Drillsearch Energy Ltd (ASX:DLS) Encounters Significant Formation Pay Zone At Ipundu North-13 And Will Be Completed As Future Murta And Birkhead Oil Producer

Sydney, Nov 23, 2009 AEST (ABN Newswire) - 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.

The Tintaburra Block is a joint venture of Santos Ltd (89%) and DLS (11%) and is the company's largest production joint venture.

IN-13 encountered up to 1.5 metres of oil pay in the Murta sandstones and approximately 7 metres of oil pay in the middle and basal intervals of the Birkhead Formation based on preliminary interpretation. In the middle Birkhead interval IN-13 encountered a 7 metre well developed sand package not developed in offset wells and log analysis showing a 5 metres oil pay zone. IN-13 also encountered 2 metres of oil pay in a 5 metre sand package in the basal Birkhead interval similar to the producing sands in the IN-12 production well. Oil was recovered from a FMT sample in this zone.

IN-13 is the second development well in the drilling campaign and the primary target of the well was by-passed attic oil in the Murta sandstone in an up dip section of the Ipundu North Oil Field. The IN-13 well also included an exploration component targeting the deeper Birkhead Formation. IN-13 targeted recoverable oil of up to 300,000 bbls (P10) in the Murta Formation and the Wyandra sandstones which did not include the exploration potential in the Birkhead Formation.

Santos as operator plans to test the Birkhead Formation pay zones behind casing as part of the initial completion strategy. The company will provide further updates on this testing and the recoverable oil estimates as these become available from the operator.

Contact

Brad Lingo Managing Director Tel: +61-2-9241-4440