New Discoveries Extend Bodalla South for Beach

Beach Petroleum Limited has concluded a successful two-well appraisal drilling program at the Bodalla South Oilfield (100% Beach) with two substantial oil flows.

Initial clean-up flow rates (free-flow) from the two completed wells were measured at 230 barrels of oil per day (1/2" choke) from Bodalla South-16 and 4,617 barrels of oil per day (through 5cm flow-line) from Bodalla South-17.

Two new appraisal wells drilled on its Bodalla South field have:

--Added an estimated incremental oil reserve of 250,000 barrels to the field
--Opened the northern portion of the field to further drilling, and
--Commercial production from the wells would be underway in a month.

"The discovery and production gains being achieved at Bodalla underpin the success of our decision four years ago to adopt a new exploration and development approach for Bodalla," said Reg Nelson, Beach's Managing Director.

"The approach was specifically designed to use modern day petroleum 3D seismic technology coupled with more intensive drilling to maximize the untapped revenue and volume yields of these established fields."

"Significantly - when added to our interests elsewhere in the basin including in the Santos-led Cooper Oil program - these successful Bodalla South results mean Beach is now benefiting on two fronts from strategies implemented to increase production from long-established Australian oil fields.

"The combined track record success of this approach in two adjoining petroleum provinces gives us a very high level of confidence of further extractive upside for some years in both Bodalla and the nearby Kenmore fields – all wholly owned by Beach."

Bodalla South-16 is located more than 900 meters northwest of the nearest producer in the field.

"As expected, this portion of the field shows no evidence of drainage by existing wells, opening the potential for more drilling to access oil in this portion of the field," said Nelson.

Bodalla South-17 intersected high-quality oil pay within the Basal Jurassic interval and the Hutton Sandstone, in a structure defined on 3-D seismic. These new production wells will be connected to the existing Bodalla South processing facilities and are expected to contribute to production within a month.

The drilling rig is currently preparing to move to the Nudgee-1 location, the first well in a three-well exploration campaign in ATP-269P (Beach 46.95%).