Brisbane, July 3, 2008 (ABN Newswire) - Beach Petroleum Limited Weekly Drilling Report Week ending 2 July 2008

The weekly drilling report for the week ending 2 July 2008 is attached.

Highlights of the week's activities include:

Cooper/Eromanga Oil

- In areas operated by Santos, one successful well was drilled (Granchio-3, Beach 20.21%), and two wells are in progress (Big Lake-88, Beach 20.21% and Deparanie-2, Beach 20.21%).

----------------------------
Well            Participants
----------------------------
Granchio-3      BPT   20.21%
PPL 188         STO*  66.60%
Oil Appraisal   ORG   13.19%
C/E Basin, SA

Weekly Progress & Summary                     Primary Targets

Report Time:    0600 hrs (CST) 01/07/2008     McKinlay
Depth:          1571m                         Basal Birkhead (S)
Operation:      Cased and suspended as future 
                McKinlay oil producer.
Progress:       257m

----------------------------   
Well            Participants
----------------------------
Big Lake-88     BPT     20.21%
PPL 11          STO*    66.60%
Oil Development ORG     13.19%
C/E Basin, SA

Weekly Progress & Summary                     Primary Targets

Report Time:    0600 hrs (CST) 01/07/2008     Hutton
Depth:          550m
Operation:      Running surface casing
Progress:       550m

----------------------------
Well            Participants
----------------------------
Deparanie-2             BPT     20.21%
PPL 174                 STO*    66.60%
Oil Appraisal           ORG     13.19%
C/E Basin, SA

Weekly Progress & Summary                     Primary Targets

Report Time:    0600 hrs (CST) 01/07/2008     Namur
Depth:          1439m                         Tirrawarra (s)
Operation:      Drilling ahead in main hole.
Progress:       1439m

----------------------------                
COAL SEAM GAS PROJECTS
----------------------------
Location            Participants
PL 198              BPT 40%
Coal Seam Develop't AOE*60%
Surat  Basin, QLD


Well            Depth        Operation: 0600hrs (EST) 2nd July 2008
Tipton - 113    392.35m      Running production liner
Tipton -39T     133.93m      Drilling ahead in main hole.
Tipton - 132A   622.00m (TD) Well completed, moved to Tipton 39T
Tipton - 133    631.00m (TD) Wellhead installed, moved to Tipton 113

* Operator
(s)  Secondary Targets
BPT   Beach Petroleum Ltd               
STO   Santos Limited
ORG   Origin Energy Resources Ltd
AOE   Arrow Energy NL