Adelaide, June 19, 2006 AEST (ABN Newswire) - Beach Petroleum Ltd advises that it has entered into an agreement with Sunshine Gas Ltd in relation to ATP 768P, in the Surat-Bowen Basin of eastern Queensland. Under the agreement Beach has the option to earn a 50% 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 2700 metres, will be designed to assess the gas potential of conventional sandstone reservoirs below the gas reservoirs discovered by previous wells in the field. Beach considers the 'deep' target has the potential to contain 30 to 60 BCF of recoverable gas.
ATP 768P covers an area of 4,189 square kilometres and is located approximately 20 kilometres 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 3rd quarter, 2006.
Subject to completion of farm-in obligations by Beach, execution of documentation and subsequent approval by regulatory authority, interest holders in ATP 768P will be:
Beach Petroleum Ltd 50%BNG (Surat) Pty Ltd* 50% (Operator)* A subsidiary of Sunshine Gas Ltd
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