Beach to Kick Off Abu Sennan Drilling

Beach Energy reported that a four well drilling program at Abu Sennan in Egypt will commence with the first well spudding mid to late December. Gravity and magnetic surveys over the Lake Tanganyika South concession in Tanzania have been completed with data reviews indicating data quality to be high.

Egypt - Abu Sennan and Mesaha Graben

Assignment documentation for both the Abu Sennan concession (Beach 22%) and Mesaha Graben concession (Beach 15%) is now with the regulatory authorities and the Minister for signing. All pre-emptive rights in relation to both concessions have either expired or been waived.

Numerous prospects with multiple target horizons have been identified on 3D seismic which covers the Abu Sennan concession. A drilling rig has been mobilised to the concession and is currently rigging up to commence the planned four well drilling program. The first well will be an appraisal well on the GPZZ Oilfield and will be deepened to target oil exploration potential in the Jurassic. Drilling is expected to commence mid to late December 2010.

The Mesaha Graben concession is one of the largest concession areas in Egypt at 57,000km2 and has the potential to host large oil fields in excess of 100 million barrels of oil. Analysis of recently acquired 2D seismic data was encouraging and, as a result, infill 2D seismic will be acquired in the first half of 2011 to identify potential drilling targets for 2012.

Tanzania - Lake Tanganyika

Gravity and magnetic surveys have recently been completed on Lake Tanganyika South (Beach 100%). A bathymetry survey, which measures water depth for data corrections, commenced on 2 November 2010 and was approximately 60% complete at the beginning of December. This survey is expected to be completed in early January 2011.

The data reviews indicate the quality of data to be high, with the final processed magnetic data expected in January 2011 and the final processed gravity data expected in February 2011. Data interpretation will commence in January 2011 and analysis of this data will assist in planning the 2D seismic program to be acquired around mid 2011.