Beach Energy : Monthly Drilling Report May 2018

Beach Energy Limited

ABN 20 007 617 969

25 Conyngham St, Glenside 5065, South Australia

GPO Box 175, Adelaide 5001, South Australia

T: [phone]

F: [phone]

ASX release

6 June 2018

Ref: #031/18

Monthly drilling report - May 2018

Highlights

•  Results of oil appraisal at Watkins and Minos fields encouraging for field development plans.

•  Continued success in 100% owned ex PEL 106 wet gas acreage with Coalinga-1 DW1.

Development - Cooper and Eromanga Basins

South Australian Gas - Cooper Basin JV

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

A six-well gas development campaign was commenced in the Moomba North Field, approximately 15 kilometres north of the Moomba plant. The six wells are expected to be drilled from two pads and are targeting the Toolachee, Daralingie and Patchawarra formations as primary targets. The first well of the infill development campaign, Moomba-221, intersected gas shows in the Toolachee Formation and was cased and suspended as a future producer.

Exploration and Appraisal - Cooper and Eromanga Basins

Western Flank Gas - PEL 630; ex PEL 106

(Beach 50% and operator, Bridgeport 50%); (Beach 100%)

Beach continued 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 were drilled in the East Block of PEL 630, approximately 70 kilometres northwest of the Moomba plant. The second well, Ulladulla-1, tested the extension of the Patchawarra stratigraphic play in the northern portion of the Patchawarra Trough, in the underexplored PE play fairway. Ulladulla-1 did not encounter gas bearing sands and was plugged and abandoned. The results of the Lady Bay-1 and Ulladulla-1 wells are being fully assessed to determine future plans for PEL 630.

The campaign moved to 100% Beach owned ex PEL 106 where exploration well, Coalinga-1, was drilled. Coalinga-1 is located approximately 52 kilometres northwest of the Moomba plant and targeted mid-Patchawarra intervals of the Patchawarra Formation in the SWP play fairway as a primary target. After not encountering gas pay, the well was plugged back and side tracked to Coalinga-1 DW1, an alternative exploration prospect approximately 620 metres to the west. Coalinga-1 DW1 encountered 6.3 metres of net gas pay in the Patchawarra Formation and was cased and suspended as a future producer. Reservoir pressure information indicated good permeability and connection to the Brownlow Field.

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, was drilled in the Moomba Northeast Field, approximately 15 kilometres northeast of the Moomba plant. The well targeted the Epsilon and Patchawarra formations as primary targets. The well intersected a poorly developed Epsilon Formation, however the Patchawarra Formation was better developed and the well was cased and suspended as a future producer.

Queensland Gas - Cooper Basin JV

(SWQ JV: Beach 39.94%, Santos 60.06% and operator)

A two-well, gas exploration campaign was completed on the greater Mountain Goat-Hobgoblin prospect, a prospect that extends over an area of approximately 70km2. The second well of the campaign, Hobgoblin-1, is approximately 12 kilometres east of the first well, Mountain Goat-1, and targeted the Patchawarra Formation as a primary objective. The well encountered encouraging gas shows in the Patchawarra Formation and was cased and suspended for future production testing.

A two-well gas appraisal campaign commenced in the Whanto Field, approximately 100 kilometres northeast of the Ballera gas facility. The campaign is designed as a step out from the main Whanto structure to appraise reservoir continuity of the Toolachee and Patchawarra formations in its southwestern area. The first well, Whanto-5, intersected gas shows in the Toolachee and Patchawarra formations and was cased and suspended as a future producer. An 18 metre core sample was also obtained over the primary Toolachee reservoir. This conventional core will provide information to assist with reservoir characterisation and identification of future targets.

Queensland Oil - Cooper Basin JV

(Naccowlah JV: Beach 38.5%, Santos 55.5% and operator, others 6.0%); (Innamincka JV: Beach 30%, Santos 70% and operator)

A three-well oil appraisal campaign was undertaken in the Watkins and Minos fields, approximately 60 to 65 kilometres southwest of the Jackson facility. Two appraisal wells were drilled in the Watkins Field (Naccowlah JV) and the third in the nearby Minos Field (Innamincka JV).

Watkins-2 and -3 were designed to appraise the northwest and southeast flanks of the structure and increase production from the Field. The wells targeted the Birkhead Formation as a primary target where they each intersected oil pay and were cased and suspended as future producers.

A single oil appraisal well was drilled in the Minos Field designed to appraise the Birkhead Formation as a primary target. Minos-3 intersected oil pay and was cased and suspended as a future producer.

The results for the three oil appraisal wells will be incorporated into an area wide development plan.

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

Well

Participants

Progress and summary

Primary targets

Cooper Basin operated

Coalinga-1 PPL 239

Gas exploration C/E Basin, SA Coalinga-1 DW1 PPL 239

Gas exploration C/E Basin, SA Ulladulla-1 PEL 630

Gas exploration C/E Basin, SAPatchawarra FormationPatchawarra FormationPatchawarra Formation

Cooper Basin non-operated

Moomba-221 PPL 7

Gas development C/E Basin, SA

Moomba-224 PPL 7

Gas appraisal C/E Basin, SA

Minos-3

PL 301

Oil appraisal C/E Basin, QLD

producer

Watkins-2

PL 35

Oil appraisal C/E Basin, QLD

Watkins-3

PL 35

Oil appraisal C/E Basin, QLD

Hobgoblin-1 ATP 1189

Gas exploration C/E Basin, QLD

Whanto-5

PL 148

Gas appraisal C/E Basin, QLD

( * ) Operator

BPT Beach Energy Ltd AGF Australian GasfieldsBE Bridgeport Energy Ltd BOG Bounty Oil & Gas NLSTO Santos Ltd

Cooper and Eromanga Basins

Jeff Schrull

Group Executive Exploration and Appraisal

Geoff Barker

Group Executive Development

For further information contact the following on [phone]:

Corporate	Jeff Schrull, Group Executive Exploration and Appraisal
Geoff Barker, Group Executive Development
Investor Relations	Mark Hollis, Investor Relations Advisor
Media	Rob Malinauskas, Group Manager - Corporate Affairs