New Western Flank Oil Discovery at Balgowan-1

Drillsearch Energy Limited announced that a new oil discovery at the Balgowan-1 exploration well in PEL 91 on the Western Flank Oil Fairway of the Cooper Basin.

Wireline logs carried out at Balgowan-1 have confirmed a 9-metre gross oil column in the McKinlay-Namur and as a result, the well has been cased and suspended as a future oil producer, the 14th discovery in PEL 91. Analysis of the well results is continuing and Drillsearch will provide an update on the size of the discovery in due course.

Balgowan-1 is located 3.6 kilometres northeast of the Stunsail-1 oil discovery. Following casing and suspension of Balgowan-1, the rig will now move to drill Burners-1, which is located midway between Balgowan-1 and Stunsail-1.

Drillsearch Managing Director Brad Lingo said, “The Balgowan-1 discovery represents an excellent start to the FY2015 drilling campaign on the Western Flank, building on the success we had in the last financial year. In particular, both Balgowan-1 and Stunsail-1 illustrate the prospectivity of the previously under-explored area northeast of the prolific Bauer oil field.”

Drillsearch owns 60% of PEL 91, with Beach Energy (BEPTF), the Operator of the permit, owning the remaining 40%. The map on the following page shows the locations of Balgowan-1 and Burners-1.