Burleson Energy Limited (ASX:BUR) Wilcox Drilling Campaign Update Moeller #1 Well Spudded

Sydney, May 3, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that the Moeller 1 well (previously denoted as W2) commenced drilling on 29 April 2010 (Texas time). The well had been drilled to a depth of 1,785 feet (544m) as at 6am on 2 May 2010. The Moeller 1 well is located in Colorado County, Texas to the SW of the main 3D seismic project area. The Moeller prospect has been mapped using modern 3D seismic as a large stratigraphic trap supported by direct hydrocarbon indicators (strong amplitude and AVO anomalies).

The Moeller prospect has the potential to contain 100 billion cubic feet (bcf) of gas and 2.4 million barrels of associated condensate. Should a discovery of that scale be realised, additional wells will be required to develop the field. In previously drilled wells in the region, the Wilcox sands in this play tend to have high porosity and permeability, so fracture stimulation is generally not required. Analogous wells to the Moeller 1 have produced up to 20 bcf of gas and 470,000 barrels of condensate with flow rates of 6.3 million cubic feet (mmcf) of gas per day and 170 barrels of condensate per day.

The Moeller 1 well is budgeted to cost ~US$1.9 m if a dry hole and ~US$2.9 m if a success (i.e. completed for production). It will be a vertical well drilled to a total depth of 12,500 feet (3,810 metres) and is expected to take ~30 days to drill and complete.

BUR has a 38.5% Working Interest in the Moeller 1 well. This was increased from 36% after a partial farmin to AKG's interest which involves BUR paying 39.333% in this well.

Further drilling updates will be provided on a weekly basis or more regularly in the event that material information arises that requires disclosure.

Participants in Moeller 1 are:

Burleson Energy 38.5% working interest
New Standard Energy (ASX:NSE) 38.5% working interest
AKG Energy and associates 23.0% working interest

Contact

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