Drillsearch Energy Limited (ASX:DLS) Marino-1 Recovers Oil from Birkhead Formation

Sydney, Aug 31, 2009 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS)(PINK:DRLLF) is pleased to provide this drilling update for the Marino-1 well. Marino-1 reached a total depth of 1941m at 16:30hrs CST on Friday 28 August. Wireline logs were run on Saturday 29 August and provided inconclusive results over the Birkhead zone that had exhibited oil shows while drilling. This is not an uncommon outcome for tight Birkhead reservoirs. A drillstem test (DST-1) was conducted late Sunday 30 August over a six metre interval 1649-1655m within the Birkhead Formation.

Several barrels of oil (48.2DEG API at 60DEGF) were recovered from the drillpipe after a 3 hour flow period. The exact quantity of oil is currently being verified by tank dips. The significance of this oil recovery will be determined when the DST gauge data is evaluated at the surface. A decision on the forward plan for the well will be made by the joint venture later today after reviewing all of the available data.

Progress with drilling as at 06:00 hrs CST today is:

Spud Date: 22 August 2009 at 23:00hrs CST
Current Depth: 1941m (Total depth)
Current Operations: Pulling out of hole after DST-1
Forward Operations: Evaluate DST results for C&S or P&A decision

Marino-1 is the second of a two- well program in PEL 91, following the Chiton-1 oil discovery. Drillsearch holds a 60% interest in PEL 91, the Marino-1 well and the Chiton-1 oil discovery. The well is being operated by Beach Petroleum (40%) using the Ensign Rig# 30. Drilling to a planned total depth of 1948 metres is expected to be completed over the weekend.

Marino-1 is testing a second prospect in PEL 91 along the 'oil fairway' on the western flank of the Patchawarra Trough, approximately 9 kilometres north of Chiton-1. The Marino prospect is a robust structural trap matured for drilling with the benefit of data from the Modiolus 3D Seismic Survey. The primary objective for Marino-1 was the prolific Namur Sandstone which is the pay zone in the Chiton oil discovery. No shows were encountered within the Namur formation. Secondary objectives are within the Birkhead Formation that is productive immediately to the north in PEL104 and the Poolowanna Formation that is also productive in PEL 92 to the south.

Seismic mapping of the Birkhead horizon indicates that the Marino Structure has approximately 12 metres of vertical relief and an areal extent of about 10 square kilometres. Because of the highly variable nature of the Birkhead reservoir additional evaluation will be required to determine potential reserve volumes. The presence of oil in two different reservoirs in two wells so close together provides further evidence hydrocarbon migration into the 'oil fairway' within PEL 91 and of the prospectivity and geologic complexity within the permit.

Working Interests in the Marino-1 well are:

Drillsearch Energy Limited 60%Beach Petroleum Limited    40%

For the complete Drillsearch Energy Drilling Update, please see the link below:

http://www.abnnewswire.net/media/en/docs/61351-ASX-DLS-562752.pdf

Contact

Brad Lingo Managing Director Tel: +61-2-9241-4440 www.drillsearch.com.au