For Immediate Release - 30 January 2014

Ref. #003/14

ASX Ltd/SGX Singapore Exchange Ltd Companies Announcement Office Electronic Lodgement System
Dear Sir,

FY14 REVISED PRODUCTION AND CAPEX GUIDANCE:

Production guidance range increased to 9.2 - 9.6 MMboe

Capital expenditure range increased to $450 - $500 million

Beach Energy Limited (ASX: BPT, "Beach") advises of the following increased guidance range in relation to both production and capital expenditure for the financial year 2014 ("FY14"):

Production

The production guidance range has increased from 8.7 - 9.3 MMboe to 9.2 - 9.6 MMboe.
The main driver behind the increase is strong oil production from the Western Flank, with flowlines remaining at maximum available capacity year to date. It is anticipated that oil production levels will be maintained over the remainder of the financial year due to new oil wells being brought on-line, the completion of the Bauer facility expansion and an active exploration and appraisal drilling campaign.

Capital Expenditure

The capex guidance range has increased from $420 - $480 million to $450 - $500 million.
The increase in the range is mainly due to updated figures received for the calendar year 2014 budget for the Delhi operations (SACB JV and SWQ JVs). The guidance range allows for discretionary expenditure as deemed appropriate and the potential impact of weather and other delays on the various capital expenditure programs. The range does not account for potential acquisitions, divestments or farm downs.
The breakdown of the revised capital expenditure ranges are as follows:

Development expenditure, $265 - $295 million:

o Cooper Basin (non-SACB JV), $55 - $60 million
o Cooper Basin (SACB JV and SWQ JVs), $200 - $220 million
o International, $10 - $15 million

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ASX Release

Exploration expenditure, $185 - $205 million:

o Cooper Basin (non-SACB JV), $40 - $45 million

o Cooper Basin (SACB JV and SWQ JVs), $5 million

o Unconventional, $105 - $115 million
o International, $30 - $35 million

o New Ventures and other, $5 million

As a result of an expected improvement in operating cash flow for FY14, and in conjunction with a cash balance at 31 December 2013 of $404 million and a secured $300 million finance facility, Beach anticipates it will be able to fund its FY14 capital expenditure activities in full.

Yours sincerely,

Reg Nelson

Managing Director, FAusIMM

For more information contact Corporate

Reg Nelson Beach Energy Ltd 08 8338 2833

Investor Relations

Chris Jamieson Beach Energy Ltd 08 8338 2833

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