Annual Report

2016

Positioned

for Growth

Our vision, purpose and values are clear and concise statements that define Beach as an organisation. These statements have been developed to be enduring, and to navigate us through the longer term.

Beach Energy

We are a proud Australian oil and gas company with a strong pioneering history

We have grown to become Australia's largest onshore oil producer with a major gas business

Our portfolio of strategically located oil and gas assets positions us for further growth

Our vision

We aim to be Australia's premier multi-basin upstream oil and gas company

Our purpose

To deliver sustainable growth in shareholder value

Our values

Our values define us, guide our actions, our decisions and our words

Safety Safety takes precedence in everything we do

Creativity We continuously explore innovative ways to create value Respect We respect each other, our communities and the environment Integrity We are honest with ourselves and others

Performance We strive for excellence and deliver on our promises

Teamwork We help and challenge each other to achieve our goals

Our committed people and our values-based culture are our foundation for success

Contents Overview

About Beach Energy 2

Our strategy 3

Performance overview 4

Drillsearch merger and organisational review 5

Chairman's letter 6

Chief Executive Officer's report 8

Board 10

Executive 12

Review of operations 14

Sustainability

Message from the CEO 19

About this report 20

Governance at Beach 40

Financial Report

Directors' report 42

Auditor's independence declaration 62

Remuneration report 63

Directors' declaration 83

Financial statements 84

Notes to the financial statements 88

Independent auditor's report 124

Shareholder Information

Glossary of terms 126

Schedule of tenements 127

Shareholder information 130

Competent persons statement

The reserves and resources information in this presentation is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, Mr Tony Lake (Manager Cooper Gas). Mr Lake is an employee

of Beach Energy Limited and has a BE (Mech) degree from the University of Adelaide and is a member of the Society of Petroleum Engineers (SPE). The reserves and resources information in this report has been issued with the prior

written consent of Mr Lake in the form and context in which

it appears.

Annual General Meeting

Venue: Adelaide Convention Centre

Address: North Terrace, Adelaide, SA 5000

Date: 10.30am, Thursday, 10 November 2016

BEACH ENERGY LIMITED Annual Report 2016 1

About Beach Energy

"Beach Energy is committed to creating shareholder value in a sustainable manner. We have a clear focus on our geographic areas of expertise

- Australia and nearby locations with similar risk profiles."

Matt Kay

Chief Executive Officer

Record production of

9.7 MMboe

Beach Energy is an ASX-listed oil and gas exploration and production company, with core operations in South Australia's Cooper and Eromanga basins, Australia's most prolific onshore oil and gas province. We are a values-based organisation, where safety takes precedence in everything we do. Beach is committed to sustainability and improvement of social, environmental and economic outcomes for the benefit of all stakeholders.

Beach has established a world-class operated oil business on the Western Flank of the Cooper Basin, and has grown to become Australia's largest onshore oil producer. We have an active operated drilling program, with a strong focus on Western Flank exploration, and we continue to develop our acreage across the Cooper Basin.

Beach also has a major gas business with strategic infrastructure, which is well positioned to service demand in the Australian east coast gas market. In addition to the Cooper Basin, Beach has permits in other basins around Australia and New

Zealand. International operations further abroad have been curtailed so as to re-focus efforts closer to home.

Beach is actively pursuing growth opportunities within Australia and nearby which align with our strategy and satisfy strict capital allocation criteria. These efforts are being undertaken in a disciplined manner.

53% 47%

Browse and Carnarvon Basins

Bonaparte Basin

Oil Gas

NT

QLD

WA

SA

NSW

Cooper / Eromanga Basins

Taranaki Basin

Cooper and Eromanga basin permit interests

Otway Basin

Existing acreage

VIC

TAS

New Zealand

Canterbury Basin

EROMANGA BASIN

COOPER BASIN

Western Flank Gas and Gas Liquids

Ex PEL106 (100%*)

  • Middleton Facility Ex PEL 513 (40%)

    Ex PEL 101 (80%*)

    Western Flank Oil

    Ex PEL 91 (100%*)

  • Bauer Field

Ex PEL 92 (75%*)

Ex PEL 104/111 (40%) PEL 182 (43%)

Lycium Hub

CE16-0149a

Callawonga Lycium

South Australia

Moomba

Ballera

Unconventional acreage1

Jackson

Queensland

Delhi - SACB and SWQ JVs

Oil and gas exploration and production Conventional and Unconventional Strategic infrastructure

- Moomba Facility

Greater Kenmore-Bodalla area oil assets 2

0 40 80 km

Facility / operations Oil pipeline

Gas pipeline

Beach operated permit Beach non-operated permit SACB and SWQ JVs

* Denotes operatorship

1Care and maintenance while

unconventional strategy under review

2 Certain assets subject to sale agreement with Bridgeport; refer announcement of 3 August 2016

2 BEACH ENERGY LIMITED Annual Report 2016

Beach Energy Limited published this content on 07 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 October 2016 01:37:06 UTC.

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