Ann: Lattice Energy acquisition, page-2

BEACH ENERGY ANNOUNCES TRANSFORMATIONAL ACQUISITION OF LATTICE ENERGY AND A $301 MILLION 3 FOR 14 PRO‐RATA ENTITLEMENT OFFER

 Beach Energy to acquire all of the shares in Lattice Energy for $1,585 million
 Transformational acquisition enhancing growth, scale and diversity of operations
 Increases 2P reserves by ~200% to 232 MMboe1 and FY18 production guidance by ~150% to 25‐ 27 MMboe2
 Portfolio of producing assets underpinned by long term contracts delivering strong and stable cash flow with development upside
 Significant portfolio upside through exploration, strategic partnering and infrastructure ownership
 Increased exposure to the strong market fundamentals of the Australian east coast gas market
 Value creation through scale, operating capabilities and synergies
 Acquisition delivers per share reserves, operating cash flow and value accretion
 Target net gearing ratio of <25% by end of FY19 with anticipated strong deleveraging thereafter
 Acquisition to be funded through a $301 million pro‐rata accelerated non‐renounceable entitlement offer and new committed senior secured syndicated debt facilities
 Beach’s largest shareholder, Seven Group Holdings, is strongly supportive of the transaction