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Bauer-3 Development Well Success

Western Flank Oil Bauer3 Development to be cased and suspended as future oil producer Bauer3 development well to be cased suspended as future production well Well intersects thicker McKinlay/Namur gross pay interval Pay Zone than predrill prognosis Drillsearch Energy Limited ( DLS) is pleased to announce that following the earlier success at the Bauer4 development well the Bauer3 development well has been successfully drilled and is currently being cased and suspended as a future production well. Drillsearch holds a 60% interest in PEL 91 while Beach Energy ( BPT) as operator holds 40%. The Bauer3 development well intersected a thicker McKinlay/Namur pay zone than predrill estimates. The well encountered both the McKinlay and Namur pay zones intersecting 10 meters of McKinlay/Namur gross column with 3.5 meters of clean net pay in the Namur Sandstones.

Predrill estimates for McKinlay and Namur pay zones were 3 meters and 5.5 meters respectively. The Bauer Field was discovered in August 2011 with the drilling of the Bauer1 exploration well. The discovery well intersected a 14.6m oil column in the McKinlay/Namur of which 11.7m was Namur Sandstone pay. The Bauer Oil Discovery is estimated to have gross mean oil reserves of 3.5 mmbbls.

Bauer1 has one of the largest McKinlay/Namur oil columns found to date in the Western Flank Oil Fairway. Bauer3 is the second of three development wells to be drilled on the Bauer Oil Discovery and following completion of the Bauer3 operations, the Ensign30 drilling rig will move to the Bauer2 well site located 380 meters west of the Bauer1 discovery well (see map). The Bauer2 development well is expected to spud in the next seven days. Beach Energy as the operator of the PEL 91 Joint Venture has secured a workover/completion rig which in due course will be moving to the Bauer1, Bauer3 and Bauer4 well locations to complete these wells as oil production wells. Following the completion of the Bauer2 development well, a full evaluation of these drilling results will be undertaken to update the recoverable oil estimates for the Bauer Oil Discovery.

With the significant increase in net pay encountered in the Bauer4 development well, it is anticipated that this is likely to have a positive impact on the recoverable oil in the Bauer Oil Discovery. Upon the spudding of the Bauer2 development well and upon completion of drilling operations on these wells, Drillsearch will announce the results of these drilling operations. Yours faithfully Brad Lingo Managing Director P612 9249 9600 admindrillsearch.com.au Or visit the website www.drillsearch.com.au and register for email alerts Media enquiries to David Greer, Executive Director, Radar Group, P612 8256 3307, davidgradargoup.com.au.