Drillsearch Energy Limited (ASX:DLS) Announce Western Flank New 2 Million Barrel Oil Field Discovery at Bauer-1

Sydney, Aug 1, 2011 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce its fourth consecutive new field oil discovery in the Western Flank Oil Fairway has been made at Bauer-1, the fourth well in a five well exploration drilling campaign in PEL 91. The PEL 91 Joint Venture is Drillsearch 60% and Beach Energy Limited (ASX:BPT) (PINK:BEPTF) 40% as operator.

Bauer-1 encountered a gross oil column of 15 metres, with 13 metres of net pay, in the McKinlay-Namur Sandstone section of the well. Beach has advised that the preliminary volumetric assessment suggests Reserves of up to 2 million barrels of gross recoverable oil. Oil shows were also encountered in the Birkhead Formation over a 12 metre interval. These shows are currently being evaluated.

Beach, as operator has advised that the pay zone encountered at Bauer-1 is the best quality McKinlay-Namur oil reservoir encountered so far in either PEL 91 or in the oil discoveries to the south in PEL 92.

Bauer-1 is expected to be on-line in the December quarter 2011.

Following the completion of the evaluation program the Ensign rig #18 will be moved to drill the Searcy-1 exploration well, which is located about 8.5km to the north of Bauer-1, 10.5km north of the Chiton Oil Field and 2.5km east of the Marino oil discovery.

Brad Lingo, Managing Director said "This is a great result for the fourth well in the 5-well drilling campaign. It is the biggest McKinlay-Namur oil discovery in PEL 91 so far. This has been a great exploration campaign with three discoveries leading into Bauer-1 and to now make a big discovery like this at Bauer is a tremendous result."

"This result certainly proves that PEL 91 holds a prime position in the Western Flank Oil Fairway. We have already mapped out a large number a additional prospects to be covered by the upcoming Aquillus 3D so we look forward to delivering a continuing pipeline of oil exploration activity and judging by the results so far, more oil discoveries. The results in PEL 91 prove the power of 3D seismic in unlocking the oil plays in the Western Flank Oil Fairway, with every well drilled to date on 3D making an oil discovery. "

Contact

Brad Lingo Managing Director Ph: +61-2-9249-9600 Email: admin@drillsearch.com.au http://www.drillsearch.com.au