Beach Petroleum Discovers Oil with Sellicks-2

Beach Petroleum advises that DST 1A conducted early this morning over the Poolowanna Formation interval 1984 2007 meters resulted in a flow of oil to surface in 13 minutes. A preliminary rate of 2250-2700 barrels of oil/day was achieved, with a water-cut estimated at approximately 25%.

This is a new pool oil discovery within the Sellicks Field located in PPL-204 in the Cooper/Eromanga Basin in Australia, which has, to date, produced oil only from the deeper Patchawarra Formation. Sellicks-2 is the first of two appraisal wells based upon 3-D seismic that was designed to optimize field development.

Sellicks-2 will now drill ahead to evaluate the Patchawarra Formation primary target, which is expected to be reached tomorrow.

Participants in the Sellicks-2 well are Beach Petroleum as operator with 75% and Cooper Energy with 25%.

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