Beach Petroleum Logs Pay with Kenmore-30 WEll

Beach Petroleum reports that the Kenmore-30 well has reached 1,448 meters total depth and the hole is being Conditioned prior to running Production Casing.

Wireline log interpretation indicates that Kenmore-30 has penetrated 17 meters of net oil pay in the Hutton Sandstone. The top Hutton was intersected 8 meters higher than the nearest well, Kenmore-28, which is located 350 meters to the northeast. As a result, Kenmore-30, which is the southernmost well drilled to date in the Kenmore Field, is one of the highest wells on the structure. The well will be completed and flow tested and is expected to commence production next week.

The Kenmore-30 production will be in addition to the now producing Kenmore-28 and Kenmore-29 wells, drilled as part of Beach Petroleum's extensive 12-well drilling program in 2003 in the Cooper/Eromanga Basin.

The last of the wildcat wells in the program, Seacliff-1, spudded on Friday in PEL 95, south of Moomba in the South Australian section of the Cooper Basin. "The Kenmore-30 result is particularly pleasing as the well is the most southern Kenmore well and it is, structurally, one of the very highest wells in the field," Beach Petroleum's Managing Director, Mr Reg Nelson, said.

"At this early stage, that suggests the field extends further south than previously recognized," Mr Nelson said. "The Kenmore program has certainly been successful, with the cumulative total from the three new producers coming up to pre-drill expectations, with the expectation of adding around one million barrels to reserves.

"It will be some months, however, before we can more accurately gauge the reserves contribution as we need to assess the production performance of the new wells."

The drilling program also discovered the Christies oil field in PEL 92, west of Moomba.

Minimum of 15 wells planned for 2004

Beach plans to recommence drilling in the Cooper/Eromanga in March 2004. A program of at least 15 wells is planned for 2004 and will include appraisal drilling on the Bodalla South and Christies Fields, based upon recent 3D seismic surveys.

Beach Petroleum owns 100% of the Kenmore Field.