BEACH ENERGY LIMITED — Management Reports 2017

Sep 5, 2017

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Drilling Report
August 2017
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Monthly Drilling Report

Release Date: 6 September 2017

Senex is half way through its Phase 2 drilling program of 30 appraisal wells for the Western Surat Gas Project in Queensland, and has drilled an oil appraisal well in the Cooper Basin during August.

Surat Basin - Western Surat Gas Project

Seven wells were drilled within the Eos and Glenora blocks during August with all wells cased and suspended as future coal seam gas producers. Of the 30 wells in the current campaign, 14 wells have been drilled with the 15[th] well spudded in early September.

The Phase 2 investment program for the Western Surat Gas Project focuses on the south-east area of Senex’s permits, within the drill-ready blocks Eos (ATP 795) and Glenora (ATP 889). The area is approximately 30 kilometres from Roma and directly north of GLNG’s producing Roma field. The campaign is appraising the coal seam gas production potential of the Walloon coal measures with an average well depth of around 430 metres.

Construction activities for water and gas handling infrastructure continued during August, with the gathering system nearing completion and wellsite skid installations underway. Senex holds 100% operating interest in the Western Surat Gas Project. Refer to the map in Figure 1 showing drilling locations.

Cooper Basin

Martlet North-2 oil appraisal well (ex-PEL 104/111: Senex 60% and operator)

Marlet North-2 was drilled as a deviated oil appraisal well targeting the Namur Sandstone, approximately 250 metres north-east of the producing Martlet North-1 well. The well was identified from the Mollichuta 3D seismic survey and drilled from the Martlet North-1 pad, and designed to appraise the north-eastern extent of the field and improve overall field recovery. Martlet North-2 reached total depth of 1,626 metres subsequent to month-end, with the decision made to plug and abandon due to lack of commercial pay. Refer to the map in Figure 2 for the Martlet North-2 well location.

Senex expects to move the rig to a drilling location in the south-western Cooper Basin during September.

FURTHER INFORMATION

Investor Enquiries: Media Enquiries: Ian Davies Tess Palmer Rhianne Bell Managing Director Investor Relations Manager Corporate Communications Manager Senex Energy Limited Senex Energy Limited Senex Energy Limited Phone: (07) 3335 9000 Phone: (07) 3335 9719 Phone: (07) 3335 9859

ABOUT SENEX Senex is an ASX listed oil and gas exploration and production company focused on generating shareholder value by growing reserves and production. It holds extensive onshore oil and gas acreage in the Cooper and Surat Basins, two of Australia’s most prolific onshore energy regions. Senex is well capitalised and has built strong operating credentials over its 30 year history. Senex operates the majority of its low cost oil producing assets, and is successfully developing a gas business including the 100% owned and operated Western Surat Gas Project in Queensland.

Senex Energy Limited Head Office ABN 50 008 942 827 Level 14, 144 Edward St, Brisbane Qld 4000 ASX : SXY GPO Box 2233, Brisbane, Qld, Australia 4001

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Phone +61 7 3335 9000 Facsimile +61 7 3335 9999 Page 1 of 4 Web www.senexenergy.com.au

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Drilling Report
August 2017
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DRILLING FOR THE MONTH ENDED 31 AUGUST 2017

Surat Basin	Well details		Working interest *Operator		Status of operations		Horizon targets
Western Surat Gas Project Phase 2 Gas appraisal Queensland Surat Basin (14 of 30 wells drilled to date)	Glenora-8 ATP 889		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:415 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Eos-10 ATP 795		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:430 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Eos-11 ATP 795		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:425 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Glenora-11 ATP 889		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:425 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Eos-9 ATP 795		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:419 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Eos-12 ATP 795		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:400 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
	Eos-6 ATP 795		SXY* 100%		Report time:0600 (AEST) 01/09/2017 Total depth:394 m Activity: Cased and suspended as future CSG producer		Walloon Coal Measures
Cooper Basin		Working interest *Operator		Status of operations		Horizon targets
Martlet North-2 Ex-PEL 104/111 PRL 148 Oilappraisal well South Australia Cooper	Basin	SXY* 60% BPT 40%		Report time:0600 (CST) 01/09/2017 Total depth:1,485 m Activity: Plugged and abandoned		Namur Sandstone

SXY – Senex Energy Limited BPT – Beach Energy Limited

Senex Energy Limited ABN 50 008 942 827 ASX : SXY

Head Office

Phone +61 7 3335 9000 Facsimile +61 7 3335 9999 Web www.senexenergy.com.au

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Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane, Qld, Australia 4001

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Drilling Report
August 2017
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Figure 1: Surat Basin Senex drilling activity for August 2017

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Senex Energy Limited ABN 50 008 942 827 ASX : SXY

Head Office Level 14, 144 Edward St, Brisbane Qld 4000 GPO Box 2233, Brisbane, Qld, Australia 4001

Phone +61 7 3335 9000 Facsimile +61 7 3335 9999 Web www.senexenergy.com.au

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Drilling Report
August 2017
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Figure 2: Cooper Basin Senex-operated drilling activity for August 2017: Martlet North-2

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Senex Energy Limited Head Office ABN 50 008 942 827 Level 14, 144 Edward St, Brisbane Qld 4000 ASX : SXY GPO Box 2233, Brisbane, Qld, Australia 4001

Phone +61 7 3335 9000 Facsimile +61 7 3335 9999 Page 4 of 4 Web www.senexenergy.com.au