The Sydney-based company holds a 10% interest in Tintaburra in partnership with operator Santos, which has an 89% interest, and CPC Energy with the remaining 1% stake.

This year so far, 34 Tintaburra wells have been cased as future oil producers or water injectors, while six were plugged and abandoned.

Twenty additional wells earmarked for drilling at the Endeavour and Mulberry fields will include six development wells, 12 delineation wells and two near-field wildcats.

Drillsearch managing director Philip Kelso said the closure of the three-year loan facility with finance specialist Meridian International Capital was a major milestone and validated its “very strong” petroleum reserve base.

“[We] can now participate fully in the further development at Tintaburra without the need for discounted placements and be free to pursue other petroleum development opportunities,” he said.

Kelso added that the company was expecting to achieve a major boost in oil reserves by the end of this year.

“Oil production volumes are improving significantly and this will reflect in higher sales,” he said.

“We are confident that the Drillsearch group will achieve $18 million revenue during the financial year. We are aiming to reach 1000 barrels of oil equivalent per day by mid-2007.”

The facility means Drillsearch does not need to enter into any hedging or option arrangements.

In addition, the company said no new issues of securities are planned. It said future issues would be made available on a pro rata basis to Drillsearch shareholders rather than via private placements.

In related news, Drillsearch says it has identified two potential directors for election to its board. A vote will take place at the company’s annual general meeting to be held at the end of next month.