Beach Energy Limited (ASX:BPT) To Make A Strong Start On Western Flank Drilling In Early 2011

Perth, Dec 9, 2010 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) has contracted the Ensign#18 drilling rig and has agreed terms with Ensign for a firm option (expiring 21 December 2010) on its Ensign#30 drilling rig. Planning is currently underway to utilise two rigs, commencing January/February 2011, to carry out a minimum 15 well program as follows: five exploration wells in PEL-91 (Beach 40%); seven exploration wells in PEL-92 (Beach 75%); and three wells to further appraise and develop the Parsons and Butlers Oilfields (PEL-92).

Exploration prospects to be addressed by the program range in size from approximately 0.5 to 5.5million barrels of recoverable oil. If successful, together with facilities upgrades, these projects are expected to provide a material reserves upgrade and subsequent significant increase in production during FY11.

Bridge to access Western Flank

Beach recently commenced construction of a bridge to provide vehicle access to several oil fields on the Western Flank while the Cooper Creek is running. The bridge will complement the airstrip constructed earlier this year and is expected to be completed prior to calendar year-end.

PEL-92: Beach (75%, operator), Cooper Energy (ASX:COE) (25%).

PEL-91: Beach (40%, operator), Drillsearch (ASX:DLS) (PINK:DRLLF) (60%).

Contact

Corporate Reg Nelson Beach Energy Limited +61-8-8338-2833 Neil Gibbins Beach Energy Limited +61-8-8338-2833 Investor Relations Chris Jamieson Beach Energy Limited +61-8-8338-2833 http://beachenergy.com.au