Drillsearch Energy Limited (ASX:DLS) Completes Sale of Circumpacific Energy Corporation (CVE:CER) to Western Petroleum Commodities Inc.

Sydney, Nov 25, 2010 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that today it received CDN $5,853,886.20 (AUD $5,871,500.70) sale proceeds in full and final settlement for the sale via a Plan of Arrangement of it's 79.37% stake in TSX.V listed Circumpacific Energy Corporation (CVE:CER) from Western Petroleum Commodities Inc (WPC).

As part of the Arrangement, DLS purchased from CER its interest in the eight exploration tenements known as the South West Queensland Blocks which are held in joint venture by DLS and CER and operated by DLS for CDN $1.8 million. The sale proceeds received are net of the cost of acquisition of the South West Queensland Blocks and other transactional expenses.

Managing Director Brad Lingo stated "We are extremely pleased to see the successful conclusion of this transaction. It has taken considerable time and management effort to ensure that both the interests of Minority Shareholders and Drillsearch were optimised. We have a very exciting exploration program in the Western Flank Oil Fairway kicking off in January and we also are planning expanded appraisal and development activity in the Western Cooper Gas & Liquids Project with Beach Energy. The funds realised from the sale of our interest in CER will allow us to increase our efforts in both these projects."

Contact

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