BEACH ENERGY LIMITED — Capital/Financing Update 2012

Mar 26, 2012

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For Immediate Release – 27 March 2012 Ref. #028/12

ASX Ltd Companies Announcement Office Electronic Lodgement System

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Dear Sir,

RIGHTS ISSUE NOTICE UNDER SECTION 708AA(2)(F) OF THE CORPORATIONS ACT 2001 AS MODIFIED BY ASIC CLASS ORDER [08/35].

Beach Energy Limited (ASX: BPT, "Beach") is to undertake an accelerated rights issue of approximately 140 million ordinary shares to its shareholders on the basis of a non renounceable entitlement to subscribe for one ordinary share for every eight shares held as at the record date of 30 March 2012 with each such share being issued at an issue price of $1.40 to raise approximately $195 million.

Beach states that it will offer the shares for issue without disclosure to investors under Part 6D.2 of the Corporations Act 2001 ( Act ) and states that this notice is given to ASX under paragraph 708AA(2)(f) of the Act, as modified by ASIC Class Order [08/35].

The offer will consist of two components being an offer to existing institutional shareholders ( Institutional Entitlement Offer ) and an offer to existing retail shareholders ( Retail Entitlement Offer ) as at the record date with a registered address in Australia or New Zealand.

Beach advises:

• (a) the shares will be offered for issue under a rights issue as defined in the Act;

• (b) the shares are in a class of securities, being fully paid ordinary shares, that are quoted securities at the time at which the offer will be made;

• (c) trading on the stock market conducted by ASX Limited in that class of securities referred to in (b) above (being the fully paid ordinary shares in the capital of Beach) was not suspended for more than a total of five days during the shorter of the following periods:

  • (1) the period during which the class or securities is quoted;

  • (2) the period of 12 months before the day on which the offer is made;

• (d) no exemption under section 111AS or 111AT covered Beach, or any person as director or auditor of Beach, at any time during the period of 12 months before the day on which the offer will be made, being the relevant period referred to in paragraph (c);

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ASX Release

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• (e) no order under section 340 or 341 covered Beach, or any person as a director or auditor of Beach, at any time during the relevant period referred to in paragraph (c).

Beach gives notice that as at the date of this notice Beach has complied with the provisions of:

• (a) Chapter 2M of the Act as they apply to Beach;

• (b) section 674 of the Act.

As at the date of this notice there is no excluded information being information:

• (a) that has been excluded from a continuous disclosure notice in accordance with the Listing Rules of ASX; and

• (b) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

  • (1) the assets and liabilities, financial position and performance, profits and losses and prospects of Beach; or

  • (2) the rights and liabilities attaching to the shares or generally to the ordinary shares in the capital of Beach.

As the proposed offer is a pro-rata offer, it is not expected to have any material effect or consequences on the control of Beach.

Dated 27 March 2012

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Cathy Oster General Counsel / Joint Company Secretary Beach Energy Limited

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