Beach Boasts Results for Western Flank Campaign

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.