Burleson Energy Limited (ASX:BUR) Acquires Licence For 38% Of 1,000 Square Miles Of Additional 3D Seismic Data

Sydney, June 29, 2010 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that it has secured access to a substantial additional 3D seismic database that can be expected to generate a large number of additional drilling prospects.

The Colorado County 3D seismic survey completed in mid 2009 was a "spec-survey" that was underwritten by AKG Energy, Burleson Energy and New Standard (ASX:NSE) (AKG Group) in conjunction with the seismic contractor. As part of underwriting this survey, BUR acquired a 38% working interest in the Colorado County Project including the new 3D seismic data.

As a result of the AKG Group fulfilling its contractual commitments with the seismic acquisition company, BUR is now entitled to receive the following benefits:

- A 38% interest in licences to 1,000 square miles (2,590 square km) of 3D data to be selected from the seismic contractor's extensive USA database. This encompasses 3D (and 2D) seismic data that has been acquired over very large portions of the prospective onshore and offshore basins in the USA - with substantial coverage in the Gulf Coast region across Texas and Louisiana ("1K3D PROJECT")

- A partial reimbursement of costs in proportion to its 38% working interest in the Colorado County Project (approximately US$285,000);

- A separate licence to the new 119 sq. mi. (308 sq km) 3D seismic data acquired as part of the Colorado County Project.

As a part (38%) of the AKG Group, BUR now has access to an extensive seismic data base, which will enable the group to substantially increase its portfolio of drilling prospects.

The potential value of acquiring 38% interest in an additional 1,000 sq. mi. (2,590 sq. km.) of 3D seismic coverage can be somewhat demonstrated by comparison with the number of prospects generated from the recently acquired 3D survey in Colorado County, Texas. That 3D survey covers just 119 square miles (308 sq. km.) and, thus far, has yielded over 75 prospects including 23 "top tier" targets through 7 reservoir horizons.

To date, four wells have been drilled based on this 3D seismic; one well is on production (Brasher 1, Yegua reservoir), two Wilcox wells with strong hydrocarbon indications have been drilled and await flow testing (Heintschel 1 and Moeller 1), and a third Wilcox well (Joann 1) also encountered hydrocarbon shows while drilling and is currently being logged.

The Colorado 3D program also identified the existence of the very large Woppa prospect (potential for 600 bcf of gas in Edwards and Sligo reservoirs), which had not been identified from the previously existing 2D seismic data.

BUR Managing Director, Michael Sandy commented: "This is an excellent outcome for BUR. The new 3D seismic can be expected to add a considerable number of targets to BUR's already rich vein of drilling prospects."

Contact

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