Beach to Construct New Flowline from Cooper Basin Western Flank

- Beach to Construct New Flowline from Cooper Basin Western Flank

Thursday, August 25, 2011
Beach Energy Ltd.

Beach has signed an agreement with Senex to tie-in the Growler Field (Beach 40%) to the Lycium oil field. It has also agreed with Senex to construct a trunkline from Lycium to the Moomba facility, however, the tie-in of this section remains subject to approval from the South Australian Cooper Basin (SACB) Joint Venture (~Santos Ltd 67%, Beach 20%, Origin Ltd 13%).

It is anticipated that the flowline from the Growler Field will be constructed in two main sections. The first section, directly from the Growler Field to the Lycium oil field, will consist of a six inch flowline with an initial capacity of approximately 8,000 barrels of oil per day. The equity interests for this section of flowline will be Beach 40% and Senex 60%.

Pending approval from the SACB Joint Venture, the main trunkline will service the whole of Beach's operated and non-operated Western Flank acreage and is planned to run between Lycium and the Moomba facility. The capacity of this eight inch trunkline is expected to be in the order of 15,000 barrels of oil per day. The equity interests for this section will be Beach 60% and Senex 40%.

Beach will undertake both the construction and operatorship of the flowlines, with the total cost of approximately $40 million to be effectively shared between Beach and Senex.

These flowlines will provide Beach with access to the Growler Field during times of flooding in much the same way it has for Beach's PEL 92 acreage during the recent flooding events. The second trunkline will also provide for increased production flows from Beach's operated PEL 91 and PEL 92 acreage as a result of recent development, appraisal and exploration success in the area.

The six well approved exploration program set down for PEL 104 and PEL 111 is expected to commence in October 2011, when flood waters are forecast to recede to levels where access can be restored. A number of Birkhead targets have been identified by the Operator which has had an exploration drilling success rate of 80% in the acreage to date.

The tenure of the Beach Operated Western Flank PEL's 91 and 92 have been granted a twelve month extension by PIRSA in acknowledgment that flooding has delayed exploration in the area. It is expected that the flowlines will be commissioned around June 2012.

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Beach Makes Oil Discovery at AU Western Flank

- Beach Makes Oil Discovery at AU Western Flank

Monday, August 01, 2011
Beach Energy Ltd.

Beach Energy announced two new field oil discoveries at Bauer-1, the third successful well in a five well exploration drilling campaign in PEL 91, and at Rincon-1, the final exploration well of the initial eleven well program for PEL 92. The commencement of the FY12 Joint Venture approved nine well exploration and development program, set down for PEL 92, will now follow this program.

The Bauer-1 well (Beach (Operator) - 40%, Drillsearch Energy Ltd - 60%) encountered a gross oil column of fifteen meters, with thirteen meters of net pay, in the McKinlay/Namur Sandstone section of the well. Preliminary volumetric assessment indicates the potential of the discovery could be in the order of two million barrels of recoverable oil (gross).

Following the completion of the evaluation program, the Ensign#18 rig will be moved to the Searcy-1 exploration well which is located approximately eight and a half kilometers to the north-east of Bauer-1. Bauer-1 is expected to be on-line in the fourth quarter of 2011.

The Rincon-1 well (Beach (Operator) - 75%, Cooper Energy Ltd - 25%) encountered a gross oil column of five meters, with four and a half meters of net pay, in the McKinlay/Namur Sandstone section of the well. Beach’s preliminary volumetric assessment suggests up to five hundred thousand barrels of recoverable oil (gross).

Following the completion of the evaluation program, the Ensign#30 rig will be moved to the Elliston-1 exploration well which is located approximately 25 kilometers to the south of Rincon-1. Options to bring Rincon-1 on-line are currently being assessed.

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Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

- Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

Tuesday, June 07, 2011
Drillsearch Energy Ltd.

Drillsearch announced that following the success of the Hanson—1 New Oil Field Discovery in PEL 91, Drillsearch's Western Flank Oil Fairway drilling program continues with the spudding of Snellings-1, the second well in the five well program. The Snellings-1 well spudded at 7.00am Monday, 6 June 2011. Drillsearch holds a 60% Interest in PEL 91 while Beach Energy (ASX: BPT) as operator holds 40%. The Hanson Oil discovery is estimated to contain gross recoverable oil of up to 1 million barrels. Drillsearch also holds a 60% interest in this discovery.

Snellings-1 oil exploration well is located 1500 meters north of the Hanson Oil Discovery and 1900 meters south of the Chiton Oil Field. The primary objective of the well is the Namur Sandstone which is the productive oil reservoir in both the Chiton Oil Discovery and the Hanson New Oil Field Discovery announced on May 30, 2011 along with numerous oil discoveries in the adjacent PEL 92 permit to the south of the Snellings prospect. The Birkhead Formation Sandstones, Hutton Sandstone and Poolowanna Sandstones are considered secondary targets for oil and have been proven at the Christies and Sellicks oilfields to the south and south east of Snellings-1. Drilling will be to a total depth of 1935mRT and it is expected that the drilling will take 10-14 days.

Seismic mapping of the Namur horizon indicates that the Snellings Structure has approximately 10 meters of independent structural relief and potentially encloses an area of 1.0km2. The Snellings Prospect is estimated to have up to P10 High-side Recoverable Prospective Resource potential of up to 1.0 million barrels of oil.

Details of the Snellings Prospect are set out in the attached Prospect Data Sheet and accompanying maps and seismic sections.
Snellings-1 will be drilled as a conventional vertical well with wireline logging and possible testing planned after the well reaches total depth. The main target zone is expected to be penetrated five to seven days after spud.

Mr. Brad Lingo, Managing Director noted that "following the success of the Hanson-1 Oil Discovery announced on May 30, 2011, the spudding of Snellings-1, the second well in our five well drilling program is very encouraging. We are progressing on schedule, and we look forward to providing you with further updates on the exploration work we are undertaking in the highly prospective Western Flank Oil Fairway."

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Beach Boasts Results for Western Flank Campaign

Beach Boasts Results for Western Flank Campaign

Monday, April 04, 2011

Beach Energy Ltd.

Beach has obtained excellent results from the first two wells drilled of its 16 well operated program in the Western Flank area.

In late February, the Parsons-3 oil development well encountered a 9 meter oil column. This result has now been immediately followed by a second success at Parsons-4, where a 5.5 meter column of oil was encountered in line with pre-drill prognosis. Both wells intersected excellent quality Namur sandstone reservoirs and have been completed for production and early tie-in to the Parsons facility. Following completion and perforation, Parsons-3 flowed over 5000 barrels of oil per day during clean up. No water was produced. This well is expected to be on-line around mid April with Parsons-4 shortly thereafter.

The success at Parsons will increase daily gross production from the PEL 92 area to around 6000 barrels of oil per day (gross). Beach expects to book additional reserves for the Parsons field following these results, the quantity of which is currently being assessed.

Oil from the Parsons field is transported from the Western Flank by flowline to Moomba via Tantanna and thus is not at risk from flooding in the area.

The Ensign #30 rig will now move to the Butlers-2 location. The well to be drilled will appraise the northerly extent of the Butlers oilfield and facilitate development planning and production optimization. A successful result at Butlers-2 has the potential to add up to 2 million barrels of oil (gross).

The Ensign #18 rig is currently moving across the Cooper Creek via the Kudnarri Bridge into PEL 91. The rig is expected to be 100% on location at Hanson-1 by the middle of this week and will commence drilling after a short maintenance and repair period of one to two weeks.

Hanson-1 is the first of a five well exploration campaign for the PEL 91 joint venture.

A further flood pulse is expected in the PEL 91 and PEL 92 areas in mid April, however Beach has established a remote operations base at Gunyah on the western side of the Cooper Creek to enable drilling operations to continue unaffected.