BEACH ENERGY LIMITED — Capital/Financing Update 2012

Jul 29, 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

30 July 2012

Oil wells spud at Bauer-7 & Olive Oyl-1

• Bauer-7 development and production well spuds

• Well will also appraise Birkhead pay zone encountered at Bauer-5

• Olive Oyl-1 oil exploration well spuds in Tintaburra Block

Drillsearch Energy Limited (ASX: DLS) is pleased to announce the spudding of two oil wells in the Cooper Basin, Bauer-7 on the Western Flank Oil Fairway in South Australia and Olive Oyl-1 in the Tintaburra Block in South West Queensland.

PEL 91 Western Flank Oil Fairway – Spudding of Bauer-7

Following the success of the Bauer-5 appraisal and development well, drilling continues on the Western Flank Oil Field Development Program with the spudding of the Bauer-7 development well at 12.30pm, Friday 27 July 2012.

Bauer-7 is being drilled as an oil production well in the eastern portion of the Bauer Oil Field. The primary objective of Bauer-7 is the development of the McKinlay and Namur pay zones of the Bauer Oil Field. Bauer-7 is also design to test the extent of the field’s eastern boundary and will be drilled as a vertical well, located 0.5 km to the east, south east of Bauer-5.

Given the success with the new Birkhead Formation oil discovery at Bauer-5, the PEL 91 Joint Venture (Drillsearch 60% and Beach Energy (ASX: BPT) operator at 40%) has also decided to drill Bauer-7 into the Birkhead Formation to further appraise the Birkhead Formation pay zone encountered in the Bauer-5. As previously announced, Bauer-5 was a new oil discovery in the Birkhead Formation which tested on DST at 1,160 BOPD of light oil from high quality Birkhead reservoir.

ATP 299 Tintaburra Block – Olive Oyl-1 oil exploration well spuds

The ATP 299 Joint Venture (Drillsearch 11% and Santos 89% and Operator) has spudded the Olive Oyl-1 near field oil exploration well at 2.30am on Friday, 27 July 2012 in the Tintaburra Block. The well will be drilled as a conventional vertical well and will test a new play fairway targeting oil migration into shallow a faulted Wyandra sandstone prospect. It will also target oil pay zone potential within the deeper Murta Member. This well is being drilled as part of a multi-well campaign in the Tarbat area.

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If successful, the well will be completed as an oil producer on beam-pump artificial lift and connected to the existing Kooroopa North oil facility, from where the crude is trucked to the central Tintaburra Block oil production facility before being piped to Moomba.

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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ATP 299 – Tintaburra

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