Drillsearch Energy Limited (ASX:DLS) Hanson-1 Oil Exploration Well Spuds

Sydney, May 23, 2011 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that the Western Flank Oil Fairway drilling program has began with the spudding of the first well in a five well program. The Hanson-1 well spudded at 5.00pm (CST), Saturday 21 May 2011. Drillsearch holds a 60% Interest in PEL 91 while Beach Energy Limited (ASX:BPT) (PINK:BEPTF) as operator holds 40%.

Hanson-1 is an oil exploration well located 3.5km south of the Chiton Oil Discovery. The well is targeting the primary objective of the Namur Sandstone which is the productive oil reservoir in the Chiton Oil Discovery and in numerous oil discoveries - Callawonga, Butler, Parsons - in the adjacent permit PEL 92 to the south of the Hanson Prospect. The Birkhead Formation, Hutton Sandstone and Poolowanna Sandstones are considered secondary targets for oil and have been proven at the Christies and Sellicks oilfields to the south and south east of Hanson-1. Drilling will be to a total depth of 1950mRT and it is expected that the drilling will take 10-14 days.

Seismic mapping of the Namur horizon indicates that the Hanson Structure has approximately 10 metres of independent structural relief and potentially encloses an area of 1.5km2. The Hanson Prospect is estimated to have a Mean Recoverable Prospective Resource of 820,000 barrels of oil and a High-side Recoverable Prospective Resource potential of up to 2.0 million barrels of oil.

Hanson-1 will be drilled as a conventional vertical well with logging and possible testing planned after the well reaches total depth. The main target zone is expected to be penetrated 5 to 7 days after spud.

Mr Brad Lingo, Managing Director noted that "The spudding of Hanson marks the beginning of an extensive drilling programme in the Western Oil Fairway that is predicated on comprehensive seismic and geological research and analysis we have undertaken on this highly prospective play".

As set out in our ASX Announcement on the Western Flank Oil Fairway 5 well drilling outline dated 12 April 2011, further announcements will be made regarding the Hanson-1 well on completion and with the encountering of any significant results.

For the complete Drillsearch announcement including figures and maps, please view the following link:
http://www.abnnewswire.net/media/en/docs/635334.pdf

Contact

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