Drillsearch Energy Limited : Drillsearch Raises FY2014 Production Guidance

29th January 2014

Drillsearch Energy Limited

ABN 73 006 474 844

Telephone [phone]

Facsimile [phone] [e-mail]
www.drillsearch.com.au

Level 16, 55 Clarence Street

Sydney NSW 2000

Drillsearch Raises FY2014 Production Guidance

• Guidance for FY2014 increased to 3.0 million to 3.3 million barrels, from previous guidance of 2.3 million to 2.5 million barrels

• New guidance would represent a record for Drillsearch, around triple the 1.1 million barrels produced in FY2013, the previous record

• Increase driven by higher-than-anticipated production from the

Bauer field in PEL 91 (60% DLS)

• Production of 1.76 million barrels in the first half ended 31st

December

• Increase demonstrates continued delivery against Drillsearch's strategy of growing reserves, production and cash flow

• Additional anticipated cash flow to be used to strengthen the balance sheet and to fund exploration and development

Drillsearch Energy Limited (ASX: DLS) is pleased to announce that it has increased its guidance for production in the year ending 30 June 2014 (FY2014) to 3.0 million to 3.3 million barrels of oil equivalent, from previously stated guidance of 2.3 million to 2.5 million barrels.
Production at the higher end of the stated guidance would be triple the 1.1 million barrels of oil equivalent produced in the previous financial year.
This record performance is being driven by the continuing better-than-anticipated performance of the PEL 91 permit in the Western Flank Oil Fairway of the Cooper Basin, and in particular the Bauer field, as well as by an increased share of production from the Tintaburra block in the Eastern Margin following the transaction announced in mid-2013 with Santos Limited.
The significant additional revenue being generated will be used to strengthen the company's balance sheet, with funds also reinvested in an active exploration and development program across the portfolio, with around 20 wells to be drilled in the second half of FY2014 under the current work schedule.
This program includes numerous high return prospects and discoveries that are expected to help maintain current production within our oil business, as well as support the ongoing commercialisation of existing discoveries within our wet gas business, and high impact exploration of our unconventional acreage, where an initial drilling campaign is underway.

Managing Director Brad Lingo said: "We continue to deliver strong growth in production and cash flow driven largely by our oil business where PEL 91 continues to outperform.

"The Bauer field has been a prolific performer since it started up in 2012 and with a number of new fields still to be tied-in in PEL 91 we are confident that we can sustain production from the block well into the future."

"The revenue generated by our oil business continues to strengthen our cash position, as well as to underpin our broader exploration and development programs, as we pursue our strategy of increasing reserves, production and cash flow."

For additional detail on Drillsearch's production in the three months ended 31st December, please refer to the Quarterly Report released through the ASX today.
For further information please contact:

Brad Lingo Managing Director	Dudley White GM - Corporate Communications
[phone] [e-mail]	[phone] [e-mail]

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About Drillsearch Energy Limited (ASX: DLS), which listed on ASX in 1987, explores and develops conventional and unconventional 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.