gas should be flowing

DRILLSEARCH ENERGY LIMITED 2002-05-20 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
Drillsearch Energy Limited advises that the completion operations on
the Talisman operated well (16-8-52-22W5M) at Lambert in west central
Alberta, Canada have been successful. The Cardium Formation has been
fracture stimulated and an absolute open flow (AOF) production test
resulted in commercial gas flow rates and significant volumes of
associated condensate. Operations to tie-in this well are anticipated
to commence by the end of May, 2002 and the well is expected to be on
production before the end of June, 2002. Drillsearch's Canadian
subsidiary Circumpacific Energy has earned a 9.8% interest in this
exploration well and associated infrastructure.

The successful completion of the 16-8 well has indicated 2-3
development drilling locations in the Cardium Formation on the
Lambert property. Forward operations at Lambert are anticipated to
involve completion of the Cardium gas discovered in the 5-4 well
where gas was discovered in a number of zones in late 2000.

M L Hutt
COMPANY SECRETARY