Microsoft Word - ASX Release - Monthly Drilling Report - March 2015

For Immediate Release - 1 April 2015

Ref. #023/15

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March 2015 Highlights:

Birkhead oil discovery at Stanleys‐1 in PRL 171 (within the former PEL 91)

Completion of second Bauer Field pad drilling campaign

13 wells drilled with a success rate of 92%

DEVELOPMENT

Australia - Cooper and Eromanga Basins

Operated

PRLs 151 to 172 (formerly PEL 91) (Beach 40%, Drillsearch 60%)

The second four‐well pad drilling campaign was completed in the Bauer Field, targeting the highly productive Namur Sandstone reservoir and overlaying McKinlay Member. The Bauer‐20 to ‐23 pad wells were drilled approximately 10 metres apart at surface, with directional drilling commencing from depths of approximately 700 metres to reach target zones. Proximity of wells alleviated the need for rig demobilisation, allowing all wells to be drilled, cased and suspended in a total of 36 days.
Results from the program were in line with Beach's pre‐drill expectations, with Bauer‐23 producing an upside result after intersecting a 6.8 metre Namur Sandstone oil column. Combined with results from the first pad drilling campaign (Bauer‐16 to ‐19), the FY15 Bauer Field development campaign is expected to add 2P reserves and support current production levels. Beach's preliminary assessment of well results is summarised below.

Monthly Drilling Report - March 2015

Well

High / (Low) to Prognosis (metres)

Namur Sandstone

Oil Pay

(net; metres)

McKinlay Member

Interval

(gross; metres)

Bauer‐20 (2.0) 2.8 4.2

Bauer‐21 0.3 5.5 4.2

Bauer‐22 0.9 5.3 4.6

Bauer‐23 3.1 6.8 4.0

Non‐operated

South Australian Gas (Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)

A nine‐well development drilling campaign targeting the Coorikiana Sandstone in the Mudera, Marabooka and Strzelecki fields was completed, with drilling of Strzelecki‐30 and ‐31 and Marabooka‐16 undertaken during March. The fields are located approximately 35 kilometres south‐ east of Moomba and have been producing gas since the early 1980s. Originally Toolachee Formation producers, recent field development resulted in the Coorikiana Sandstone becoming the main producing zone in the Mudera and Marabooka fields, with 3D seismic survey identifying the potential for Coorikiana Sandstone production in the Strzelecki Field. All nine wells in the program were cased and suspended, with gas pays encountered in line with expectations. Initial production rates from three connected wells are above pre‐drill estimates.
A two‐well pad program targeting gas and gas liquids in the Patchawarra Formation and Tirrawarra Sandstone is being undertaken in the Narie Field. The field is located in the south western area of the Patchawarra Trough, approximately 40 kilometres north of Moomba. The Merrimelia 3D seismic survey enhanced understanding of the field and resulted in drilling and testing of Narie‐3 in early
2014. Encouraging flow rates and test results indicated good reservoir qualities and low levels of depletion, suggesting potential for further field development. Narie‐5 and ‐4 were drilled during March, with Narie‐5 cased and suspended as a future producer. Narie‐4 reached total depth and awaits resolution of a down‐hole mechanical issue prior to casing and suspending.
A three‐well pad development campaign is underway in the Coonatie Field (Beach 17.14%, Santos
72.32% and operator, Origin 10.54%), located 80 kilometres north‐east of Moomba. The field is historically a gas and gas liquids producer from the Toolachee and Epsilon formations, however, recent reservoir studies and simulations identified potential for development of the Patchawarra Formation and Tirrawarra Sandstone. Coonatie‐21 and ‐22, the first two wells of the campaign, were drilled during March. Coonatie‐21 was cased and suspended as a future producer after encountering high‐side outcomes in the target formations. Coonatie‐22 reached total depth on 29 March 2015 and will be cased and suspended. Potential for further down‐dip locations will be assessed upon
completion of the campaign.

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Monthly Drilling Report - March 2015

Queensland Gas (Beach 23.2%, Santos 60.06% and operator, Origin 16.74%)

A four‐well development and appraisal campaign is underway in the Barrolka Field, located approximately 55 kilometres north of the Ballera plant. The primary objective of the campaign is to convert undeveloped reserves on the main culmination to developed reserves. Barrolka‐15 and ‐17 are the second and third wells, respectively, of the campaign. Barrolka‐15 was cased and suspended as a future producer and Barrolka‐17, which spudded on 22 March 2015, is currently drilling ahead. Results to date have been in line with expectations and provided indications of potential for further field development.

EXPLORATION and APPRAISAL

Australia - Cooper and Eromanga Basins

Operated

PRLs 151 to 172 (formerly PEL 91) (Beach 40%, Drillsearch 60%)

The Stanleys‐1 oil exploration well in PRL 171 is located approximately 3.9 kilometres north‐east of the Balgowan‐1 oil discovery and 3.5 kilometres south‐west of the Spitfire Field. The well targeted the Namur Sandstone, with the McKinlay Member, mid‐Namur Sandstone and Birkhead Formation as secondary targets. Stanleys‐1 reached total depth on 5 March 2015 with strong oil shows encountered through the Birkhead Formation. Wireline logs indicated a seven metre gross reservoir interval corresponding to the strong oil shows. A drill stem test over an interval from 1,713 metres to 1,724 metres (measured depth) recovered 23 barrels of oil over 117 minutes at a calculated rate of 280 barrels of oil per day. The well was cased and suspended as a future oil producer.
The Longbottoms‐1 oil exploration well in PRL 171 is centrally located between the Stunsail and Kalladeina oil fields, and approximately two kilometres east of the CKS facility. The well encountered approximately one metre of net pay in the Namur sandstone, however, was plugged and abandoned due to the result being sub‐commercial.

PRLs 85 to 104 (formerly PEL 92) (Beach 75%, Cooper Energy 25%)

The Perlubie‐3 oil appraisal well, located in PPL 247, is targeting the Naumr Sandstone and appraising the northern area of the currently producing Perlubie Field. The well spudded on 30 March 2015 and is currently drilling ahead.

Non‐operated

Egypt

Abu Sennan Concession (Beach 22%, Kuwait Energy 50% and operator, Dover 28%)

The ASH‐1X ST1 oil exploration well reached total depth of 4,777 metres during the reporting period, with current focus on preparing tests in zones of interest.

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Monthly Drilling Report - March 2015


The ASA‐3 oil appraisal well spudded on 14 March 2015 and is currently drilling ahead at a depth of
2,578 metres. ASA‐3 is located 0.5 kilometres south‐east from the ASA‐1 ST3 exploration well and is targeting the Abu Roash "C" and "E" formations.

Monthly Drilling Report - Period ending 06:00, 1 April 2015

Well

Participants

Progress and Summary

Primary Targets

Bauer‐20

PPL 253 (e x PEL 91)

Cooper Basin operated

BPT* 40.00% Dri l l i n g th i s mo nth : 841 me tre s McKi n l a y Me mbe r

DLS 60.00% Cu rre n t De pth : 1,533 me tre s (to ta l de pth) Na mu r Sa nd s to ne

Oi l de ve l o p me n t (Pa d ) C/E Ba s i n , SA

Sta tus :

Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

Bauer‐21

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 769 me tre s

Cu rre n t De pth : 1,461 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

PPL 253 (e x PEL 91)

Oi l de ve l o p me n t (Pa d ) C/E Ba s i n , SA

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 769 me tre s

Cu rre n t De pth : 1,461 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

Bauer‐22

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,012 me tre s

Cu rre n t De pth : 1,575 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

PPL 253 (e x PEL 91)

Oi l de ve l o p me n t (Pa d ) C/E Ba s i n , SA

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,012 me tre s

Cu rre n t De pth : 1,575 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

Bauer‐23

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,567 me tre s

Cu rre n t De pth : 1,567 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

PPL 253 (e x PEL 91)

Oi l de ve l o p me n t (Pa d ) C/E Ba s i n , SA

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,567 me tre s

Cu rre n t De pth : 1,567 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re McKi n l a y

Me mb e r and Na mu r Sa nd s to ne oi l produce r

McKi n l a y Me mbe r

Na mu r Sa nd s to ne

Stanleys‐1

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,411 me tre s

Cu rre n t De pth : 2,064 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Na mu r

Sa nd s to ne oi l produce r

Na mu r Sa nd s to ne

PRL 171 (e x PEL 91) Oi l exp l o ra ti on

C/E Ba s i n , SA

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 1,411 me tre s

Cu rre n t De pth : 2,064 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Na mu r

Sa nd s to ne oi l produce r

Na mu r Sa nd s to ne

Longbottoms‐1

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 2,009 me tre s

Cu rre n t De pth : 2,009 me tre s (to ta l de pth) Sta tus : Pl u gge d an d a b a ndone d

Na mu r Sa nd s to ne

PRL 171 (e x PEL 91) Oi l exp l o ra ti on

C/E Ba s i n , SA

BPT* 40.00% DLS 60.00%

Dri l l i n g th i s mo nth : 2,009 me tre s

Cu rre n t De pth : 2,009 me tre s (to ta l de pth) Sta tus : Pl u gge d an d a b a ndone d

Na mu r Sa nd s to ne

Perlubie‐3

BPT* 75.00% COE 25.00%

Dri l l i n g th i s mo nth : 588 me tre s Cu rre n t De pth : 588 me tre s Sta tus : D ri ll in g ah e a d

Na mu r Sa nd s to ne

PPL 247 (e x PEL 92) Oi l a ppra i s a l

C/E Ba s i n , SA

BPT* 75.00% COE 25.00%

Dri l l i n g th i s mo nth : 588 me tre s Cu rre n t De pth : 588 me tre s Sta tus : D ri ll in g ah e a d

Na mu r Sa nd s to ne

Strzelecki‐30

PPL 22

Cooper Basin non‐operated

BPT 20.21% Dri l l i n g th i s mo nth : 1,046 me tre s Co orikia n a Sa nd s to ne

STO* 66.60% Cu rre n t De pth : 1,046 me tre s (to ta l de pth)

Ga s de ve l o p men t

C/E Ba s i n , SA

ORG 13.19% Sta tus :

Ca s ed an d su sp e nd e d as a fu tu re Ea rl y Creta ceo u s ga s produce r

Strzelecki‐31

PPL 22

BPT 20.21% Dri l l i n g th i s mo nth : 1,054 me tre s Co orikia n a Sa nd s to ne

STO* 66.60% Cu rre n t De pth : 1,054 me tre s (to ta l de pth)

Ga s de ve l o p me n t

C/E Ba s i n , SA

ORG 13.19% Sta tus :

Ca s e d an d su sp e nd e d as a fu tu re Ea rl y Creta ceo u s ga s produce r

Marabooka‐16

BPT 20.21% STO* 66.60% ORG 13.19%

Dri l l i n g th i s mo nth : 1,077 me tre s

Cu rre n t De pth : 1,077 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Ea rl y Creta ceo u s ga s produce r

Co orikia n a Sa nd s to ne

PPL 22

Ga s de ve l o p me n t

C/E Ba s i n , SA

BPT 20.21% STO* 66.60% ORG 13.19%

Dri l l i n g th i s mo nth : 1,077 me tre s

Cu rre n t De pth : 1,077 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Ea rl y Creta ceo u s ga s produce r

Co orikia n a Sa nd s to ne

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Monthly Drilling Report - March 2015

Cooper Basin non‐operated

Narie‐4

BPT

20.21%

Dri l l i n g th i s mo nth :

2,808 me tre s

Pa tch a wa rra Fo rma ti o n

PPL 17

STO*

66.60%

Cu rre n t De pth :

2,808 me tre s (to ta l de pth)

Ti rra wa rra Sa nds tone

Ga s de ve l o p me n t

ORG

13.19%

Sta tus :

Pre s s ure te s ti ng BOP

C/E Ba s i n , SA

Narie‐5

BPT

20.21%

Dri l l i n g th i s mo nth :

2,182 me tre s

Pa tch a wa rra Fo rma ti o n

PPL 17

STO*

66.60%

Cu rre n t De pth :

2,801 me tre s (to ta l de pth)

Ti rra wa rra Sa nds tone

Ga s de ve l o p me n t

C/E Ba s i n , SA

ORG

13.19%

Sta tus :

Ca s e d an d su sp e nd e d as a fu tu re Pe rmi a n ga s produce r

Coonatie‐21

BPT 17.14% STO* 72.32% ORG 10.54%

Dri l l i n g th i s mo nth : 409 me tre s

Cu rre n t De pth : 3,149 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Pe rmi a n ga s produce r

Pa tch a wa rra Fo rma ti o n

Ti rra wa rra Sa nds tone

PPL 131

Ga s de ve l o p me n t

C/E Ba s i n , SA

BPT 17.14% STO* 72.32% ORG 10.54%

Dri l l i n g th i s mo nth : 409 me tre s

Cu rre n t De pth : 3,149 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Pe rmi a n ga s produce r

Pa tch a wa rra Fo rma ti o n

Ti rra wa rra Sa nds tone

Coonatie‐22

BPT 17.14% STO* 72.32% ORG 10.54%

Dri l l i n g th i s mo nth : 3,184 me tre s

Cu rre n t De pth : 3,184 me tre s (to ta l de pth)

Sta tus : Pre p a ri ng to ce me n t producti on ca s i n g

Pa tch a wa rra Fo rma ti o n

Ti rra wa rra Sa nds tone

PPL 131

Ga s de ve l o p me n t

C/E Ba s i n , SA

BPT 17.14% STO* 72.32% ORG 10.54%

Dri l l i n g th i s mo nth : 3,184 me tre s

Cu rre n t De pth : 3,184 me tre s (to ta l de pth)

Sta tus : Pre p a ri ng to ce me n t producti on ca s i n g

Pa tch a wa rra Fo rma ti o n

Ti rra wa rra Sa nds tone

Barrolka‐15

BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24%

Dri l l i n g th i s mo nth : 2,739 me tre s

Cu rre n t De pth : 2,739 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Pe rmi a n ga s produce r

To ol a ch e e Fo rma ti o n

PL 112

Ga s de ve l o p me n t

C/E Ba s i n , QLD

BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24%

Dri l l i n g th i s mo nth : 2,739 me tre s

Cu rre n t De pth : 2,739 me tre s (to ta l de pth)

Sta tus : Ca s e d an d su sp e nd e d as a fu tu re Pe rmi a n ga s produce r

To ol a ch e e Fo rma ti o n

Barrolka‐17

BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24%

Dri l l i n g th i s mo nth : 2,547 me tre s Cu rre n t De pth : 2,547 me tre s Sta tus : D ri ll in g ah e a d

To ol a ch e e Fo rma ti o n

PL 151

Ga s de ve l o p me n t

C/E Ba s i n , QLD

BPT 23.20% STO* 60.06% ORG 16.50% APL 0.24%

Dri l l i n g th i s mo nth : 2,547 me tre s Cu rre n t De pth : 2,547 me tre s Sta tus : D ri ll in g ah e a d

To ol a ch e e Fo rma ti o n

International

ASH‐1X ST1

BPT

22.00%

Dri l l i n g th i s mo nth :

732 me tre s

Al a m El Bu e i b / Khatatba ,

Ab u Se nn a n

KEE*

50.00%

Cu rre n t De pth :

4,777 me tre s (to ta l de pth)

Ab u Ro a s h C, E

Oi l exp l o ra ti on

DOV

28.00%

Sta tus :

Fl o w te s ti n g

Egyp t, We s te rn De s e rt

ASA‐3

BPT

22.00%

Dri l l i n g th i s mo nth :

2,578 me tre s

Ab u Ro a s h C, E

Ab u Se nn a n

KEE*

50.00%

Cu rre n t De pth :

2,578 me tre s

Oi l exp l o ra ti on

DOV

28.00%

Sta tus :

D ri ll in g ah e a d

Egyp t, We s te rn De s e rt

( * ) Operator

BPT Bea ch Energy Ltd

APL Aus tra l i a Pa ci fi c LNG Ltd

COE Cooper Energy

DLS Dril ls ea rch Energy Ltd

KEE Kuwa i t Energy Egypt Ltd

ORG Ori gi n Energy Ltd

STO Sa ntos Ltd

DOV Dover Inves tments Ltd

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Monthly Drilling Report - March 2015



Neil Gibbins
Chief Operating Officer

For more information, contact the following on +61 8 8338 2833

Corporate

Neil Gibbins Chief Operating Officer
Chris Jamieson Group Executive External Affairs

Investor Relations

Derek Piper Investor Relations Manager

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