Drillsearch Energy Limited (ASX:DLS) Acquires Additional Interests In South West Queensland Flank Oil Fairway

Sydney, Dec 23, 2010 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that it has acquired all of the remaining Queensland petroleum interests held by Bandanna Energy Ltd (ASX:BND) being interests in ATP539P, ATP549P West and PL18. The total consideration paid to acquire all of Bandanna's remaining interest is A$150,000. The acquisition of these remaining interests follows Drillsearch's acquisition of Bandanna's interests in the Western Cooper Gas & Liquids Project in PEL 106 A for A$1.3 million which was previously announced on 6 September 2010

Following the acquisition Drillsearch will hold 100% of ATP539P. This permit is well known to Drillsearch with the company already holding Operatorship. This increased exposure to this area in northern SW Queensland Western Flank Oil Fairway follows an extensive review of SW Queensland oil potential in conjunction with the grant of eight other application permits in South West Queensland. In addition to the interest in ATP 539, subject to the finalization of certain arrangements with Icon Energy Ltd (ASX:ICN), Drillsearch will also hold a 66.67% interest in ATP 549P West which is immediately adjacent to ATP 539. Drillsearch currently holds a 25% interest in ATP 549 West.

Commenting on this acquisition, Drillsearch Managing Director, Mr Brad Lingo said "This acquisition is about Drillsearch gaining control over key acreage in the northern SW Queensland area and facilitates an unparalleled opportunity to pursue our belief that the northern SW Queensland portion of the Eromanga Basin has oil potential which has yet to be systematically reviewed and tested - which Drillsearch will now proceed with. There is clearly potential for another oil field like the Inland Oil discovery."

For the complete Drillsearch Energy announcement including location map, please view the following link:

http://www.abnnewswire.net/media/en/docs/64893-ASX-DLS-618914.pdf

Contact

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