Press Releases

Adelaide, July 7, 2010 (ABN Newswire) - As indicated in its ASX Release of 23 June, Beach Energy Limited (ASX:BPT) (PINK:BEPTF) is now reporting on its routine drilling activities on a monthly rather than a weekly basis. Reporting will be made on the first Wednesday of each month. To meet its Listing Rule obligations, Beach will continue to make immediate disclosure to ASX of material issues, as required.

AUSTRALIA

Beach Operated Cooper-Eromanga Basin Oil

The upper of three Patchawarra Formation sands at Canunda-1 in PEL 106B (Beach 50%, Drillsearch 50%) was flow tested at an initial rate of 10.5 MMscf/d, with a condensate to gas ratio (CGR) of 180 bbls/ MMscf. With unexpectedly high CGR for the area, the flow has been restricted to 1-3 MMscf/d due to liquids storage and trucking constraints. Some 2500 barrels of condensate have been produced since testing of the upper zone commenced on 27 June. Testing is ongoing.

Cooper/Eromanga Oil Development - Santos Operated

The Inca-1 oil exploration well (Beach 30%) has been cased and suspended as a future Namur Sandstone and Birkhead Formation oil producer.

The Watson West-1 oil exploration well (Beach 38%) spudded on 5 July and is currently drilling ahead at a depth of 237 metres.

Cooper Basin Gas Development - Santos Operated

Coonatie-16 has been cased and suspended as a future multi-zone gas well. Coonatie-19 is drilling ahead in the Westbourne formation at a depth of 2111 metres. Coonatie-20 spudded on 6 June and is currently drilling ahead at a depth of 186 metres (Beach 17.14%).

INTERNATIONAL

Unconventional

Non-operated Oil Appraisal, South Antelope Prospect, Williston Basin - USA.

The Henderson 4-25H oil appraisal well reached a final total depth of 4865m MD (3320m TVD) and the rig was released on 27 June. Well-site shows throughout the reservoir target Three Forks Formation are encouraging and a multistage fracture stimulation will be undertaken as was planned predrill. (Beach [USA] Inc 23.15% contributing interest, 18.52% net revenue interest).

Upcoming Wells for July

Cooper/Eromanga Oil Development - Santos Operated

- Coonatie 18 gas development well (Beach 17.14%).

Drilling Report - Period ending 7th July 2010

--------------------------------------
Well                    Participants
--------------------------------------
Inca-1                  BPT  30.00%
ATP259P                 STO* 70.00%
Oil Exploration
C/E Basin, QLD
--------------------------------------------------------------
Weekly Progress & Summary             Primary Targets
--------------------------------------------------------------
Report Time: 0600 hrs(CST)07/07/2010  Mid-Namur
Depth:       1886.0m (TD)             Birkhead Fm / Hutton Sst

Operation:   Well is cased and suspended
             as a future Jurassic oil producer.
Progress:    120.0m
--------------------------------------------------------------

--------------------------------------
Well                    Participants
--------------------------------------
Watson West-1           BPT  38.00%
PL 35                   STO* 56.00%
Oil Exploration         and others
C/E Basin, QLD
--------------------------------------------------------------
Weekly Progress & Summary              Primary Targets
--------------------------------------------------------------
Report Time: 0600 hrs(AEST)07/07/2010  Birkhead Fm / Hutton Sst
Depth:       237m
Operation:   Drilling ahead in surface hole.
Progress:    237m
--------------------------------------------------------------

--------------------------------------
Well                    Participants
--------------------------------------
Coonatie-16             BPT  17.14%
PPL131                  STO* 72.32%
Gas Development         ORG  10.54%
C/E Basin, SA
-------------------------------------------------------------
Weekly Progress & Summary             Primary Targets
-------------------------------------------------------------
Report Time: 0600 hrs(CST)07/07/2010  multi Permian targets
Depth:       3141.0m (TD)
Operation:   Well is cased and suspended as
             a future Permian gas producer.
Progress:    617.0m
--------------------------------------------------------------

--------------------------------------
Well                    Participants
--------------------------------------
Coonatie-19             BPT  17.14%
PPL131                  STO* 72.32%
Gas Development         ORG  10.54%
C/E Basin, SA
--------------------------------------------------------------
Weekly Progress & Summary              Primary Targets
--------------------------------------------------------------
Report Time:  0600 hrs(CST)07/07/2010  multi Permian targets
Depth:        2111m
Operation:    Drilling ahead in Westbourne Formation.
Progress:     2111m
--------------------------------------------------------------

--------------------------------------
Well                    Participants
--------------------------------------
Coonatie-20             BPT  17.14%
PPL131                  STO* 72.32%
Gas Development         ORG  10.54%
C/E Basin, SA
--------------------------------------------------------------
Weekly Progress & Summary              Primary Targets
--------------------------------------------------------------
Report Time:  0600 hrs(CST)07/07/2010  multi Permian targets
Depth:        186m
Operation:    Drilling ahead in surface hole.
Progress:     186m
--------------------------------------------------------------

------------------------------------------
Well                         Participants
------------------------------------------
Henderson 4-25H              BPT**  23.15%
Section 25 McKenzie County,  SEA    24.02%
Nth Dakota                   Helis* plus 7
Oil Appraisal                others 52.83%
--------------------------------------------------------------
Weekly Progress & Summary                Primary Targets
--------------------------------------------------------------
Report Time:  0600 hrs(local)06/07/2010  Three Forks Formation
Depth:        4865.0mMD (TD)             Bakken Formation

Operation:    Rig released. Three Forks Formation
              to be fracture stimulated end July.
Progress:     524.0m
--------------------------------------------------------------

(*) Operator

Beach Energy Ltd (ASX:BPT) (PINK:BEPTF)
Beach Energy U.S.A Inc. (BPT**)
Sundance Energy Australia Ltd (ASX:SEA) (PINK:SDCJF)

(s) Secondary Targets

Santos Limited (ASX:STO) (PINK:STOSF)
Helis Oil & Gas Company L.LC (Helis)
Origin Energy Resources Ltd (ASX:ORG) (PINK:OGFGF)

Contact

Neil Gibbins Chief Operating Officer Tel: +61-8-8338-2833 Email: info@beachenergy.com.au www.beachenergy.com.au