Giving you all the latest in Stock Market Information as it happens...

25805,25766,25763,25760,25756,25753,25751,25747,25745,25743,

Shareholders of Drillsearch Energy (ASX:DLS) Subsidiary Circumpacific Energy (VAN:CER) Approve Sale to Western Petroleum Commodities Inc.

Drillsearch Energy Limited (ASX:DLS) (PNK:DRLLF) is pleased to announce that at a meeting of the shareholders of Circumpacific Energy Corporation (VAN:CER) held in Vancouver today, the shareholders of CER, the listed Canadian oil & gas subsidiary of DLS, voted 98.6% in favour of a Plan of Arrangement pursuant to which Western Petroleum Commodities Inc. ("WPC"), a private Canadian oil & gas company, will acquire all of the issued and outstanding common shares of CER.

Merger Timing and Conditions

Completion of the Arrangement remains subject to a number of closing conditions, including final approval by the Supreme Court of British Columbia. It is expected that the transaction will be completed by mid-November 2010, based on indicative timetable:-----------------------------------------Key Milestone Date-----------------------------------------Shareholders' Meeting 10 November 2010-----------------------------------------Final Court Approval 16 November 2010-----------------------------------------Implementation Date 17 November 2010-----------------------------------------The total consideration to be paid by WPC to CER shareholders upon completion of the Arrangement is approximately CDN $9.6 million (A$10.2 million), of which DLS will receive approximately CDN $7.75 million (A$ 8.26 million). As part of the Arrangement, DLS will also purchase from CER its interest in the eight exploration tenements known as the SWQ Blocks which are held in joint venture by DLS and CER and operated by DLS. The acquisition of the interest in the SWQ Blocks will take place in parallel with the completion of the Plan of Arrangement.

Managing Director Brad Lingo stated "This is a great result for Drillsearch and all the other shareholders of Circumpacific. The sale of our interest in Circumpacific and the Canadian oil & gas properties allows Drillsearch to focus on its core activities in the Cooper Basin."

About Drillsearch Energy Limited:

Drillsearch Energy Limited (ASX:DLS) explores and develops conventional oil and gas projects. Drillsearch has a strategic spread of petroleum exploration and production acreage in Australia's most prolific onshore oil and gas province, the Cooper/ Eromanga Basins in South Australia and Queensland. The company's focus is on 'brownfields' exploration where geological risk is reduced and there is access to existing infrastructure, ensuring that any discoveries can be brought into production. The company also has offshore exploration interests in the Gippsland Basin and in PNG as well as oil & gas production interests in Canada.

Contact: Jim McKerlieChairmanPh:+61-2-9241-4440Email:admin@drillsearch.com.auhttp://www.drillsearch.com.au

Source:

Drillsearch Energy Limited

Copyright (C) 2010 ABN Newswire. All rights reserved.