PELA 513

Drillsearch 100%

Drillsearch Energy Ltd has been awarded by the Government of South Australia a major new exploration permit - Block B (PELA 513) - through the 2009 Cooper Basin Acreage Release competitive bid round. This block 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 area. 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.

Drillsearch is looking forward to start the exploration of the block which will commence once the native title agreement is finalised.