Petrosearch Announces Agreement Defining Terms of Participation in the Barnett Shale Project

HOUSTON, TX – May 12, 2006 – Petrosearch Energy Corporation (OTCBB:PTSG) announced that it has entered into a Heads of Agreement ("ExxonMobil/Harding Agreement") with Exxon Mobil Corporation, Harding Company, Eagle Oil & Gas Co., PS Gas, LLC, and PS Gas Partners, L.P. dated May 9, 2006. The ExxonMobil/Harding Agreement describes the economic terms of the project, provides the alternative structure under which the new integrated venture in the Barnett Shale Project will operate, and provides the structure within which the parties will negotiate definitive agreements. Formation of the new integrated venture is conditioned upon execution of definitive agreements. The ExxonMobil/Harding Agreement also extends for 60 days Exxon Mobil Corporation's preferential purchase rights and preserves all Petrosearch's legal rights under the Amended and Restated Program Agreement.

Petrosearch also signed a letter agreement ("Letter Agreement") on May 7, 2006 with Harding Company that defines the terms of participation and interest between Harding Company and Petrosearch in the formation of a new venture entity. The terms of the Letter Agreement are subject to the completion of the definitive agreements as outlined in the ExxonMobil/Harding Agreement.