Drillsearch - January Update

Drillsearch announced the company's drilling report for the month of January 2015.

• Wet Gas Business
- Ralgnal-1 to be cased and suspended as a new Wet Gas discovery
- Nulla North-1 exploration well DST evaluating multiple wet gas shows

• Unconventional Business
- The final well in the current ATP 940 drilling campaign, Amidala-1, cased
and suspended for future testing
- Testing ongoing at Charal-1

Oil Business

Western Flank Oil Fairway
Drilling continued on the Western Flank Oil Fairway (Drillsearch 60%, Beach 40% and Operator) with the Sandhurst-1 exploration well in PRL 156 (formerly PEL 91) which targeted the top Namur Sandstone. Sandhurst-1 was plugged and abandoned after encountering insufficient hydrocarbon pay

Wet Gas Business
Western Wet Gas Fairway Our Wet Gas joint venture with Beach (Drillsearch 50%, Beach 50% and
Operator) drilled the Ralgnal-1 exploration well in PRL 130 (formerly PEL 106, see map).

Drillsearch’s preliminary evaluation of well logs indicates a gross interval in the Patchawarra Formation between 2,379 and 2,787 metres with net pay of 6.6 metres, and a gross interval in the Tirrawarra Formation between 2,787 and 2,842 metres with net pay of 3.0 metres.
A Drill Stem Test (DST) was performed over the Patchawarra Formation with gas flowing to surface at a rate of 5.88 mmscf/d. Test flow rates for condensate are currently under review. The well will be cased and suspended as a new discovery, with a cased hole test proposed prior
to completion of the well.

In the Wet Gas joint venture with Santos (Drillsearch 40%, Santos 60% and Operator), the Nulla North-1 well spudded on 27 January in the northwest of PRL 133 (formerly PEL 632, see map). A near-field exploration well, Nulla North-1 is targeting wet gas in the Patchawarra Formation and Tirrawarra Sandstone. Preliminary assessment of initial mud and wireline logs has identified multiple wet gas shows in the Patchawarra Formation and the deeper Tirrawarra Sandstones. The joint venture is proceeding with a DST of the well to determine whether a new wet gas discovery has been made.

Unconventional Business

Central Unconventional Fairway
In ATP 940 (Drillsearch 40% and Operator, QGC 60%), the fourth and final well in the current campaign, Amidala-1, has been drilled to a total depth of 3,495 metres and cased and suspended for future hydraulic stimulation. The Weatherford 826 rig was released and de-mobilised on 27 January 2015.

As previously reported, testing of the first well in the campaign, Charal-1, began on 24 December 2014  and continued through the month of January with the testing process ongoing. Information regarding the Charal-1 production test was included in Drillsearch’s December 2014 Quarterly Activity Report released to the ASX on 28 January 2015.