Burleson Energy Limited (ASX:BUR) Two Heintschel Wells Successfully Fracced

Sydney, Jan 27, 2011 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that the D.Truchard #1 and Heintschel #2 appraisal/development wells on the Heintschel field have been fracced, as planned, on 24 and 25 January (Texas time), respectively.

Both wells are now currently in the initial production phase which involves uploading drilling fluids from the bore hole.

A further report will be issued once the initial flows from the wells have stabilised - this may take a week or longer.

Backgound:

The Heintschel field was discovered by the Heintschel #1 exploration well in October 2010.

The well encountered a much thicker reservoir section covering a greater area than expected. To follow up the discovery, two wells were planned for late 2010 with dual aims: to add valuable production and cash flow; and, to firm up resource and reserve estimates for the field.

D.Truchard #1 - (BUR WI 38%, NRI 29.64%) The D.Truchard #1 well is located ~3km from the Heintschel # 1 gas condensate discovery. It was planned as an appraisal well in the Heintschel field in Colorado County, Texas.

D.Truchard #1 was spudded in late November and drilled to a total depth of 12,000 feet (3658m) and gas shows were recorded while drilling the lower part of the hole.

The D. Truchard came in structurally higher than the pre drill prognosis which is a positive indication for the performance of the well. A decision was subsequently made, followingelectric logging, to complete the D.Truchard #1 well for production.

Heintschel # 2 - (BUR WI 38%, NRI 29.59 %) This appraisal/development well is located 0.37 km from the Heintschel # 1 gas condensate discovery. The Heintschel #2 well was planned as an appraisal well targeting the main gas condensate sands encountered in the Heintschel #1 discovery well but in a structurally higher (updip) location. It was spudded in late December and drilled to a total depth of 11,900 feet (3627m), with gas shows recorded while drilling the lower part of the hole. The main shows appear to correlate to gas condensate charged reservoir sands in the Heintschel #1 discovery well.

Results of electric logging of the Heintschel #2 well were as expected, and a decision was made to complete the well for production.

Both D.Truchard #1 and Heintschel #2 required fracture stimulation (fraccing) prior to hooking up to a sales pipeline and the fracs were completed on 24 and 25 January, as planned.

Heintschel Field Working Interests:

- Burleson Energy 38.0%

- New Standard Energy (ASX:NSE) 32.5%

- AKG and Associates (AKG) 29.5%

Contact

Mike Sandy Managing Director Tel: +61-2-8252-6177 Fax: +61-2-8252-6178 Email: info@burlesonenergyltd.com http://www.burlesonenergyltd.com