Drilling Recommences at Cooper Basin's Naccowlah Block

Drillsearch Energy noted that drilling has recommenced in the Cooper Basin at ATP 259P (the Naccowlah Block and its associated PL's). This year's drilling program is expected to be comprised of 10 development wells, 7 delineation wells and up to 5 near field exploration wells.

The drilling program has primarily been designed to develop and appraise the Hutton reservoirs following remapping using recently acquired 3D seismic, and the wells have been located to access areas that are yet to be developed.

ATP 259P - Queensland Cooper Basin

The Naccowlah Block and its associated production licences (PL), which are located in the Cooper Basin of south-west Queensland, cover an area of 3111 km2 (768,740 acres) and contain 22 commercial oil fields. Production in the Block has mainly been from the Late Cretaceous Murta Formation, the Jurassic Birkhead Formation and Hutton Sandstone.

The majority of the Block is covered by several 3D seismic surveys including the recently acquired Jackson Naccowlah 3D and the Watson 3D.

Drillsearch has a 2% interest in the Naccowlah Block and associated PL's. This Block contributes an average monthly production of approximately 1,150 bbls and Drillsearch's 2P reserves in the block at year end 2007 were 282,998 bbls.

There is considerable undeveloped potential in the Block, both for near field exploration and additional development on existing fields. In March 2007 development, appraisal and near field exploration drilling began in the Naccowlah Block. Since that time 37 wells have been drilled with significant results occurring at Jackson South, Gunna and Naccowlah West.