Drillsearch Energy Ltd., Sydney, (ASX: DLS) is pleased to announce that the development program for the Western Flank Bauer Oil Discovery in PEL 91 has commenced with the spudding of Bauer-4 development well on September, 23 2011. Drillsearch holds a 60% interest in PEL 91 while Beach Energy (ASX: BPT) as operator holds 40%.

The Bauer Field was discovered in August 2011 with the drilling of Bauer-1. The discovery well intersected a 14.6m oil column in the McKinlay/Namur of which 11.7m was Namur Sandstone pay. The Bauer Oil Discovery is estimated to have gross mean oil reserves of 3.5 mmbbls. Bauer-1 is one of the largest McKinlay/Namur oil column found to date on the Western Flank Oil Fairway.

Bauer-4 is the first of three development wells to be drilled in this program and is located approximately 300 metres south east of the Bauer-1 Oil Discovery and 2.3km north of the Chiton Oil Field (see attached map). Drilling is expected to take 8-10 days. Bauer-4 will be drilled as a conventional vertical oil well with wireline logging and possible testing planned after the well reaches total depth.

The company will provide a further update on Bauer-4 upon completion of drilling operations.