Drillsearch Ready to Complete Chiton-1 as Future Oil Producer

Drillsearch Energy has commenced operations to complete the Chiton-1 Oil Discovery well as a future producer. Drillsearch announced the Chiton Oil Discovery on August 17, 2009 and following completion of the drilling operations Chiton-1 was cased and suspended as a future oil producer.

Operations have now commenced to complete the Chiton-1 well as a single string jet pump oil well producer from the Namur reservoir, allowing for free-flow production initially. The completion operations provide for flowing oil to a lease/mud tank for approximately 1 hour (or otherwise directed by Beach Petroleum as operator). During this operation, the operator will record oil and water production rates, tubing head and annulus pressures prior to shutting in the well pending installation of surface production facilities.

Drillsearch will advise once initial flow rates are established and provide further advice on the scope and timing of the forward program to put Chiton-1 on full production once further advice is provided on the timing of the installation of the initial production facilities by the operator.


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