HOUSTON--(BUSINESS WIRE)--Petrosearch Energy Corporation (OTCBB: PTSG.OB) filed its Form 10-Q for the quarter ended June 30, 2008 yesterday. While we encourage you to read the entire filed document, this release is intended to summarize some of the significant information and accomplishments since the end of the first quarter of 2008 which are disclosed in our filing.

Accomplishments Since the End of the 1^st Quarter – 2008:

Revolving Credit Facility - In April 2008 our revolving credit facility with Fortuna Energy, LP matured and was paid in full to the lender through a payment of $1,602,500. The Company no longer has an outstanding debt related to the revolving credit facility.

Colorado County, Texas - Project Financing - In May 2008 the Company received a full release of all the liens, security interests, rights, claims and benefits of every kind in, on and under the November 2006 Secured Term Note of approximately $7.9 million related to the Kallina 46#1. The debt related to this financing was extinguished and the Company recorded approximately $1 million in ordinary income as a result of derecognizing the interest expense associated with the financing.

Barnett Shale Project – In June, 2008 the Company’s wholly owned subsidiary, Barnett Petrosearch L.L.C., sold its 5.54455% limited partnership interest in DDJET Limited LLP (“DDJET”) to Cinco County Barnett Shale LLC (“Cinco”), one of the other two partners in DDJET, for a cash purchase price of $36,000,000 (an implied value of $650 million for 100% of the DDJET interest). By utilizing the strategic value of the preferential purchase rights associated with their DDJET interest the Company received a significant premium from Cinco versus the initial offer the Company received from a third party offeror. The $36,000,000 purchase price for DDJET equates to a 242% return of the Company’s original investment of $14.9 million in less than 18 months from the formation of the DDJET partnership.

Convertible Note Repayment – In July, 2008 the Company used part of the proceeds from the sale of its DDJET interest to repay all of the $18,775,000 outstanding Convertible Notes.

Summary Financial Result*:

The following is a summary of certain historical financial information from the Form 10-Q for the six months ended June 30, 2008 and 2007:

		Six Months Ended June 30		Six Months Ended June 30
		2008		2007
Gross Revenues		$1,099,898		$736,520
Operating Loss		$(1,230,044)		$(1,419,632)
Net Income (Loss)		$16,454,547		$(3,232,639)
		As of June 30, 2008		As of December 31, 2007
Working Capital		$35,046,864		$2,238,922
Shares Outstanding		41,770,779		40,941,841

* For more detailed information see our June 30, 2008 Form 10-Q

Operational Update – Water Flood:

North Texas Panhandle Water Flood – The Company is in the first phase of the water flood project which entails the conversion of four existing wells to water injection wells. These conversions will allow the Company to begin enhanced oil recovery and to satisfy its water injection obligations. Two of the first four injection wells for the initial flood pattern have successfully been converted for water injection and the conversion of the final two wells needed to complete the initial pattern is in process. The producing oil well needed for the first phase of the water flood is already in place in the center of the pattern. The water treatment facility that will provide the necessary water for the water flood is nearing completion.

Below is a summary of the estimates of reserves, undiscounted cash flows and present value of the undiscounted cash flows discounted at 10% (PV-10). Based on the third party reserve engineers forecast of production and reserves, and December 31, 2007 capital and lease operating costs and product prices of $120/bo and $10/Mcf, our internal estimate of undiscounted and discounted cash flows net of capital cost, net to Petrosearch as of June 1, 2008 is:

Reserve Category		Reserves Net to Petrosearch Interesta (boe)		Undiscounted Cash Flow net of Capital Cost		Cash Flow after Capital Cost Discounted at 10% (PV-10)
Proved Undeveloped		1,576,664		$ 128,389,000		$ 66,037,000
Probable		2,909,987		$ 304,423,000		$ 142,942,000
Possible		2,530,366		$ 261,839,000		$ 67,123,000

^a As of December 31, 2007 - estimated by third party engineering firm

President and CEO of Petrosearch Richard Dole stated, “We are pleased with the financial condition of the Company after the sale of our Barnett Shale project and the other significant transactions we have implemented over the past few months. These transactions provide the Company with a strong balance sheet; including a significant cash balance, no debt obligations (other than current trade payables) and positive stockholders equity. Our financial condition coupled with our significant proved, probable and possible oil and gas reserves puts us in an excellent position to develop our water flood project while we continue to pursue strategic alternatives for the Company.”

About Petrosearch

Petrosearch Energy Corporation, a Nevada corporation with executive offices in Houston, Texas, is a resource based energy company with activities focused on a water flood project in the Anadarko basin of the North Texas Panhandle. For more information please visit www.petrosearch.com.

Forward Looking Statements

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. Some of such risks and uncertainties are set forth below.

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 credit and capital markets generally, as well as our ability, and the ability of prospective purchasers of the DDJET partnership interests, 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.

Petrosearch Energy Corporation, Houson
Investor Relations, 713-334-5123
IRC@petrosearch.com
or
Piedmont IR, LLC
Keith Fetter or Darren Bankston, 678-455-3696
info@piedmontir.com