Drillsearch Energy Ltd (ASX:DLS) says exploration of a well in south west Queensland has identified it as a possible future oil producer.
Drillsearch has announced that the Watson West-1 exploration well has oil in place of between 300,000 to 400,000 barrels.
The well is located in the south west Queensland Cooper Basin, as part of the Naccowlah block joint venture of Santos Ltd (ASX:STO), Beach Energy (ASX:BPT), Drillsearch, Inland Oil, and Energy World Corporation (ASX:EWC).
The project is one of Drillsearch's mature oil production assets.
Watson West-1 is the first of five exploration and development wells planned in the Naccowlah block during 2010.
Drillsearch Energy reported a loss of $9.73 million for the year ending 30 June 2009
DLS Price at posting:
66.0¢ Sentiment: None Disclosure: Held
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