Petrosearch Energy Announces $10 million Financing

HOUSTON, TX – February 5, 2007 - announced today that on February 1, 2007 it executed a Note and Warrant Purchase Agreement with an Institutional Investor for the sale of a $10,000,000, 8% Senior Secured Convertible Promissory Note and a four-year warrant to purchase 5,000,000 shares of common stock at an exercise price of $1.40 per share for total proceeds of $10,000,000. At the option of the investor, the three-year Convertible Note will be convertible into shares of common stock at a price of $1.00 per share after the earlier of one year from the closing of the transaction or three months after a registration statement relating to this transaction becomes effective. The Warrant is exercisable one year after the closing of the transaction.

The Convertible Note will be collateralized by a security interest in twenty five percent of the membership interest of the Company’s wholly owned subsidiary, Exploration Holding Co., LLC, which owns one-hundred percent of Barnett Petrosearch, LLC. Barnett Petrosearch is the subsidiary which owns a 5.54% interest in DDJET, Limited, LLP, and participates in the Barnett Shale Project. The Note and Warrant Purchase Agreement requires the funding of the transaction to be on or before February 9, 2007.

Commenting on the financing, Richard Dole, Petrosearch’s Chief Executive Officer stated, “We are pleased to have entered into an agreement for financing that will provide the Company with the anticipated capital needed for our Barnett Shale Project through 2007 and into 2008. Upon completion of this transaction, coupled with the SW Garwood financing completed in November 2006, we will have significant momentum in two of our major projects.”