Petrosearch Energy Letter to Its Shareholders

HOUSTON, TX – April 2, 2007, Petrosearch Energy Corporation (OTCBB: PTSG)

To Our Shareholders:

We filed our annual Form 10-KSB with the SEC today. While we encourage you to read the entire filed document, we want to point out some key information that is important to our “go forward” plans for Petrosearch.

First, we finished 2006 with a strong cash position which was subsequently supplemented with the closing of our $10 million Convertible Note offering in February, 2007. This offering gives us a healthy balance sheet that will allow us to meet our projected capital needs through 2007 and into 2008. We believe that our ability to close this financing and the previous financings in 2006 is a testament to our high quality resource projects and is an indicator of our ability to continue to finance Petrosearch projects.

Regarding our three key resource projects, we are pleased that progress was made on all three during the year. The first two wells in the Barnett Shale project are now producing into a sales line and results have met management’s expectations. Completion operations are currently underway on 2 more wells, we are scheduling the remaining drilled wells for completion as equipment becomes available and our eighth well is currently is being drilled. We continue to add to our lease position inside the 2 million acre AMI and plan to increase our drilling activity through the addition of rigs as the year progresses.

In our SW Garwood project, we continue to work on the completion of the Kallina 46 #1 well. We experienced disappointing results with our targets in the Lower Wilcox, and have now moved up the hole to the Middle Wilcox sands. Excluding those deeper Wilcox sands, which we now deem uneconomic, we still have some 12 intervals totaling over 150 feet of potential net pay. The completion of the next interval up-hole has begun and pre-stimulation pressure measurements are encouraging. The fracture stimulation will begin during April, 2007.

With regard to our North Texas Panhandle water flood project, we are in ongoing discussions with prospective joint venture and financial partners for the initiation of the water flood project on that property and hope to have those discussions finalized upon final approval from the Texas Railroad Commission. At the end of 2006 our independent reserve engineers reduced their estimates of proved reserves for this property by approximately 25%. We believe that successful implementation of the water flood will restore those proved reserve quantities and also bring into the proved category substantial additional oil equivalent barrels from the current probable and possible reserve categories.

Summary of Certain Historical Financial Information**

* excludes any proved reserves associated with Barnett Shale wells drilled to date
** For more detailed information see our 2006 Form 10-KSB filed today

For Petrosearch, 2007 and beyond holds significant promise of production and reserve gains from the Barnett, SW Garwood and the North Texas Panhandle water flood projects. As we execute on our plan to grow our production and reserves from our three core areas, we are continuing to evaluate other opportunities that are consistent and synergistic to our program of growing value through the exploitation of known resource projects.

We thank you for your continued interest and support of Petrosearch.

Sincerely yours,

Richard Dole
Chief Executive Officer