PetroSearch

Petrosearch Announces 2005 Operational and Financial Highlights

239% Increase in Proved Reserves Values
347% Increase in Proved Reserves

HOUSTON, TX – April 4, 2006 – Petrosearch Energy Corporation (OTCBB:PTSG) recently reported its financial results for the year ended December 31, 2005.

2005 Operational and Financial Milestones

The Company reported a 239% increase in year end SEC PV 10 proved reserve value to $46.5 million at year end 2005 from $13.7 million at the prior year end.
For the year ended 2005, the Company had a 347% increase in year end proved barrels of oil and oil equivalent to 2,600,000 barrels of oil equivalent (boe) from 581,000 boe at year end 2004.
For the year ended 2005, independent third party engineers estimated the Company’s probable and possible reserves associated with proved properties to be approximately 7,600,000 boe.
In 2005, the Company strengthened its management team by adding engineering, land management and geologic expertise.
In April 2005, the Company completed a $12.5 million private equity placement. The funds raised were used to support exploration and development projects.
The Company completed the registration of its common stock with the SEC on September 7, 2005 thereby becoming a fully reporting public company.
In September 2005, the Company’s $10 million credit facility was improved by extending the length of the facility and including more favorable terms to support our drilling program through 2006 and beyond.
The Company’s stock began to trade on the OTC Bulletin Board on December 1, 2005.
The Company closed year end 2005 with $4.0 million in cash, $3.5 million of short and long term debt and $14.2 million in stockholders’ equity

Richard Dole, Chairman and CEO of Petrosearch commented, “Our main focus in 2005 was to improve the quality of our portfolio of properties and projects and strengthen our management team by adding oil and gas technical expertise. We disposed of assets that did not meet our risk/reward parameters and believe we have been successful in creating an extremely high–grade portfolio of oil and gas properties and projects.”

Condensed 2005 Income Statement Results*

FYE Dec 31 ($000) 2005 2004

Oil & Gas Production Revenue $1,701 $4,718

Lease Operating & Production Tax Expense 581 774

Depletion, Depreciation & Amortization 563 2220

General & Administrative Expenses 3,268 3239

Net Operating Loss (2,711) (1,515)

Earnings Per Share ($0.12) ($0.09)

* For complete financial statements see recently filed Form 10-KSB

The Company reported a net operating loss of $2.7 million for the year ended December 31, 2005 as compared to a net loss of $1.5 million in the prior year. The additional loss was mainly related to the decline in production from the North Dakota well as well as the sale of the Blue Ridge Field.

New Projects and First Quarter 2006 Drilling Highlights

Mr. Dole further stated, “In 2005 we increased our net asset value. We are now well positioned to continue to grow our proved reserve base, production and resulting cash flows. In addition to the 7,600,000 boe of probable and possible reserves associated with our proved properties, we have committed to additional projects that are currently in progress that could significantly add to our reserve base.”

Planned drilling and completion activities for the first two quarters of 2006 include participation in 10-15 potential producing wells.

Quinduno Field Water Flood Project
Initial success in drilling of the first well in the Quinduno Field, which will be placed on pump this week producing from a section of the reservoir that contained virgin pressures which is additive to the anticipated results of the waterflood as previously disclosed.

The Company is operator of the property and intends to extract the reserves through conventional water flood technology. The first phase of the project began in March 2006 with the drilling of a new well for production to a depth of 4,495 feet as noted above. During 2006, a minimum of 4 old wells will be converted to injection wells and water injection will begin.

Pending Barnett Shale Project
Initial success on the drilling of the first well in the Barnett Shale Project and the continuation of that program with a second well now approaching total depth.

The first well was spudded on February 8, 2006 in Tarrant County, Texas; casing was cemented at 9,264 feet total depth on March 3rd, and the well is waiting completion. The second well in the project was spudded on March 15, 2006 in Ellis County, Texas. An additional 2-4 wells are planned for the second quarter of 2006. This project, and our participation therein, is subject to the successful restructuring of the agreement among the parties as further discussed in our recently filed Form 8-K.

Other Fields
The Company is also currently completing a test of the Morrow formation in Oklahoma and drilling an increased density well in North Dakota. In the second quarter of this year, pending rig availability, a recompletion of an existing well, a delineation well and a re-entry of a previously drilled well are planned for our Garwood project and 1 exploratory well each is planned for two prospects in Texas (Colorado County and Burleson County).