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

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

Drillsearch Energy Limited (ASX:DLS) Secures A$15 Million Equity Credit Facility

Drillsearch Energy Limited (ASX:DLS) (PINK:DRLLF) is pleased to announce it has secured a A$15 million facility with US-based Investment Fund YA Global Master SPV Ltd (YA Global).

Under the terms of the facility, Drillsearch may, at its discretion, issue shares that are listed on the ASX to YA Global at any time over the next 60 months for up to a total value of A$15 million. Drillsearch may draw down up to A$300,000 in any period of 10 trading days.

Shares issued to YA Global will be priced at 100% of the lowest volume weighted average price (VWAP) of Drillsearch shares traded on each of the 10 trading days which follow an advance notice by Drillsearch. A commission of 3% will be payable by Drillsearch at the time of issue.

Managed by US-based Yorkville Advisors LLC, the YA Global Group of Funds has a solid reputation in the US and UK financial markets and a rapidly growing reputation in Australia for structuring convertible loans and equity participation agreements. To date, the YA Global Group has made available in excess of over A$500 million for over 30 ASX-listed companies.

Commenting on the facility, Managing Director Brad Lingo said "Drillsearch is extremely pleased to have worked with Yorkville to have established this facility. We do not have any plans to utilize the facility in the near term but it does provide the company with a high degree of funding flexibility on very competitive terms."

Mr. Lingo continued, "As we move to accelerate the development of our substantial Wet Gas discoveries in the Western Cooper Basin, having access to this facility can complement other field development funding options such as commercial bank financing. This should allow us to minimize dilution to shareholders while delivering a very important growth project for the company. Along with Beach Energy, we have recently declared the Middleton, Brownlow, Udacha and Canunda Wet Gas Discoveries commercial and pending development and are very much working towards these ends in the near term."

"The facility provides an overall security of funding and flexibility to support the delivery of this and other field development and production projects over the next 5 years that will deliver significant cash flows from the very liquids rich gas streams. In the past, these facilities were used very well by Queensland Gas to accelerate their development of the substantial CSG resources they established in SE Queensland and we see the opportunity to use the support of this facility to accelerate the development of the Western Cooper Gas & Liquids Project."

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:Brad LingoManaging DirectorPh:+61-2-9241-4440Email:admin@drillsearch.com.auhttp://www.drillsearch.com.au

Source:

Drillsearch Energy Limited

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