Beach Petroleum Acquires Stake in Harpoono Block

Beach Petroleum has reached agreement with Stuart Petroleum Ltd to earn a 33.33% interest in a new block to be created within the PEL 113 area, to be called the Harpoono Block in Australia. In order to earn this interest, Beach will contribute to the cost of drilling, and if necessary, completion of the Harpoono-1 Well, due to spud Monday May 24, 2004.

The Harpoono Block is located on the north east flank of the Dunoon High which is the western extension of the Murteree High containing a number of proven oil fields to the north east. Thick Permian potential source rocks are located on the northern and eastern flanks of the Harpoono structure.

Harpoono-1 is located 2.5km NNE of the Dunoon-1 exploration well and approximately 52km south of the Moomba oil and gas processing plant.

Stuart Petroleum is Operator of the Harpoono-1 Well.

Participants in the PEL 113 Harpoono Block Joint Venture are: Stuart Petroleum Ltd (Operator) 66.67% and Beach Oil & Gas Pty Ltd 33.33%.