Shareholders of Drillsearch Energy (ASX:DLS) Subsidiary Circumpacific Energy (CVE:CER) Approve Sale to Western Petroleum Commodities Inc.

Sydney, Nov 11, 2010 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that at a meeting of the shareholders of Circumpacific Energy Corporation (CVE:CER) held in Vancouver today, the shareholders of CER, the listed Canadian oil & gas subsidiary of DLS, voted 98.6% in favour of a Plan of Arrangement pursuant to which Western Petroleum Commodities Inc. ("WPC"), a private Canadian oil & gas company, will acquire all of the issued and outstanding common shares of CER.

Merger Timing and Conditions

Completion of the Arrangement remains subject to a number of closing conditions, including final approval by the Supreme Court of British Columbia. It is expected that the transaction will be completed by mid-November 2010, based on indicative timetable:

-----------------------------------------Key Milestone                  Date-----------------------------------------Shareholders' Meeting    10 November 2010-----------------------------------------Final Court Approval     16 November 2010-----------------------------------------Implementation Date      17 November 2010-----------------------------------------

The total consideration to be paid by WPC to CER shareholders upon completion of the Arrangement is approximately CDN $9.6 million (A$10.2 million), of which DLS will receive approximately CDN $7.75 million (A$ 8.26 million). As part of the Arrangement, DLS will also purchase from CER its interest in the eight exploration tenements known as the SWQ Blocks which are held in joint venture by DLS and CER and operated by DLS. The acquisition of the interest in the SWQ Blocks will take place in parallel with the completion of the Plan of Arrangement.

Managing Director Brad Lingo stated "This is a great result for Drillsearch and all the other shareholders of Circumpacific. The sale of our interest in Circumpacific and the Canadian oil & gas properties allows Drillsearch to focus on its core activities in the Cooper Basin."

Contact

Jim McKerlie Chairman Ph:+61-2-9241-4440 Email:admin@drillsearch.com.au http://www.drillsearch.com.au