Beach Energy : Monthly Drilling Report April 2016

Microsoft Word - ASX Release - Monthly Drilling Report - April 2016

For immediate release - 4 May 2016

Ref. #035/16

ASX Ltd

Companies Announcement Office Electronic Lodgement System

April 2016

AUSTRALIA - COOPER AND EROMANGA BASINS DEVELOPMENT

South Australian Gas (Fixed Factor Area Joint Venture: Beach 20.21%, Santos 66.6% and operator, Origin 13.19%)

A five‐well development campaign commenced in the Tirrawarra‐Gooranie Field, which is located approximately 50 kilometres north of the Moomba gas processing facility. The 2011 Patchawarra Study and subsequent drilling campaigns have identified potential for further development of this area. The current campaign is targeting gas and gas liquids within the Patchawarra Formation and oil within the Tirrawarra Sandstone. The first well of the campaign, Tirrawarra‐93, is currently drilling ahead.

EXPLORATION AND APPRAISAL

South Australian Gas - Ex PEL 513 (Beach 40%, Santos 60% and operator)

The four‐well near‐field exploration and appraisal campaign in the ex PEL 513 permit area was completed. The campaign targeted the liquids‐rich gas play area of the southern Patchawarra Trough, with prospects identified on the Jacenza 3D seismic survey. Lyra‐1, the final near‐field exploration well of the campaign, is located in PRL 200 approximately 60 kilometres northwest of the Moomba gas processing facility. The well intersected gas pay within the target Patchawarra Formation sandstones and was cased and suspended for further testing.

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

A three‐well appraisal campaign commenced in the Durham Downs Complex, which is located approximately 30 kilometres north of the Ballera gas processing plant. The campaign is being undertaken following development studies which identified potential to appraise and develop new reserves within the Toolachee Formation. Durham Downs‐9, the first well of the campaign, was plugged and abandoned due to poor reservoir development.

Durham Downs North‐5, the second well of the campaign, will be cased and suspended as a Toolachee Formation producer following a high side gas pay outcome.

South Australian Gas - Ex PEL 101 (Beach 80% and operator, Mid Continent 20%)

In February 2016, the second well of a two‐well gas exploration campaign in PRL 174, Jute‐1, was cased and suspended for further testing. The well was drilled to test the potential of tight sandstones and coals within the Tirrawarra Sandstone and Patchawarra and Epsilon formations. Fracture stimulation operations commenced on 27 March 2016, with four stages successfully placed. No measurable gas rate to surface was recorded during the post fracture stimulation clean‐up and Jute‐1 is now shut‐in on extended pressure build up. Willow‐1, the first gas exploration well of the campaign, was perforated in three target zones on 27 April 2016. Production testing and swabbing operations are underway, however no measurable gas rate has been recorded during the production test to date.

Monthly Drilling Report - Period ended 06:00, 1 May 2016

Well

Participants

Progress and Summary

Primary Targets

Cooper Basin non‐operated
Tirrawarra‐93	BPT 20.21% STO* 66.60% ORG 13.19%	Drilling thi s month: 1,816 metres Current depth: 1,816 metres Sta tus: Drilling ahead	Patchawarra Formation Ti rra warra Sandstone
PPL 20 Gas development C/E Basin, SA

Lyra‐1	BPT STO*	40.00% 60.00%	Drilling thi s month: Current depth: Status:	3,007 metres 3,007 metres (total depth) Cased and suspended for further te sting	Patchawarra Formation
PRL 200 Gas exploration C/E Basin, SA
Durham Downs‐9	BPT STO* ORG	23.20% 60.06% 16.74%	Drilling thi s month: Current depth: Sta tus:	2,623 metres 2,623 metres (total depth) Plugged and abandoned	Toolachee Formation
PL 80 Gas appraisal C/E Basin, QLD

Durham Downs North‐5	BPT 23.20% STO* 60.06% ORG 16.74%	Drilling thi s month: 2,636 metres Current depth: 2,636 metres (total depth) Status: Preparing to conduct pressure survey	Toolachee Formation
PL 80 Gas appraisal C/E Basin, QLD

( * ) Operator

BPT Beach Energy Ltd STO Santos Ltd ORG Origin Energy Ltd

Mike Dodd

Group Executive Exploration and Development

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

Mike Dodd Group Executive Exploration and Development

Investor Relations:

Derek Piper Investor Relations Manager