T/38P (Beach 80%)

T/38P is located on the south-central flank of the Bass Basin between Victoria and Tasmania in less than 100m of water. The basin lies adjacent to the prolific Gippsland Basin, with which it shares a similar geologic history and hydrocarbon system.

Beach farmed in to a defined portion of the permit in August 2007 by agreeing to contribute to the drilling of Spikey Beach-1. This prospect is a relatively simple anticline at the level of the target Eastern View Coal Measures that encloses an area of about 11 km2 and has about 30 metres of vertical relief. Beach assesses Spikey Beach to have the potential to contain up to 33 million barrels of recoverable oil.

Spikey Beach-1 is expected to be drilled in the second half of 2008.

T/39P (Beach 50%)

T/39P is located on the southern margin of the Bass Basin in a similar setting to the T/38P permit described above.

Beach will earn a 50% interest in the permit by contributing to the drilling of PeeJay-1, to be drilled in the second half of 2008.

Like Spikey Beach above, PeeJay is a simple anticlinal closure with an area of approximately 12 km2 and 40 metres of relief. Beach assesses the prospect to have the potential to contain up to 57 million barrels of recoverable oil.