Burleson Energy Limited (ASX:BUR) Due To Commence Wilcox Drilling Campaign With The Spudding Of The Heintschel 1 Well

Sydney, Mar 30, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that the Wilcox drilling campaign is due to commence with the spudding of the Heintschel 1 well. The drilling rig is currently being used by another company in the region, and that well is nearing completion. The rig is expected to arrive on the Heintschel 1 site in early April 2010.

First Wilcox well, Heintschel 1 spud imminent

Heintschel 1 is a lower Wilcox sandstone reservoir prospect in a stratigraphic trap with four-way closure and is analogous to the recent Wilcox discoveries along trend. It has the expected (p50) potential for 7.2 bcf of gas and >100,000 barrels of condensate, with an (p90) upside of 29 bcfe. Additional wells will be required should the stratigraphic component of the trap be a success.

In perspective, a prospect of this (p50) size has the potential to deliver total revenues of over US$40m for a well cost of A$2.5m (drilled and completed). Heintschel 1 will be a vertical well and will be drilled to a total depth of 11,750 feet (3,581 metres). It is expected to take 35 days to drill and complete.

Heintschel 1 is just one of at least a dozen Wilcox prospects located in the Colorado County 3D project area.

Participants in Heintschel 1 are:

Burleson Energy Limited (BUR)     - 38.00%
AKG Energy, L.P (AKG) operator    - 16.50%
New Standard Energy Limited (NSE) - 32.50%
Others Parties                    - 13.00%

Second well to target large Wilcox prospect. Rig option for third Wilcox well.

The drilling rig (Big "6" Drilling Company Rig #7) is contracted by the BUR/AKG group for two firm wells and the group has an option to drill a third well before releasing the rig.

The second Wilcox well in the program will be drilled on a very large prospect (currently known as "W2").

This is one of the two new Wilcox projects secured by the group in January 2010. It is located in Colorado County but outside and to the southwest of the new 3D project area. W2 is a lower Wilcox play analogous to a prolific trend along strike in the neighboring county. The well will be drilled to 12,500 feet (3,810 metres) at a cost of ~US $3m to drill and complete, and has the potential to contain 100 bcf of gas and 2.4 million barrels of condensate. This level of reserves would require further wells to develop (up to 8 may be required). Each successful well could be expected to deliver similar or greater volumes and financial rewards as noted above for Heintschel 1.

Participants in W2 are:

BUR          - 36%AKG operator - 28%NSE          - 36%

Update on the Brasher 1 discovery well.

This low cost well targeted Yegua sandstone reservoir and was announced as a discovery (flowing 380 mcf of gas per day) on 8 March 2010. It is currently being connected to a gas sales line and is expected to be on stream by late April 2010. Despite the small prospect size the Brasher 1 is anticipated to deliver total revenues of over US$40,000 per month (based on a gas price of US$4.50 and after royalties are deducted) for the life of the field.

Participants in Brasher 1 are:

BUR          - 38.00%AKG operator - 16.50%NSE          - 32.50%Others       - 3.00%

Contact

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