BEACH ENERGY LIMITED — Capital/Financing Update 2012

Jul 22, 2012

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For Immediate Release – 23 July 2012 Ref. #070/12

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

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Dear Sir,

BAUER-5 NAMUR OIL INTERSECTION AND NEW POOL OIL DISCOVERY IN THE BIRKHEAD

Bauer-5 has successfully intersected six metres of net oil pay in the Namur sandstone, as well as flowing oil from the Birkhead formation at 1,160 bopd from DST, to further expand the Bauer oil field to the North East

Beach Energy Limited (ASX: BPT, “Beach”) advises it has extended the Bauer oil field through drilling the Bauer-5 well in PEL 91 (Beach 40% and operator, Drillsearch 60%).

Bauer-5 intersected the primary Namur target, just over 1 metre high to prognosis, in an excellent quality reservoir. This resulted in 6 metres of net oil pay and confirms the extension of the mapped Namur accumulation to the north east of the Bauer oil field. Flow rates are expected to be in line with those of previously completed wells, with the impact on reserves to be confirmed by further appraisal drilling.

The secondary target of the Bauer-5 well, the Birkhead formation, encountered a 5 metre oil column. The interval was drill stem tested, with 48.3 degree API oil coming to surface after 28 minutes at 1,160 barrels per day.

Due to the stratigraphic nature of Birkhead accumulations, it will be difficult to estimate the additional mean recoverable barrels from Bauer-5. However, it is likely that the well will have a material impact to the field in terms of 2P reserves. The well is to be cased and suspended as a future oil producer.

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ASX Release

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Following the completion of the evaluation program, the Ensign 930 rig will be moved to the Bauer-7 development well, which is located approximately one kilometre to the South West of Bauer-5.

Reg Nelson, Managing Director of Beach, said: “The continued appraisal success within the Bauer oil field is not only important from a future production perspective, but also builds on our understanding of oil accumulations as they trend North East from Bauer. The Namur sandstone was the primary target of the Bauer-5 appraisal well, however, the recovery of oil from the Birkhead formation was the first of its kind in PEL 91. We recently completed 3D seismic along this trend line and have already identified some interesting prospects and leads which we will drill over the course of FY13.”

Yours sincerely,

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Reg Nelson Managing Director, FAusIMM

For more information contact

Corporate

Reg Nelson Beach Energy Ltd +61 8 8338 2833 Investor Relations Chris Jamieson Beach Energy Ltd +61 8 8338 2833

Investor Relations

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