Beach Petroleum Acquires Stake in PEL 27 in South Australia

Origin Energy has reached agreement with Beach Petroleum Limited in relation to a farmin arrangement for PEL 27, an exploration tenement located in the onshore Otway Basin in the southeast of South Australia.

Under the terms of the farm-in Beach will earn a 50% interest in PEL 27 by contributing to the cost of drilling the Nampara South-1 exploration well. This well will be drilled in late 2004 or early 2005 to test the oil potential of the Sawpit Sandstone in a prospect located approximately 25 km to the northwest of Penola.

Under the terms of the agreement Beach will assume Operatorship of the PEL 27 Joint Venture.

Subject to execution of documentation and subsequent approval by the regulatory authority, interest holders in PEL 27 will be:

Beach Petroleum Limited 50.0% (Operator)
Origin Energy Resources Limited 16.7%
Origin Energy CSG Limited 33.3%