VIC/P46 (Beach 50%)

Beach farmed into the offshore Otway Basin permit VIC P/46 in October 2004, increasing its equity and assuming Operatorship in 2006. This permit covers an area of about 1800km2 just west and southwest of Portland in water depths between 50 and 200 metres. It is located close to local gas market potential, or for tie-in to the SEAGas pipeline.

Exploration is primarily focussed on the proven Waarre Formation gas play. Several large structures have been identified in the near-shore portion of the permit, within 25km of the coast and in water depths of less than 110 metres. A 3D seismic survey was conducted in May 2007 over one of the structures and Fermat-1 is expected to be drilled in the second half of 2008.

PEP 150 (Beach 50%)

Beach is part of a Joint Venture that was the successful bidder for Block VIC/099 (1) in the onshore Otway Basin, western Victoria. Award of an exploration permit (PEP 150) will occur after resolution of Native Title issues. Negotiations with claimants have been successful and the appropriate legal documentation is being prepared, ahead of formally obtaining the permit.

PEP 150 covers an area in the vicinity of Portland which is primarily prospective for gas discoveries in the Cretaceous aged Waarre Sandstone.

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PRL 13 (Beach 30%)

Retention Licence PRL 13 was granted in December 2006 over the Killanoola discovery. The Joint Venture plans to conduct further testing on Killanoola-1 in order to determine whether at current prices the oil can be commercially produced.