The Pirie-1 well site is located on the PEL 105 licence area, which is operated by Beach in a 50/50 joint venture with Austin Exploration.
The licence area covers about 20.2 square kilometres and lies about 60 kilometres north of the gas exploration and processing town of Moomba in South Australia.
Co-venturer Austin said the area was estimated to hold proven plus probable recoverable reserves of two million barrels of oil.
Austin first announced plans to spud the Pirie-1 well in the third quarter of 2008, however, the PEL 105 licence area became flood-affected and drilling on the block has not been possible until now.
Beach will pay the first A$1.75 million (US$1.83 million) towards the drilling of Pirie-1. Following this, the costs will be split in half through to the completion of the well.