Permit PEL 106 is located in the central, deep portion of the Patchawarra Trough of the Cooper Basin, surrounding several producing Cooper Basin Joint Venture (Delhi 20.21%) gas fields.

Beach initially opted to farm-in on a prospect basis to drill the Middleton-1 well (which flowed gas at approximately 12mmcfd) in 2006. In a subsequent agreement Beach will earn 50% of the “Beach Farm-in Block” by contributing to the costs of a 3D seismic survey over part of the block, and three exploration wells. The first of these wells, Tennyson-1, was P&A after encountering sub-commercial gas. The next drilling is planned for late 2007 once the new 3D seismic has been processed and interpreted.

An extended production test (EPT) of the Middleton-1 discovery was carried out in 2006 and development options are being evaluated in conjunction with the nearby Udacha-1 gas discovery.