Beach Energy Provides Monthly Drilling Report

January 4, 2012

Beach Energy Limited has released the following monthly drilling report for December 2011.

Beach Operated Cooper-Eromanga Oil and Gas

Two operated exploration wells were drilled in the Cooper-Eromanga Basin during the report period.

The Baird-1 exploration well (PEL 106B, Beach 50%) was drilled to further assess the distribution of stratigraphically trapped gas on the Patchawarra Trough margin, and to gather additional data on a potential deep coal gas play. The well did not intersect conventional gas, but has been cased and suspended for evaluation of a prospective deep coal interval. A further four wells are planned in this campaign.

Yaroomba-1 (ATP 269P, Beach 46.95%) was the first exploration well in a minimum five well campaign in multiple permits that will test several oil and/or gas opportunities along the southern and eastern margins of the Cooper-Eromanga. Yaroomba-1 was plugged and abandoned after failing to intersect commercial hydrocarbons.

Beach Operated Cooper Basin Unconventional Gas Program

A workover rig is mobilising to Encounter-1 in PEL 218 (Beach 100%) to prepare the well for fracture stimulation activities which are now expected to occur in mid-late January.

The Ensign 16 drilling rig is expected to spud Moonta-1 (PEL 218, Beach 100%) in mid January. This well will be the first in a campaign of at least five wells designed to delineate the resource potential of the basin centred and shale gas volumes of the Nappamerri Trough.

Santos Operated Cooper Basin Oil and Gas Development

Four gas development wells were drilled during the month; Moomba-191 and Andree-4 in South Australia (Beach 20.21%), and Roti-4 and Galex-3 in Queensland (Beach 23.20%). All four wells were cased and suspended as future gas producers. In addition, Moomba-191 was deepened to selectively core intervals within the Roseneath-Epsilon-Murteree (REM) formations in order to further evaluate the shale gas potential of this interval in the Moomba Field area.

The rigs have subsequently moved and are currently drilling ahead at the Merrimelia-62 (Beach 20.21%) and rigging up at Durham Downs-5 (Beach 23.20%) gas development sites.

[mappress]

LNG World News Staff, January 04, 2011