Beach Discovers Oil at Butlers Well

Beach Discovers Oil at Butlers Well

Wednesday, April 13, 2011
Beach Energy Ltd.

Beach had its third success from as many wells in its 16 well operated program in the Western Flank of the Cooper Basin with the Butlers-2 well encountering a five meter oil column. The Butlers-2 well is located 950 meters NE of the Butlers-1 discovery well.

The Butlers-2 oil column was encountered in the Namur Sandstone reservoir and was consistent with pre-drill expectations. The large step-out will result in an upgrade of recoverable oil reserves from the Butlers Field of approximately 1.5 million barrels (gross), subject to remapping and a detailed review of the well data. Beach will announce a firmer reserve assessment as appropriate data becomes available.

Butlers-2 is is expected to be on-line around mid-July after completion of the new Butlers oil facility. Oil from the Butlers Field is transported from the Western Flank by flowline to Moomba. The success at Butlers-2 is likely to lead to additional development drilling in the Butlers Field. The Ensign#30 rig will now be moved to the Butlers-3 development well location which is located about 320 meters to the NW of Butlers-1.

Participants in PEL 92 are:

* Beach 75% (Operator)
* Cooper Energy Limited 25%