Drillsearch Energy Limited (ASX: DLS) advise that it has signed a long-term contract with Weatherford International Ltd for the Weatherford Rig 826 to support Drillsearch's upcoming Cooper Basin conventional and unconventional exploration and development drilling programs.

The initial term of the drilling rig contract is 18 months with the option to extend the contract for up to a further 24 months. Drillsearch will also be contracting Weatherford International for a range of additional services and equipment necessary to deliver highly-productive, cost-competitive multi-well drilling programs.

Drillsearch Managing Director, Brad Lingo said, "Securing a long-term contract with Weatherford for Rig 826 is a great step forward for Drillsearch.

"This contract gives us the certainty, as well as flexibility, to be able to reliably plan and undertake our exploration and development drilling programs.

"Further, our agreement with Weatherford also realises cost-efficiencies while delivering quality services provided by a leader in global oil field drilling technology." About Weatherford Rig 826 The Weatherford 826 drilling rig is one of the most technologically advanced land-based drilling rigs currently operating in Australia.

Constructed in Houston, Texas by National Oilwell Varco in 2008 and brought to Australia by Weatherford as a new-build rig, it is a NOV Ideal 1,500 horsepower top-drive drilling rig. The rig is fully capable of meeting all of Drillsearch's conventional and unconventional exploration and development well drilling requirements.

The rig was specifically selected for its capacity to drill long-reach horizontal, and high-angle deviated wells. Capable of drilling to target the unconventional REM shale and tight gas resource targets in ATP 940P, the rig will also be utilised to target the Wet Gas and Unconventional mixed-lithology play fairways in the Western and Southern Cooper Basin.

The rig has recently completed drilling deep gas exploration wells for QGC in the Bowen Basin in Central Queensland.

"Rig 826 is one of the most modern rigs currently operating onshore in Australia," Mr Lingo said.

"With a highly experienced operating crew and strong focus on safety, Rig 826 is part of Weatherford's global fleet of drilling top-drive NOV Ideal rigs that have become a standard for unconventional shale gas drilling in North America.

"Gaining access to this technology will enhance our exploration programs across the Cooper Basin."

First Wells to Utilise Rig 826 in December 2012

Drillsearch is scheduled to take possession of Weatherford Rig 826 on 1 December 2012. The rig will initially drill three conventional vertical exploration wells in the SWQ Inland-Cook Oil Fairway permit areas covered by the recently completed Kaden 3D seismic.

Following drilling in the Inland-Cook oil fairway, Rig 826 will be moved to drill planned exploration, appraisal and development wells in the Western Cooper Wet Gas and Unconventional Project areas.