BEACH ENERGY LIMITED — Capital/Financing Update 2012

Mar 4, 2012

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For Immediate Release – 5 March 2012 Ref. #015/12

ASX Ltd Companies Announcement Office Electronic Lodgement System

Dear Sir,

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FOURTH EGYPTIAN EXPLORATION DISCOVERY IN BEACH’S ABU SENNAN CONCESSION

Beach advises that a fourth consecutive exploration discovery, in the Abu Sennan concession in Egypt, has flowed oil, condensate and gas at a combined rate of 5,600 boepd

Beach Energy Limited (ASX: BPT, “Beach”) is pleased to announce its fourth consecutive discovery at the El Salmiya-1 exploration well in the Egyptian Abu Sennan concession. The El Salmiya-1 well, located approximately 10 kilometres east of the Al Ahmadi-1 and ZZ-4 discoveries, was the fourth well drilled as part of a six well exploration program.

El Salmiya-1 reached total depth in the Kharita Formation at 3,799 metres, with initial testing flowing oil at a rate of 400 bpd from the Abu Roash “E” target zone, as well as condensate and gas at rates of 2,500 bpd and 17 MMscfd, respectively, from the Abu Roash “C” target zone. As this discovery has commercial flow rates, the operator, Kuwait Energy PLC, anticipates commercial production of the El Salmiya-1 discovery as soon as all appropriate approvals are received from the regulatory authorities.

The final two wells of the six well program, Salwa-1 and Hawalli-1, are further south in the concession and have recently reached total depth. Results from these wells are currently being analysed.

The Joint Venture equity interests in Abu Sennan are:

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Beach (via wholly owned subsidiary Beach Petroleum (Egypt) Pty Ltd) - 22% Kuwait Energy PLC - 50% and Operator

Dover Investments Limited - 28%

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ASX Release

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Yours sincerely,

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Reg Nelson Managing Director, FAusIMM

For more information contact

Corporate

Reg Nelson Beach Energy Ltd 08 8338 2833 Investor Relations Chris Jamieson Beach Energy Ltd 08 8338 2833

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