Drillsearch Energy Limited

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that it has executed an agreement to purchase Magellan Petroleum (Southern) Pty Limited which holds interests in 1 Production Licence, PPL212 Kiana (30%), 1 Petroleum Retention Licence over the Udacha discovery (30%) and 1 Petroleum Exploration Licence PEL107 (20%) from US Company Magellan Petroleum Corporation (MGN). The consideration for the assets is A$550,000 which will be financed out of exiting cash reserves. The transaction is expected to be closed this quarter following third party approvals.

ABN Newswire Stocks to Watch today include: Linc Energy Limited (ASX:LNC)(PINK:LNCGY), Galaxy Resources Limited (ASX:GXY)(PINK:GALXF), iSOFT Group Limited (ASX:ISF), Havilah Resources Limited (ASX:HAV), Drillsearch Energy Limited (ASX:DLS)(PINK:DRLLF), Metallica Minerals Limited (ASX:MLM) and Otto Energy Limited (ASX:OEL)(PINK:OTTEF).

Drillsearch Energy Limited (ASX:DLS)(PINK:DRLLF) is pleased to announce it has been awarded by the Government of South Australia a major new exploration permit - Block B - through the 2009 Cooper Basin Acreage Release competitive bid round. Block B covers approximately 1500 km2 on the Western Flank of the South Australian Cooper Basin and incorporates exploration acreage directly contiguous to Drillsearch's PEL 91, 106 and 107 permit areas.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce the completion of its initial independent review of the Unconventional Gas Resource potential of the Western Cooper Unconventional Gas Project.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce that the Ipundu North-13 (IN-13) development well has encountered significant pay and will be cased and suspended as a future oil producer in the Murta and Birkhead Formations.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to provide this update on the development of the Chiton Oil Field. The company was advised by Beach Petroleum as operator early yesterday evening that it completed a flow test on the Chiton-1 oil discovery well.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce that the Ipundu-16 development well has been successfully drilled and will be cased and suspended as a future oil producer.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce the recommencement of the Tintaburra Block development drilling with the spudding of the Ipundu-16 development well. The Tintaburra Block is a joint venture of Santos Ltd (89%) and DLS (11%) and is the company's largest production joint venture.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) has taken further action to protect the interests of all shareholders in its 79.5% owned Canadian subsidiary Circumpacific Energy Corporation (CVE:CER) and in particular to protect assets held in 50/50 joint venture by Drillsearch and Circumpacific and to protect confidential information.

Drillsearch Energy Limited (ASX:DLS)PNK:DRLLF) cash balance as at 30 September 2009 was A$13.28 million. Actual cash payments for exploration, appraisal and development expenditure for the September Quarter were A$2.60 million (in contrast to the June Quarter of A$1.08 million). Cash reserves were increased by A$9.58 million as a result of an equity placement and will be further increased at the completion of the current share purchase plan offer.