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Petrosearch Energy Provides Update on Core Projects
HOUSTON, TX – May 5, 2008, Petrosearch Energy Corporation (OTCBB: PTSG) announces
the following update on its two core projects:
Barnett Shale Project
The Company has 14 producing wells in its Barnett Shale project (“DDJET”) with one
well awaiting completion and one well being drilled. Current production is approximately 21,000 Mcfd (gross)
through the privately held pipeline. Four of the 14 producing wells were completed in the first quarter
of 2008 each with an initial peak rate of 8,800, 6,800, 5,200 and 1,900 Mcfd (gross), respectively. All
four wells completed in 2008 were in Tarrant County, Texas. DDJET continues to have one drilling rig running
in the Barnett Shale and continues to acquire strategic leasehold acreage in the area of interest. Meanwhile,
the Company continues to evaluate the strategic alternatives available as a result of a sales marketing
program by DDJET to interested potential purchasing parties (as previously announced).
North Texas Panhandle Water Flood
The Company has recently commenced the first phase of the water flood project which
entails the conversion to water injection of four existing wells. These conversions will allow for the Company
to begin enhanced oil recovery and to satisfy its water injection obligations pursuant to the agreement
signed with the international oilfield service company that is constructing the water treatment and supply
facility on the Company’s lease. That agreement requires the Company to be capable of injecting 2,000 barrels
of treated water within 30 days of the water treatment facility being completed. The facility is nearing
completion.
Richard Dole, the Company’s President and CEO stated that, “We are in discussions
with various financial and strategic partners to work with the Company in order to maximize our value. We
continue to pursue all the options that our current DDJET situation will afford us, in conjunction with
the commencement of our water flood project, and plan to implement the options that will create the most
value for our shareholders.”
Note – There can be no assurance that the DDJET partnership sale effort will
result in any agreements or transactions. The Company does not intend to disclose developments with respect
to the sale effort or its review of related strategic alternatives unless and until its Board of Directors
has made a decision regarding a specific course of action.
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