Burleson Energy Limited (ASX:BUR) Wilcox Drilling Campaign Encountered Hydrocarbon Shows In The Moeller #1 Well

Sydney, June 1, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) advises that as at 6am on Monday 31 May 2010 (Texas time) the Moeller #1 well was at a depth of 12,002 feet (3,658m) and drilling ahead towards an anticipated total depth (TD) of 12,500 feet (3,810m). Based on the mudlogs from the well, numerous hydrocarbon shows have been encountered through the reservoir targets of the Wilcox sands. It should be noted, however, that the quality and significance of these hydrocarbon shows cannot be accurately determined until the well has reached TD, electric logs have been run through the reservoir zones and the joint venture has had time to interpret these logs.

Due to slightly slower drilling rates being experienced it is anticipated that TD will be reached over the next 5-7 days following which electric logs will be run and interpreted. A further update will be provided once this process is completed.

The Moeller #1 is located in Colorado County, Texas to the southwest of the main 3D seismic project area. The Moeller prospect has been mapped using modern 3D seismic as a large stratigraphic trap supported by strong amplitude and AVO anomalies which are strong hydrocarbon indicators. The Moeller prospect has the potential to contain recoverable hydrocarbons of 118 bcf of gas and 2.8 million barrels of associated condensate. Should a discovery of that scale be made, 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 (fraccing) is generally not required. Analogous wells to the Moeller #1 have recovered up to 20 bcf of gas and 470,000 barrels of condensate with flow rates of up to 6.3 mmcf of gas per day and 170 barrels of condensate per day.

BUR has a 38.5% working interest in Moeller #1, along with its JV partners New Standard Energy (ASX:NSE) and US-based operator AKG Energy, L.P.

Contact

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