Beach Takes Stake in ATP 768P

Beach Petroleum

Beach Petroleum has entered into an agreement with Sunshine Gas, Ltd. in relation to ATP 768P, located in the Surat-Bowen Basin of eastern Queensland.

Under the agreement Beach has the option to earn a 50-percent interest in the tenement by contributing to the cost of the drilling of a gas exploration well within the Champagne Creek Field and by reimbursing Sunshine for a portion of previous exploration costs incurred in ATP 768P.

The well, with an estimated total depth of 2,700 meters, will be designed to assess the gas potential of conventional sandstone reservoirs below the gas reservoirs discovered by previous wells in the field. Beach believes the "deep" target has the potential to contain 30 to 60 BCF of recoverable gas.

ATP 768P covers an area of 4,189 square kilometers and is located approximately 20 kilometers north of the township of Taroom.

Sunshine Gas, Ltd., through its wholly owned subsidiary BNG (Surat) Pty, Ltd., remains the operator of ATP 768P and expects to commence drilling operations in the third quarter 2006.

Pending completion of farm-in obligations by Beach, execution of documentation, and subsequent approval by regulators, interest holders in ATP 768P will be Beach with 50 percent and BNG as operator with 50 percent