Beach Energy Limited (ASX:BPT) Monthly Drilling Report Ending 4 August 2010

Adelaide, Aug 4, 2010 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) announces monthly drilling report for the period ending 4 August 2010.

AUSTRALIA

Beach Operated Cooper-Eromanga Basin Gas - PEL 106 Farm-in Block

Testing operations at Canunda-1 have been suspended due to heavy rainfalls affecting road access and crude transport. The testing program is expected to resume towards the end of next week (Beach 50%, Drillsearch (ASX:DLS) (PINK:DRLLF) 50%).

Cooper / Eromanga Oil Development - Santos (ASX:STO) Operated

The Watson West-1 oil exploration well has been cased and suspended as a future Basal Birkhead Formation oil producer (Beach 38%).

Cooper Basin Gas Development - Santos Operated

Drilling operations on the Coonatie field have been suspended due to the rainfalls which are affecting road access to the Coonatie drill sites.

Coonatie-19 is to be cased and suspended as a future gas producer from multiple Permian sands. Coonatie-20 is at a depth of 1949 metres in the Jurassic. Drilling operations are expected to resume late next week.

Three further wells are planned for the Coonatie field as part of the seven well development drilling campaign for the field (Beach 17.14%).

Beach Operated Cooper Basin

Unconventional- PEL 218

Drilling of Encounter-1, the first of a two well, back-to-back exploration program targeting Shale Gas potential in the South Australian portion of the Nappamerri Trough, is expected to commence towards the end of the month using the Ensign 16 rig. All components of the rig have arrived in Australia and are ready for mobilisation to the rig site.

Holdfast-1 will follow Encounter-1.

Each of the two wells is expected to take approximately 50 days to drill and set casing (Beach - Operator, 90%, Adelaide Energy (ASX:ADE) 10%).

INTERNATIONAL

Unconventional Non-operated Oil Appraisal, South Antelope Prospect, Williston Basin - North Dakota, USA

Surface facilities have been installed and a multistage fracture stimulation of the Three Forks Formation at the Henderson 4-25H well, drilled in June, has been successfully completed. The well commenced flow testing on Friday 30 July and was free flowing oil and fracture stimulation fluids, with the oil rate being approximately 1,000 barrels per day. Mean reserves of 460,000 barrels of oil (85,000 barrels net to Beach) are being targeted (Beach net revenue interest approximately 18.5%).

Beach will also be participating in the Henderson 4-26/35H horizontal well (Beach net revenue interest approximately 14.7%) targeting the Three Forks Formation in Sections 26 and 35. The well, expected to spud next week, is designed to have a 2.7 km horizontal section and a 24 stage fracture stimulation, targeting approximately 600,000 barrels of oil (90,000 barrels net to Beach).

Upcoming Wells for August

Conventional (Santos Operated)

- Irtalie East-1 oil exploration well (Beach 38.5 %)

- Coonatie-18, -14 and -15 gas development wells (Beach 17.14%)

Unconventional

- Encounter-1 Shale Gas exploration well (Beach 90%, Operator)

- Henderson 4-26/35H oil appraisal well (Beach net revenue interest approximately 18.5%; Helis Operator).

Drilling Report - Period ending 4 August 2010

( * )    Operator(s)      Secondary TargetsBPT      Beach Energy LimitedSTO      Santos LimitedSEA      Sundance Energy Australia Limited (ASX:SEA)Helis    Helis Oil & Gas Company L.LCORG      Origin Energy Resources Limited1.-------------------------------------------------Well                    Participants-------------------------------------------------Watson West-1           BPT               38.00%PL 35                   STO* and others   56.00%Oil Exploration             C/E Basin, QLD---------------------------------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets--------------------------------------------------------------Report Time: 0600 hrs (AEST) 04/08/2010   Birkhead Formation /Depth:       1674m (TD)                   Hutton SandstoneOperation:   Well is cased and suspended              as a future Jurassic oil              producer.      Progress:    1436m--------------------------------------------------------------2.--------------------------------------Well                    Participants--------------------------------------Coonatie-19             BPT     17.14%PPL 131                 STO*    72.32%Gas Development         ORG     10.54%C/E Basin, SA------------------------------------------------------------------------------------------------------Weekly Progress & Summary                  Primary Targets----------------------------------------------------------------Report Time: 0600 hrs (CST) 04/08/2010     multi Permian targetsDepth:       3263m (TD)               Operation:   Operations suspended following              heavy rains in area. Well is              to be be cased and suspended              as a future Permian gas producer.    Progress:    3070m----------------------------------------------------------------3.--------------------------------------Well                    Participants--------------------------------------Coonatie-20             BPT     17.14%PPL 131                 STO*    72.32%Gas Development         ORG     10.54%C/E Basin, SA-----------------------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------------Report Time: 0600 hrs (CST) 04/08/2010    multi Permian targetsDepth:       1949m                       Operation:   Operations suspended              following heavy rains in              area. Waiting on road              access.      Progress:    1949m---------------------------------------------------------------4.-------------------------------------------------------Well                     Participants-------------------------------------------------------Henderson 4-25H          BPT**                   23.15%Section 25 McKenzie      SEA                     24.02%County, Nth Dakota       Helis* plus 7 others    52.83%Oil Appraisal           -----------------------------------------------------------------------------------------------------------------------Weekly Progress & Summary                  Primary Targets----------------------------------------------------------------Report Time: 0600 hrs (local) 03/08/2010   Three Forks FormationDepth:       4865.0mMD (TD)                Bakken FormationOperation:   Well has been fracture              stimulated and flow testing              has been initiated.      Progress:    0----------------------------------------------------------------

For the complete Beach Energy drilling report including Well Location Map, please view the following link:

http://www.abnnewswire.net/media/en/docs/63474-ASX-BPT-179030.pdf

Contact

Steve Masters / Nicola Frazer Beach Energy Limited Tel: +61-8-8338-2833