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Joann #1 Well On Production: Status Report

Burleson Energy (ASX: BUR) is pleased to advise that following the successful
connection of the Joann #1 well to the sales network on 4 April 2011, the well has
been producing hydrocarbons at an average of 1.578 million cubic feet (mmcf) of gas
per day and 79 barrels of condensate per day through a 13/64 inch choke.
The well has demonstrated strong and stable well head pressures during this period.
Operator AKG Energy advises that to properly monitor gas:condensate and
hydrocarbon:water ratios, the choke will be opened cautiously until a production
level of ~2 mmcf of gas per day is achieved.
The initial production rates illustrate a higher condensate ratio than experienced
during flow testing last year and provide a healthy boost to the indicative economics
of the Joann #1 well. Based on these initial rates and current commodity prices (gas
~ $4.00/mcf and oil ~ $110/bbl) Burleson?s net share of revenue from the Joann #1
well alone is approximately $145,000 per month.
Burleson has a 39.4% Working Interest and 30.8% Net Revenue Interest in the Joann
#1 well
Mike Sandy
Managing Director
Competent Person Statement:
The information in this report that relates to oil and gas exploration results and hydrocarbon resources is based on information
verified by Mr Michael Sandy (BSc(Hons) Melbourne University), who is a petroleum geologist. Mr Sandy is a Director of, and
consultant to, the Company. Mr Sandy has more than thirty years experience in this discipline and he consents to the inclusion in
this report of the matters based on his information in the form and context in which it appears.