shell 500-800bcf discovery ...

For those interested ...

Farm-in JV with Shell would certainly change the dynamics a little!

Warm regards!


: )




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14th December, 2004
The Manager
Company Announcements Office
Australian Stock Exchange Limited FOR PUBLIC RELEASE
Level 6
20 Bridge Street
SYDNEY NSW 2000
Dear Sir,
Re: Drillsearch Group - Ricinus Gas Discovery, Canada
Drillsearch Energy Limited (“Drillsearch”) reports that its Canadian subsidiary,
Circumpacific Energy Corporation (“Circumpacific”), is conducting a technical review of
its Ricinus property following the announcement by Shell Canada and Mancal Energy on
8th December, 2004, of a major natural gas discovery at Ricinus in Central Alberta,
Canada. The discovery is located 30 kms. south/west of the town of Rocky Mountain
House. The leases were acquired by Circumpacific as part of its strategy to target deep
gas in the Leduc and related zones.
The discovery was reported in Canada as one of the most significant natural gas
discoveries in the Western Canada basin in 20 years.
The exploration well, designated, Shell Tay River Ricinus W-2-6-37-10-W5, tested 30
million cubic feet per day (“mmcfd”) of raw gas from a previously untested structure in
the Leduc zone following re-interpretation of seismic data using new technology.
Shell has estimated that the new pool could contain in the range of 500 to 800 BCF of
original raw gas in place and is planning delineation drilling.
Circumpacific holds 100% of a 1 sq. mile (section) lease 3 kms. north of the discovery
well and a 1.25% gross royalty interest in a further 5 sq. miles of leases in joint venture
with Shell Canada, one of which is 1.6 kms. to the north/east of the discovery well.
Circumpacific is re-evaluating its options for its Ricinus land interests and is commencing
re-interpretation of its existing 3D seismic database, which was acquired in joint venture
with Shell Canada in 2001.
Yours faithfully,
DRILLSEARCH ENERGY LIMITED
PHILIP F. KELSO
MANAGING DIRECTOR