Senex Proposes 10-Well Drilling Program on Growler Field

Beach has been advised by Senex of a proposed ten well drilling program on PRL 15 and PEL 104 (the Growler field) consisting of four
development (already approved by the joint venture) and six exploration wells.

Senex advised it expects the development drilling program to increase production to 1,500 barrels of oil per day (gross) as well as materially add to existing reserves. In a recent announcement to the market, Senex stated it had increased its gross 2P reserves from Growler and Snatcher to 7.9 million barrels of oil (MMbbl), 3.1MMbbl net to Impress (Beach).

The reserves upgrade has been independently audited by MHA Petroleum Consultants LLC. Beach is yet to do its own independent assessment of this potential increase of reserves as advised by Senex and will do so as a matter of course at the end of the financial year.

Also, Senex advised on February 25, 2011 that for the first time in over a year oil has been delivered from the Growler oil field in the Western Flank.

On February 23, 2011 Beach commenced its operated Western Flank drilling campaign, which will comprise of four development, one appraisal and eleven exploration wells in PELs 91 and 92. The development program will commence with two wells on the Parsons field (Beach 75%) which, if successful, will increase production by approximately 1,000 barrels of oil per day (gross). The program, coupled with recent production performance, will result in a material increase to the remaining reserves for the field. The exploration program is expected to add over four million barrels of oil (gross) to reserves, on a risked basis.