Drillsearch Energy Limited (ASX:DLS) Marino-1 Encounters Oil Shows In Birkhead Formation

Sydney, Aug 28, 2009 AEST (ABN Newswire) - Drillsearch Energy Limited (ASX:DLS)(PINK:DRLLF) is pleased to provide this drilling update for the Marino-1 well. Oil shows were encountered within the Birkhead Formation with up to 70% fluorescence over a 12m interval. Elevated gas readings up to C5 were also encountered over several zones. The Birkhead Formation is productive in the Growler Oilfield located 25km to the northeast of Marino-1. The significance of these oil shows will be determined with wireline logs and possible testing after drilling is completed over the weekend.

Progress with drilling as at 06:00 hrs CST today is:

Spud Date: 22 August 2009 at 23:00hrs CST
Current Depth: 1842m
Current Operations: Drilling ahead in Hutton Sandstone
Forward Operations: Drill ahead to total depth and log

Marino-1 is the second of a two- well program in PEL 91, following the Chiton-1 oil discovery.

Drillsearch holds a 60% interest in PEL 91, the Marino-1 well and the Chiton-1 oil discovery. The well is being operated by Beach Petroleum (40%) using the Ensign Rig# 30. Drilling to a planned total depth of 1948 metres is expected to be completed over the weekend.

Marino-1 is testing a second prospect in PEL 91 along the 'oil fairway' on the western flank of the Patchawarra Trough, approximately 9 kilometres north of Chiton-1. The Marino prospect is a robust structural trap matured for drilling with the benefit of data from the Modiolus 3D Seismic Survey. The primary objective for Marino-1 was the prolific Namur Sandstone which is the pay zone in the Chiton oil discovery. No shows were encountered within the Namur formation. Secondary objectives are within the Birkhead Formation that is productive immediately to the north in PEL104 and the Poolowanna Formation that is also productive in PEL 92 to the south.

Seismic mapping of the Birkhead horizon indicates that the Marino Structure has approximately 12 metres of vertical relief and an areal extent of about 10 square kilometres. Because of the highly variable nature of the Birkhead reservoir additional evaluation will be required to determine potential reserve volumes. The presence of oil in two different reservoirs in two wells so close together provides further evidence hydrocarbon migration into the 'oil fairway' within PEL 91 and of the prospectivity and geologic complexity within the permit.

Marino-1 is being drilled as a conventional vertical well with logging and possible testing planned after the well reaches total depth.

Working Interests in the Marino-1 well are:

Drillsearch Energy Limited 60%Beach Petroleum Limited    40%

For the complete Drillsearch Energy Drilling Update, please see the link below:

http://www.abnnewswire.net/media/en/docs/61342-ASX-DLS-562473.pdf

Contact

Brad Lingo Managing Director Tel: +61-2-9241-4440 www.drillsearch.com.au