Petrosearch Announces Acquisition of the Kallina Lease and 46#1 Well in the Southwest Garwood Project and Related Financing Agreement

HOUSTON, TX – November 2, 2006 - Petrosearch Energy Corporation (OTCBB: PTSG) announced today that it has exercised its option to acquire a 100% working interest (68% after payout working interest) from Rock Energy Partners Operating, L.P. in the Anthony Kallina et al lease covering 438.16 acres and the existing Kallina 46#1 well in the Southwest Garwood Field of Colorado County, Texas. In connection with Petrosearch’s exercise of the option and acquisition of these interests into its newly formed subsidiary, Garwood Petrosearch, Inc. ("Garwood"), Garwood has executed an agreement ("Agreement") with Laurus Master Fund, Ltd. ("Laurus") for Laurus to provide financing for the acquisition, payment of the previous working interest owner’s vendor obligations and completion costs for the Kallina 46#1 well. Garwood was formed to hold the Section 46 lease and the Kallina 46#1 well acquired from Rock Energy Partners.

The Laurus agreement provides for execution by Garwood of a Secured Term Note ("Note") secured by the Kallina Lease interests and by the Petrosearch ownership interests in Garwood. As a part of the financing arrangement, Garwood likewise issued Laurus a warrant (simultaneously assigned by Laurus to Kallina Corporation, a wholly owned subsidiary of Laurus) to acquire, upon payout of the Note indebtedness, 45% of the outstanding common stock of Petrosearch’s Garwood subsidiary such that upon exercise of the warrant, Garwood will be owned 55% by Petrosearch and 45% by Kallina Corporation. Advances under the Note shall bear interest at Wall Street Journal Prime plus 2%. Payments under the Note will be paid from 90% of net production revenues, and after 120 days from closing the Note will require a monthly minimum payment of $100,000.

As previously announced, the Kallina 46#1 was drilled to approximately 16,230 feet and encountered in excess of 250 feet of potentially productive net pay in the well. It is estimated that there are up to three additional drilling locations on the Kallina Lease. The Note also allows, but does not obligate, Laurus to finance additional development drilling on the property. Completion operations are slated to begin immediately.

Commenting on the transaction and financing, Richard Dole, Chief Executive Officer of Petrosearch stated, "We are extremely pleased to have a new financial relationship and have an agreement that benefits all parties concerned. This provides us an opportunity to increase our ownership and operations in the Southwest Garwood project. " Mr. Dole added, "In addition to the Southwest Garwood Project we are continuing to advance our other two large resource projects, the Barnett Shale and the Quinduno water flood in the Texas panhandle of the Anadarko Basin."