It also expects a further significant lift in revenue this month when the additional three new Mulberry wells at Tintaburra Block, south-west Queensland are put into production.

Meanwhile in Canada additional revenues will be generated by the Kakwa and Talbot Lake properties.

If Australian oil prices of around A$70/ bbl are maintained then with these production increases Drillsearch anticipates that group petroleum revenue will increase to about $8 million per annum in 2005/2006.

Of the $5.97 million earned by the Drillsearch group in the first 10 monhts of this financial year, $3.75m came from its Australian operations and $2.22m came from its Canadian subsidiary, Circumpacific Energy.

Circumpacific revenues were only $24,000 higher than in the corresponding period in previous financial year, but Drillsearch’s Australian revenues jumped by almost $1.75m, due mainly to successful work at the Tintabura Block.

“Drillsearch’s production and revenue in 2005/2006 will increase by about 60% to 475 barrels of oil equivalent per day as new wells drilled and cased as part of its successful 2004/2005 drilling campaign are placed on production,” the company said.

Since late 2004, Drillsearch has participated in 16 wells, including 10 new wells. Fifteen of these wells successfully added to reserves and future production.

Drillsearch’s 3P reserves in Australia as at 31 December, 2004 had increased by 765,000 barrels of oil equivalent from the previous period. These do not include reserve increases estimated from the 2004/2005 drilling round and the company anticipates that this drilling has added around 200,000 bbls of oil to 3P reserves.

Drillsearch said it expected further increases in onshore 3P reserves from an additional four near field exploration wells and appraisal wells in the Tintaburra Block through the second half of 2005 and early 200, as well as three or four new wells focused on the Kakwa and Talbot Lake properties, Canada.

No reserves are at this stage have been attributed to the Turtle and Barnett oil appraisal project, offshore Bonaparte Gulf, which could have 90 million barrels of oil in place.

Partners in the Tintaburra Block are Santos (operator) 90% and Drillsearch 10%.

At Turtle and Barnett, Drillsearch will be operator. It holds 94.5% in WA13R (Turtle) and 95% in NT/RL3 (Barnett).