Drillsearch Energy Limited (ASX:DLS) Canunda-1 Extended Production Testing Produces Encouraging Results

Sydney, April 21, 2011 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) as part of the PEL 106B Joint Venture is pleased to announce that the Extended Production Testing (EPT) of the Canunda-1 Condensate/Wet Gas Discovery has concluded producing better than expected results. Over the duration of the EPT, the reconfigured Canunda-1 well has produced over 12,000 bbls of condensate and 63 mmscf (gross) of raw gas.

Mr Brad Lingo, Managing Director said "The encouraging results of the EPT highlight the benefits of our strong focus on the Cooper-Eromanga Basin and our Wet Gas business. We are now considering the further development of and commercialisation options for the project."

On average the well produced 4 MMscfd gas with 800 bopd of condensate on a 29/64" choke. At the higher choke rate of 38/64" Canunda-1 produced 6 MMscfd gas and 1,100 bopd of Condensate. The well will be shut in pending further evaluation of subsurface pressure data to determine the size of the gas reservoir.

The PEL 106B Joint Venture is Drillsearch 50% and Beach Energy Limited (ASX:BPT) (PINK:BEPTF) 50% as operator.

PEL 91 Drilling Program Update

Beach Energy Ltd, as Operator of PEL 91 has advised that essential repairs on the Ensign #18 drilling rig are required and are expected to take two to three weeks to complete. These repairs were unforeseen at the time of contracting for the rig and not identified until the rig was undergoing its full safety and pre-drill inspections. These repairs and any rig preparation time will not be at Joint Venture expense.

Mr Brad Lingo, Managing Director notes that "While this is a frustrating delay to the spudding of Hanson-1, the safety of our sites is paramount and the repairs must be made before drilling can commence. Every effort is being made to get it ready for spudding in a timely and safe manner."

Contact

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