5 August 2014

The Board of Directors Ambassador Oil and Gas Limited Suite 11, Level 1

23 Oxford Street

Oakleigh VIC 3166

AND TO: BY ELECTRONIC LODGEMENT

Company Announcements

ASX Limited

Exchange Centre

20 Bridge Street

Sydney NSW 2000

Drillsearch Energy Limited (ASX: DLS) - Form 604 Notice of change of interests of substantial holder

On behalf of Drillsearch Energy Limited ABN 73 006 474 844 (Drillsearch), I enclose a copy of Form 604 Notice of change of interests of substantial holder in relation to Ambassador Oil and Gas Limited (Ambassador).

Yours faithfully

Jean Moore

Company Secretary

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.


Form 604

Corporations Act 2001

Section 671B

Notice of change of interests of substantial holder

To Company Name/Scheme Ambassador Oil and Gas Ltd (Ambassador)

ACN/ARSN 152 595 429

This notice is given by Drillsearch Energy Limited ACN 006 474 844 (Drillsearch) on behalf of itself, Drillsearch (Central) Pty Limited ACN 160 522 056 and each of Drillsearch's controlled bodies corporate named in the list of one page annexed to this notice and marked "A" (Drillsearch Subsidiaries).

1. Details of substantial holder (1)

Name Drillsearch Energy Limited (Drillsearch) ACN/ARSN (if applicable) 006 474 844
There was a change in the interests of the
substantial holder on 04/08/2014
The previous notice was given to the company on 01/08/2014
The previous notice was dated 01/08/2014

2. Previous and present voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in when last required, and when now required, to give a substantial holding notice to the company or scheme, are as follows:

Class of securities (4)

Previous notice

Present notice

Class of securities (4)

Person's votes

Voting power (5)

Person's votes

Voting power (5)

Ordinary shares

43,223,756

30.43% (based on

142,058,491 ordinary shares on issue)

41,799,758

29.42% (based on

142,058,491 ordinary shares on issue)

3. Changes in relevant interests

Particulars of each change in, or change in the nature of, a relevant interest of the substantial holder or an associate in voting securities of the company or scheme, since the substantial holder was last required to give a substantial holding notice to the company or scheme are as follows:

604 page 3/3

04/08/2014

Drillsearch (Central) Pty Limited

The return by Drillsearch (Central) Pty Limited of a total of 2,000,000 fully paid ordinary shares in Ambassador to a Selling

Shareholder (as defined in the Panel Orders) pursuant to the Panel Orders.

n/a

2,000,000 ordinary shares

2,000,000

04/08/2014

Drillsearch Energy

Limited

Taken under section 608(3)(b)

of the Corporations Act to have a relevant interest by reason of having control of Drillsearch (Central) Pty Limited.

n/a

2,000,000 ordinary shares

2,000,000

04/08/2014

Each of the Drillsearch Subsidiaries

Taken under section 608(3) of the Corporations Act to have

a relevant interest by reason of having voting power (through the relevant interests of its associate, Drillsearch) above 20% in Drillsearch (Central) Pty Limited.

n/a

2,000,000 ordinary shares

2,000,000

4. Present relevant interests

Particulars of each relevant interest of the substantial holder in voting securities after the change are as follows:

Holder of Registered Person entitled Nature of Class and

relevant holder of to be registered relevant number of Person's votes

interest securities as holder (8) interest (6) securities

Registered holder of

Ambassador shares or

Drillsearch (Central) taken to have a relevant

Pty Limited and interest under sections

608(1)(b) and 608(1)(c) of

Drillsearch various Ambassador the Corporations Act by

(Central) Pty shareholders listed in Drillsearch (Central) Pty reason of completion 26,259,238 ordinary 26,259,238

Limited Annexure B to the Limited occurring under the Share shares

Form 603 lodged by Purchase Deeds, copies of

Drillsearch on which were attached as

28/05/14. Annexure C to the Form

603 lodged by Drillsearch on 28/05/14.

Drillsearch (Central) Taken to have a relevant Pty Limited and interest under section various Ambassador 608(3)(b) of the

Drillsearch shareholders listed in Drillsearch (Central) Pty Corporations Act by reason 26,259,238 ordinary 26,259,238

Annexure B to the Limited of having control of shares

Form 603 lodged by Drillsearch (Central) Pty

Drillsearch on Limited.

28/05/14.

Drillsearch (Central) Taken under section 608(3) Pty Limited and of the Corporations Act to various Ambassador have a relevant interest by

Each of the shareholders listed in Drillsearch (Central) Pty reason of having voting 26,259,238 ordinary

Drillsearch Annexure B to the Limited power (through the relevant shares 26,259,238

Subsidiaries Form 603 lodged by interests of its associate,

Drillsearch on Drillsearch) above 20% in

28/05/14. Drillsearch (Central) Pty

Limited.

Taken under section

Drillsearch 608(1)(a) of the

(Central) Pty Drillsearch (Central) Drillsearch (Central) Pty Corporations Act to have a 12,591,714 ordinary 12,591,714

Limited Pty Limited Limited relevant interest by reason shares

of being the holder of the

ordinary shares.

Taken to have a relevant interest under section

608(3)(b) of the

Drillsearch Drillsearch (Central) Drillsearch (Central) Pty Corporations Act by reason 12,591,714 ordinary 12,591,714

Pty Limited Limited of having control of shares

Drillsearch (Central) Pty

Limited.

Each of the
Drillsearch (Central)
Drillsearch (Central) Pty
Taken under section 608(3) of the Corporations Act to have a relevant interest by reason of having voting
12,591,714 ordinary

604 page 4/3

Drillsearch
Subsidiaries
Drillsearch
Pty Limited
Various offerees who
Limited
power (through the relevant
interests of its associate, Drillsearch) above 20% in Drillsearch (Central) Pty Limited.
Taken under section
608(1)(c) of the
shares 12,591,714
(Central) Pty
Limited
have accepted the
Offer referred to in section 3 of this notice.
Drillsearch (Central) Pty
Limited
Corporations Act to have a
relevant interest in the ordinary shares pursuant to acceptances of the Offer.
2,372,806 ordinary
shares
2,372,806
Drillsearch
Various offerees who have accepted the Offer referred to in section 3 of this notice.
Drillsearch (Central) Pty
Limited
Taken to have a relevant interest under section
608(3)(b) of the Corporations Act by reason of having control of Drillsearch (Central) Pty Limited.
2,372,806 ordinary shares
2,372,806

Each of the Drillsearch Subsidiaries
Various offerees who have accepted the Offer referred to in section 3 of this notice.
Drillsearch (Central) Pty
Limited
Taken under section 608(3) of the Corporations Act to have a relevant interest by reason of having voting power (through the relevant interests of its associate, Drillsearch) above 20% in Drillsearch (Central) Pty Limited.
2,372,806 ordinary shares
2,372,806

5. Changes in association

The persons who have become associates (2) of, ceased to be associates of, or have changed the nature of their association (9) with, the substantial holder in relation to voting interests in the company or scheme are as follows:

Name and ACN/ARSN (if applicable)

Nature of association

N/A

N/A

6. Addresses

The addresses of persons named in this form are as follows:

Name

Address

Drillsearch

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (Central) Pty Limited

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch Subsidiaries

As set out in the list of one page annexed to this notice and marked "A".

Signature

print name Jean Moore capacity Company secretary

sign here date 5 August 2014

DIRECTIONS

(1) If there are a number of substantial holders with similar or related relevant interests (eg. a corporation and its related corporations, or the manager and trustee of an equity trust), the names could be included in an annexure to the form. If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is clearly set out in paragraph 6 of the form.
(2) See the definition of "associate" in section 9 of the Corporations Act 2001.
(3) See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001. (4) The voting shares of a company constitute one class unless divided into separate classes.
(5) The person's votes divided by the total votes in the body corporate or scheme multiplied by 100.

604 page 5/3

(6) Include details of:
(a) any relevant agreement or other circumstances because of which the change in relevant interest occurred. If subsection 671B(4) applies, a copy of any document setting out the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and
(b) any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to which the relevant interest relates (indicating clearly the particular securities to which the qualification applies).
See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.
(7) Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest was acquired has, or may, become entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be included on any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant interest was acquired.
(8) If the substantial holder is unable to determine the identity of the person (eg. if the relevant interest arises because of an option) write "unknown'".
(9) Give details, if appropriate, of the present association and any change in that association since the last substantial holding notice.

604 ANNEXURE A PAGE1/1

ANNEXURE A

THIS IS ANNEXURE A OF ONE PAGE REFERRED TO IN THE FORM 604 NOTICE OF CHANGE OF INTERESTS OF SUBSTANTIAL HOLDER SIGNED BY ME

Jean Moore

Company Secretary

5 August 2014

Name

ABN / ACN / Company Number

Address

Acer Energy Pty Limited

ABN 11 101 313 777

Level 16, 55 Clarence Street, Sydney NSW 2000

Circumpacific Energy (Australia) Pty Limited

ABN 77 142 287 125

Level 16, 55 Clarence Street, Sydney NSW 2000

Clean Gas Pty Limited

ACN 128 471 358

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (299) Pty Limited

ACN 165 620 888

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (513) Pty Limited

ACN 159 824 218

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (539) Pty Limited

ABN 27 152 919 803

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (549) Pty Limited

ABN 89 152 920 422

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (657) Pty Limited

ABN 44 162 600 599

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (783) Pty Limited

ABN 92 163 750 141

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (920) Pty Limited

ABN 50 152 919 965

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (924) Pty Limited

ABN 83 152 922 079

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch (Field Ops) Pty

Limited

ABN 46 155 164 819

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch Energy (Canada) Incorporated

C0834875

2800 Park Place, 666 Burrard Street, Vancouver BC V6C 2Z7 Canada

Drillsearch Energy (PNG) Limited

Company Number C1-38391

C/- Gadens Lawyers, Level 12 Pacific Place, Cnr Musgrave Street and

Champion Parade, Port Moresby, Papua New Guinea

Drillsearch (Finance) Pty Limited

ABN 75 163 170 536

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch Gas Pty Limited

ABN 17 059 583 032

Level 16, 55 Clarence Street, Sydney NSW 2000

Drillsearch SWQ Gas Pty

Limited

ABN 74 152 922 417

Level 16, 55 Clarence Street, Sydney NSW 2000

Great Artesian Oil and Gas Pty

Limited

ABN 44 078 607 682

Level 16, 55 Clarence Street, Sydney NSW 2000

Kun Yick International Limited

Company Number 530336

5/F., Far East Consortiu, Building, 121 Des Voeux Road Central, Hong

Kong

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