Beach Energy Ltd. has announced that the prospective shale interval on its Nappamerri Trough target is considerably thicker than anticipated.

The Roseneath shale intersection was originally expected to be approximately 197 feet thick. However, information from the logging runs conducted earlier in the week indicates that the section is closer to 656 feet thick.

The likelihood that shale volumes in this section of the trough are accordingly much greater than first thought has significant implications for larger volumes of gas in place.

A further potential benefit is that the thick target shale interval should provide greater flexibility to optimize fracture stimulation treatments, since they will be more easily contained within the target interval.

Accordingly, Encounter-1 is being deepened and additional coring is currently underway in the base of the Epsilon Formation. Beach is determined to ensure the entire target interval is fully evaluated, hence the further drilling.

Good gas shows continue to be recorded throughout the cored and drilled intervals.

About Beach Energy Limited

Beach Energy Limited is a long established oil and gas Exploration and Production Company. Based in Adelaide, South Australia, the Company has oil and gas reserves of 66 million barrels of oil equivalent (at 30 June 2009), an annual production in the 2008/09 Financial Year of 9.6 million barrels of oil equivalent and an active exploration program within a balanced global portfolio of tenements.