Beach Energy Limited (ASX:BPT) Monthly Drilling Report Ended June 1 2011

Perth, June 1, 2011 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) is pleased to release its monthly drilling report.

Australia

Beach Operated Cooper-Eromanga Oil - Western Flank

During the reporting period three exploration wells have been drilled in the Western Flank region in two separate campaigns.

In the continuing PEL-92 campaign, Ensign Rig#30 firstly drilled Parham-1 to test a structure one kilometre SW from Butlers-1, with the well plugged and abandoned without oil shows.

Subsequently, Stenhouse-1 was drilled at a location 1.8 kilometres south of Parham. Although encouraging shows were intersected in the Namur target, evaluation of wireline data indicated no commercial oil at this location and this well also was plugged and abandoned.

The rig has subsequently spudded Turton-1 on 28 May and is currently drilling ahead at 867 metres in the Cretaceous section. Parham-1, Stenhouse-1 and Turton-1 are all located within PEL-92 (Beach 75%). A further four approved wells are yet to be drilled in the program.

Further north, Beach initiated a second operated campaign in PEL-91 (Beach 40%) using the Ensign Rig#18. The first well of this campaign drilled a new-field oil discovery at Hanson-1 where a 7 metre oil column was intersected at the top of the Namur Sandstone. Oil shows within the Birkhead Formation were tested by DST-1 (1641 - 1655.5 metres) which recovered 0.42 barrels of mud, possible formation water and trace oil. The Hanson location lies 3.4 kilometres south from the Chiton Oilfield. There are four more approved exploration wells in this PEL-91 campaign.

Beach Operated Cooper-Eromanga Basin Gas - PEL 106FI Block

The Canunda-1 well is currently shut in for an extended pressure build-up, analysis of which will provide insight into reservoir size and extent. A total of 100 million standard cubic feet of raw gas (including 15 thousand standard barrels of condensate sales) has been produced during the test.

Santos Operated Cooper Basin Oil and Gas Development

The Moomba-185 gas development well (Beach 20.21%) has been cased and suspended as a future Toolachee Formation gas producer. This well was also deepened to obtain 30 feet (9.1 metres) of core from each of the Roseneath and Murteree Shales to further assess the shale-gas prospectivity of these intervals within the Moomba Field area. The Saxon-183 drilling rig has since moved to the Moomba-186 location (Beach 20.21%) and is preparing to spud. A second (new) Saxon rig is currently undergoing compliance testing and commissioning before spudding Nephrite South-6 well in early June.

Beach Operated Cooper Basin Shale Gas Exploration - PEL 218

The Holdfast-1 completion has been installed (Beach 90%) in preparation for flow stimulation activities to be conducted in early/mid June. Completion equipment is currently being installed in Encounter-1 (Beach 90%). Up to eight zones in each well will be stimulated as part of the on-going assessment of volumetric and flow potential of gas from shales within the Nappamerri Trough. Geological and engineering studies continue on the core and logs which were recovered from Encounter-1 and Holdfast-1 in late 2010 and early 2011.

INTERNATIONAL

Kuwait Energy Operated Western Desert Oil Exploration - Abu Sennan Concession, Egypt

The ZZ-4 well (Beach 22%) reached a total depth of 4715 metres in Permian sediments on May 5. Wireline logging commenced thereafter, but was cut short due to problems with stuck logging tools. The current plan is to plug back the basal part of the well prior to conducting open hole evaluations of oil shows recorded higher in the well in Early Cretaceous sediments. ZZ-4 is an appraisal of the Late Cretaceous GPZZ Oil Field and was deepened to target hydrocarbon exploration potential in the older Jurassic sequence. ZZ-4 is the first in a multi-well drilling program designed to test several play concepts within the Abu Sennan concession.

For the complete Beach Energy announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/183270.pdf

Contact

Corporate Reg Nelson Beach Energy Limited Tel: +61-8-8338-2833 Investor Relations Chris Jamieson Beach Energy Limited Tel: +61-8-8338-2833 Email: info@beachenergy.com.au http://www.beachenergy.com.au