Petrosearch Energy Corporation Announces Status of Drilling Activities

    HOUSTON, Feb. 3 /PRNewswire-FirstCall/ -- Petrosearch Energy Corporation
("Petrosearch" or "the Company") (OTCPK: PTSG) today provided an activity
update.
    As previously announced, Petrosearch Corporation, a Texas corporation,
completed a merger with Petrosearch Energy Corporation effective December 30,
2004.  The purpose of the merger was to redomicile the Company in the State of
Nevada. The Company started trading under the symbol PTSG on December 31,
2004.
    Petrosearch is in the process of completing two wells and has staked, or
built, multiple locations as further described herein. At year end 2004, the
Company was producing approximately an average of 200 bopd equivalent (net to
the Company) from 14 producing wells. Of these wells, one is a Lodgepole Reef
discovery in North Dakota and the remaining 13 wells are in the Blue Ridge
Dome Field in South Texas. Currently, the Company's focus is on the further
development of the Blue Ridge Dome Field, on gas wells in Jefferson County,
Mississippi and Colorado County, Texas, a natural gas exploration program in
the Anadarko Basin in Oklahoma, and increasing daily production in its North
Dakota well. There are several additional projects under review that could be
added to the 2005 drilling budget subject to funding and technical review.

    Blue Ridge Dome Field, Texas -- Fort Bend County, Texas
    The Company began development of the Blue Ridge Dome Field in August 2003
as its founding project. As of December 2004, the Company has 13 producing
wells in the field, of which eight were wells drilled by Petrosearch and five
are recompletions or workovers.  In December 2004, the average gross
production rate from these wells was approximately 200 bopd equivalent
(approximately 100 bopd equivalent net to the Company).  Petrosearch is the
operator and has a 70% working interest in the Blue Ridge Field new drill
prospects, with a net revenue interest to Petrosearch of 52.5%. The Company
has a working interest ranging from 35% to 70% in its work-over opportunities
in this field.
    To support its program of development and redevelopment in the field, the
Company has added 332 gross acres of leases over the past year. This brings
the total leasehold position in the field to 381 gross acres, or more than 25%
of the total field.
    Petrosearch is to initiating its 2005 drilling program in this field
during February 2005 as part of a planned multi-year project. The program
consists of approximately 20 new wells plus 10 work-overs and re-completions
as a part of ongoing operations. The Company's oil purchase contract is
currently for NYMEX plus $1.75 per barrel.
    The first well in 2005 was spudded on February 1, 2005 as part of a back-
to-back drilling program of at least 9 field tests.  The Company has obtained
a commitment for the drilling rig to remain in the field for up to one year of
continuous drilling operations, subject to success in the initial drilling
program. The Company has built five drilling locations and staked an
additional four drilling locations.

    Williston Basin, North Dakota
    In November 2003, the Company made a major Lodgepole Reef oil discovery in
Stark County, North Dakota. Since that discovery, the well has produced
approximately 190,000 barrels of oil and 90,000 Mcf of gas. The Company has
63.75% working interest and is the operator. Estimated Proved Reserves for
this project as of October 1, 2004 are 621,790 barrels of oil gross (290,997
barrels of oil net), with a Proved Producing and Undeveloped Reserves PV-10 of
$7,906,000.
    In December 2004, the average daily production for this well was
approximately 200 bopd equivalent (gross) and approximately 100 bopd
equivalent (net to the Company).  This is a decrease from the initial
production rates which were in excess of 1,500 barrels (gross) per day. The
Company is in negotiations with a third party to fund an injection well to
attempt to provide better pressure support in the formation and allow for an
increase in production rates.

    Jefferson County, Mississippi
    Petrosearch drilled the Phillips-Burkley #1, its initial exploratory well
on this prospect. Together with its drilling partner, Petrosearch has a total
leasehold position of 7,480 acres, which we believe will allow it to exploit
the entire structure. All of the drilling and completion costs are being paid
by our drilling partner.  In this well, we will receive a 12.5% reversionary
working interest after payout to the drilling partner, which will increase to
a 25% working interest after our drilling partner has been paid out 300%. The
company will earn identical reversionary working interest in all future
successful wells in the prospect on a well-by-well basis. The payout
calculation is based only on costs attributable to each individual successful
well. The Phillips-Burkley #1 well, a Hosston gas test, reached total depth of
17,300 feet and cemented the production casing on the well. Due to significant
rain and the current water level of the Mississippi River, we do not expect to
finish testing and well completion efforts until sometime in the end of the
first or beginning of the second quarter of 2005.
    The Company recovered twenty-four feet of conventional core from one of
the Hosston sands in the well.  The data from the core analysis, and a
complete suite of open-hole logs, has been used to design a stimulation
program for the well.  This same data has also been evaluated by an
independent consulting firm to simulate future production rates, volumes and
drainage patterns that the company will use to make cash flow projections and
assist with the design of the anticipated development program.  Based on these
analyses, commercially recoverable gas is indicated in over 300 feet of sand.
Depending on the success of the stimulation, initial production capacity from
this well could range from 10 MMcfd to 18 MMcfd.
    Targeted probable and possible reserves from the Hosston, as estimated
from the third party stimulation study are unchanged from earlier internally
generated pre-drilling estimates provided by the Company's third party
engineering consultants of 76 Bcf per 640 acre unit.  The Company has 10 to 12
additional prospective units that are available for development.
    The next well in this prospect, scheduled to be spudded in the second
quarter of 2005, is expected to test the deeper Cotton Valley formation at
approximately 19,500 feet in addition to the Hosston. Preliminary internal
reserve estimates for the Cotton Valley suggest they may be on the order of
the Hosston formation reserve estimates.

    Anadarko Basin, Oklahoma
    As previously announced, the Company is conducting an exploration drilling
program in the Anadarko Basin of Oklahoma and are in various stages of
evaluating more than 60 prospects in Dewey, Harper, Woodward, Ellis, Wood,
Roger Mills and Major Counties, Oklahoma. These prospects were provided to the
Company under an exclusive prospect generation agreement with Barbee
Exploration, Inc.  As of December 31, 2004, the Company had approximately
8,000 gross acres (approximately 7,500 net) of leaseholds in this area.
    The first two wells in this drilling program, both of which are located in
Woodward County, were tests of the Morrow along with several other formations.
The two wells are the Gordon #1-18, drilled to a total depth of approximately
7,776 feet and the Rushmore #1-12, drilled to a total depth of approximately
9,899 feet.  The Rushmore well will be plugged and abandoned. Petrosearch has
a 63.1% working interest in the well.
    A prospective zone in the Lansing-Kansas City Formation at approximately
6,630 feet is currently being tested in the Gordon #1-18 well with rates while
swabbing of approximately 8 barrels of oil per hour.  The Company expects to
put the well on pump in the next several weeks. This well is a new field
discovery, and accordingly, the Company is assessing the potential reserves;
initial production is expected to approximate 50 bopd equivalent. Petrosearch
has a 95% working interest in this well.
    The Company has built one location and has staked another on its acreage.
Additional acreage has been, and will continue to be, acquired in the target
area with the intent to exploit the prospect inventory subject to allocable
financial resources.

    Garwood Field -- Colorado County, Texas
    In August 2004, the Company, as operator, drilled the Pintail #1, an Upper
Wilcox gas test in Colorado County, Texas to a depth of 10,413 feet on a 2,358
gross acre prospect. A second well is scheduled to spud in the second quarter
2005 to test the lower Wilcox at 16,500 feet in addition to the Upper Wilcox.
The prospect geology targets both the Upper Wilcox (above approximately 11,000
feet) and the Lower Wilcox (as deep as approximately 16,500 feet) with as many
as 4 wells on the existing leasehold.  Based on internal estimates, these 4
locations are expected to recover in excess of 20 Bcf gross of natural gas.
    Due to a shortage of completion rigs in the area, the Pintail #1 was
completed in October 2004 at a gross production rate in excess of 500 Mcfd and
it continues to produce at approximately the same daily rate.  The estimation
of recoverable reserves from the Pintail #1 is currently being conducted by an
independent third party engineering firm. All of the drilling and completion
costs are being paid by a drilling partner and the Company will receive a
13.33% working interest in each well after payout.
    Data from the well largely supports the original geological interpretation
and 3-dimensional seismic data indicates that the Wilcox structure may provide
several additional drilling locations beyond the four target locations.

    Management's Comments
    Richard Dole, President and CEO said, "The projects in the Blue Ridge Dome
Field, the Williston Basin, the Anadarko Basin, Jefferson County, Mississippi
and in the Garwood Field are significant activities to the company, and
validate the success of the Petrosearch business model. In addition, we
continue to maintain a significant pipeline of prospects that are a direct
result of the Petrosearch business plan.  Examples of these additional
prospects include: 4 shallow gas prospects (between 2500 feet and 6000 feet
deep) in South Central Texas and an oil prospect in Mississippi above 7500
feet. Internal volumetric estimates have indicated targeted probable and
possible reserve estimates of over 4.5 billion cubic feet of potential gas
reserves in the aggregate for the four shallow gas prospects and 5 million
barrels of probable and possible oil reserves from as many as 8 wells for the
MS prospect.  The quality and quantity of our prospect inventory under
evaluation continues to improve monthly, in an environment where high quality
prospects are becoming harder to obtain by exploration and production
companies."

    About Petrosearch
    Petrosearch Energy Corporation, a Nevada corporation with executive
offices in Houston, Texas, was created by a team of seasoned and successful
oil and gas professionals for the purpose of finding and developing oil and
gas reserves across the United States. Petrosearch sources oil and gas
prospects and development talent by means of an innovative business model,
which is designed to attract independent producers who have knowledge of
overlooked, undeveloped or underdeveloped oil and gas reserves. Through a
joint interest arrangement, Petrosearch provides the independent producer with
capital and other business resources -- including administrative systems,
management oversight, and technical input. The Company is currently active in
Texas, Oklahoma, North Dakota, Montana, Alabama, and Mississippi.  For more
information about Petrosearch, please visit http://www.Petrosearch.com.

    Forward-Looking Statement
    Statements contained herein and the information incorporated by reference
herein may be forward-looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking
statements can be identified by the use of forward-looking terminology such
as, but not limited to, "may," "will," "expect," "anticipate," "estimate,"
"would be," "believe," or "continue" or the negative or other variations of
comparable terminology.  We intend such forward-looking statements to be
covered by the safe harbor provisions applicable to forward-looking statements
contained in Section 21E of the Exchange Act. Such statements (none of which
is intended as a guarantee of performance) are subject to certain assumptions,
risks and uncertainties, which could cause our actual future results,
achievements or transactions to differ materially from those projected or
anticipated. Such risks and uncertainties are set forth herein.
    Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events, or performance and underlying
assumptions and other statements, which are other than statements of
historical facts. These statements are subject to uncertainties and risks
including, but not limited to, product and service demands and acceptance,
changes in technology, economic conditions, the impact of competition and
pricing, and government regulation and approvals. Petrosearch cautions that
assumptions, expectations, projections, intentions, or beliefs about future
events may, and often do, vary from actual results and the differences can be
material. Some of the key factors which could cause actual results to vary
from those Petrosearch expects include changes in natural gas and oil prices,
the timing of planned capital expenditures, availability of acquisitions,
uncertainties in estimating proved reserves and forecasting production
results, operational factors affecting the commencement or maintenance of
producing wells, the condition of the capital markets generally, as well as
our ability to access them, and uncertainties regarding environmental
regulations or litigation and other legal or regulatory developments affecting
our business.
    Our expectations, beliefs and projections are expressed in good faith and
are believed to have a reasonable basis, including without limitation, our
examination of historical operating trends, data contained in our records and
other data available from third parties. There can be no assurance, however,
that our expectations, beliefs or projections will result, be achieved, or be
accomplished.
    Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.  We undertake no duty to
update these forward-looking statements.

    Cautionary Note to U.S. Investors
    The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. We use certain terms herein, such as "probable",
"possible", "recoverable", "risked" among others, that the SEC's guidelines
strictly prohibit us from including in filings with the SEC.  Readers are
urged to carefully review and consider the various disclosures made by use
which attempt to advise interested parties of the additional factors which may
affect our business.

    Contact:
     Greg Noble, Vice President Corporate Finance
     713-961-9337 or investor.relations@Petrosearch.com