Drillsearch Energy Limited (ASX: DLS) is pleased to announce that Beach Energy (ASX: BPT) as the Operator of PEL 91 has advised that the Snellings-1 exploration well is a new oil field discovery in the Western Flank Oil Fairway. Snellings-1 is the second well and second discovery in the current five well exploration drilling campaign in PEL 91. The PEL 91 Joint Venture is Drillsearch 60% and Beach Energy Ltd 40% as operator. Evaluation is ongoing and a volumetric estimate will be provided by the operator in due course. On a 2-hour drill stem test (DST) Snellings-1 recovered 31.5 bbls of oil. There is remaining uncertainty as to the extent of oil column and the joint venture has elected to take side wall cores to address this. In due course Snellings-1 is expected to be cased and suspended for future production. Snellings-1 is expected to be on-line in fourth quarter 2011. At the completion of operations at the Snellings-1 well, the Ensign rig #18 will be moved to drill the Arno-1 exploration well, which is located about 9km to the north of Snellings-1 and 7.5km north of the Chiton Oil Field.
DLS Price at posting:
42.5¢ Sentiment: LT Buy Disclosure: Held
