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Drillsearch Energy Acquires Wet Gas Reserves

Drillsearch Energy Ltd (DLS) is pleased to announce that it has acquired interests in four Wet Gas Discoveries from Bandanna Energy Ltd ( BND) with additional 2P oil & gas reserves and 2C Contingent Resources in its core Cooper Basin Western Flank Oil Fairway and Gas & Liquids Projects. Drillsearch has executed a definitive purchase agreement with Bandanna to acquire all of the interests held by Bandanna’s subsidiary Traditional Energy in the Udacha Wet Gas Discovery in PEL 91 and PEL 106B and the Paprika, Smegsy and Rossco Wet Gas Discoveries in PEL 106 A. The consideration for the assets is $1,300,000 payable in Drillsearch stock. The transaction is expected to close within two business days. Each of the assets is well known to Drillsearch with the company already holding working interests in each of the discoveries and in the case of the PEL 106A discoveries, operated by Drillsearch. The acquisition not only gives Drillsearch additional interest in the Udacha Wet Gas Discovery which Drillsearch and Beach Energy have declared commercial pending development but it also gives Drillsearch full control of a 3 other Wet Gas discoveries which Drillsearch is also working towards commercial development. Commenting on this acquisition, Drillsearch Managing Director, Mr Brad Lingo said “This acquisition is about Drillsearch gaining control over key acreage in the Western Cooper Gas & Liquids Project and highlights our belief that the Cooper basin remains a premier onshore basin which by world standards is under explored. It provides additional 2P Reserves at Udacha and 2C Contingent Resources in discoveries Drillsearch is already working toward development, plus exposure to identified Unconventional Prospects.” Mr. Lingo continued “With this acquisition Drillsearch has taken greater control over the development of the Western Cooper Gas & Liquids Project which is moving towards initial commercialisation. We believe simplifying the joint venture arrangements around this project is a key step in moving the project forward.” Mr. Lingo concluded “Drillsearch is now the largest net acreage holder in the Cooper and is keen to see the Company grow into a significant producer in the Basin through successful drilling. This acquisition neatly fits with our strategy and provides increased exposure to our pipeline of opportunities”.