BEACH ENERGY LIMITED — Capital/Financing Update 2012

Oct 17, 2012

ASX Announcement

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Mustang oil discovery delivers excellent results during production testing

Release Date: 18 October 2012

Senex Energy Limited (Senex) is pleased to advise that initial production testing at the Mustang-1 oil exploration well in South Australian Cooper Basin permit PEL 111 (Senex 60%) has confirmed excellent oil production potential.

KEY POINTS

• Mustang-1 free flowed at a rate of 6,700 barrels of oil per day (bopd) during clean up.

• Despite being choke constrained, the well produced at a controlled rate of ~800 bopd during a 10 day production test with minimal pressure depletion.

• The well exhibited excellent reservoir quality with highly permeable, oil filled sands.

• Planning is underway to expedite longer term production testing at Mustang-1, targeting 2,000 bopd.

In July 2012, the Mustang-1 oil exploration well intersected an interpreted net oil pay of 4.0 metres in the oil-bearing sands of the mid-Birkhead Formation over the interval 1,787.0 to 1,791.5 metres. During a drill stem test, oil flowed to surface after 23 minutes and continued to flow at a rate equivalent to approximately 2,500 bopd. The well was then cased and suspended as a future oil producer.

The well continued to demonstrate excellent reservoir quality during initial production testing. Mustang-1 was completed as a free-flowing oil producer in early September 2012 and produced the equivalent of 6,700 bopd through a ¾ inch choke during a 15 minute clean up flow. During a subsequent 10 day production test, the well produced at a controlled rate of ~800 bopd through an 18/64 inch choke with minimal pressure depletion.

Senex Managing Director Ian Davies said planning was underway to place Mustang-1 on extended production test within this quarter.

“Mustang-1 is a perfect example of Senex’s capacity to accelerate oil field developments. It is also an excellent example of the significant upside within our Cooper Basin acreage,” he said.

Senex holds a 60% interest in PEL 111 and is the Operator of the joint venture. The remaining 40% interest is held by Beach Energy Limited.

Senex Energy Limited Head Office ABN 50 008 942 827 Level 11, 144 Edward St, Brisbane Qld 4000 T +61 7 3837 9900 info@senexenergy.com.au GPO Box 2233, Brisbane Qld 4001 F +61 7 3837 9999 senexenergy.com.au

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ASX Announcement

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For further information contact:

Ian Davies Managing Director Senex Energy Limited Phone: (07) 3837 9900

Figure 1: Location of the Mustang-1 oil discovery

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T +61 7 3837 9900 F +61 7 3837 9999

Senex Energy Limited Head Office ABN 50 008 942 827 Level 11, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane Qld 4001

info@senexenergy.com.au senexenergy.com.au

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