Beach Energy : Monthly Drilling Report April 2018

Beach Energy Limited

ABN 20 007 617 969

25 Conyngham St, Glenside 5065, South Australia

GPO Box 175, Adelaide 5001, South Australia

T: +61 8 8338 2833

F: +61 8 8338 2336 beachenergy.com.auinfo@beachenergy.com.au

ASX release

2 May 2018

Ref: #027/18

Monthly drilling report - April 2018

Development - Cooper and Eromanga Basins

Western Flank Oil - ex PEL 104 / 111

(Beach 40%, Senex 60% and operator)

The two-well oil campaign in the Marauder Field, located approximately 90 kilometres northwest of the Moomba plant, was completed. The second well, Marauder-2 DW1 utilised the Marauder-2 wellbore, which was plugged back and side-tracked to a development location 330 metres northwest of the producing Marauder-1. Marauder-2 DW1 successfully intersected Birkhead reservoir sands and was cased and suspended as a future producer.

South Australian Gas - Cooper Basin JV

(Fixed Factor Area JV: Beach 33.4%, Santos 66.6% and operator)

A horizontal gas and oil development well was drilled in the Tirrawarra Field approximately 50 kilometres north northwest of the Moomba plant. Tirrawarra-94 targeted the Patchawarra Formation as a primary gas objective and the Tirrawarra Sandstone as a primary oil objective. The well encountered good gas shows in the Patchawarra Formation and good oil shows in the Tirrawarra Sandstone, where a 1,050 metre lateral section was drilled. Tirrawarra-94 was cased and suspended as a future gas and oil producer.

A two-well gas development campaign was undertaken in the Marabooka Field, located approximately 45 kilometres east of the Moomba plant. Marabooka-17 and -18 each targeted the Coorikiana Sandstone to develop undrained compartments. The wells encountered gas shows in line with expectations and were cased and suspended as future producers.

Exploration and Appraisal - Cooper and Eromanga Basins

Western Flank Gas - PEL 630

(Beach 50% and operator, Bridgeport 50%)

Beach commenced the second phase of its FY18 operated gas exploration campaign. The campaign is focused on the Southwest Patchawarra (SWP) and Permian Edge (PE) play fairways. Both fairways contain combination structural and stratigraphically trapped conventional gas targets in the Patchawarra Formation.

The first two wells of the five-well campaign are being drilled in the East Block of PEL 630, approximately 70 kilometres northwest of the Moomba plant. Lady Bay-1 and Ulladulla-1 are designed to test the extension of the Patchawarra stratigraphic play in the northern portion of the Patchawarra Trough, in the underexplored PE play fairway. The Patchawarra Formation is theprimary target and the Tirrawarra Formation the secondary target for both wells. Lady Bay-1 intersected encouraging gas shows in the primary target, however, reservoir quality was deemed insufficient for commerciality and the well was plugged and abandoned. At month end, Ulladulla-1, was drilling ahead at 2,999 metres.

South Australian Gas - Cooper Basin JV

(Fixed Factor Area JV: Beach 33.4%, Santos 66.6% and operator)

A single gas appraisal well, Moomba-224, is being drilled in the Moomba Northeast Field, approximately 15 kilometres north of the Moomba plant. The well is targeting the Patchawarra and Epsilon formations as primary targets. At month end Moomba-224 was drilling ahead at 15 metres.

Queensland Gas - Cooper Basin JV

(Beach 39.94%, Santos 60.06% and operator)

A two-well, gas exploration campaign commenced on the greater Hobgoblin prospect, a prospect that extends over an area of approximately 70km2. The first well of the campaign, Mountain Goat-1, was drilled approximately 70 kilometres west of the Ballera gas facility and targeted the Patchawarra Formation as a primary objective. The well intersected gas pay in the primary objective and was cased and suspended for future testing. The second well of the campaign, Hobgoblin-1, is approximately 12 kilometres east of Mountain Goat-1 and also targets the Patchawarra Formation as a primary objective. At month end, Hobgoblin-1 was drilling ahead at 2,703 metres.

Near field exploration well, Tigris-1 was drilled approximately 100 kilometres east southeast of the Moomba plant. The Tigris-1 prospect was identified using the recently acquired Snowball 3D Seismic Survey and targeted the Patchawarra Formation as a primary objective. The well did not intersect commercial pay and was plugged and abandoned.

Monthly Drilling Report - Period ended 06:00, 1 May 2018

BPT SXY*

Oil development C/E Basin, SA Moomba-224 PPL 7

40.00% 60.00%Drilling this month: Current depth: Status:

1,232 metres 2,145 metres (total depth)

Cased and suspended as a future Birkhead Formation oilproducerBirkhead Formation

Gas appraisal C/E Basin, SA Marabooka-17 PPL 22

Gas development C/E Basin, SA Marabooka-18 PPL 22

Gas development C/E Basin, SA Tirrawarra-94 PPL 20

Gas development C/E Basin, SA Hobgoblin-1 ATP 1189

Gas exploration C/E Basin, QLD Tigris-1

ATP 1189

Gas exploration C/E Basin, QLD Mountain Goat-1 ATP 1189

Gas appraisal C/E Basin, QLD

( * ) Operator

BPT Beach Energy Ltd

BE Bridgeport Energy Ltd

STO Santos Ltd

SXY Senex Energy Ltd

Cooper and Eromanga Basins

Group Executive Exploration and Appraisal

Geoff Barker

Group Executive Development

For further information contact the following on +61 8 8338 2833: