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BEACH ENERGY LIMITED Capital/Financing Update 2011

Jan 24, 2011

64558_rns_2011-01-24_d677cb33-f149-40b1-98e2-ff6592b491ef.pdf

Capital/Financing Update

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ASX/MEDIA ANNOUNCEMENT

25 January 2011

The Manager Companies Announcements Office Australian Securities Exchange

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HOLDFAST-1 WEEKLY DRILLING REPORT

ITEM DETAIL
Well name
Holdfast-1
Permit
PEL 218(Permian JV)
Participants
Beach Energy Ltd – 90% (Operator)

Adelaide EnergyLtd(ADE)– 10%
Primary targets
Roseneath/Epsilon/Murteree shale/sand/shale
sequence(“REM” unit)
Spud date
21 January2011
Target depth(prognosed)
3625m
Total depth@end of current week
776m
Total depth@end ofprevious week
0m
Metres drilled duringweek
776m
Activities duringweek
Spud well : drill 17 ½” surface hole from 0 – 776m
Current activities
Drillingahead
Planned activities
Drill surface hole to +/-950m - set 13 3/8” surface
casing – install BOP’s, pressure test and drill
12 ¼” intermediate hole

Commenting on the spudding of the well, Adelaide Energy Ltd’s Managing Director, Mr Carl Dorsch, said:

“We are pleased that we have now got over some weather issues which delayed the spudding of Holdfast-1, a well that is intended to contribute to the establishment of a potentially very large contingent resource of shale gas across the Nappamerri Trough. We are looking forward to the initial results from the analysis of the cores taken during the drilling of Encounter-1, which should be available over coming weeks.

We remain confident that we will complete this well and the further planned evaluation work (fraccing, core analysis etc) on both of the wells without any costs to ADE.”

For further information contact:

Carl Dorsch Neil Young Managing Director Chief Commercial Officer Adelaide Energy Limited Adelaide Energy Limited Mob: 0400 508 088 Mob : 0417 850 245 [email protected] [email protected]

ASX Code : ADE

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Holdfast-1
0 1 Time Depth Chart
1. Holdfast-1 spudded on 21/01/11 at 1400hrs.
2. Drilling ahead in 17.5" hole.
500
2
Surface (17.1/2") hole pTD @ 950m
1000
1500
2000
2500
Intermediate (12.1/4") hole pTD @ 2600m
3000
3500 Prognosed Production (8.1/2") hole pTD @ 3487m
Actual
4000
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
DEPTH (mRT)
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