Beach Energy Limited (ASX:BPT) Monthly Drilling Report Ending 1 December 2010

Perth, Dec 1, 2010 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) is pleased to release monthly drilling report for the period ending 1 December 2010.

AUSTRALIA

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. Two of the three planned cores have been recovered for analysis of gas content and physical and mechanical properties, which will take several months to complete. A third core in the Murteree Shale in Encounter-1 will be collected following which the well will be drilled to the planned total depth in the Patchawarra Formation, and cased and suspended. The rig will then move to Holdfast-1, the second of Beach's shale gas evaluation wells.

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

Canunda-1 extended production testing will recommence after a workover to retrieve wireline and pressure gauges from the well and reconfigure production zones. It is anticipated that testing will recommence early in 2011. 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

Drilling of the Coonatie-14 (Beach 17.14%) gas development well has been completed during the reporting period with the well cased and suspended as a future Permian gas producer. Also completed during this period was the drilling of Tirrawarra-79 (Beach 20.21%), which was cased and suspended as a Patchawarra gas producer. Further rain across the basin has once again hampered rig moves, with a delay of seven days expected for Ensign Rig 30 to move from Coonatie-14 to the Coonatie-15 (Beach 17.14%) location. Ensign Rig 32 has been moved to the Tirrawarra-78 (Beach 20.21%) location and will spud after rig repairs.

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

The successful evaluation of the Acrasia-5 (Beach 25%) oil development well was reported in last month's report. The well is currently being completed and connected for production.

Beach Operated Geothermal - Paralana

Project, Arrowie Basin

Workover activities (Beach 21%) planned for late November have been temporarily delayed due to rain. A planned coiled tubing operation to displace the existing brine solution in the casing with water followed by perforation and injection is now expected to occur in early December. The injection activity is the first step in the stimulation process for the well. The main fracture stimulation is anticipated to be undertaken in the first quarter next year.

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) has been suspended awaiting fracture stimulation.

Drilling Report - Period ending 1 December 2010( * )    Operator(s)      Secondary TargetsBPT      Beach Energy LimitedSTO      Santos LimitedORG      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) 1/12/2010         Patchawarra FmDepth:       3371m                           Operation:   Drilling ahead.                  Progress:    775m---------------------------------------------------------2.----------------------------------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) 1/12/2010     multi Permian targetsDepth:       3122m (TD)              Operation:   Well is cased and suspended             as a future Permian gas producer.     Progress:    2954m---------------------------------------------------------------3. ----------------------------------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) 1/12/2010     Patchawarra FmDepth:       3058m (TD)              Operation:   Well is cased and suspended              as a future Permian gas producer.     Progress:    2294m----------------------------------------------------------

For the complete Beach announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64331-ASX-BPT-180848.pdf

Contact

Corporate Reg Nelson / Neil Gibbins Investor Relations Steve Masters / Chris Jamieson Beach Energy Limited Tel: +61-8-8338-2833