Beach Petroleum Finds Gas in Udacha-1 Well

Beach Petroleum says that once casing is set, Udacha-1 will be suspended to await appropriate completion equipment. Preliminary wireline, mudlog and test evaluation indicates gas saturation in several sands in Udacha-1.

The sand tested by DST-1A (0.44 million cubic ft/day) is interpreted to have approximately 3 meters of net gas pay. Between 3 and 10 meters of additional gas pay is likely in deeper sands that may be further evaluated in a cased hole testing program at a later date.

This program is expected to commence within 2-3 months, but the timing is subject to equipment availability.

Participants in the Udacha-1 well are Beach Petroleum Ltd as operator with 15.00%; Great Artesian Oil and Gas Ltd with 32.50%; Magellan Petroleum Australia Ltd with 30.00%*; Enterprise Energy NL with 12.50%*; Rawson Resources Ltd with 10.00%*;
* subject to commercial discovery