Beach Petroleum Contracts Rig for Queensland Exploration Program

Beach Petroleum has contracted Hunt Energy's Rig #2 to conduct a drilling program of up to twelve wells in the Cooper/Eromanga Basin of south-west Queensland.

The program, which is expected to commence in April, will consist of up to nine appraisal wells in the Kenmore and Bodalla South Oil Fields, (owned 100% by Beach), and up to three oil exploration wells in ATP 269P.

Beach has also entered into a Rig Sharing Agreement with Bow Energy Limited under which that company will have the option to utilise Hunt Rig #2 for up to 7 wells within its tenements in the Eromanga Basin (in addition to the Beach activity). The combined Beach/Bow program is expected to commence in April and be completed in early 2007.