Drillsearch Energy Limited (ASX:DLS) Announce Western Flank New Field Oil Discovery At Hanson-1

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 a new field oil discovery in the Western Flank Oil Fairway has been made at Hanson-1, the first well in a five well exploration drilling campaign in PEL 91. The PEL 91 Joint Venture is Drillsearch 60% and Beach Energy Ltd 40% as operator.

Hanson-1 encountered a gross oil column of seven metres, with five metres of net pay, in the Namur Sandstone section of the well. Beach has advised that the preliminary volumetric assessment suggests up to 1 million barrels of gross recoverable oil. Oil shows were also encountered in the Birkhead Formation over a 24 metre interval. These shows are currently being evaluated on wireline logs.

Hanson-1 is expected to be on-line in third quarter 2011.

Following the completion of the evaluation program the Ensign rig #18 will be moved to drill the Snellings-1 exploration well, which is located about 1,500 metres to the north of Hanson-1.

Brad Lingo, Managing Director said "This is a great result for the first well in the 5-well drilling campaign. All of our shareholders have been waiting for this result since the drilling program was delayed last year due to the flooding in the Cooper Basin. What is even more encouraging is the presence of the oil shows over a significant interval in the Birkhead Formation indicating that this play could be extensive across PEL 91."

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.

 

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