Santos Limited

The Australian sharemarket closed marginally lower in light trading yesterday as banks were down on concerns that bad debts could increase after interest rate rise. The benchmark S&P/ASX 200 index gave up 5.9 points, or 0.13 per cent, at 4670.60, while the broader All Ordinaries lost 0.19 per cent to 4686.40 points.

US shares fell on Thursday as the services sector index declined unexpectedly in November. The contraction also hurt sentiment ahead of the release of unemployment figure.

Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) The drilling report for the week ending 2 December. Highlights of the week's activities include: NS377-4 (Teen) is scheduled to spud on 4 December. Operations at Paralana-2 have resumed after a week of waiting on roads to dry following heavy rainfalls in the basin.

Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) drilling report for the week ending 25 November. Highlights of the week's activities include: Production testing of NS377-3 (Beach 20%) Kareem Formation reservoir to provide data about fluid and reservoir properties has been completed. Logging information for Paralana-2 geothermal deep injector well (Beach, well Operator, earning 21%) has been acquired to 3,740m and is currently being evaluated.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce that the Ipundu North-13 (IN-13) development well has encountered significant pay and will be cased and suspended as a future oil producer in the Murta and Birkhead Formations.

Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) drilling report for the week ending 18 November, 2009 are attached. Highlights of the week's activities include: The upper 5.6 metres of the Namur Sandstone at Chiton-1 (PEL 91, Beach 40%) has been perforated and was flow-tested for an 80 minute period at an average rate of 2434 barrels oil and 226 barrels of water per day. The NS377-3 field development well (Beach 20%) has been cased and production testing to provide data about fluid and reservoir properties has been initiated. Evaluation of the Paralana-2 geothermal deep injector well (Beach, well Operator, earning 21%) has commenced.

Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) drilling report for the week ending 11 November. Highlights of the week's activities include: The NS377-3 field development well (Beach 20%) has been cased and the 145 metre gross vertical oil column intersected by the well is being perforated for future oil production. The Paralana-2 geothermal exploration well has reached target TD of 4012 metres and the formation evaluation program is being planned.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce that the Ipundu-16 development well has been successfully drilled and will be cased and suspended as a future oil producer.

Drillsearch Energy Ltd (ASX:DLS)(PINK:DRLLF) is pleased to announce the recommencement of the Tintaburra Block development drilling with the spudding of the Ipundu-16 development well. The Tintaburra Block is a joint venture of Santos Ltd (89%) and DLS (11%) and is the company's largest production joint venture.

Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) drilling report for the week ending 28 October. Highlights of the week's activities include: The NS 394-3 [Burtocal North-1] oil exploration well (Beach 20%) is at a depth of 3224 metres. The current operation is tripping out of hole to change bit prior to drilling ahead towards reservoir target Nubia Formation. The NS 377-3 development well (Beach 20%) is at a depth of 2292 metres. The current operation is preparing to drill ahead towards extended reach target having set 9.625" casing.