commercial, financial and technical discipline which Adelphi has adopted as part of its Business Plan. This is particularly critical in the current international industry environment in which quality exploration acreage has become scarce due to increased competition and exploration and development costs have escalated because of high demand and record oil and gas prices.

Accordingly, as part of Adelphi’s selection and evaluation process for suitable exploration opportunities, the following key criteria and characteristics have to be met by these assets:

  • size and nature of any drilling prospect has to be of sufficient scale to achieve a “high impact” outcome in a discovery/success case;

  • key focus is on under-explored areas or play types, particularly where there is existing technical data that has not been fully exploited;

  • exploration prospects need to exhibit quality geophysical data, high flow rate potential and desirably multiple reservoir targets;

  • the underlying risk of each asset has to be commensurate with its return potential and provide an appropriate balance to Adelphi’s overall exploration portfolio;

  • the fiscal and commercial terms have to match the prospectivity of the area or the particular drilling target; and

  • they must meet Adelphi’s strong preference for areas where early commercialisation of discoveries can be achieved to fund ongoing exploration activities.

Adelphi’s existing exploration portfolio in the USA, Yemen and Australia has been assembled based on the above criteria and new acquisitions for ground floor acreage acquisitions or farm-in opportunities will equally need to meet these selection parameters.

Shareholder Return Objectives

As set out above, Adelphi will focus on identifying, exploring and developing high impact exploration assets. Accordingly, shareholder returns will be based on total capital growth. The Company's key objective is to maximize shareholder value through capital growth resulting from exploration and/or commercial success achieved as early as possible.