Circumpacific Energy Corporation: News Release

Circumpacific Energy Corporation (TSX VENTURE:CER) ('Circumpacific') is an
independent oil and natural gas producer engaged in the acquisition,
exploration, production and development of oil and natural gas properties in
North America. 


Drillsearch Energy Limited (ASX: DLS) ('Drillsearch'), an Australian company,
holds approximately 79.5% of issued share capital in Circumpacific. 


The reason for this Press Release is to notify shareholders of legal proceedings
brought by Drillsearch in the Supreme Court of British Columbia on October 14,
2009 ('Drillsearch proceedings'). 


The Drillsearch proceedings relate largely to the matters set out in
Circumpacific's Press Release of September 30, 2009. Drillsearch seeks, among
other things: 


- an injunction preventing Mr. Peter Simpson from acting as a director of
Circumpacific;


- orders restraining the company and its directors from making any material
changes to the business or affairs of Circumpacific prior to its upcoming
shareholders meeting;


- orders governing conduct of the forthcoming general meeting on November 26, 2009.

Many assertions in the Drillsearch proceedings are flawed, slanted or
incomplete. It is also puzzling why Drillsearch would bring such action barely
one month before the general meeting on November 26, 2009, given that
Drillsearch will seek at that meeting to remove both independent directors
together with Mr Simpson, and to replace them with Drillsearch's own
representatives. 


The board of Circumpacific will not abdicate the duties and responsibilities it
owes under Canadian law to all of its shareholders and the company as a whole.
The board is required by law to manage and supervise the business and affairs of
the company, and has the express authority to do so, in the interests of all
shareholders, not merely Drillsearch. The board will not allow one shareholder
to reign over your directors and senior management in pursuit of its own
commercial objectives. 


Mr. Simpson remains a director, and the Chief Executive Officer, of
Circumpacific. The board of Circumpacific resolved unanimously on September 10,
2009, that no valid resignation by Mr. Simpson as a director had been received
by the company or its lawyers. It is noted that Drillsearch's notice of
requisition dated July 29, 2009, described Mr. Simpson as a director of
Circumpacific, and the very nature of that requisition constitutes an
acknowledgment by Drillseach that Mr. Simpson is and remains a director. 


Circumpacific is presently obtaining legal advice from its Canadian lawyers in
relation to the Drillsearch proceedings, and will update shareholders shortly. 


A copy of the notice calling the meeting, together with the Information Circular
and other relevant material, is available on SEDAR at www.sedar.com or the
Company's website http://www.circumpacific.com.