BEACH ENERGY LIMITED — Capital/Financing Update 2012

Feb 28, 2012

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For Immediate Release – 29 February 2012 Ref. #013/12

ASX Ltd Companies Announcement Office Electronic Lodgement System

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Dear Sir,

BEACH DISCOVERY SUCCESS IN PEL106B ON THE WESTERN FLANK

Beach has discovered gas, flowing at 4.5 MMscfd, and gas liquids, in its Coolawang-1 exploration well in PEL 106B on the Western Flank of the Cooper Basin

Beach Energy Limited (ASX: BPT, “Beach”) has successfully discovered gas and gas liquids in its Coolawang-1 exploration well in PEL 106B (Beach 50% and operator, Drillsearch 50%).

The Coolawang-1 exploration well was spudded on 9 February 2012 and reached a target depth of 2,864 metres. A drill stem test (“DST”) was conducted to evaluate an interval between 2,656 to 2,661 metres which had gas shows during drilling and wireline evidence of productivity. The DST flowed gas at a stabilised rate of 4.5 MMscfd (1/2” choke) with subsequent pressure data indicating no evidence of depletion.

Furthermore, pressures indicate the potential for a 20 metre column of gas, confirming that the sand is a stratigraphic trap analogous to the currently producing Middleton and Brownlow Fields, which are 13 kilometres to the south. The flow also delivered a significant but as yet unquantified rate of high-value 50° API gas liquids. No water was evident.

Wireline data indicates the presence of other Patchawarra sands that are highly prospective for gas. These will be tested as part of an extended production test that is expected to confirm the volumetric and commercial potential of the well/field.

The Coolawang-1 well is located 2.3 kilometres north of the liquids rich Canunda-1 gas field. Subject to commerciality, the two fields may be developed together. Coolawang-1 is

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ASX Release

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the third in a four well exploration drilling program in PEL 106B, targeting stratigraphic traps in the Patchawarra formation in close proximity to existing gas discoveries.

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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