Petrosearch Abandons North Dakota Wildcat

Petrosearch's subsidiary, Guidance Petrosearch L.L.C., has plugged and abandoned the re-entry of the Kesting 2-17 well in the Williston basin near Dickinson, North Dakota, after an unsuccessful attempt to find another Lodgepole reef about a mile east of its original discovery well, the Petrosearch-Gruman 18-1.

The Kesting 2-17 re-entry marks the second test following Guidance Petrosearch's initial Lodgepole reef discovery with the Petrosearch-Gruman 18- 1 well, which continues to produce more than 1,000 barrels per day of oil and 600 thousand cubic feet per day of natural gas per after coming online in November 2003. The Kesting 2-17 re-entry was drilled directionally to a measured depth of 9,910 feet and a bottomhole location about 660 feet from that of the re-entered well, drilled by Duncan Oil in 1997. Guidance Petrosearch owned a 50 percent interest in the Kesting test."

Considering the potential magnitude of Lodgepole discoveries such as the Gruman 18-1, we remain positive about our Williston Basin development program, in spite of the Kesting disappointment," Bradley J. Simmons, Petrosearch president and chairman said. "We know full well this is an exploratory play and that dry holes are going to occur as we attempt to pinpoint these extremely productive geologic structures."

"We are continuing with additional technical studies in North Dakota and Montana in search of Lodgepole reefs through our alliance with Oil for America, and we are diligently acquiring more Lodgepole acreage in both states."