Drillsearch Energy Limited (ASX:DLS) Awarded A Major New Cooper Basin Exploration Permit

Sydney, Dec 9, 2009 AEST (ABN Newswire) - 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. On award, Block B will be held by Drillsearch's wholly-owned subsidiary Great Artesian Oil & Gas Ltd which will operate and hold 100% interest in the permit.

Block B also contains significant acreage previously contained within the Santos-operated South Australian Cooper Basin Joint Venture production license areas. These areas include most of the Production License area covering the Welcome Lake East wet gas field located within Drillsearch's PEL 106 exploration permit and more significantly a major production license release area covering the entire south western flank of the giant Moomba gas field. In the southern portion, Block B also contains production license relinquishment areas from the Caladan and Wirrarie North gas fields.

The northern portion of Block B also contains major permit areas abutting the Fly Lake, Tirrawarra, Callabonna and Charo oil fields and the Merrimelia, Leleptian and Varanus wet gas fields.

Managing Director Brad Lingo stated "We are extremely excited about winning the bid for Block B. which is a strategic fit with Drillsearch's position in the Western Cooper Basin. Block B covers portions of the Western Flank Oil, the Wet Gas and Unconventional Gas play fairways that we have outlined as the cornerstone strategic businesses we are building the company around."

"We know the area extremely well as a portion of Block B covers areas from PEL 106 which Drillsearch previously relinquished before we identified the unconventional Deep Coal Seam Methane potential of the area and had fully refined the conventional stratigraphic wet gas play. We have proven track record of success in this area with 10 discoveries out of 12 exploration wells. We have already begun mapping out the unconventional Prospective Resource potential of this area for the Permian coals which we know extends into the new award acreage."

"Block B will give us increased leverage and scale within the Wet Gas business we are building around the success we have already achieved in PEL 106".

Contact

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