Sydney, Jan 22, 2010 (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to advise that the Government of Western Australia Department of Mines and Petroleum has accepted its application to surrender Petroleum Exploration Permit WA-352-P. As a result of this, Drillsearch no longer has any interest in WA-352-P, which is located in the Carnarvon Basin offshore Western Australia and will remain in good standing with the Government of Western Australia.
As part of Drillsearch's strategic review undertaken in October 2009, the company identified this permit as being non-core to the future strategic direction of the Company. Commenting on the surrender, Drillsearch Managing Director, Mr Brad Lingo said:
"The surrender of WA-352-P signals the Company's desire to deliver on its promise to shareholders to rationalise its portfolio and to maintain its focus on the Cooper Basin. No asset is sacred. The Company intends to continue to bring to bear a rigorous and ruthless approach to the rationalisation of its portfolio of assets."
"When faced with a potential forward work commitment in WA-352-P of over $40 million - 3D seismic and two offshore wells, we simply could not justify these expenditures in light of the high success rates we are having in the Cooper Basin with much more manageable capital expenditures. We have a very active oil exploration program in the Western Cooper Oil Fairway with 3 to 4 new exploration wells in the vicinity of the Chiton Oil Discovery in the next 6 months as well as expanding our 3D coverage over the heart of PEL 91 covering another 30 Namur Formation oil prospects not already covered by 3D. "
About Drillsearch Energy Limited
Drillsearch Energy Limited (ASX:DLS) explores and develops conventional oil and gas projects. Drillsearch has a strategic spread of petroleum exploration and production acreage in Australia's most prolific onshore oil and gas province, the Cooper/ Eromanga Basins in South Australia and Queensland. The company's focus is on 'brownfields' exploration where geological risk is reduced and there is access to existing infrastructure, ensuring that any discoveries can be brought into production. The company also has offshore exploration interests in the Gippsland Basin and in PNG as well as oil & gas production interests in Canada.
Contact
Brad Lingo Managing Director Tel: +61-2-9241-4440 www.drillsearch.com.au Email: admin@drillsearch.com.au
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Drillsearch Energy Limited
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