Recent Activity Summary

As of the year 2010, in PEL91 the Chiton_1 well has been on production since February. In addition to PEL91, Drillsearch and Joint Venture have agreed to expand the exploration programme with the Aquillus 3D seismic survey.

Also in 2010, Drillsearch and Joint Ventures propose new drilling locations in PEL91 and PEL106. The company recently acquired additional working interests in South-West Cooper. Furthermore, the company engaged independent technical experts to assess the Prospective Resource Potential of the Western Cooper Unconventional Gas Project.

For more information on Drillsearch’s current activity on the permits, please click on the specific permit tabs in the right column.

Weather Condition Update

The weather condition for the year 2010 includes the total volume of water of the flood is now 8,700 gigalitres, approximately downstream of Innamincka. The water level is 90% of the year 1990’s flood and is the third largest flood since the Moomba Gas Plant was established.

In various parts of South Australia and Northern south-west Queensland the water level is receding. Due to the weather delay Drillsearch and Joint Ventures have been granted six month suspension-extension leverage on some of the permits. Also, drilling rigs have been delayed and in effect drilling will commence in about mid-July and seismic acquisition will commence in the fourth quarter of the year 2010.