Beach Energy Limited (ASX:BPT) Monthly Drilling Report Ending 3 November 2010

Perth, Nov 3, 2010 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) is pleased to release monthly drilling report ending 3 November 2010.

AUSTRALIA

Beach Operated Cooper-Eromanga Basin Gas - PEL 106FI Block

Testing operations at Canunda-1 are expected to recommence next week following fishing operations to remove wireline and pressure gauges from the hole. The evaluation is intended to define size and production characteristics of this high liquids gas field (Beach 50%).

Cooper Basin Gas Development - Santos (ASX:STO) Operated

Operations in the Coonatie Gas Field will continue with Coonatie-14 (Beach 17.14%) which is currently waiting on weather to spud. Coonatie-18 was cased and suspended as a future gas producer during the reporting period. The Strzelecki Northeast-1 (Beach 20.2%) gas development well reached total depth on October 19 and has been cased and suspended as a future gas producer after encountering gas sands in the target Toolachee formation as well as a Patchawarra sand.

Cooper Basin Oil Exploration - Santos Operated

The Irtalie East-1 Jurassic oil exploration well (Beach 38.5%) encountered 6 metres of net oil pay in the Hutton sandstone and has been cased and suspended as a future oil producer.

Cooper Basin Oil Development - Stuart (ASX:STU) (PINK:SPEUF) Operated

Acrasia-5 (Beach 25%) will be cased and suspended as a future oil producer. The well encountered oil pay in all primary and secondary targets at Birkhead, Hutton, Poolowanna and Tinchoo levels. The Birkhead interval recovered 74 barrels of oil with no formation water on drillstem test. The Hutton was not drillstem tested but the Poolowanna flowed oil to surface at over 900 barrels per day with no formation water.

Beach Operated Cooper

Basin Shale Gas Exploration - PEL 218

Drilling operations for Encounter-1 (Beach 90%), the first of a two well, back-to-back exploration program targeting shale gas potential in the South Australian portion of the Nappamerri Trough, has continued through the reporting period. The well is currently at the intermediate casing point at a depth of 2569 metres. It is expected that the well will reach the first coring point in mid-November.

Encounter-1 will be immediately followed by Holdfast-1. Extensive coring and logging programs are planned with the aim of better defining volumes of gas in place and assessing the physical and mechanical properties of the rock to plan for stimulation in early 2011. Fracture stimulation is one of the keys to unlocking gas from shales. The outcome of these wells will aid the future planning of a pilot production well expected to be drilled in 2011, followed by a pilot production project commencing in 2013.

Across the Nappamerri Trough the objective Roseneath, Epsilon and Murteree formations have the potential to contain gas in place in excess of 200 TCF. The shales of the Nappammerri Trough are considered to share many of the attributes of the prolific shale gas producing provinces of the USA.

Beach Operated Geothermal - Paralana Project, Arrowie Basin

A wireline crew was mobilised to Paralana-2 (Beach 21%) to investigate the blockage that prevented perforation of the target interval in late August. The work found no obstruction and the injectvity test will be re-attempted in mid-November after a coiled tubing unit is used to circulate to hole to clean brine.

INTERNATIONAL

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

The Henderson 4-26/35H shale oil appraisal well (Beach 14.7% net revenue interest) spudded on 3 September and reached total depth in mid October. Completion operations are underway. Fracture stimulation of the lateral should occur prior to year end.

Drilling Report - Period ending 3 November 2010( * )    Operator(s)      Secondary TargetsBPT      Beach Energy LimitedSTO      Santos LimitedSTU      Stuart Petroleum SEA      Sundance Energy Australia Limited (ASX:SEA)Helis    Helis Oil & Gas Company L.LCORG      Origin Energy Resources LimitedADE      Adelaide Energy Limited (ASX:ADE) (PINK:ADEZF) 1.--------------------------------Well               Participants--------------------------------Encounter-1        BPT*   90.00%PEL 218            ADE    10.00%Gas Exploration             C/E Basin, SA-----------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------Report Time: 0600 (CST) 03/11/2010        Patchawarra FmDepth:       2596m                           Operation:   Setting intermediate casing.                  Progress:    1644m---------------------------------------------------------2.--------------------------------Well               Participants--------------------------------Acrasia-5          BPT*   25.00%PPL 203            STU*   75.00%Oil Development             C/E Basin, SA-----------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------Report Time: 0600 hrs (CST) 03/11/2010    Hutton SstDepth:       2300m (TD)                   Tinchoo Fm       Operation:   Well is cased and suspended              as a future oil producer.                  Progress:    2300m---------------------------------------------------------3.----------------------------------Well                  Participants----------------------------------Hndrsn. 4-26/35H      BPT   Sect. 25&36 McKenzie  SEA          County, Nth Dakota    Helis*Oil Appraisal         7 others  Williston Basin--------------------------------------------------------------------------------------------Weekly Progress & Summary                  Primary Targets----------------------------------------------------------Report Time: 0600 hrs (local) 03/11/2010   Three Forks FmDepth:       5824m (TD)                        Operation:   Casing run to 3034m. Fracture              liner run and preparing to              fracture stimulate.                Progress:    846m----------------------------------------------------------4.----------------------------------Well                  Participants----------------------------------Irtalie East-1     BPT    38.50%PL 36              STO*   55.50%       Oil NFE            Other  6.00%C/E Basin, QLD          ----------------------------------------------------------------------------------------------------Weekly Progress & Summary                  Primary Targets------------------------------------------------------------------Report Time: 0600 hrs (AEST) 03/11/2010   Birkhead Fm / Hutton SstDepth:       1879m (TD)                   Westbourne Fm,    Operation:   Well is cased and suspended  Basal Jurassic Fm             as a future Hutton Fm oil              producer.                Progress:    1879m------------------------------------------------------------------5.-----------------------------------Well                Participants-----------------------------------Coonatie-18         BPT     17.14%PPL131              STO*    72.32%Gas Development     ORG     10.54%C/E Basin, SA------------------------------------------------------------------------------------------------------Weekly Progress & Summary                     Primary Targets-------------------------------------------------------------------Report Time: 0600 hrs (CST) 03/11/2010        multi Permian targetsDepth:       3230m TD                       Operation:   Well is cased and suspended              as a future Permian gas producer.Progress:    2437m-------------------------------------------------------------------6.------------------------------------Well                  Participants------------------------------------Strzelecki Ntheast-1   BPT    20.21%PPL22                  STO*   66.60%Gas Development        ORG    13.19%C/E Basin, SA ---------------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------Report Time: 0600 hrs (CST) 03/11/2010    Toolachee FmDepth:       2061m(TD)                    Patchawarra FmOperation:   Well is cased and suspended              as a future Toolachee and              Patchawarra formations gas              producer.Progress:    2061m---------------------------------------------------------7.----------------------------------Well               Participants----------------------------------Coonatie-14        BPT     17.14%                 PPL131             STO*    72.32%                   Gas Development    ORG     10.54%    C/E Basin SA      -------------------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------------Report Time: 0600 hrs (CST) 03/11/2010    multi Permian targetsDepth:       168m               Operation:   Drilling ahead.     Progress:    168m---------------------------------------------------------------8. ----------------------------------Well               Participants----------------------------------Tirrawarra-79     BPT    20.21%               PPL20             STO*   66.60%                  Gas Development   ORG    13.19%   C/E Basin, SA     -------------------------------------------------------------------------------------------Weekly Progress & Summary                 Primary Targets---------------------------------------------------------Report Time: 0600 hrs (CST) 03/11/2010    Patchawarra FmDepth:       764m              Operation:   Running surface casing.     Progress:    221m----------------------------------------------------------

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

http://www.abnnewswire.net/media/en/docs/64088-ASX-BPT-180362.pdf

Contact

Steve Masters / Nicola Frazer Beach Energy Limited Tel: +61-8-8338-2833 http://www.beachenergy.com.au