Sydney, June 21, 2011 (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that Beach Energy Limited (ASX:BPT) (PINK:BEPTF) as the Operator of PEL 91 has advised that the Snellings-1 exploration well is a new oil field discovery in the Western Flank Oil Fairway. Snellings-1 is the second well and second discovery in the current five well exploration drilling campaign in PEL 91. The PEL 91 Joint Venture is Drillsearch 60% and Beach Energy Ltd 40% as operator.
Evaluation is ongoing and a volumetric estimate will be provided by the operator in due course. On a 2-hour drill stem test (DST) Snellings-1 recovered 31.5 bbls of oil. There is remaining uncertainty as to the extent of oil column and the joint venture has elected to take side wall cores to address this. In due course Snellings-1 is expected to be cased and suspended for future production. Snellings-1 is expected to be on-line in fourth quarter 2011.
At the completion of operations at the Snellings-1 well, the Ensign rig #18 will be moved to drill the Arno-1 exploration well, which is located about 9km to the north of Snellings-1 and 7.5km north of the Chiton Oil Field.
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.
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Beach Energy Limited
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