6 March 2014

Oil Business

February Drilling Report

Drillsearch Energy Limited

ABN 73 006 474 844

Telephone +61 2 9249 9600

Facsimile +61 2 9249 9630 admin@drillsearch.com.au

www.drillsearch.com.au Level 16, 55 Clarence Street Sydney NSW 2000

Western Flank Oil Fairway PEL 91

In PEL 91 (Drillsearch 60%, Beach operator and
40%), Bauer-12 and Bauer-13 were drilled to further appraise and develop the Bauer oil field. Bauer-12 intersected a nine metre net oil column, with five
metres of net oil pay within the highly productive
Namur reservoir and the remaining four metres in the overlaying McKinlay Member. These results have extended the areal extent of the Bauer field.
Bauer-13 was designed as a vertical development well, targeting the McKinlay/Namur reservoirs on the south east end of the field. Bauer-13 intersected a
13 metre oil column, with 8 metres of net oil pay within the highly productive Namur reservoir. Both
Bauer-12 and 13 were cased and suspended as
future oil producers.

Eastern Margin Oil Fairway ATP 299P

The five-well Ipundu oil appraisal campaign was completed successfully with all five wells cased and suspended as future Wyandra and Murta Formation oil producers. The data collected during drilling will help optimise the Field Development Plan.
Drilling has begun on a three-well development campaign across the Tintaburra and Toobunyah oil fields with the spudding of Tintaburra-8 on 10 February 2014. The aim of the campaign is to develop the 2P Hutton Sandstone reserves and to progress towards a suitable in-fill field development plan.

Unconventional Business

Central Unconventional Fairway ATP 940P

The upgrade of the Weatherford 826 rig has now been completed, and on Monday 24 February 2014, Drillsearch began deepening the top hole of Charal-1 through the reservoir formations. This will be followed by similar deepening of Anakin-1 and Padme-1 with hydraulic stimulation and production testing to commence around mid-2014 targeting the REM shale sequence and Patchawarra tight gas sandstones.

Monthly Drilling Summary

Oil Wells

Participants

Progress & Summary

Primary Target

Ipundu - 20

DLS 40% STO* 60%

Re-entered Monday, 3 February 2014

Rig Releas e: Friday, 7 February 2014

Depth: 1, 278 m (TD) Operation: C & S

Progres s : 1, 278 m (TD)

Wyandra Form ation

PL 52

Oil Bus ines s Eas tern Margin C/E Bas in, QLD

DLS 40% STO* 60%

Re-entered Monday, 3 February 2014

Rig Releas e: Friday, 7 February 2014

Depth: 1, 278 m (TD) Operation: C & S

Progres s : 1, 278 m (TD)

Wyandra Form ation

Bauer - 12

DLS 60% BPT* 40%

Spud Date: Friday, 7 February 2014

Rig Releas e: Saturday, 15 February 2014

Depth: 1, 734 m (TD)

Operation: C & S as future oil production well

Progres s : 1,734 m (TD)

Nam ur Sands tone

PEL 91

Oil Bus ines s

Wes tern Flank Oil

C/E Bas in, SA

DLS 60% BPT* 40%

Spud Date: Friday, 7 February 2014

Rig Releas e: Saturday, 15 February 2014

Depth: 1, 734 m (TD)

Operation: C & S as future oil production well

Progres s : 1,734 m (TD)

Nam ur Sands tone

Tintaburra - 8

DLS 40% STO* 60%

Spud Date: Monday, 10 February 2014

Rig Releas e: Wednes day, 19 February 2014

Depth: 1, 200 m (TD) Operation: C & S

Progres s : 1, 200 m (TD)

Hutton Form ation

PL 29

Oil Bus ines s Eas tern Margin C/E Bas in, QLD

DLS 40% STO* 60%

Spud Date: Monday, 10 February 2014

Rig Releas e: Wednes day, 19 February 2014

Depth: 1, 200 m (TD) Operation: C & S

Progres s : 1, 200 m (TD)

Hutton Form ation

Bauer - 13

DLS 60% BPT* 40%

Spud Date: Wednes day, 19 February 2014

Rig Releas e: Sunday, 2 March 2014

Depth: 1, 723 m Operation: C & S Progres s : 1, 723 m

Nam ur Sands tone

PEL 91

Oil Bus ines s

Wes tern Flank Oil

C/E Bas in, SA

DLS 60% BPT* 40%

Spud Date: Wednes day, 19 February 2014

Rig Releas e: Sunday, 2 March 2014

Depth: 1, 723 m Operation: C & S Progres s : 1, 723 m

Nam ur Sands tone

Toobunyah 10

DLS 40% STO* 60%

Spud Date: Sunday, 23 February 2014

Rig Releas e: Saturday, 8 March 2014 (Propos ed) Depth: 1, 173 m (Propos ed TD)

Operation: Weather Delayed

Progres s : 993 m

Hutton Form ation

PL 29

Oil Bus ines s Eas tern Margin C/E Bas in, QLD

DLS 40% STO* 60%

Spud Date: Sunday, 23 February 2014

Rig Releas e: Saturday, 8 March 2014 (Propos ed) Depth: 1, 173 m (Propos ed TD)

Operation: Weather Delayed

Progres s : 993 m

Hutton Form ation

Unconventional Wells

Participants

Progress & Summary

Primary Target

Charal - 1

DLS* 40% QGC 60%

Re-entered: Monday, 24 February 2014

Rig Releas e: Tues day, 22 April 2014 (Propos ed) Depth: 3, 891 m (Propos ed TD)

Operation: Drill to Core Point #1

Progres s : 2, 884 m

Ros eneath / Murteree Shale

ATP 940P

Unconventional Bus ines s Central Unconventional C/E Bas in, QLD

DLS* 40% QGC 60%

Re-entered: Monday, 24 February 2014

Rig Releas e: Tues day, 22 April 2014 (Propos ed) Depth: 3, 891 m (Propos ed TD)

Operation: Drill to Core Point #1

Progres s : 2, 884 m

Ros eneath / Murteree Shale

For further information please contact:

Brad Lingo

Managing Director

Dudley White

GM - Corporate Communications

+61 2 9249 9600

admin@drillsearch.com.au

+61 2 9249 9669

dudley.white@drillsearch.com.au

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.
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