Drillsearch Energy Limited

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) is pleased to announce a new field oil discovery has been made at Hanson-1, the first well in a five well exploration drilling campaign in PEL 91.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that Beach Energy Limited (ASX:BPT) (PINK:BEPTF) as the Operator of PEL 91 has advised that a new field oil discovery in the Western Flank Oil Fairway has been made at Hanson-1, the first well in a five well exploration drilling campaign in PEL 91. The PEL 91 Joint Venture is Drillsearch 60% and Beach Energy Ltd 40% as operator.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that the Western Flank Oil Fairway drilling program has began with the spudding of the first well in a five well program. The Hanson-1 well spudded at 5.00pm (CST), Saturday 21 May 2011. Drillsearch holds a 60% Interest in PEL 91 while Beach Energy Limited (ASX:BPT) (PINK:BEPTF) as operator holds 40%.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce an equity capital raising (Capital Raising) to raise gross proceeds of approximately A$48 million.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that the Brownlow, Canunda, Middleton and Udacha Wet Gas discoveries in PEL 106B are commercial and justified for development, following a review by the Company's independent expert, Gaffney, Cline & Associates, Ltd.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) as part of the PEL 106B Joint Venture is pleased to announce that the Extended Production Testing (EPT) of the Canunda-1 Condensate/Wet Gas Discovery has concluded producing better than expected results. Over the duration of the EPT, the reconfigured Canunda-1 well has produced over 12,000 bbls of condensate and 63 mmscf (gross) of raw gas.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce the commencement of a five well drilling campaign in the third week of April with the spudding of Hanson-1, located in PEL 91 in the Cooper Basin Western Flank Oil Fairway in South Australia. The Ensign #18 drilling rig is now on location at the Hanson-1 drilling site and is currently rigging up and completing pre-drilling safety inspections and some minor repairs.

Drillsearch Energy Ltd (ASX:DLS) (PINK:DRLLF) as part of the PEL 106B Joint Venture (Drillsearch (50%) and Beach Energy Limited (ASX:BPT) (PINK:BEPTF) 50% and Operator) is pleased to announce that the Extended Production Testing (EPT) of the Canunda-1 worked over and reconfigured Condensate Discovery recommenced over the weekend and has already delivered promising production results. The well is producing 3 MMscfd gas with a gas oil ratio of 180 Bbls/MMscfd on a 22/64" choke.

Beach Energy Limited (ASX:BPT) (PINK:BEPTF) has obtained excellent results from the first two wells drilled of its 16 well operated program in the Western Flank area.

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce that the PEL 91 Joint Venture (Beach Energy 40% and operator / Drillsearch 60%) is mobilising the Ensign #18 drilling rig to the Hanson-1 drilling location. The rig is expected to arrive by the end of the week. The rig will be transported into the Western Flank area via the Kudnari Bridge over the Cooper Creek and into PEL 91.