Drillsearch Energy Limited (ASX:DLS) Marino-1 Well To Be Plugged And Abandoned As A Sub-Commercial Oil Discovery

Sydney, Aug 31, 2009 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS)(PNK:DRLLF) is pleased to provide this drilling update for the Marino-1 well. Following evaluation of the results from the drillstem test the joint venture has reached the conclusion that the Birkhead oil reservoir as penetrated in Marino-1 is too tight to produce oil at a commercial rate. Marino-1 will therefore be plugged and abandoned as a sub-commercial oil discovery.

A drillstem test (DST-1) was conducted late Sunday 30 August over a six metre interval (1649-1655m) within the Birkhead Formation that had exhibited oil shows during drilling. Approximately 3.5 barrels of oil (48.2DEG API at 60DEGF) were recovered from the drillpipe after a 3 hour flow period. Extrapolation of this recovery volume and independent measurement of inflow rates from the DST pressures both indicate that the zone is not capable of producing oil at a commercial rate.

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. Marino-1 was spudded on Saturday 22 August 2009 and reached its total depth of 1941 metres on Friday 28 August.

Brad Lingo, Managing Director, said "We are very encouraged by this result. Although Marino-1 encountered poor reservoir in the pay zone, deeper in the Birkhead there was much better reservoir development and a cleaner sand package. Since the success of Victoria Petroleum in the Birkhead 'channel-sand' play in PEL 104 and PEL 111 to the north of us, we have been extremely interested in pursuing this significant trend in PEL 91. The joint venture will need to make some significant decisions on how and where to follow-up this Birkhead oil discovery over the remainder of PEL 91. This does give us even more encouragement to expand the 3D seismic coverage and intensify our exploration efforts in PEL 91, focussing on both the Namur and Birkhead objectives."

Working Interests in the Marino-1 well are:

Drillsearch Energy Limited 60%Beach Petroleum Limited    40%

Contact

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