BEACH ENERGY LIMITED — Capital/Financing Update 2012

Nov 18, 2012

Drillsearch Energy Limited ABN 73 006 474 844 Telephone +61 2 9249 9600 Facsimile +61 2 9249 9630 admin@drillsearch.com.au www.drillsearch.com.au Level 16, 55 Clarence Street Sydney NSW 2000

19 November 2012

Bauer-9 confirms further extension of Bauer Oil Field

• Bauer-9 proves the northwest extension of Bauer Oil Field

• 10 metres of net oil pay

• Result supports Bauer & Bauer North as common oil pool

• Further material increase in Reserves expected from Bauer Oil Field

Drillsearch Energy Limited (ASX: DLS) is pleased to announce that the Bauer-9 appraisal/development well has proven northwest extension of the Bauer Oil Field. Bauer-9 is to be cased and suspended as a future oil producer after encountering net oil pay in both the McKinlay and Namur sandstones. Bauer-9 was drilled by the PEL 91 Joint Venture which consists of Drillsearch 60% and Beach Energy as Operator 40%.

The Bauer-9 well has confirmed the extension of the field further north, intersecting a total of 10.7 metres of net oil pay - 3.7 metres of net oil pay in the McKinlay Formation and a further 7 metres in the Namur Sandstones - over a 14 metre gross interval. Oil shows in the secondary target Birkhead formation were also encountered in Bauer-9 over a 11 metre interval but the well location appears to have been suboptimal for intersecting the Birkhead interval at this location.

The Bauer-9 well is located 800 metres north west from the successful Bauer-8 development well, 1.6 km south-west of the Bauer North Oil discovery well and 2.8km west, south-west of the Basham-1 oil discovery well (see attached map). Following the success of the Bauer North Oil Discovery, one of the key objectives of the Bauer-9 well was also to appraise the potential for the Bauer and Bauer North fields to be part of a common oil pool. The Bauer-9 result adds additional support that the Bauer and Bauer North are part of a common larger oil pool.

Drillsearch Managing Director, Brad Lingo said, “The FY 2013 appraisal and development drilling program in PEL 91 has been a tremendous success for the Company. Not only has this drilling program proven the Bauer Oil Field is much larger than originally expected, it has clearly demonstrated the field may extend as far north as the Bauer North Oil Discovery. This success and the success of the Bauer North Oil Discovery will significantly contribute to a further uplift in the Company’s oil Reserves.”

On 16 November 2012, Drillsearch announced a 22% increase in the 2P reserves for the Bauer Oil Field to 8.2 mmbbls (gross) based on the results from the Bauer 1-8 wells. With the drilling of the Bauer-9 and Bauer North Oil Discovery, Drillsearch will be undertaking a further comprehensive remapping of the Bauer Oil Field to incorporate the results of the most recent successes at Bauer-

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9 and Bauer North. The Company believes that these additional results will have a material impact on the overall Reserves of the Bauer Oil Field and for the Company. The Company anticipates completing this further work towards the end of CYE 2012.

Following the drilling of Bauer-9 the Ensign 930 rig will move to the exploration well Pennington-1 located 9.3km east of the Bauer Oil Field.

Yours faithfully

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Brad Lingo Managing Director P+612 9249 9600 admin@drillsearch.com.au

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Media enquiries to: Amanda Caucino, Senior Account Manager, Mercury Consulting, P: +61 2 8256 3323 E: amanda.caucino@mercuryconsulting.com.au

About Drillsearch Energy Limited (ASX: DLS), which listed on ASX in 1987, explores and develops conventional and unconventional oil and gas projects. Drillsearch has a strategic spread of petroleum exploration and production acreage in Australia’s most prolific onshore oil and gas province, the Cooper-Eromanga Basins in South Australia and Queensland. The company’s focus is on ‘brownfields’ exploration where geological risk is reduced and there is access to existing infrastructure, ensuring that any discoveries can be brought into production.

Competent Person Statement

Information on the Reserves and Resources in this release has been compiled by Mr. David Evans, Chief Technical Officer of Drillsearch who has given his consent as of the date of this release to the inclusion of this statement and the information in the form and the context in which they appear in this release.

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PEL 91 Western Flank Oil Fairway – Bauer Oil Field Development

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