Drillsearch has a 10% stake in the Mulberry development in the Tintaburra Block of the Cooper/Eromanga Basin in southwestern Queensland. Joint venture partners are Santos (89%) and CPC Energy (1%).

Mulberry-5 was the last well to be appraised and now joins new wells Mulberry-2 and 3.

Drillsearch managing director Philip Kelso told the Australian Stock Exchange in May that Mulberry-2 and 3 had been tied to the joint venture’s Gimboola production facility and existing well Mulberry-1.

Mulberry-1 is producing 48.5 degrees API oil at a rate of about 430 barrels of oil per day.

Drillsearch’s share of that is 43 bopd.

The new Mulberry wells are undergoing production testing but are also producing 48.5 degrees API oil.

The company said it expected to get an extra $1.5 million in oil sales revenue from the new wells, providing the oil price remains at about $US50 a barrel. That will take Drillsearch’s sales revenue to about $8.5 million a year.

With the new Mulberry wells online thoughts are turning to additional exploration wells in the area and plans for a 15 kilometre pipeline to join the Mulberry field to the joint venture’s Tarbat production field.

The joint venture plans to drill another five wells in the Endeavour/Mulberry/Talgeberry area of the Tintaburra Block.

The Queensland news follows Drillsearch’s announcement last week of success on its Canadian ground, where it has cased and suspended its Para Kakwa well as a potential oil producer. Drillsearch said the oil zone encountered in the Para Kakwa well was a continuation of successful oil wells it had rilled in 2005.

Planning is underway for another two wells at Colgate, Alberta, Canada.

Drillsearch’s share of the Canadian project is held through its 44% subsidiary Circumpacific Energy Corporation.