Beach Petroleum

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Address
Level 1
25 Conyngham Street
Glenside SA 5065
ACN 007 617 969
Australia

Tel (08) 8338 2833
Fax (08) 8338 2336
Web http://www.beachpetroleum.com.au
Email info@beachpetroleum.com.au

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Capex

Future Plans

Exploration and Development Objectives

The objectives of the Company's exploration and development program are:
• As a first priority, participate in sufficient low risk exploration and development activity, primarily in the onshore Cooper/Eromanga and Otway Basins, to maintain or improve the Company's reserves base.
• As a second priority, participate in exploration activities, primarily in prospective offshore regions on the northwest margin of Australia, with the potential to make substantial additions to the Company's reserve base, albeit at a higher level of risk.

Expansion of Exploration Activities

In August 2007, Beach entered into farmin arrangements through which the Company will acquire interests in three high potential offshore exploration projects in Australia and New Zealand. Each of these projects has the potential to yield net oil reserves to Beach in excess of 20 mmb.

The new projects are:
PEP 38482 (offshore Taranaki Basin, New Zealand) Beach will earn a 20% interest by participating in Kopuwai-1, to be drilled in September/October 2007.

T/38P (Bass Basin, offshore Tasmania) Beach will earn an 80% interest in a defined portion of the permit by participating in Spikey Beach-1, to be drilled in the second half of 2008.

T/39P (Bass Basin, offshore Tasmania) Beach will earn a 50% interest by participating in Peejay-1, to be drilled in the second half of 2008.

This continues Beach's strategy of maintaining exposure to higher reward projects as a balance to the Company's lower risk/reward activities in the Cooper and Surat Basins.

Production

The Company’s oil and gas production is derived from the Cooper and Eromanga Basins (northeastern South Australia and south-western Queensland), the Surat Basin (eastern Queensland) and the Gippsland Basin (offshore Victoria).

Production for the half-year to 31 December, 2007 totalled 4,583 thousand barrels of oil equivalent (kboe) compared with 4,696 kboe for the previous corresponding period. Oil production was up by 46% due, to increased production from the Cooper and Gippsland Basins, offset by reduced Cooper Basin gas production (down 16%) resulting primarily due to a shut-down of the Moomba plant for 11 days in December for maintenance.

Production comprised approximately 27% oil and 73% gas/gas liquids. The Cooper/Eromanga made up 71% of Beach’s oil production with the remainder (29%) coming from the Gippsland Basin. The Cooper Basin also made up 94% of Beach’s gas production with 6% from the Surat Basin.

During the interim period to 31 December, 2006, production was 4,696 kboe (thousand barrels of oil equivalent) up 695 per cent, up from 591 kboe for the previous corresponding period. The dramatic rise resulted from the increase to production by Delhi Petroleum, which was acquired by the company effective July 1, 2006.

Reserves

At the end of 2006, Beach Petroleum's Proved and Probable reserves increased to 101 mmboe (millions of barrels of oil equivalent), ranking it among the top five ASX listed oil and gas companies.

Upon commitment to a sales contract and development of the BMG gas project, this reserves base is expected to increase substantially, potentially placing the Company in fourth place after Woodside Petroleum, Santos and Origin Energy.

Who's Who

Hector Mackenzie Gordon
General Manager - Exploration & Production
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Neil Michael Gibbins
Exploration Manager
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Hector Gordon
Chief Operating Officer and Executive Director
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Neil Gibbins
Exploration Manager
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Kathryn Presser
Chief Financial Officer and Joint Company Secretary
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Andrew Maxted
Group Accountant
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Cathy Oster
Legal & Corporate Counsel and Joint Company Secretary
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Gordon Moseby
Production Manager
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Robert Michael Kennedy
Chairman
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Reginald George Nelson
Managing Director and Executive Director
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John Butler
Non-Executive Director
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Franco Moretti
Non-Executive Director
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Offices

Australia
Head Office
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