Burleson Energy Limited (ASX:BUR) Heintschel #1 Frac Successfully Completed

Sydney, Oct 28, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that the fracture stimulation program (frac) at the Heintschel #1 well has been successfully completed and the well is now flowing hydrocarbons. The well is currently choked back but is flowing gas and condensate at good rates. Recovery of frac fluid and water production have both been steadily declining whilst the well continues to clean up. Well head pressure has also been steadily increasing indicating good reservoir drive from permeability created via the frac. Although it is still too early to establish definitive flow rates the results to date are encouraging and the well is expected to be turned to sales tomorrow.

Based on this preliminary information the Heintschel #1 well appears likely to achieve pre-frac expectations when compared to analogous wells and fields in the region. The well will continue to recover frac fluids and clean up over the next few days which will provide a clearer understanding of stabilised rates and well performance. Further information will be provided in due course.

BUR Managing Director Mr Mike Sandy commented: "The results of the frac are very encouraging as they have substantially enhanced the initial Heintschel #1 flow rates. It is still early days, however the initial production rates are very pleasing, and as the well cleans up we anticipate that steady improvement will occur over the coming days. At this stage the frac has met our expectations and has shown that the Heintschel sands are capable of flowing hydrocarbons at commercial rates The results also provide encouragement for the future potential development of the Heintschel field.".

Contact

Mike Sandy Managing Director Tel: +61-2-9450-2002 Fax: +61-2-9986-1753 Email: info@burlesonenergyltd.com http://www.burlesonenergyltd.com