Drillsearch Energy Limited (ASX:DLS) Canunda Extended Production Testing at Western Cooper Gas & Liquids Project

Sydney, Dec 1, 2010 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is providing this update on the progress of the Canunda Liquids Discovery extended production testing. Due to ongoing rains and slow progress on the retrieval (fishing) of wireline and pressure gauges from the well it has been decided by the PEL 106B joint venture - Drillsearch (50%) and Beach Energy Limited (ASX:BPT) (PINK:BEPTF) (50% operator) - that the Canunda-1 extended production test (EPT) will recommence after a workover of the well is undertaken. The workover will allow for not only retrieval of the wireline and pressure gauges but also reconfigurations of the well to optimise production performance from the surprisingly rich condensate/volatile liquids pay intervals.

The initial extended production test was initiated in late June and due to exceptionally high condensate and light oil production rates the initial 10-day test was choked back due to a lack of storage and transportation constraints. Over the initial 10-day testing of the upper zone, the Canunda well produced over 2500 bbls of 62 degree API condensate and light oil.

It is anticipated that the reconfigured Canunda-1 well testing will recommence in January 2011. The evaluation is intended to more accurately define size and production characteristics of this high liquids gas field.

Both Drillsearch and Beach have declared the Canunda Liquids Discovery commercial and haveassessed that the Canunda Discovery contains at least 2.8 MMBOE including 1.3 MMbbls of liquid hydrocarbons comprised of light oil, condensate and LPGs as set out in the table below:

----------------------------------------------------------------CANUNDA GAS & LIQUIDS DISCOVERYEstimated 2C Reserves----------------------------------------------------------------Sales Gas (BCF)   Condensate (bbls)   LPG (tonnes)   Total MMBOE----------------------------------------------------------------8.0               928,000             46,000         2.8----------------------------------------------------------------

Contact

Brad Lingo Managing Director Ph:+61-2-9241-4440 Email:admin@drillsearch.com.au http://www.drillsearch.com.au